• Cenovus Energy (CVE) in Focus: Stock Moves 7.3% Higher
    Zacks

    Cenovus Energy (CVE) in Focus: Stock Moves 7.3% Higher

    Cenovus Energy (CVE) saw a big move last session, as its shares jumped more than 7% on the day, amid huge volumes.

  • Marathon Oil Trims Capex Further, Updates Drilling Activity
    Zacks

    Marathon Oil Trims Capex Further, Updates Drilling Activity

    Marathon Oil (MRO) plans to curtail capital spending by an additional $600 million from the earlier projection and stall any further drilling activity in Northern Delaware.

  • COVID-19 Remains the Key Driver, with UK and the U.S Stats also in Focus
    FX Empire

    COVID-19 Remains the Key Driver, with UK and the U.S Stats also in Focus

    It’s a busier day on the economic data front, which will influence. Updates on COVID-19, however, will remain the key driver.

  • Oil Climbs After Russia Signals Willingness to Cut Production
    Bloomberg

    Oil Climbs After Russia Signals Willingness to Cut Production

    (Bloomberg) -- Oil posted its first gain of the week just before the world’s top producers meet to discuss potential output cuts against of backdrop of demand destruction from the coronavirus.Futures in New York rose 6.2% on Wednesday after a volatile session that saw prices rise as much as 12%. Oil is drawing support from investors who are focused on plans being ironed out by Saudi Arabia and Russia for a global supply-curb agreement at the OPEC+ emergency virtual meeting on Thursday. Russia earlier said it is ready to cut oil production by 1.6 million barrels a day, or 14% of its output.“Fundamentals are the driving force in this market, whether it be the demand or supply-side,” said Peter McGinn, market strategist at RJ O’Brien & Associates LLC in Chicago. While the OPEC+ production cuts are welcome, the real question is when will demand return, he added.Oil gained even after the Energy Information Administration reported a 15.2 million barrel weekly increase in crude stocks, biggest gain in data going back to 1982.Any sort of supply reduction may not be large enough to offset the massive near-term demand destruction, said Bart Melek, director and head of global commodity strategy at TD Securities. “We doubt that OPEC+ can cut sufficient amount, without other key producers committing to reductions as well.”Despite gains in the futures market, physical prices continue to fall as refineries cut processing rates and purchases. North American landlocked crudes are fetching ever lower prices, with grades in the U.S. Bakken region back beneath $10 and oil in Canada at a record low. Alberta Premier Jason Kenney warned on Tuesday that there’s a “very real possibility” of negative prices.Part of the volatile session today was due to the ongoing rollover activity by investor funds, McGinn said. “The United States Oil Fund roll volume had peaked just before close, tripping a circuit breaker,” before easing back lower, he said. The fund had begun its rollover on Tuesday, selling the front month to buy the next three months.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Mid-Week Drivers: COVID-19, Oil Prices and Russia and Boris Johnson
    FX Empire

    Mid-Week Drivers: COVID-19, Oil Prices and Russia and Boris Johnson

    Riskier assets find support early in the week, but downside risks remain as the spread of the coronavirus continues and central banks signal more easing.

  • Here's Why You Should Hold on to Cenovus (CVE) Stock Now
    Zacks

    Here's Why You Should Hold on to Cenovus (CVE) Stock Now

    Cenovus (CVE) expects to reduce its oil sands operations' sustaining costs to C$2.60 per barrel in 2020.

  • Plains All American to Take Actions for Preserving Liquidity
    Zacks

    Plains All American to Take Actions for Preserving Liquidity

    Plains All American Pipeline (PAA) is set to take initiatives to preserve liquidity amid significant decline in crude oil price and demand caused by the outbreak of COVID-19.

  • 4 Apparel Stocks Offering PPE Amid Coronavirus Crisis in Focus
    Zacks

    4 Apparel Stocks Offering PPE Amid Coronavirus Crisis in Focus

    Apparel companies are using their knowhow and supplier base to manufacture new masks and gowns or to transfer their own supply of masks to front-line healthcare workers or both.

  • AUD/USD Price Forecast – Australian Dollar Continues to Press Resistance
    FX Empire

    AUD/USD Price Forecast – Australian Dollar Continues to Press Resistance

    The Australian dollar has pulled back a bit during the trading session on Wednesday, only to turn around and rally towards the 0.62 level again. If we can break above this area rather handily, that should send the Aussie much higher. The 61.8% Fibonacci retracement level will be needed to be dealt with though.

  • Bloomberg

    Marathon Oil Plans ‘Frac Holidays’ to Cut 2020 Spending

    (Bloomberg) -- Marathon Oil Corp. is reducing its capital spending this year to about half of 2019 levels, joining a parade of shale drillers doing the same with oil prices trading at depressed levels as demand suffers due to coronavirus.Capital expenditures in 2020 are now seen at $1.3 billion, a cumulative budget reduction of $1.1 billion from initial capital spending guidance for the year, according to a statement by the Houston-based company on Wednesday. Marathon joins drillers including EOG Resources Inc. and Murphy Oil Corp. and oil majors Exxon Mobil Corp. and Chevron Corp. in slashing budgets in response to U.S. crude oil trading in the $20-a-barrel range, down more than 50% since the start of the year.Marathon plans to take “frac holidays in both the Bakken and Eagle Ford” during the second quarter, Marathon Oil CEO Lee Tillman said in the statement.Marathon Oil previously said it would suspend its activities in Oklahoma. It also plans to suspend further drilling in the northern Delaware section of the Permian basin, with only a limited number of wells to sales expected through the rest of the year.Marathon will continue to optimize development plans in the Bakken and Eagle Ford, before moving to a lower and more continuous drilling and completion program over the second half of the year in both basins.“Against a highly volatile and uncertain environment, these decisive actions are designed first and foremost to protect our balance sheet and our hard-earned financial strength,” Tillman said.Marathon shares rose 4.1% to $3.83 at 9:37 a.m in New York trading on Wednesday.(Updates with share price move in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Shale Cutbacks to Fall on Weakest Drillers as Glut Drowns Market
    Bloomberg

    Shale Cutbacks to Fall on Weakest Drillers as Glut Drowns Market

    (Bloomberg) -- U.S. shale drillers are engaged in a bitter test of wills as sinking oil prices force the weakest operators to retreat just as OPEC urges the world’s biggest source of crude to help rescue a market roiled by the coronavirus pandemic.With American production expected to decline this year for the first time since 2016, it’s becoming increasingly clear any reductions in domestic output will fall on the companies that can least afford it. The result is likely to be a sector increasingly dominated by international behemoths that have the ability to endure the downturn and ramp back up once prices recover.“The pain is definitely going to be felt by smaller and medium players in second-tier acreage,” said Raoul LeBlanc, a Houston-based analyst at IHS Markit Ltd. “If you ramped it up in the last couple of years and you grew fast, you now have a hangover.”READ: U.S. Slashes 2020 Oil-Output Forecast Ahead of OPEC+ MeetingU.S.-focused oil producers have slashed more than $27 billion from drilling budgets this year in an unprecedented contraction in the sector responsible for the lion’s share of global supply growth over the past decade. But for the largest companies, such as Exxon Mobil Corp., the rout is only prompting a slowdown in growth rather than outright reductions.Exxon took an ax to its Permian Basin drilling budget on Tuesday, saying that the shale region would absorb the largest share of $10 billion in global cuts this year. Even so, production is expected to increase through the end of 2021.Chevron Corp. also probably will boost output this year, despite a 20% reduction in its forecast.Independent shale specialists like EOG Resources Inc., Pioneer Natural Resources Co. and Diamondback Energy Inc. are also pledging to keep production flat or slightly higher this year, despite cutting their budgets by at least a third. Marathon Oil Corp. announced a 46% spending cut on Wednesday without signaling whether output will be impacted.Those drillers are protected by financial hedges designed to blunt the worst excesses of the price collapse, which saw some North American crudes trading for less than $10 a barrel last month.The unwillingness of some of the marquee names in shale to curb output flies in the face of growing calls by Saudi Arabia and other major producers for a new era of supply restraint to arrest the freefall in prices. The Organization of Petroleum Exporting Countries and allies are scheduled to conduct an emergency session later this week.Momentum ReversalStill, there’s a catch, according to Dane Gregoris, a director at RS Energy Group. “If you’re growing through 2019 and declining through 2020, you can still average the same year over year,” he said. “However, the momentum has completely reversed.”The largest players represent only about 20% of overall U.S. shale production and so only provide a narrow snapshot of the overall market, according to IHS. There are more than 6,000 producers in the Permian Basin alone, many heavily-indebted private players whose business model was to lease exploration rights, drill a few wells and then flip whatever they struck to the highest bidder.Occidental Petroleum Corp., burdened by debt incurred by last year’s $37 billion takeover of Anadarko Petroleum Corp. is one major shale player reducing overall production this year. Harold Hamm’s Continental Resources Inc. indicated it will reduce production by about 30%.Texland WellsAt the other end of the scale, Texland Petroleum LP, a small operator in business since 1973, expects all of its wells to be completely shut by May 1 as buyers cancel orders in response to dwindling demand.The long-term implications could be vast. Shale wells are gushers for the first three months but after that, output plummets so that by the end of the first year it’s down about 60%. That’s 10 times the decline rate of conventional wells. As U.S. production has become more weighted toward shale, the country’s overall decline rate has accelerated, according to IHS.In the 2014-2016 crash, the industry borrowed about $40 billion to survive, according to IHS. That’s not available now, LeBlanc said. “The low price translates almost immediately to taking off capital spending and letting massive decline rates start to set in.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Is the Options Market Predicting a Spike in Western Midstream (WES) Stock?
    Zacks

    Is the Options Market Predicting a Spike in Western Midstream (WES) Stock?

    Investors need to pay close attention to Western Midstream (WES) stock based on the movements in the options market lately.

  • Continental (CLR) Agrees to Suspend Dividend Due to Coronavirus
    Zacks

    Continental (CLR) Agrees to Suspend Dividend Due to Coronavirus

    Continental (CLR) estimates global demand for crude oil and products to get affected by 30% as the coronavirus pandemic is hurting global energy demand.

  • How Should Investors Feel About Halliburton Company's (NYSE:HAL) CEO Pay?
    Simply Wall St.

    How Should Investors Feel About Halliburton Company's (NYSE:HAL) CEO Pay?

    Jeff Miller became the CEO of Halliburton Company (NYSE:HAL) in 2017. First, this article will compare CEO...

  • Gap (GPS) Jumps: Stock Rises 5.8%
    Zacks

    Gap (GPS) Jumps: Stock Rises 5.8%

    Gap (GPS) saw a big move last session, as its shares jumped nearly 6% on the day, amid huge volumes.

  • Are Options Traders Betting on a Big Move in WPX Stock?
    Zacks

    Are Options Traders Betting on a Big Move in WPX Stock?

    Investors need to pay close attention to WPX stock based on the movements in the options market lately.

  • Financial Times

    Opec has ‘disappeared’, says oil veteran Andrew Gould

    Global oil producers are scrambling to secure a supply cuts deal to counter an unprecedented drop in demand triggered by the coronavirus pandemic. “I don’t think a deal between Opec and other producers like Russia makes any difference because of the severity of the drop in demand,” the 73-year-old executive said. “Opec, as the so-called central bank of oil, has disappeared.”

  • Crude Slump: Halliburton (HAL) Cuts 350 Jobs in Oklahoma
    Zacks

    Crude Slump: Halliburton (HAL) Cuts 350 Jobs in Oklahoma

    Halliburton (HAL) is planning to freeze certain benefits dispensed for employee retirement accounts as the company continues to struggle with lower oil prices.

  • Ovintiv Slashes Capex Twice in a Month, Betters Oil Hedges
    Zacks

    Ovintiv Slashes Capex Twice in a Month, Betters Oil Hedges

    Ovintiv (OVV) ensures strong cash-flow generation by streamlining oil hedges.

  • A Rising Share Price Has Us Looking Closely At Continental Resources, Inc.'s (NYSE:CLR) P/E Ratio
    Simply Wall St.

    A Rising Share Price Has Us Looking Closely At Continental Resources, Inc.'s (NYSE:CLR) P/E Ratio

    Those holding Continental Resources (NYSE:CLR) shares must be pleased that the share price has rebounded 48% in the...

  • AUD/USD Forex Technical Analysis – Rangebound; Upside Bias Over .6245, Downside Bias Under .6070
    FX Empire

    AUD/USD Forex Technical Analysis – Rangebound; Upside Bias Over .6245, Downside Bias Under .6070

    The AUD/USD is currently sitting inside a triangle formed by a pair of Gann angles and a retracement zone. This indicates investor indecision and impending volatility. This is a breakout formation so start preparing for an acceleration.

  • The Greenback Finds Early Support ahead of Today’s FOMC Meeting Minutes
    FX Empire

    The Greenback Finds Early Support ahead of Today’s FOMC Meeting Minutes

    A light economic calendar leaves coronavirus updates and the FOMC meeting minutes in focus.