Crude Oil price Today – Crude Oil Futures Inch Higher Boosted by Stronger Global Economic Outlook

SECTOR COMMENTARY:

The energy sector is poised for a mixed to higher start, backed by strength across the underlying commodities while major equity futures were flat as investors stayed on the sidelines ahead of minutes from the Federal Reserve’s last meeting that could offer clues on the central bank’s views on inflation and an economic recovery.

WTI and Brent crude oil futures inched higher this morning, boosted by prospects for stronger global economic growth, though gains were capped as talks to revive a nuclear deal with Iran raised the possibility of an easing of sanctions on its oil exports. Ahead of the official EIA report later today, traders also weighed last night’s API report that showed U.S. crude stocks dropped by 2.6 million barrels last week, while gasoline inventories rose by 4.6 million barrels and distillate stocks up by 2.8 million barrels.

Natural gas futures edged higher this morning from a 10-week low in the prior session as the recent steep drop in prices encouraged power generators to burn more gas and less coal to produce electricity and on forecasts for slightly cooler weather over the next two weeks.

US INTEGRATEDS

Chevron announced its wholly-owned subsidiary Chevron U.S.A. has signed a binding Sale and Purchase Agreement with Hokkaido Gas Co., Ltd. for the delivery of liquefied natural gas from Chevron’s global LNG portfolio to the Hokkaido area. Under the agreement, CUSA will supply Hokkaido Gas with about a half million tons of LNG over a period of five years starting April 2022.

INTERNATIONAL INTEGRATEDS

According to Reuters, Royal Dutch Shell said it expected its first-quarter adjusted earnings to see a hit of up to $200 million due to an extreme cold snap in Texas in the quarter. In an update ahead of first-quarter results due April 29, Shell, the world’s biggest fuel retailer, said it saw refined oil product sales at between 3.7 and 4.7 million barrels per day (bpd) for the first quarter.

CANADIAN INTEGRATEDS

No significant news.

U.S. E&PS

Evercore ISI resumed coverage of Diamondback Energy with an Outperform rating.

Laredo Petroleum sees total production of 78.9 MBOE per day for the three months ended March 31

Northern Oil and Gas announced that it closed on its previously announced acquisition of properties owned by Reliance Marcellus, LLC on April 1, 2021.

CANADIAN E&PS

No significant news.

OILFIELD SERVICES

Fluor announced that Stork, a Fluor company, was awarded a 2-year contract for inspections, surveillance and quality assurance services by Babcock International Group, covering various vendor sites in the United Kingdom, including Babcock’s Rosyth site, as well as other global locations. Fluor booked the contract value in the first quarter of 2021.

Halliburton Company and Optime Subsea announced they formed a global strategic alliance to apply Optime’s innovative Remotely Operated Controls System to Halliburton’s completion landing string services. The companies will also collaborate and offer intervention and workover control system services leveraging Optime’s Subsea Controls and Intervention Light System technology, a remote digital enabled system that compliments Halliburton’s subsea intervention expertise.

SocGen upgraded Petrofac to Hold from Sell.

Petrofac announced that it has extended US$700 million of its banking facilities, at its request, with the unanimous support of lenders.  These extensions comprise a US$610 million extension of its existing revolving credit facility to 2 June 2022, with an option to extend for a further six months, and a US$90 million extension of its bilateral term facility with Abu Dhabi Commercial Bank to 1 April 2022. 

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

No significant news.

MARKET COMMENTARY

U.S. stock futures were slightly higher and European shares hovered around record highs as a strong global growth forecast from the International Monetary Fund boosted demand for riskier assets. Oil prices edged higher. Asian shares pulled back from a three-week high, dragged lower by Chinese stocks. Hopes of swift economic recovery pulled gold prices lower, while the dollar was little changed. Trade deficit data for February is scheduled for release later during the day.

NASDAQ ENERGY TEAM THOUGHT LEADERSHIP

Nasdaq Advisory Services Energy Team is part of Nasdaq‘s Advisory Services – the most experienced team in the industry. The team delivers unmatched shareholder analysis, a comprehensive view of trading and investor activity, and insights into how best to manage investor relations outreach efforts. For questions, please contact Tamar Essner. 

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