U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for a fifth week in a row even as some producers begin to reverse cuts as prices recover from historic lows caused by a slump in fuel demand amid coronavirus lockdowns. The U.S. oil and gas rig count, an early indicator of future output, fell by 17, or 6%, to an all-time low of 284 in the week to June 5, according to data from energy services firm Baker Hughes Co going back to 1940. That was 691 rigs, or [Read more]
Oil jumps on uncertainty over producers’ commitment to output cuts
Oil prices grew on Friday as markets wait to see whether major producers will commit to an extension of record production cuts to support oil prices. U.S. West Texas Intermediate (WTI) crude futures rose $1.59, or 4.2%, to $38.85 a barrel. Brent crude futures were up $1.94, or 4.84%, at $41.82 a barrel. Still both benchmarks are set for a sixth weekly gain on the back of output cuts and signs of improving fuel demand as countries begin to ease restrictions to prevent the spread of the [Read more]
Heavy discount widens as top producers debate output cuts
Canadian heavy crude's discount widened versus the U.S. benchmark West Texas Intermediate (WTI) on Thursday. Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $9.50 per barrel below WTI, according to NE2 Canada Inc, wider than Wednesday's settle of $8.60 under. Light synthetic crude from the oil sands was trading at $3.85 below WTI after Wednesday's settle of $2.25 under. Total U.S. refined product demand is down 22% against the five-year [Read more]
Hard-hit Canadian oil companies still waiting for Trudeau loans
Canadian oil producers sideswiped by economic damage from the coronavirus pandemic have received no federal loans, seven weeks after the first lending program was announced, government and industry officials said on Thursday. Prime Minister Justin Trudeau's government announced loans and loan guarantees for small and midsize energy companies in April, and credit for large employers in numerous sectors including energy on May 11, to survive an oil price crash sparked by the pandemic. But [Read more]
Oil prices rise on doubts over output cuts, surging U.S. diesel inventories
Oil prices rose on Thursday on concern over whether major crude producers will be able to agree to extend record output cuts, heightened by worries over a huge build in U.S. distillate inventories. U.S. West Texas Intermediate (WTI) crude futures rose 1.84%, or 68 cents, to $37.41 a barrel. Brent crude futures rose 1.34%, or 53 cents, to $39.98 a barrel. Saudi Arabia and Russia, two of the world's biggest oil producers, have agreed to support extending into July the 9.7 million [Read more]
OPEC+ may meet over oil cuts this week if laggards agree to comply
OPEC+ oil producers could still hold a ministerial video conference this week if Iraq and others which have not fully complied with existing oil supply cuts agree to boost their adherence, three OPEC+ sources told Reuters on Thursday. The Organization of the Petroleum Exporting Countries and its allies led by Russia, a group known as OPEC+, are still debating when to hold their ministerial talks to discuss a possible extension of the existing cuts. OPEC+ agreed to reduce supply by 9.7 [Read more]
Enbridge Line 3 oil pipeline replacement faces new delay over water concerns
A Minnesota pollution regulator said on Wednesday it will hold a public hearing this summer on Enbridge Inc's plan to replace its Line 3 oil pipeline, adding a potential three-month delay and pushing the bulk of construction to next year. The Minnesota Pollution Control Agency (MPCA) said the hearing will focus on how Enbridge intends to protect streams and wetlands that the pipeline crosses. Replacing Line 3, a 1960s-era branch of Enbridge's vast Mainline network, would allow the company [Read more]
Heavy discount widens as oil storage levels ease
Canadian heavy crude's discount widened versus the U.S. benchmark West Texas Intermediate (WTI) on Wednesday as Alberta oil storage levels eased and Enbridge Inc's Line 3 pipeline faced added delays. Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $8.60 per barrel below WTI, according to NE2 Canada Inc, wider than Tuesday's settle of $7.65 under. Light synthetic crude from the oil sands was trading at $2 below WTI after Tuesday's settle of [Read more]
Oil hits three-month high over hopes for output cuts
Oil rose on Wednesday to a near three-month high amid optimism that major producers will extend production cuts as the world recovers from the coronavirus pandemic. U.S. West Texas Intermediate crude (WTI) gained 9 cents, or 0.2%, at $36.92, also the highest since March 6. The contract ended the previous session up 3.9%. Brent crude was down 22 cents, or 0.6%, at $39.30. Both benchmarks have risen sharply in recent weeks from the lows of April, buoyed by a continuing recovery in [Read more]
Saudi, Russia reach deal on oil cuts, raising pressure on laggards
OPEC leader Saudi Arabia and non-OPEC Russia have agreed a preliminary deal to extend existing record oil production cuts by one month while raising pressure on countries with poor compliance to deepen their output cuts, OPEC+ sources told Reuters. "Any agreement on extending the cuts is conditional on countries who have not fully complied in May deepening their cuts in upcoming months to offset their overproduction," one OPEC source said. OPEC+ agreed last month to cut output by a record [Read more]