U.S. natural gas futures edged up on Tuesday as power generators burned more fuel to keep air conditioners humming despite a drop in liquefied natural gas (LNG) exports to Europe and Asia, where prices recently fell to record lows due to coronavirus demand destruction. Front-month gas futures rose 2.2 cents, or 1.2%, to $1.796 per million British thermal units. Data provider Refinitiv said average gas output in the U.S. Lower 48 states fell to 88.2 billion cubic feet per day (bcfd) so far [Read more]
Heavy discount narrows as monthly trading cycle begins
Canadian heavy crude's discount narrowed versus the U.S. benchmark West Texas Intermediate (WTI) on Monday, the first day of the monthly trading cycle. Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $6.55 per barrel below WTI, according to NE2 Canada Inc, narrower than Friday's settle of $7.10 under. Analysts at Tudor, Pickering, Holt & Co last week said steam-driven oil sands production in April fell to 1,345 mbpd in April, down 167 [Read more]
Oil prices slip as wary traders eye upcoming OPEC+ meeting
Oil prices fell nearly 1% on Monday as traders hedged bets with the Organization of the Petroleum Exporting Countries (OPEC) considering meeting as soon as this week to discuss whether to extend record production cuts beyond end-June. West Texas Intermediate (WTI) crude futures for July delivery were at $34.69 a barrel, down 49 cents. Brent crude fell 6 cents to $37.58 a barrel on the first day of trading in the contract with August as the front month. The price falls come after [Read more]
Lasting contango in oil: market spread to outlast supply-demand imbalance
While vast cuts by producer countries and renewed fuel consumption from easing coronavirus lockdowns may soon rebalance oil supply and demand, some analysts and traders see a glut in storage keeping the market in contango for much longer. A contango market structure means the current value is lower than it will be in later months and encourages traders to store oil to resell it in the future. An especially skewed spread for oil futures or "super-contango" emerged last month, prompting [Read more]
Suncor CEO sees electric vehicles disrupting oil demand as much as coronavirus
The shift to electric vehicles and other low-carbon technologies could disrupt crude oil demand on a similar scale to the coronavirus pandemic, Suncor Energy Inc's chief executive said on Monday. The comments are a stark prediction in an industry that frequently downplays the impact of electrification and points to forecasts of rising global oil demand to justify new investment and pipeline expansions. Canada is the world's fourth-largest oil producer and the sector accounts for 10.6% of [Read more]
Fire extinguished on Suncor offshore oil vessel that faces uncertain future
A fire on the idled Terra Nova oil facility that Suncor Energy operates off the coast of Newfoundland & Labrador has been extinguished, the energy regulator for the province said on Saturday, even as the vessel faced an uncertain future. No one was hurt in the fire, the Canada-Newfoundland and Labrador Offshore Petroleum Board said in a statement. There was no oil or gas held onboard the vessel as it was not producing, the regulator said. Further details were not available and Suncor [Read more]
Russia has no objection to earlier OPEC+ meeting
Russia has no objection to the next meeting of OPEC and its allies, known as OPEC+, being brought forward to June 4 from the following week, three OPEC+ sources familiar with the meeting's preparations told Reuters on Sunday. Algeria, which currently holds the presidency of the the Organization of the Petroleum Exporting Countries (OPEC), has proposed the meeting planned for June 9-10 be brought forward to facilitate oil sales for countries such as Saudi Arabia, Iraq and Kuwait. The lack [Read more]
U.S./Canadian oil & gas rig count falls to record low
U.S. and Canadian energy firms cut the number of oil and natural gas rigs operating to a record low as they slash spending on new drilling after global coronavirus lockdowns caused energy prices and demand to collapse. The U.S. oil and gas rig count, an early indicator of future output, fell by 17 to an all-time low of 301 in the week to May 29, according to data from energy services firm Baker Hughes Co going back to 1940. That was 683 rigs, or 69%, below this time last year and was the [Read more]
Court ruling in Keystone XL case is another blow against big U.S. natgas pipes
The two biggest U.S. natural gas pipelines under construction are likely facing more delays after an appeals court ruling against the Army Corps of Engineers, energy analysts said. The Trump administration has pressed ahead with new pipeline construction but several projects have been stalled by successful legal challenges saying the administration is not applying careful regulatory scrutiny. Last month, a Montana judge ruled the Army Corps authorized permits to cross streams without [Read more]
Oil prices rise as U.S. fuel demand remains weak
Oil prices grew on Friday after U.S. inventory data showed lackluster fuel demand in the world's largest oil consumer while worsening U.S.-China tensions weighed on global financial markets. U.S. West Texas Intermediate crude was at $34.90 a barrel, up $1.17, or 3.43%. Brent crude jumped 1.79$, or 5%, to $37.17 a barrel. Still, both contracts are set for a fifth weekly gain, helped by production cuts and optimism about demand recovery in other countries. "The rally needs a breather. It [Read more]