Oil prices slipped on Wednesday on concerns that the pending Phase 1 trade deal between the United States and China, the world's biggest crude users, may not lead to more fuel demand as the U.S. intends to keep tariffs on Chinese goods in place. U.S. Treasury Secretary Steven Mnuchin said late on Tuesday that the tariffs would remain even as a trade deal is set to be signed on Wednesday. That could temper China's oil demand growth by limiting its access to its second-largest trading partner. [Read more]
TC Energy to resume work on Keystone XL oil pipeline in February
Canadian pipeline company TC Energy Corp said on Tuesday that it planned to start pre-construction work in February for its Keystone XL oil pipeline, the start of a busy planned work schedule in 2020 for the long-delayed project. TC said in a filing with U.S. District Court in Montana that in February it would start mobilizing heavy construction equipment in Montana, South Dakota and Nebraska, and aim to begin building a 1.2-mile (1.93 km) segment spanning the U.S.-Canada border in [Read more]
Heavy discount widens with congested transport, big stocks
The discount on Canadian heavy crude widened versus U.S. benchmark West Texas Intermediate (WTI) crude on Tuesday, as congested transport and high inventories weakened prices. Many western Canadian grades have seen weakening prices, with crude by rail movement seeming to flatten in recent weeks, and storage levels remaining elevated, said Matt Murphy, analyst of upstream and integrateds for Tudor Pickering Holt & Co. Murphy added that more diluent is required to move bitumen through [Read more]
Oil prices rise ahead of trade deal, likely stock draw
Oil prices climbed on Tuesday after five days of declines as the United States and China prepared to sign a preliminary trade deal and as Middle East tensions eased. U.S. West Texas Intermediate (WTI) crude was up 39 cents, or 0.7%, at $58.47. Brent futures were up 66 cents, or 1%, at $64.86 a barrel by 12:45 p.m. EST (1745 GMT) That put WTI front-month futures on track to close below the second month CLc1-CLc2 for the first time since Nov. 19, which is known in the trading industry [Read more]
Oil prices rise ahead of trade deal, likely stock draw
Oil prices edged higher on Tuesday as investors focused on the signing of a preliminary trade deal between the United States and China, the world's top oil consumers, and on expectations of a drawdown in U.S. crude oil inventories. However, price gains were capped by receding Middle East tensions, with both Tehran and Washington desisting from any further escalation after this month's clashes. Brent crude was up 16 cents, or 0.3%, at $64.36 per barrel by 0301 GMT after falling 1% on [Read more]
Heavy discount narrows from 13-month high
The discount on Canadian heavy crude narrowed versus U.S. benchmark West Texas Intermediate (WTI) crude on Monday from a 13-month high reached last week, but remained elevated on tight takeaway capacity and bloated storage levels. Anticipation of upcoming turnarounds at U.S. refineries also weighed on Canadian prices, a Calgary-based industry source said. Western Canada Select (WCS) heavy blend crude for February delivery in Hardisty, Alberta, was trading at $23.25 per barrel below WTI, [Read more]
U.S. natgas futures down on forecasts for less cold and heating demand
U.S. natural gas futures slipped on Monday from a two-week high in the previous session on forecasts for less cold weather and heating demand over the next two weeks than previously expected. Meteorologists projected the weather in the U.S. Lower 48 states will turn from warmer than normal now to colder than normal from Jan. 19-28. That is warmer than Friday's outlook, which called for colder than normal weather after Jan. 16. Front-month gas futures for February delivery on the New York [Read more]
Canadian drillers add most rigs in a week in five years
Energy firms in Canada boosted the number of rigs drilling for oil and natural gas last week by the most since January 2015 as producers returned en masse from Christmas breaks to take advantage of rising crude prices. Drillers added 118 rigs during the week ended Jan. 10, bringing the total count up to 203, the highest since March 2019, data from Baker Hughes Co showed on Friday. That was the biggest weekly increase since drillers added 158 rigs during the week of Jan. 9, 2015. Most of [Read more]
Oil slides as fears over U.S.-Iran conflict ease, focus turns to trade deal
Oil prices held slipped on Monday as fears of conflict between the United States and Iran eased, with investors shifting their focus to this week's scheduled signing of an initial U.S.-China trade deal, which could boost economic growth and demand. West Texas Intermediate (WTI) crude was down 68 cents at $58.49 a barrel from the previous session. Brent crude was down 48 cents at $64.54 per barrel. Oil prices surged to their highest in almost four months after a U.S. drone strike [Read more]
U.S. drillers cut oil rigs for third week in a row
U.S. energy firms reduced the number of oil rigs operating for a third week in a row as producers follow through on plans to slash spending on new drilling for a second year in a row in 2020. Drillers cut 11 oil rigs in the week to Jan. 10 in the biggest decline since October, bringing the total count down to 659, the lowest since March 2017, energy services firm Baker Hughes Co said in its closely followed report on Friday. In the same week a year ago, there were 873 active rigs. In [Read more]