Oil Prices Near One-Week High as Expectations of Iran’s Early Return to Markets Temper – Nasdaq

oil-prices-near-one-week-high-as-expectations-of-iran’s-early-return-to-markets-temper-–-nasdaq

Did you know that geoFence is your security solution to protect you and your business from foreign state actors?

Blue barrels of oil stacked sideways on top of each other

Oil prices slipped on Tuesday, but were near one-week highs after jumping more than 3% the previous session as investors tempered expectations of an early return of oil exporter Iran to international crude markets.

Published

SECTOR COMMENTARY:

Energy stocks are set to open down slightly, with slightly weaker oil prices offsetting higher broader index futures.  Sectors news flow continues to be light post-earnings.

Oil prices slipped on Tuesday, but were near one-week highs after jumping more than 3% the previous session as investors tempered expectations of an early return of oil exporter Iran to international crude markets. "It seems that the market no longer expects the nuclear agreement between the US and Iran to be reinstated in the near future, or therefore that Iranian oil exports will quickly return to the global market," Commerzbank said in a note.

Natural gas futures are higher by 1% on light trading.  The June contract expires tomorrow.  LNG flows are tracking historical averages.

US INTEGRATEDS

No significant news.

INTERNATIONAL INTEGRATEDS

According to Reuters, Australia's New South Wales (NSW) state said it has awarded a A$3.2 billion ($2.5 billion) contract to Royal Dutch Shell and renewable energy firm Edify to build a 100-megawatt battery to boost its energy supplies.

CANADIAN INTEGRATEDS

No significant news.

U.S. E&PS

Simmons Energy downgraded Cimarex Energy to Neutral from Overweight.

Scotiabank downgraded Cimarex Energy to Sector Perform from Sector Outperform.

Wells Fargo downgraded Cimarex Energy to Equal Weight from Overweight.

Extraction Oil & Gas reported financial and operational results for the first quarter of 2021. For the first quarter, Extraction reported crude oil, natural gas and NGL sales revenue of $292 million, as compared to $165 million during the first quarter of 2020, representing an increase of $127 million, driven primarily by higher crude oil, natural gas and NGL prices. Extraction reported net income of $960 million, or $7.02 per basic and diluted share, for the combined first quarter, driven primarily by a $874 million gain on reorganization items and a year-over-year increase in natural gas sales of $103 million. This compared to net income of $9 million for the prior Predecessor quarter. Adjusted EBITDAX was $207 million for the combined first quarter, up 67% year-over-year.

CANADIAN E&PS

Kelt Exploration is providing updated guidance for 2021. Kelt's board of directors has approved an increase to the Company's capital expenditure program for 2021. Kelt expects to spend $150.0 million in 2021, up 25% from its previous forecast of $120.0 million. The Company has elected to bring forward certain expenditures previously planned for 2022 in order to take advantage of current commodity prices. In doing so, Kelt expects higher production and funds from operations in 2021. In addition, the Company will put itself in a position to show continued growth in production in 2022 by accelerating capital expenditure plans. Kelt will continue to maintain its strong financial position. At December 31, 2021, the Company expects to have debt, net of working capital, of $11.0 million or only 0.1 times adjusted funds from operations. Production in 2021 is now forecasted to average 21,000 BOE per day, up 11% from its previous forecast of 19,000 BOE per day. Adjusted funds from operations for 2021 is forecasted to be $118.0 million, a 10% increase from its previous forecast of $107.0 million. 

Touchstone Exploration provided an operational update, highlighted by the recovery of pressure gauges from the Cascadura Deep-1 well on the Company's Ortoire onshore exploration block in Trinidad (Touchstone 80 percent working interest operator, Heritage Petroleum Company Limited 20 percent working interest). As previously announced, the Cascadura Deep-1 well was completed over a 199-foot-thick interval in Sheet Four of the overthrust Herrera Formation. Following production testing operations, the well was shut in for a pressure buildup test on April 11, 2021, and the pressure gauges were recovered on May 17, 2021. The downhole gauges recovered from Cascadura Deep-1 have provided excellent data, and the information has increased its confidence in the substantial size of the pool's reserves and its potential deliverability. The data is consistent with the previous testing performed at Cascadura-1ST1, and was encouraged by the lack of any boundary limits observed on the reservoir. The team continues to move all of its projects forward under the COVID-19 restrictions that were recently enacted in Trinidad. It also continue to have a comprehensive COVID-19 protocol in place in collaboration with its industry partners, and committed to the safety and well being of its employees, contractors and the residents of the communities it operate in. For the most part, its routine operations remain uninterrupted, and will recommence the affected operations as soon as it can safely do so.

OILFIELD SERVICES

BMO upgraded Toromont Industries to Outperform from Market Perform.

DRILLERS

No significant news.

REFINERS

No significant news. 

MLPS & PIPELINES

No significant news. 

MARKET COMMENTARY

Wall Street futures rose, helped by gains in technology-related stocks as inflation worries eased. European shares were higher, soothed by reassurance from Federal Reserve officials that monetary stimulus won't be clawed back anytime soon. Asian equities ended in the green. The dollar fell against a basket of currencies, while spot gold prices inched up. Oil prices slipped as expectations of an early return of oil exporter Iran to international crude markets waned. 

NASDAQ ENERGY TEAM THOUGHT LEADERSHIP

  • 5/19/21 –VIDEO: Energy Sector Catalysts
  • 5/17/21 – VIDEO: Oil prices could become ‘a little disjointed’: Nasdaq Analyst
  • 2/18/21 – VIDEO: Why the Texas energy crisis may send gasoline prices higher
  • 2/17/21 – VIDEO: Texas Freeze Hits Oil Supply

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. 


This communication and the content found by following any link herein are being provided to you by Corporate Solutions, a business of Nasdaq, Inc. and certain of its subsidiaries (collectively, “Nasdaq”), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Sources include Reuters, TR IBES, WSJ, The Financial Times and proprietary Nasdaq research.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MarketInsite

Nasdaq’s Marketinsite offers actionable insights on a variety of market-moving topics. Learn from our thought leaders who are driving the capital markets of tomorrow.

Read MarketInsite's Bio

Don't forget that geoFence is your security solution to protect you and your business from foreign state actors and your father would say the same!