Chevron Corp's surprise $5 billion deal for oil producer Noble Energy should spell the end of this year's deal drought, setting a price benchmark that will trigger more buys, mergers and acquisition bankers, lawyers and analysts said. The COVID-19 pandemic destroyed fuel demand and left dozens of energy companies without the prospect of drilling their way out of debt. They may now be more willing to entertain deals with the Chevron offer as a standard. "Sometimes you need the one [Read more]
Oil eases amid rising coronavirus cases worldwide
Oil prices fell on Monday, unnerved by the prospect that a recovery in fuel demand could be derailed by a rise in the pace of coronavirus infections around the world. U.S. oil was off by 49 cents, or 1.21%, at $40.08 a barrel, after gaining 4 cents last week. Brent crude was down 43 cents, or 0.95%, at $42.68 a barrel after dropping slightly last week. More than 14.5 million people have been infected by the novel coronavirus globally and more than 604,000 have died of COVID-19, the [Read more]
U.S. natgas futures slip to fresh 2-week low on rising output
U.S. natural gas futures slipped to a fresh two-week low on Monday as output slowly increases despite forecasts for hotter weather and higher cooling demand over the next two weeks than previously expected. Prices remained weak even though pipeline exports to Mexico are on track to hit a record high this month. Front-month gas futures on the New York Mercantile Exchange fell 2.5 cents, or 1.5%, to $1.693 per million British thermal units at 8:37 a.m. EDT (1237 GMT). If the contract closes [Read more]
U.S. oil & gas rig count falls to record low for 11th week
U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for an 11th week in a row though they have slowed the reductions as some consider returning to the well pad with crude prices up from historic lows. The U.S. oil and gas rig count, an early indicator of future output, fell by five to an all-time low of 253 in the week to July 17, according to data on Friday from energy services firm Baker Hughes Co going back to 1940. That was 701 rigs, or 73%, below [Read more]
OPEC+ hits the refinery wall
Fuel traders and refiners are becoming more pessimistic about the outlook for the global economy and transportation for the rest of this year, even as the crude producers in OPEC+ try to push oil prices higher. OPEC+ is anxious to see higher crude prices as soon as possible but its ambition is likely to be thwarted in the short term by the renewed softness in fuel consumption. Price premiums for gasoline and diesel over crude have been flat or falling for almost four weeks since June 23 [Read more]
Oil prices steady as clouds gather over fuel demand, looser supply curbs
Oil prices were unchanged on Friday, with trading marked by growing uncertainty about global recovery in fuel demand as new COVID-19 cases surge in several countries just as major producers get set to loosen production curbs. U.S. West Texas Intermediate (WTI) crude futures rose 1 cent to $40.76 a barrel at 0204 GMT, while Brent crude futures were steady at $43.37 a barrel. Both were still on track to end the week up slightly. On Thursday, the United States reported at least 75,000 new [Read more]
Heavy discount narrows on final day of August trading
Canadian heavy crude's discount narrowed to under $7 a barrel versus West Texas Intermediate (WTI) on Thursday, the final trading day the August trading cycle, as supplies have tightened traders said. Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $6.55 per barrel below WTI after settling at $7 below WTI on Wednesday, according to NE2 Canada Inc. "There is lack of crude here," one Canadian crude trader said In the first half of 2020, [Read more]
Oil prices ease after OPEC, allies agree to taper oil supply curbs
Oil prices eased on Thursday after OPEC and allies such as Russia agreed to taper record supply curbs from August, though the drop was cushioned by hopes for a swift U.S. demand pick-up after a big drawdown from the country's crude stocks. U.S. West Texas Intermediate (WTI) crude dropped 32 cents, or 0.8%, to $40.88 a barrel. Brent crude fell 27 cents, or 0.6%, to $43.52 a barrel by 0439 GMT. They rose 2% the previous day, helped by the U.S. crude inventories drop. The Organization of [Read more]
Heavy discount steady as Aug trade window nears end
Canadian heavy crude's discount steadied versus West Texas Intermediate (WTI) on Wednesday as the August trading cycle winds down, traders said. Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $7.10 per barrel below WTI after settling at $7.10 below WTI on Tuesday, according to NE2 Canada Inc. The last trading day for the August cycle is Thursday, dealers said. Prices have been supported this week on limited production gains and [Read more]
OPEC+ set to ease record oil cuts from Aug
OPEC and allies such as Russia will ease record oil supply curbs from August as the global economy slowly recovers from the coronavirus pandemic, Saudi energy minister Prince Abdulaziz bin Salman said on Wednesday. The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have been cutting output since May by 9.7 million barrels per day, or 10% of global supply, after the virus destroyed a third of global demand. After July, the record cuts are due to taper to [Read more]