Canadian heavy crude's discount versus West Texas Intermediate (WTI) widened on Wednesday, but remained at tight levels on low inventories and recovering demand. Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, traded at $9.65 per barrel below WTI, according to NE2 Canada Inc. It settled on Tuesday at $9.30 under. The tight differential level is surprising, given that oil sands turnarounds are wrapping up and demand is seasonally weaker, said Matt [Read more]
Banks and insurers shun Canada’s oil sands
Canada is betting that efforts to incrementally reduce greenhouse gas emissions from its oil sands deposits will win back investors, banks and insurers who in recent years have shunned the carbon-heavy resource for environmental reasons. Here is a look at some of the institutions with commitments and policies targeting oil sands. ING Group in June 2017 updated its policy barring transactions directly linked to mining, exploration and transportation and processing of oil sands to include [Read more]
Oil rises as robust China trade data offsets returning supply
Oil prices rebounded on Wednesday, supported by robust economic data from China that offset returning supply in other regions but gains were capped by forecasts for a slow recovery in global oil demand as coronavirus cases rise U.S. West Texas Intermediate (WTI) crude futures settled up 80 cents, or about 2%, to $40.96 a barrel. Brent crude futures ended up 78 cents, or 1.8%, to $43.20 a barrel while On Monday, both benchmarks fell nearly 3%. China, the world’s top crude oil importer, took [Read more]
Heavy discount narrows slightly on improving demand, low stocks
Canadian heavy crude's discount versus West Texas Intermediate (WTI) narrowed slightly on Tuesday, with demand improving and inventories low. Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, traded at $9.35 per barrel below WTI, according to NE2 Canada Inc. It settled on Friday at $9.40 under. Even so, investment bank Raymond James estimates a net WCS price for the fourth quarter of C$34.55 per barrel, down 2% from its previous estimate, and a [Read more]
Alberta oil output 16% below pre-COVID levels -minister
Oil production in Canada's Alberta province is 16% below its pre-coronavirus crisis levels, Alberta's Energy Minister Sonya Savage told the Energy Intelligence Forum on Tuesday. Alberta's oil output dropped by as much as 880,000 barrels per day, or 22%, at the peak of the production cuts in response to an unprecedented drop in global fuel consumption due to the epidemic, Savage said. The province however has no plans to join an alliance of OPEC and other major oil producers to limit global [Read more]
U.S. energy companies begin restoring oil and gas output after storm exits
U.S. energy companies were returning workers and restarting operations at storm-swept production facilities along the U.S. Gulf Coast on Sunday, two days after Hurricane Delta barreled through the area. Chevron Corp , Royal Dutch Shell Plc and BHP Group were returning workers to production platforms in the U.S.-regulated northern Gulf of Mexico, the companies said. BHP expects to complete the return of workers to its Shenzi and Neptune production platforms on Sunday, spokeswoman Judy Dane [Read more]
Heavy discount narrows on tight inventories, steady refining demand
Canadian heavy crude's discount versus West Texas Intermediate (WTI) narrowed on Friday as supplies remained tight and refining demand improved. Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, traded at $9.10 per barrel below WTI, according to NE2 Canada Inc. It settled on Thursday at $9.75 under. Refining utilization in the Western Canadian region averaged 79% in the third quarter of 2020, below a 3-year average of 93%, but trending up through the [Read more]
U.S. drillers add oil and gas rigs for fourth week in a row
U.S. energy firms this week added oil and natural gas rigs for a fourth week in a row for the first time since June 2018 as producers start drilling again with prices holding around $40 a barrel over the past few months. The oil and gas rig count, an early indicator of future output, rose three to 269 in the week to Oct. 9, energy services firm Baker Hughes Co said in its closely followed report on Friday. The total rig count fell to a record low of 244 rigs during the week ended Aug. 14, [Read more]
Hurricane Delta shuts most U.S. offshore oil output in 15 years
A large and powerful Hurricane Delta dealt the greatest blow to U.S. offshore Gulf of Mexico production in 15 years, halting most of the region's oil and nearly two-thirds of its natural gas output. Delta was packing 120 mile-per-hour (195 km) winds Friday as it churning through the Gulf's prime oil-producing area toward landfall on coastal Louisiana in the evening. It was about 160 miles south of Cameron, Louisiana, according to a 7 a.m. CDT update from the U.S. National Hurricane [Read more]
U.S. natgas on track to hit highest since November as hurricane shuts output
U.S. natural gas futures were on track to reach their highest close since November on Friday as production fell to its lowest in over two years after Gulf Coast energy firms shut wells ahead of Hurricane Delta and on forecasts for colder weather and higher demand in mid October. That price increase came despite a drop in gas flows to liquefied natural gas (LNG) export plants as operators either shut or reduced their Louisiana facilities before Delta makes landfall. Delta was expected to [Read more]