SECTOR COMMENTARY

The energy sector finished the session mostly lower, despite positive economic data in the U.S., which was seen as a negative for equities by fueling speculation that the Federal Reserve could begin to scale back its economic stimulus as early as January.

WTI crude oil futures pared gains but closed higher by $0.18 or 0.19% to $97.38 to close in the green for a fifth straight session as upbeat economic data, including a higher than expected upward revision to third quarter GDP, lifted the demand outlook in the U.S. and after yesterday’s EIA inventory report showed a drop in crude oil supplies for the first time in 11 weeks. Prices had already gained 5.3% over the past four sessions. The prospect that positive economic data could prompt the Federal Reserve to scale back its stimulus measures contributed to Brent crude oil futures falling by approximately 0.70% and capped gains in WTI contracts. Additionally, the Brent-WTI spread narrowed to its lowest level in two weeks during the session.

Natural gas climbed $0.172 or 4.34% to close at $4.132 after the weekly EIA inventory report showed a much larger than expected draw in U.S. natural gas storage. Working gas in storage declined by 162 Bcf last week versus the prior week while analysts were expecting a decline of 138 Bcf.

U.S. INTEGRATEDS

Reuters - ExxonMobil warned of planned flaring at its 149,500-barrel-per-day refinery in Torrance, California, according to a filing with state pollution regulators on Thursday.

Raymond James downgraded ExxonMobil to ‘Outperform’ from ‘Strong Buy.’

INTERNATIONAL INTEGRATEDS

Reuters - Paolo Scaroni of Italy's Eni met with Iranian Oil Minister Bijan Zanganeh on Thursday, the first western oil CEO to meet publicly with the minister since last month's interim nuclear deal.

Reuters - Norwegian energy firm Statoil has obtained an exploration permit in the Reinga-Northland Offshore Release Area in New Zealand, the company said on Thursday.

U.S. E&PS

Reuters - Oil and gas producer ConocoPhillips has cut some production at its giant Ekofisk field in the Norwegian sector of the North Sea because of a storm, the firm said on Thursday.

Press Release - EQT Corporation today announced that, with the receipt of approval from the Federal Energy Regulatory Commission, it has now received all required regulatory approvals related to the transfer of its natural gas distribution business, Equitable Gas Company, LLC, to Peoples
Natural Gas.

Macquarie downgraded Forest Oil Corp. to ‘Underperform’ from ‘Neutral.’

Macquarie downgraded Cimarex Energy Co., EOG Resources, Noble Energy, Inc, and Sanchez Energy Corp. to ‘Neutral’ from ‘Outperform.’

Morgan Stanley initiated coverage of Halcon Resources Corp. with an ‘Equal Weight’ rating.

CANADIAN E&PS

Canaccord Genuity initiated coverage of Gran Tierra Energy, Inc. with a ‘Buy’ rating.

OILFIELD SERVICES

Susquehanna upgraded FMC Technologies, Inc. to ‘Positive’ from ‘Neutral.’

(Late Wednesday) Press Release - ShawCor Ltd announced today an agreement for the sale, subject to regulatory approval, of its Socotherm division's joint venture interest in Socotherm Brasil to its joint venture partner, Tenaris.

J.P. Morgan initiated coverage of Superior Energy Services, Inc. with an ‘Overweight’ rating.

REFINERS

Macquarie upgraded Alon USA Energy, Inc. and CVR Energy, Inc. to ‘Neutral’ from ‘Underperform.’

Macquarie upgraded Marathon Petroleum Corp. and Valero Energy Corp. to “Outperform’ from ‘Neutral.’

Reuters - Tesoro Corp. reported an unspecified "controlled shutdown" following a power interruption on Wednesday at its 166,000-barrel-per-day Golden Eagle refinery in Martinez, California, according to a filing with the Contra Costa Health Services.

MLPS

(Late Wednesday) Press Release - Cheniere Energy, Inc. announced today that its subsidiary, Corpus Christi Liquefaction, LLC ("Corpus Christi Liquefaction"), has entered into a liquefied natural gas ("LNG") sale and purchase agreement ("SPA") with PT Pertamina (Persero) ("Pertamina") under which Pertamina has agreed to purchase approximately 0.8 million tonnes per annum ("mtpa") of LNG upon the commencement of operations from the LNG export facility being developed near Corpus Christi, Texas.

(Late Wednesday) Reuters - Enbridge Inc, Canada's largest pipeline operator, said on Wednesday 2013 earnings would be at the low end of its target of C$1.74 to C$1.90 per share, but boosted its dividend by 11 percent.

Press Release - Enterprise Products Partners L.P. announced that the process of injecting ethane into the Appalachia-to-Texas Express pipeline began in late November and will continue throughout December 2013. Commercial service is expected to begin in January 2014.