Oil prices stabilize as Western leaders discuss new sanctions on Russia


EEnergy stocks are expected to open around breakeven, with higher broader index futures (S&P 500 futures + ~0.5%) offsetting lower oil prices, which are trailing slightly. Trading remains active as participants monitor the U.S.-NATO meeting and any other potential sanctions imposed on Russia, global supply and demand activity and market interpretations. Fed policy tightening.

Oil prices were flat on Thursday as the US president met with other Western leaders and investors waited to see how sanctions would be tightened against Russia following its invasion of Ukraine. US President Biden was meeting NATO leaders in Brussels for emergency talks as the war in Ukraine entered its second month. Biden and European leaders plan to announce additional sanctions against Russia.

Commerzbank analyst Carsten Fritsch said the sanctions are unlikely to have a major impact on the oil market as they “are unlikely to include an EU oil embargo, as a number of countries which are heavily dependent on Russian oil – such as Germany – opposed this.” The United States and Britain, both much less dependent on Russian crude, have both announced sanctions on oil imports. Oil prices posted strong gains this week. Brent is up over $14 while WTI is up over $10 a barrel.

Natural gas futures are 1% lower ahead of weekly inventory data. Analysts expect a drawdown of 55 billion cubic feet.

BY SECTOR:

INTEGRATED IN THE UNITED STATES

No significant news.

INTERNATIONAL INTEGRATED

Shell will invest up to 25 billion pounds ($33 billion) in Britain’s energy system over the next decade, a senior executive at the big oil company has said, and more than 75% of that will be spent on products and carbon-free services.

BYD said it signed a strategic cooperation agreement with Shell which will see the two partners embark on projects in China and Europe.

TotalEnergies said Russia accounted for 21% of oil and gas reserves at the end of 2021.

TotalEnergies said it aims to reduce greenhouse gas emissions from its petroleum product sales by more than 30% by 2030, compared to 2015.

CANADIAN INTEGRATED

No significant news.

E&PS United States

Downgraded TD Securities EOG Resources remember to buy.

western announced that Vicky A. Bailey, President of Anderson Stratton International, LLC (ASI) and former partner of BHMM Energy Services, LLC, has been elected to its Board of Directors, effective March 22, 2022.

CANADIAN E&PS

Downgraded TD Securities MEG Energy remember to buy.

OIL SERVICES

Granite announced that it was awarded the approximately $75 million contract for the I-515 and Charleston Boulevard Interchange Improvement Project by the Nevada Department of Transportation (NDOT). Located in Las Vegas, this project is delivered through the Construction Manager at Risk (CMAR) project delivery method. Granite was originally hired in 2017 to provide preconstruction services.

Petroliam Nasional Bhd (Petronas) has signed a memorandum of understanding (MoU) with Schlumberger WTA (Malaysia) to jointly explore opportunities in the fields of sustainability, digital technologies and the Internet of Things (IoT), as well as research and development (R&D) projects.

DRILLERS

No significant news.

REFINERS

No significant news.

MLPS & PIPELINES

Targa Resources announced the pricing of a bought deal public offering in the aggregate principal amount of $750 million of its 4.200% Senior Notes due 2033 and in the aggregate principal amount of $750 million of its 4.950% senior notes due 2052 at a public price of 99.815% and 99.333%, respectively, of their face value. The offering is expected to close on April 6, 2022, subject to customary closing conditions. The Company intends to use a portion of the net proceeds of the offering to fund the previously announced purchase of 5 7/8% senior notes due 2026 from Targa Resources Partners LP or to fund the announced redemption previously of any 2026 Notes not purchased in the Tender Offer, with the remaining net proceeds to be used to repay a portion of amounts outstanding under the Company’s revolving credit facility. The Offer is not conditional on the completion of the Public Offer. The Tender Offer is subject, among other things, to the Offer.

MARKET COMMENTARY

US stock index futures were higher ahead of the NATO summit on the Russian-Ukrainian war, the focus will also be on unemployment insurance claims and durable goods data which are expected higher late in the day. European stocks gave up early gains to trade lower as the war in Ukraine marked a month. The Japanese Nikkei turned positive over the past hour of trading and finished at a new nine-week high. The dollar strengthened after more hawkish comments from the Federal Reserve. Crude prices were mixed as investors weighed the potential for fresh supply in tight markets amid prospects for a new deal with Iran. Gold prices were within a limited range.


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 insights on how best to manage investor relations outreach efforts. If you have any questions, please contact Tamar Essner.


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