Canadian heavy crude's discount versus West Texas Intermediate (WTI) narrowed on Thursday with tight inventories in focus. Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, traded at $9.50 per barrel below WTI, according to NE2 Canada Inc. It settled on Wednesday at $9.75 under. Western Canadian inventories sit at multi-year lows, but differentials are likely to widen into early 2021 as production continues to return to market and pipelines increase [Read more]
OPEC, in major shift, says oil demand to plateau in late 2030s
World oil demand will plateau in the late 2030s and could by then have begun to decline, OPEC said on Thursday, in a major shift for the producer group that reflects the lasting impact of the coronavirus crisis on the economy and consumer habits. The prediction from the Organization of the Petroleum Exporting Countries, made in its 2020 World Oil Outlook, comes amid a growing number of other forecasts that the pandemic may prove the tipping point for peak oil demand. Oil use will rise to [Read more]
Heavy discount narrows on tight inventories, steady demand
Canadian heavy crude's discount versus West Texas Intermediate (WTI) narrowed on Wednesday, with inventories low and demand steady. Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, traded at $9.75 per barrel below WTI, according to NE2 Canada Inc. It settled on Tuesday at $9.90 under. Producers have been restoring curtailed production, but maintenance has limited returning supplies, while demand for Canadian heavy oil has picked up due to declines [Read more]
Canada to impose binding plastic standards for products and packaging
Canada intends to impose binding standards for how much recyclable plastic content there has to be in products and packaging and wants new rules in place within 24 months, a top official said on Wednesday. Environment Minister Jonathan Wilkinson said Canadians threw away around 3 million tonnes of plastic every year, of which only 9% was recycled. “The problem is getting worse,” he told a news conference. Ottawa has a target of zero plastic waste by 2030. “To ensure we keep much more of our [Read more]
Storm-weary offshore energy firms prep for massive hurricane
Oil and gas workers withdrew en masse from offshore production facilities as Hurricane Delta grew into a powerful storm over the Caribbean on its way to the Gulf of Mexico. Delta's winds reached 145 miles per hour (235 kph) as the storm sped toward Mexico's Yucatan peninsula and eventual entry into the Gulf of Mexico, whose warm waters will restore it to a Category 4 storm, the National Hurricane Center said. Oil producers had evacuated 57 production facilities in the U.S. Gulf of Mexico [Read more]
Sole survivor? Saudi Arabia doubles down on oil to outlast rivals
The slump in demand for crude during the coronavirus pandemic has forced oil companies to contemplate the possibility that the fossil fuel market has peaked and the time for a global energy transition has come. But Saudi Aramco plans to boost its production capacity so it can pump as much of the kingdom's vast oil reserves when demand picks up - before a shift to cleaner energy makes crude all but worthless, industry sources and analysts told Reuters. With almost 20% of the world's proven [Read more]
Heavy discount widens slightly, remains in narrow range
Canadian heavy crude's discount versus West Texas Intermediate (WTI) widened slightly on Tuesday but remained in a narrow range, as stockpiles remained low. Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, traded at $9.70 per barrel below WTI, according to NE2 Canada Inc. It settled on Monday at $9.65 under. Demand for Canadian heavy barrels is holding up relatively well, while inventories are flat, said Martin King, senior analyst at RBN Energy. He [Read more]
Irving Oil terminates purchase of North Atlantic Refinery Limited
Canada-based oil refinery operator Irving Oil on Tuesday said it has terminated an agreement for the purchase of North Atlantic Refinery Limited, the company said in a statement on its website. Irving had agreed to buy the owner of the idled 135,000 barrels per day Come-by-Chance refinery in Newfoundland, for an undisclosed price in May. According to industry sources, Irving walked away from the purchase and share agreement shortly before it was set to close in mid-October. "North [Read more]
Alberta aims to export hydrogen
The province of Alberta will look to use its plentiful natural gas reserves to become an exporter of hydrogen, a clean-burning fuel, by 2040, Premier Jason Kenney said on Tuesday. The pandemic has hit Alberta's oil industry hard, as travel restrictions crushed demand for fuel. The province's struggles date back years, however, as the oil sands' high emissions made it a target for environmental activists and have led to some investors, banks and insurers cutting ties with the industry. "The [Read more]
Oil prices gain on supply disruptions, Trump’s hospital exit
Oil prices gained on Tuesday amid supply disruptions in Norway, a new hurricane in the Gulf of Mexico, and U.S. President Donald Trump’s return to the White House from hospital. U.S. West Texas Intermediate (WTI) crude futures were trading $1.02 higher, or 2.6%, at $40.24 a barrel. Brent crude futures were up $1.02, or 2.5%, by 1220 GMT at $42.31 a barrel. An oil workers’ strike in Norway will cut the country’s total output capacity by just over 330,000 barrels of oil equivalent per day, or [Read more]