Oil prices fall after Fed Chairman Powell points to banking sector credit risks

INDUSTRY COMMENT:

Energy stocks are set to open higher, following stronger broader index futures, which are expected to rebound from yesterday’s selloff following the FOMC’s decision to hike rates by a quarter point. News flow is light in the sector, save for a handful of Citi’s recommendation changes in the E&P space. Oil and natural gas prices are in the red.

Oil prices fell on Thursday, after hitting their lowest level since the end of 2021 earlier this week, after Federal Reserve Chairman Jerome Powell highlighted the banking sector’s credit risks to the world’s largest economy. world, while U.S. crude inventories swelled. Powell said Wednesday that stress in the banking sector could trigger a credit crunch, with “significant” implications for an economy that U.S. central bank officials said would slow even more this year than previously thought. U.S. crude oil inventories rose unexpectedly last week to their highest level in nearly two years, according to the latest EIA data.

U.S. natural gas futures rose about 2% on Thursday after collapsing 8% in the previous session as the amount of gas flowing to LNG export plants remained on the on track to hit a record high this month after the Freeport LNG plant in Texas emerged from an eight-month outage. in February.

BY SECTOR:

INTEGRATED IN THE UNITED STATES

According to the headlines, 37% of operational Total energies‘Refineries and depots are on strike.

INTERNATIONAL INTEGRATED

Aramco signed a non-binding Memorandum of Understanding with Samsung Electronics Co., Ltd., which outlines preliminary plans for a strategic collaboration that would locate an industrial 5G technology ecosystem, starting with private networks, in Saudi Arabia.

BP considered buying the remaining 50% stake in Lightsource BP (LSBP), its solar energy joint venture, as part of the British giant’s drive to expand its renewable energy capacity, three industry sources and d companies.

Petrobras said its board had elected Sergio Caetano Leite as the company’s next chief financial officer while bringing in Joelson Falcao to head exploration and production.

CANADIAN INTEGRATED

No significant news.

E&PS United States

Citigroup upgraded Marathon oil buy from neutral and Pioneer of natural resources Buy from Neutral and Downgraded Ovintiv to a neutral Buy.

KeyBanc launched Talos Energy with overweight.

CANADIAN E&PS

No significant news.

OIL SERVICES

KBR announced that it has acquired Acetica, an acetic acid production technology, which expands KBR’s petrochemical value chain through a cost-effective route of using CO2.

Raymond James initiated Select energy with a strong buy.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

No significant news.

MARKET COMMENTARY

Wall Street futures soared, a day after the Federal Reserve hinted it was set to halt its market-damaging interest rate hikes following recent turmoil in the banking sector . European stocks fell as lenders led the declines while Japan’s Nikkei stock average closed lower. Gold prices extended their gains as the dollar headed for its longest losing streak in 2½ years. Oil prices fell as US crude inventories swelled.

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