Canadian heavy crude's discount widened versus West Texas Intermediate (WTI) on Wednesday while production levels remained in focus. Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $7.80 per barrel below WTI, according to NE2 Canada Inc, wider than Tuesday's settle of $7.50 under. Oil sands producers will respond to physical refinery demand, and not just price, when determining how quickly to restore idled production which may keep the [Read more]
Canadian oil companies take go-slow approach to recovery as prices improve
Canadian oil producers are maintaining a cautious approach, holding spending at reduced levels even as rising prices brighten the outlook. North American oil prices have rebounded to more than $40 per barrel from a dip into negative prices in April, tempting some producers to increase spending or output. U.S. shale producers were expected to restore roughly half a million barrels per day (bpd) by the end of June, amounting to a quarter of what they shut since the coronavirus pandemic cut [Read more]
Oil stable as rising virus cases, higher U.S. crude stockpiles stall recovery
Oil prices were broadly stable for a fourth session on Wednesday, with rising U.S. crude stockpiles and an increase in U.S. coronavirus infections arresting a recent recovery sparked by easing lockdowns. U.S. West Texas Intermediate (WTI) crude futures were up 23 cents at $40.69 a barrel. Brent crude futures rose 17 cents to $43.14 a barrel. Both benchmarks are set for a fourth session of daily percentage changes of less 1% in either direction. The U.S. coronavirus outbreak crossed [Read more]
Heavy discount narrows on reduced output
Canadian heavy crude's discount narrowed versus West Texas Intermediate (WTI) on Tuesday, as demand slowly recovered with significant production curtailed. Canadian oil producers were maintaining a cautious approach, holding spending at reduced levels even as rising prices brightened the outlook. Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $7.30 per barrel below WTI, according to NE2 Canada Inc, narrower than Monday's settle of $7.70 [Read more]
Down to handful of active rigs, Canada’s oil and gas drillers face permanent contraction
Canada's drilling rig count, a bellwether of the oil and gas industry's growth, has plummeted far below previous records, raising risks that much of the country's equipment will permanently fall out of service. Just 18 rigs were active last week in the world's fourth-largest oil-producing country, a fraction of even the depressed levels of a year ago, according to Baker Hughes data. The fleet looks likely to shrink 25% in the next year from the current 500, as companies decide against [Read more]
Oil prices fall on demand concerns from U.S. coronavirus case surge
Oil prices fell on Tuesday, erasing earlier gains, on concerns that the surge in coronavirus cases in the United States, the world's biggest oil user, will limit a recovery in fuel demand. U.S. West Texas Intermediate (WTI) crude futures fell 17 cents, or 0.4%, to $40.46 a barrel at 0340 GMT, after earlier rising to as high as $40.79. Brent crude futures declined by 19 cents, or 0.4%, to $42.91, after hitting an intraday high of $43.19. With 16 U.S. states reporting record increases [Read more]
Heavy discount narrows to 1-month low on modestly increasing demand
Canadian heavy crude's discount narrowed to a 1-month low versus West Texas Intermediate (WTI) on Monday, supported by modestly increasing demand. All eyes are on the Midwest refining sector, a major buyer of Canadian oil, where utilization rates are inching higher as supply returns to the market, a trader said. Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $7.65 per barrel below WTI, according to NE2 Canada Inc, narrower than Friday's [Read more]
Record debts come due for Canadian oil patch after five years of crisis
Six years ago, Canadian oilfield services firm Calfrac Well Services commanded a C$2.1 billion ($1.55 billion)market value and was poised for U.S. expansion. But by last month, Calfrac's market value had collapsed to just C$23 million and it deferred an interest payment on debt that does not mature for six years. The Texas billionaire Wilks brothers, already its top shareholder, scooped up more of the company's debts in June, a regulatory filing showed, preparing to salvage what they can from [Read more]
Heavy discount narrows slightly in thin U.S. holiday trade
Canadian heavy crude's discount narrowed versus West Texas Intermediate (WTI) on Friday, in slow trade during the U.S. Independence Day holiday. Canadian differentials have compressed due to deep oil curtailments in spring, although improving prices have encouraged producers to restore some volumes. Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $8.50 per barrel below WTI, according to NE2 Canada Inc, narrower than Thursday's settle of [Read more]
Canada’s Supreme Court dismisses appeal of long-delayed Trans Mountain oil pipeline
Canada's Supreme Court dismissed an appeal on Thursday of a lower court decision that had backed Ottawa's approval of expanding the Trans Mountain oil pipeline, removing a potential major obstacle to completion. The top court posted the decision on its website without further detail. The pipeline has put Prime Minister Justin Trudeau's Liberal government, which bought it in 2018 to ensure the expansion overcame legal and regulatory obstacles, in a political quandary. He has promised to [Read more]