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]
Oil analysts see prices edging up but still capped below $40/bbl
Oil prices will gradually gain this year with demand improving and supply falling, although tensions between the United States and China are hanging over the coronavirus-hit market, a Reuters poll showed on Friday. The survey of 43 analysts forecast Brent crude would average $37.58 a barrel in 2020, about 5% above April's $35.84 consensus, but still lower than the $42.37 average so far this year. U.S. West Texas Intermediate crude is seen averaging $32.78 a barrel, up from $31.47 last [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]
Keystone XL pipeline likely to face delays after U.S. court denies stay
A U.S. appeals court in California on Thursday declined to suspend a lower court's ruling that cancelled a national environmental permit, in a decision likely to delay pipeline projects, including the Keystone XL oil pipeline. The U.S. Court of Appeals for the 9th Circuit said in the ruling that the appellants, the Army Corps of Engineers and TC Energy Corp, "have not demonstrated a sufficient likelihood of success on the merits and probability of irreparable harm to warrant a stay pending [Read more]
Oil gains on rise in U.S. fuel stocks
Oil prices gained in early trade on Thursday after U.S. crude, gasoline and heating oil inventories all rose more than expected, dousing hopes of a smooth recovery in demand from coronavirus lockdowns. U.S. West Texas Intermediate (WTI) crude futures fell as much as 5% to a low of $31.14 and were up 1%, or 33 cents, at $32.55. Brent crude futures last traded up 0.96%, or 36 cents, at $34.54. Data from the American Petroleum Institute industry group showed crude stocks rose by 8.7 [Read more]
Enbridge says coating repairs under way on Line 5 pipeline
Enbridge Inc on Wednesday said coating repairs were under way at its Line 5 oil pipeline in the Straits of Mackinac in Michigan, as exposed metal spots were found during seasonal maintenance that began in May. "Four locations will require coating repairs where there are bare metal spots ranging from .07 to .43 square feet. The coating repairs are anticipated to take 5-10 days," the Canadian pipeline company said on its website. There were no integrity issues with the Line 5 pipeline and it [Read more]
Alberta cuts oil output by 1 million bpd
Alberta has cut oil output by a quarter or about 1 million barrels per day (bpd), Alberta's energy minister, Sonya Savage, has informed OPEC. The output cut by Alberta, home to the world's third-largest oil reserves, represents about a quarter of its production, Savage said in an interview to be published in the April/May issue of the OPEC Bulletin. "The Minister stated there is currently no point in announcing additional output adjustments, as production has come down on its own," an OPEC [Read more]
Oil slips on demand worries, Hong Kong tensions
Oil prices fell on Wednesday on revived concerns over how quickly fuel demand will recover even as coronavirus lockdowns begin to ease in many countries, while U.S.-China tensions added to negative sentiment. U.S. West Texas Intermediate (WTI) crude futures were down 57 cents, or 1.6%, at $33.47 a barrel. Brent crude futures fell 80 cents, or 2.19%, to $35.24. The Organization of the Petroleum Exporting Countries and producers including Russia, a grouping referred to as OPEC+, are [Read more]