A government aid package for struggling Canadian energy firms has run into weeks of delays, in part because officials are still trying to obtain up-to-date data, according to three sources familiar with the matter. The oil and gas sector in the western province of Alberta, home to the world's third-largest crude reserves, has been hard hit by plummeting crude prices due to low demand and excess supply from Saudi Arabia and Russia. Smaller energy firms are seen as particularly vulnerable to [Read more]
Heavy discount widens as monthly trading cycle begins
Canadian heavy crude's discount widened versus U.S. benchmark West Texas Intermediate (WTI) oil on Wednesday, the first day of the monthly trading cycle. Western Canada Select (WCS) heavy blend crude for May delivery in Hardisty, Alberta, traded at $16.65 per barrel below WTI, according to NE2 Canada Inc, wider than Tuesday's settle of $15 under. With WTI prices trading around $21, the net Canadian heavy price was about $4 per barrel, around the lowest on record. "Basically (it's) [Read more]
Oil prices mixed, U.S. inventory build-up heightens oversupply concerns
Crude oil benchmarks opened the month mixed on Wednesday, following their biggest-ever quarterly and monthly losses, overshadowed by fears of global oversupply as data showed a bigger-than-expected rise in inventories in the United States. U.S. West Texas Intermediate crude was up by 7 cents, or 0.34%, at $20.17 a barrel. Brent crude was down by $1.06, or 4.09%, at $24.86 a barrel. U.S. crude inventories rose by 10.5 million barrels last week, far exceeding forecasts for a 4 million [Read more]
OPEC rift widens as group fails to set date for emergency talks
A rift in the Organization of the Petroleum Exporting Countries (OPEC) has widened after members failed to agree unanimously on an emergency low-level meeting to discuss a market collapse that has seen global oil prices hit 18-year lows. OPEC president Algeria, which has been instrumental in organising the producer group's efforts to support the market, had been among the members pushing for a gathering of OPEC's Economic Commission Board (ECB) in April. But at least four members, [Read more]
Crude rises after U.S., Russia agree to oil market talks
Oil recovered some ground on Tuesday as U.S. President Donald Trump and Russian President Vladimir Putin agreed to discuss stablising energy markets, but prices remain near 18-year lows as the coronavirus shutdown destroys demand. U.S. crude was up by 20 cents, or 0.94%, at $20.36 a barrel, after settling down at $20.09, the lowest close since February 2002. Brent crude was up by $3.45, or 15.22%, at $26.22 a barrel after closing at $22.76 in the previous session, the lowest close since [Read more]
U.S. natgas edges up with big drop in rig count, forecasts for less output
U.S. natural gas futures edged up on Monday on expectations production will decline in coming weeks and months after the rig count dropped last week. The small increase came despite a near 9% drop in oil prices and forecasts for milder weather and lower heating demand over the next two weeks than earlier expected. On its first day as the front-month, gas futures for May delivery on the New York Mercantile Exchange rose 1.9 cents, or 1.1%, to settle at $1.690 per million British thermal [Read more]
Global oil demand could fall around a third next month
Global commodities trader Trafigura's chief economist said oil demand could fall by more than 30 million barrels per day (bpd) in April, as the global economy grinds to a near halt due to the coronavirus. The forecast, the highest yet from a senior industry forecaster, equates to around a third of the world's daily oil consumption. Saad Rahim, chief economist at the Geneva-based trader, said a battle for market share between Saudi Arabia and Russia had become increasingly irrelevant now [Read more]
U.S. crude dips as lockdowns hit demand
Oil prices fell sharply on Monday, with U.S. crude briefly dropping below $20 and Brent hitting its lowest level in 18 years, on heightened fears that the global coronavirus shutdown could last months and demand for fuel could decline further. U.S. West Texas Intermediate (WTI) crude fell $1.69, or 7.8%, to $20.08. Earlier in the session, WTI fell as low as $19.92. Brent crude, the international benchmark for oil prices, was down $2.09, or 8.4%, at $22.84, after earlier dropping to $22.58, [Read more]
Canada’s Come By Chance refinery to shut due to virus
North Atlantic Refining Limited's 130,000 barrels per day Come by Chance refinery in Newfoundland and Labrador, Canada will be shut down this week due to the coronavirus, a local media report said citing the president of the United Steelworkers Union. Though the period of the shutdown is uncertain, it could be anywhere from 2 to 5 months, the report dated March 29 said. The company was not immediately available for comment. [Read more]
Global oil refiners shut down as coronavirus destroys demand
The first oil refinery shutdowns in India and Europe were announced on Friday while global refinery runs drop like a stone in response to plunging demand as countries worldwide implement lockdowns. Italy’s API said it would close operations temporarily at its Ancona refinery, which has capacity of 85,000 barrels per day (bpd). In India, top refiners Indian Oil Corp (IOC.NS) and Mangalore Refinery and Petrochemicals (MRPL.NS) declared force majeure, with MRPL in the process of shutting down [Read more]