WTI, Brent trade low after non-farm payroll data missed expectations

SECTOR COMMENTARY:

As the final trading session of the week approaches, energy stocks are poised for a higher start, supported by gains in underlying commodities, while broader index futures have mixed with following a disappointing employment report. Non-farm payrolls grew by just 194,000 jobs in September, below economists’ forecast of 500,000. Yields have fallen in the headlines, which should support growth relative to value today .

WTI and Brent add to yesterday’s gains this morning, but are trading low on non-farm payroll data that missed expectations. “As other energy prices like natural gas and coal continue to rise, upside risks to the oil market have started to mount,” said Christopher Kuplent of Bank of America. Both benchmarks are on course to close higher for a 7th consecutive week.

Natural gas is up 0.2% to $ 5.693, after closing unchanged yesterday. The temperature forecast for northwestern Europe points to colder weather next week and cold beginning in the second week of November, resulting in an early heating demand. BofA sees global and European gas markets in continuous deficit despite promises of additional volumes from Russia.

BY SECTOR:

UNITED STATES INTEGRATED

Exxon Mobil In a message to locked out workers at its Beaumont, Texas refinery Thursday night, the refinery accused the United Steelworkers (USW) of engaging in disinformation and voter suppression, a day after it a campaign to suppress the union has passed a crucial hurdle, Reuters reported.

INTEGRATED INTERNATIONAL

Equinor invest billions of dollars in blue hydrogen betting it can make fuel cleaner than anyone, Bloomberg reported. The state-controlled oil company is among energy companies across Europe stepping up their plans for hydrogen as growing pressure to tackle climate change prompts massive changes in investment. Equinor believes it has the advantage in the race to commercialize the industry because it emits less methane than its competitors.

CANADIAN INTEGRATED

No significant news.

American E&PS

No significant news.

CANADIAN E&PS

No significant news.

OIL FIELDS SERVICES

Shawcor announced that Gaston Tano, senior vice president of finance and chief financial officer, has elected to step down and will leave the company effective May 31, 2022. Shawcor also announced that Thomas R. Holloway will join the company as vice president and Chief Accounting Officer, effective or around December 1, 2021 and is expected to succeed Mr. Tano as Senior Vice President of Finance and Chief Financial Officer.

DRILLERS

Pioneer Energy Services, the successor to Pioneer Energy Services Corp. and a wholly owned subsidiary of Patterson-UTI Energy announced the accelerated mandatory conversion of the entire outstanding principal amount of its 5.00% PIK senior unsecured convertible bonds due 2025.

REFINERS

No significant news.

MLPS & PIPELINES

No significant news.

MARKET COMMENTARY

Dow futures turned negative early in Friday after the disappointing September jobs report. European stocks edged down, with declines in the tech sector offsetting gains in oil and auto stocks, while Asian stocks rose, supported by advances in Chinese blue chips as trading resumed after the week’s holiday in the National Holiday. Oil prices have risen on signs that some industries have started to replace high-priced gas with oil and on doubts that the US government will release oil from its strategic reserves at this time.

THOUGHTFUL LEADERSHIP OF THE NASDAQ ENERGY TEAM


The Nasdaq Advisory Services Energy team is part of the Nasdaq Advisory Services, the most experienced team in the industry. The team provides unparalleled shareholder analysis, a comprehensive view of trading and investor activity, and insight on how best to manage investor relations outreach efforts. If you have any questions, please contact Tamar Essner.


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

About Yvonne Lozier

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