U.S. oil refiners are predicting a strong recovery in fuel demand in the second half of this year as vaccination rates increase and workers are expected to resume commuting and taking vacations. But oil processors appear to be skimping on routine spring overhauls that typically prepare refineries for peak summer output. Maintenance cutbacks could make it hard to boost output as the economy recovers from its pandemic-related contraction. U.S. plants are running at about 82% of capacity, [Read more]
Suncor Energy reviews mining safety after three workers killed
Canada's second-biggest oil company, Suncor Energy Inc, said on Thursday it had started a third-party safety review after three contract workers died in two separate mining accidents. Chief Executive Mark Little said the review would focus on mining operations, which are one of the ways the company extracts crude from Alberta's oil sands. It is scheduled for completion this quarter. "As devastating as this has been for all of us, I can't even comprehend how difficult this is on the [Read more]
Oil rises to near 1-year highs after U.S. stock drawdown
Oil prices rose more than 2% to near their highest levels in about a year on Wednesday, after government data showed U.S. crude stockpiles fell to their lowest since March, while OPEC+ maintained its supply cut agreement. U.S. West Texas Intermediate (WTI) crude futures rose $1.45, or 2.7%, to $56.21 a barrel, their highest since January 2020. Brent crude futures rose $1.37, or 2.4%, to $58.83 a barrel by 11:05 a.m. EST (1605 GMT), their highest since last February. Both benchmarks’ [Read more]
Oil prices reach highest in nearly a year as producers restrain output
Oil prices rose more than 2% on Tuesday, reaching its highest in nearly 12 months after major producers showed they were reining in output roughly in line with their commitments. U.S. oil gained $1.33, or 2.5%, to its highest since early March at $54.88. Brent crude was up $1.31, or 2.3%, at $57.66 a barrel by 1500 GMT for its third straight day of gains and the highest levels since February last year. OPEC crude production rose for a seventh month in January but the increase was [Read more]
OPEC experts meet as rising oil prices mask demand worries
OPEC+ experts were holding a virtual meeting on Tuesday as a rise in oil prices to their highest in almost a year masked persistent concerns about a recovery in oil demand. The Joint Technical Committee began its meeting at about 1200 GMT and is reviewing the demand outlook and countries' compliance with agreed output cuts. A ministerial panel meets to review the market on Wednesday. Oil, which hit historic lows last year as demand collapsed due to the pandemic, has rallied thanks to [Read more]
Heavy crude tightens on first day of new monthly trade cycle
Canadian heavy crude's discount to West Texas Intermediate (WTI) tightened on Monday as the new monthly trade cycle got started: Western Canada Select (WCS) heavy blend crude for March delivery in Hardisty, Alberta, last traded at $12.70 per barrel below WTI, according to NE2 Canada Inc. On Friday, the Canadian heavy benchmark settled at $14.30 per barrel below WTI. Two industry sources said there was strong demand for WCS among refineries, which are buying in anticipation of high [Read more]
Oil gains despite patchy vaccine rollouts, new coronavirus variants
Oil prices rose on Monday after a weak start, adding to the gains of the last three months, although patchy coronavirus vaccine rollouts, new infections and the discovery of new variants are casting a shadow over the outlook for demand. U.S. West Texas Intermediate (WTI) gained 48 cents, or 0.9%, to $52.65. Brent crude futures were up 64 cents, or 1.16%, at $55.64 a barrel. Both benchmarks gained nearly 8% in January. Oil prices have been boosted by vaccination programmes getting [Read more]
Exxon, Chevron CEOs discussed merger in early 2020
The chief executives of ExxonMobil Corp and Chevron Corp held preliminary talks in early 2020 to explore combining the two largest U.S. oil producers in what would have been the biggest merger of all time, according to people familiar with the matter. The discussions, which are no longer active, are indicative of the pressure the energy sector's most dominant companies faced as the COVID-19 pandemic took hold and crude prices plunged. The talks between Exxon Chief Executive Darren Woods [Read more]
U.S. oil and gas rig count rises in January for sixth month
U.S. energy firms this week added oil and natural gas rigs for a tenth week in a row, with the rig count up in January for a sixth straight month, as monthly oil production rebounds amid rising prices. The oil and gas rig count, an early indicator of future output, rose six to 384 in the week to Jan. 29, its highest since May, energy services firm Baker Hughes Co said in its closely followed report on Friday. The 10-weeks of gain is the longest streak of increases since June [Read more]
Oil steady as supply cuts offset demand worries on stalled vaccine rollouts
Oil prices were steady on Friday, sticking to ranges seen over the past three weeks, as investors looked for signs of changing supply and demand fundamentals. A cut in Saudi Arabia's oil supply and lower U.S. oil stocks helped offset price pressures from fuel demand, which is slowing due to stalled vaccine rollouts and contagious new coronavirus strains. "We're waiting for the next shoe to drop in the oil market. We really don't have much to move us around," said Michael McCarthy, chief [Read more]