Oil prices jumped more than 14% on Tuesday, clawing back some ground on hopes that a price war by top producers Saudi Arabia and Russia that sparked the biggest daily rout since the 1991 Gulf War will not be sustained. U.S. shale producers also rushed to deepen spending cuts and could reduce future production after OPEC's decision to pump full bore into a global market hit by shrinking demand due to the coronavirus outbreak. West Texas Intermediate (WTI) crude gained $4.30, or around [Read more]
Saudi Arabia tries shock tactics to bring oil war to swift end
Saudi Arabia has escalated its oil market conflict with Russia in an attempt to force Russia back to negotiations or compel the United States to intervene and help broker a new agreement. Saudi Aramco has said it will lift the volume of oil supplied to the market to 12.3 million barrels per day (bpd) next month, which is more than 2.0 million bpd above its current output and 0.3 million bpd above its sustainable capacity. Increasing supply rapidly by withdrawing oil from inventories and [Read more]
Heavy discount remains narrow amid global price rout
Canadian heavy crude's discount widened slightly versus the U.S. benchmark West Texas Intermediate (WTI) crude on Monday, remaining in a narrow range as global crude oil prices collapsed. Western Canada Select (WCS) heavy blend crude for April delivery in Hardisty, Alberta, settled at $13.50 per barrel below WTI, according to NE2 Canada Inc, wider than Friday's settle of $13.40 under. The drop in international prices prevented the gap between WCS and WTI from widening significantly, a [Read more]
As Saudi Arabia blows up crude oil market, stand by for fallout
Saudi Arabia has detonated a metaphorical nuclear weapon in the global oil market, blowing up prices and trade relationships with its decision to slash the cost of its own crude while ramping up output.The Saudi move was no shot across the bows aimed at Russia’s reluctance to extend and boost a deal to curb production. Instead, it was a full-on declaration of war. Saudi Aramco aims to lift its output above 10 million barrels per day (bpd) in April, possibly as high as 11 million bpd, two [Read more]
Oil demand set for first contraction since 2009 due to coronavirus – IEA
Global oil demand is set to contract in 2020 for the first time in more than a decade as global economic activity stalls due to the coronavirus, the International Energy Agency said on Monday. The downward revision came as oil prices dropped as much as third in their biggest one-day fall since the 1991 Gulf War after Saudi Arabia launched a bid for market share following the collapse of an output pact with Russia. The energy watchdog said it expected oil demand to be 99.9 million barrels [Read more]
As Saudi Arabia blows up crude oil market, stand by for fallout
Saudi Arabia has detonated a metaphorical nuclear weapon in the global oil market, blowing up prices and trade relationships with its decision to slash the cost of its own crude while ramping up output. The Saudi move was no shot across the bows aimed at Russia's reluctance to extend and boost a deal to curb production. Instead, it was a full-on declaration of war. Saudi Aramco aims to lift its output above 10 million barrels per day (bpd) in April, possibly as high as 11 million bpd, two [Read more]
Oil futures fall over 20% after Saudi Arabia slashes selling prices
Oil futures dropped more than 20% on Sunday to their lowest since 2016 after Saudi Arabia slashed its official selling price (OSP), signaling the start of a price war after OPEC talks with Russia failed to produce an agreement on production cuts. On Friday, Russia balked at OPEC’s proposed steep production cuts to stabilize prices hit by economic fallout from the coronavirus. OPEC responded by removing limits on its own production. Brent futures fell $9.57, or 21.1%, to $35.70 a barrel, [Read more]
Heavy discount narrows, nearing five-month low
Canadian heavy crude's discount narrowed versus the U.S. benchmark West Texas Intermediate (WTI) crude on Friday, nearing a fresh five-month low due to plunging global prices and dwindling Alberta inventories. Traders took in stride a fire at Canada's Syncrude oil sands facility, which led to the company declaring force majeure. The site upgrades heavy oil into light oil. Western Canada Select (WCS) heavy blend crude for April delivery in Hardisty, Alberta, was trading at $13.10 per barrel [Read more]
U.S. drillers add oil rigs for fourth week in five -Baker Hughes
U.S. energy firms added oil rigs for the fourth time in five weeks even though Exxon Mobil Corp said it would join other producers and reduce new drilling this year. Companies added 4 oil rigs in the week to March 6, bringing the total count to 682, their highest since December, energy services firm Baker Hughes Co said in its closely followed report on Friday. . That is down 18% from the same week a year ago when 834 rigs were active. Exxon, which analysts say is operating the most [Read more]
Oil falls amid demand concern, fears over OPEC+ deal for deeper output cuts
Oil slid nearly 1% on Friday as worries about global oil demand and economic growth slowdown caused by the coronavirus outbreak were heightened by concern over non-OPEC crude producers not yet having agreed to cut output further to support prices. U.S. West Texas Intermediate (WTI) was down $3.75, or 8.1%, at $42.22 per barrel. Brent crude fell $4.08, or 8.1%, to $45.94 per barrel. The Organization of the Petroleum Exporting Countries (OPEC) on Thursday pushed for crude output by OPEC [Read more]