Canada has the power to delay a decision on whether to approve a new Teck Resources Ltd oil sands project, a key cabinet minister said on Tuesday, a sign Ottawa could push back what will be a contentious decision. Ottawa must decide by end-February if Teck can build the C$20.6 billion ($15.7 billion) Frontier mine in northern Alberta, capable of eventually producing 260,000 barrels of crude oil per day. If the minority Liberal government of Prime Minister Justin Trudeau says yes, it would [Read more]
Oil ends 6 day fall as China virus raises global growth, demand concerns
Oil futures recovered after a 6 day fall on Tuesday as the spread of a new virus in China and several countries raised concerns about a hit to economic growth and oil demand. U.S. West Texas Intermediate was up 27 cents, or 0.5%, at $53.09, after slipping to its lowest since early October in the previous session at $52.13. Brent crude was up 4 cents, or 0.07%, to $58.98 at around 0348 GMT, after touching a three-month low on Monday at $58.50, as the virus outbreak triggered a global [Read more]
Oil drops below $54 as China virus drives demand concern
Crude prices extended declines on Monday, dropping below $60 for the first time in nearly three months as the death toll from China's coronavirus rose and more businesses were forced to shut down, stoking expectations of slowing oil demand. U.S. crude was down by 94 cents, or 1.75%, at $53.28. Brent crude fell by $1.14 a barrel, or 1.88%, to $59.50. Global stock exchanges also fell as investors grew increasingly anxious about the widening crisis. Demand spiked for safe-haven assets, [Read more]
U.S. drillers add oil rigs for second week in a row
U.S. energy firms added oil rigs for a second consecutive week, raising doubts over producers' plans to continue reducing spending on new drilling for a second year in a row in 2020. Companies added three oil rigs in the week to Jan. 24, bringing the total count to 676, energy services firm Baker Hughes Co said in its closely followed report on Friday. In the same week a year ago, there were 862 active rigs. The oil rig count, an early indicator of future output, dropped in 2019 after [Read more]
Oil falls 2% as specter of China virus threatens fuel demand
Oil prices fell 2% on Friday on concern that the spread of a virus from China could lower fuel demand if it stunts economic growth, but losses were limited by a drawdown in U.S. crude inventories. U.S. West Texas Intermediate (WTI) crude ended down $1.15, or 2%, at $54.59 a barrel. Brent crude futures fell $1.17, or 1.9%, to settle at $61.00 a barrel. Two Chinese cities were put in lockdown on Thursday as health authorities around the world scrambled to prevent a global pandemic. The [Read more]
Oil market shrugs off Libya crisis amid ample global supply
Oil prices fell on Tuesday on expectations that a well-supplied global market, including supplies from record U.S. production, would be able to absorb disruptions that have cut Libya’s crude production to a trickle. U.S. crude fell $1.16, or 2.05%, to $58.88 per barrel. Brent futures dropped $1.28, or 2.01% to $61.36 a barrel. Libya’s barrels “although plentiful when around, have not been a reliable count,” said Brayton Tom, senior risk manager for INTL FCStone’s energy team. “At the [Read more]
North American oil company bankruptcies jump in 2019
The number of oil company bankruptcies rose 50% in 2019 over the previous year, as a slide in prices continued to shake producers in the United States and Canada, Dallas law firm Haynes and Boone said in a report released on Wednesday. U.S. and Canadian oil and natural gas exploration and production company bankruptcies totaled 42 in 2019, up from 28 in 2018, the law firm said. "Following a steep drop in oil prices in the fourth quarter of 2018, there was a sharp increase in the number of [Read more]
Oil declines as market surplus forecast counters Libya worries
Oil prices eased on Wednesday, extending declines as the International Energy Agency (IEA) forecast a market surplus in the first half, helping ease concerns about disruptions that have slashed Libya's crude output. Brent crude was down 24 cents, or 0.4%, at $64.35 a barrel at 0309 GMT, after dropping 0.3% on Tuesday. U.S. oil fell 29 cents, or 0.5%, to $58.09 a barrel, having declined 0.3% the day before. The head of the IEA, Fatih Birol, said on Tuesday he expects the market to be in [Read more]
Teck oil sands project splits Canada’s indigenous people, poses challenge for Trudeau
A proposed Canadian oil sands mine has split the country's indigenous people, compounding the challenges facing Prime Minister Justin Trudeau's government as it decides whether to approve the project. Teck Resources Ltd would build the C$20.6 billion ($15.76 billion) Frontier mine 110 kilometres (68 miles) north of Fort McMurray, Alberta, capable of eventually producing 260,000 barrels of crude oil per day. The mine, which would be one of the largest in Alberta's oil sands, requires federal [Read more]
U.S. natgas futures drop to 3-year lows on milder weather forecasts
U.S. natural gas futures fell to a fresh three-year low below $2 on Tuesday on forecasts for milder winter weather through early February than previously expected. Low gas prices are a boon to consumers who pay less to heat homes and businesses, but are painful for energy companies - like EQT Corp , the nation's biggest gas producer - forced to cut costs and reduce drilling activity to the lowest level in years. Front-month gas futures for February delivery on the New York Mercantile [Read more]