U.S. natural gas futures traded within a few cents of unchanged on Tuesday on forecasts calling for similar weather and demand over the next two weeks as in the previous session. Front-month gas futures rose 0.5 cents, or 0.3%, to $1.674 per million British thermal units at 7:49 a.m. EDT (1149 GMT). On Monday, the contract settled at its lowest since May 15. Refinitiv said production in the Lower 48 U.S. states averages just 87.5 billion cubic feet per day in June, down from a 16-month low [Read more]
Heavy discount narrows, stays in tight range
Canadian heavy crude's discount narrowed versus West Texas Intermediate (WTI) on Monday, remaining in a narrow range despite lower inventories. Crude oil inventories in Western Canada stood at 29.3 million barrels, or 45% of operational capacity, as of May 29, data provider Genscape said. Oil production in Canada's Saskatchewan province rebounded to 470,000 barrels per day in May, up 71,000 bpd from April, analysts at Tudor, Pickering, Holt & Co said. Western Canada Select (WCS) [Read more]
Oil drops as new coronavirus outbreaks raise fuel demand concerns
Oil fell more than 2% on Monday, extending losses from last week, as new coronavirus infections hit China and the United States, raising the prospect that renewed outbreaks of the virus could weigh on the recovery of fuel demand. U.S. West Texas Intermediate crude futures were down $1.75, or 4.83%, to $34.73 a barrel. Brent crude futures fell $1.26, or 3.24%, to $37.70 a barrel. A cluster of infections in Beijing has increased concern of a resurgence of the disease. The coronavirus [Read more]
Canada’s oil patch cuts back climate efforts under pandemic
Canadian oil sands companies have shelved nearly C$2 billion in green initiatives in a cost-cutting drive to weather the coronavirus pandemic, a reversal in some of their commitments to reduce emissions and clean up their dirty-oil image. International oil firms left Canada in droves in recent years due to the high costs to turn a profit in the sector. Some investors and banks, meanwhile, halted financing in part to pressure the world's fourth-largest crude producer to reduce the [Read more]
Heavy discount narrows, supply cuts in focus
Canadian heavy crude's discount narrowed versus West Texas Intermediate (WTI) on Friday, remaining in a narrow band after supply cuts. Deep oil curtailments in Western Canada have opened ample space on pipelines and kept differentials narrower than usual, according to traders. Demand for oil should return to pre-pandemic levels in the second half, adding to supply tightness, Haywood Research said in a note. Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, [Read more]
U.S. oil & gas rig count hits record low for 6th week
U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for a sixth week in a row even as oil prices rebound from historic lows and some producers return to the wellhead. The U.S. oil and gas rig count, an early indicator of future output, fell by five to an all-time low of 279 in the week to June 12, according to data from energy services firm Baker Hughes Co going back to 1940. That was 690 rigs, or 71%, below this time last year. U.S. oil rigs fell [Read more]
Oil set to end week lower on coronavirus resurgence fears
Oil prices edged higher on Friday but were on track for their first weekly fall in seven as new U.S. coronavirus cases spiked, raising the prospect of a second wave hitting demand. West Texas Intermediate was up 76 cents, or 2.09% to $36.88 a barrel. Both contracts ended around 8% lower on Thursday. Brent was up 96 cents, or 2.51%, at $39.820 a barrel, having lost more than $1 earlier in the session. The oil benchmarks are heading for weekly declines of more than 8%, their first after [Read more]
OPEC+ panel meeting next week will advise on policy, not decide
LONDON/MOSCOW, June 12 - An OPEC-led panel meeting to review the oil market next week will advise the wider OPEC+ group cooperating on a record supply cut, five OPEC+ sources said, meaning further talks would be needed on whether to extend the agreement further. OPEC, Russia and allies, known as OPEC+, agreed on Saturday to keep production cuts of 9.7 million barrels per day, or 10% of pre-coronavirus world demand, until the end of July. The reduction has helped oil prices to more than double [Read more]
Heavy discount narrows against plunging U.S. benchmark
Canadian heavy crude's discount narrowed versus West Texas Intermediate (WTI) on Thursday, as the U.S. benchmark plunged on virus-related demand concerns. Deep oil curtailments in Western Canada, ahead of a gradual increase in refinery demand, has kept differentials narrower than usual, according to traders. Scotiabank said it expects three-quarters of Western Canadian shut-in volumes to return through summer, while turnarounds are also completed. It estimates total shut-ins and [Read more]
Oil prices hit by record U.S. crude inventories, bearish Fed
Oil prices fell on Thursday, hit by another record build-up in U.S. crude inventories and the U.S. Federal Reserve's projections that the world's biggest economy would shrink 6.5% this year. U.S. West Texas Intermediate (WTI) crude dropped 6.64%, or $2.59, to $36.43 a barrel. Brent crude futures erased Wednesday's gains, falling 6.04%, or $2.50, to $38.88 a barrel. With demand risks back at the forefront, both benchmarks are set for their worst daily drop in two weeks. U.S. crude [Read more]