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by Stockwatch Business Reporter

West Texas Intermediate crude for September delivery added 59 cents to $47.98 on the New York Merc, while Brent for September lost 17 cents to $53.30 (all figures in this para U.S.). Western Canadian Select traded at a discount of $15.85 to WTI ($32.13), unchanged. Natural gas for August added 3.2 cents to $2.821. The TSX energy index added 3.54 points to close at 177.72.

Husky Energy Inc. (HSE) added 95 cents to $23.52 on 2.63 million shares, after releasing second quarter financials that were weak, but still better than analysts predicted. In particular, cash flow came to $1.20 a share, well above predictions of 98 cents a share. This was not because of Husky's production, which, at 337,000 barrels of oil equivalent a day, was roughly in line with predictions. Mainly Husky benefited from its refining operations. (Low commodity prices can benefit refiners by increasing their margin, which is the difference between the cost of raw material and the cost of wholesale gasoline. MJ Ervin & Associates, a division of The Kent Group, wrote in its Second Quarter 2015 Report on Petroleum Pricing in Canada that refinery margins are currently at an eight-year high.) Refining operations are not generally in this much favour, so Husky's press release and conference call put more emphasis on its producing operations, particularly its Sunrise oil sands project, its fields in Atlantic Canada and its thermal projects in Saskatchewan. These together are expected to add 85,000 barrels a day by the end of next year. The conference call touched on various other points as well. On future oil and gas prices, CEO Asim Ghosh said pessimistically, "I'm a member of that LL camp, which is the lower-for-longer camp." Because of the current price volatility, Husky has not settled on any plans for 2016, as it is too "difficult to take a view on where to peg the tent," said Mr. Ghosh. He said Husky will release its 2016 guidance in November or December.

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