Canadian heavy crude's discount narrowed slightly versus West Texas Intermediate (WTI) on Friday, but was expected to resume its widening trend as more production returns after shut-ins. Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $11.70 per barrel below WTI, according to NE2 Canada Inc. It settled the previous day at $11.90 under. The heavy differential widened earlier this week because of returning supplies after first-half [Read more]
U.S. oil & gas rig count falls to record low for 14th week
U.S. energy firms cut the number of oil and natural gas rigs this week to a record low for a 14th week even as higher oil prices prompt some producers to start drilling again. The U.S. rig count, an early indicator of future output, fell by four to an all-time low of 247 in the week to Aug. 7, according to data on Friday from energy services firm Baker Hughes Co going back to 1940. That was 687 rigs, or 74%, below this time last year. The weekly rig count has dropped or held steady since [Read more]
BP poised to sell ‘stranded assets’ even if oil prices rally
BP is preparing to sell a large chunk of its oil and gas assets even if crude prices bounce back from the COVID-19 crash because it wants to invest more in renewable energy, three sources familiar with BP's thinking said. The strategy was discussed at a BP executives meeting in July, the sources said, soon after the oil major lowered its long-term oil price forecast to $55 a barrel, meaning that $17.5 billion worth of its assets are no longer economically viable. But even if crude prices [Read more]
Oil prices slip on uncertainty over fuel demand, U.S. stimulus
Oil prices dipped on Friday, adding to losses from the previous session, on worries that fuel demand recovery will slow amid a resurgence of coronavirus cases and as talks have stalled in the United States on a new stimulus deal. U.S. West Texas Intermediate (WTI) crude futures slipped 64 cents, or 1.48%, to $41.33 a barrel. Brent crude fell 62 cents, or 1.29%, to $44.52. Both contracts had traded higher earlier in the day. However, the two contracts are set for weekly gains of around [Read more]
Heavy discount widens slightly as production rises
Canadian heavy crude's discount widened a tad versus West Texas Intermediate (WTI) on Thursday, reflecting rising oil production. Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $12.05 per barrel below WTI, according to NE2 Canada Inc. It settled the previous day at $11.95 under. The market is slowly rebalancing from tightness during the pandemic in the global heavy oil-light oil spread, a Calgary industry source said. Light synthetic [Read more]
Oil prices hover near five-month highs
Oil prices hovered near five-month highs on Thursday as support from a weak dollar .DXY and falling U.S. crude inventories counteracted bearish sentiment about fuel demand, pushing the benchmarks in and out of positive territory. U.S. crude was up 43 cents at $42.62 after a four-day streak of gains. Brent crude was up 48 cents at $45.65 a barrel. The two benchmarks rose to their highest since March 6 in the previous session after the Energy Information Administration reported a much [Read more]
Heavy discount widens to 3 1/2-month high as supplies return
Canadian heavy crude's discount widened to a 3-1/2-month high versus West Texas Intermediate (WTI) on Wednesday, driven by increasing oil production. Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $12 per barrel below WTI, according to NE2 Canada Inc. It settled the previous day at $11.15 under. Canadian producers are moving to restore much of the production that they shut in as prices improve. Supply looks to near recent highs by [Read more]
Oil prices at 5-month high on big drop in U.S. crude stocks
Oil prices rose to their highest since early March on Wednesday after data showed a big drop in U.S. crude inventories, although concerns that mounting coronavirus infections will lead to reduced fuel demand capped gains. West Texas Intermediate oil rose $1.75, or 4.22%, to $43.22 a barrel. Brent crude was up $1.61, or 3.63%, at $45.94 a barrel. U.S. crude inventories fell 8.6 million barrels in the week to Aug. 1 to 520 million barrels, compared with analysts' expectations for a 3 [Read more]
Heavy discount widens to more than $10/bbl on first day of Sept trading
Canadian heavy crude's discount widened to more than $10 a barrel versus West Texas Intermediate (WTI) on Tuesday, the first day of the September trading cycle, as production climbs, traders said. Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $11.15 per barrel below WTI. Prices for August ended the cycle trading less than $7 a barrel below WTI, according to NE2 Canada Inc. Canadian producers including Husky Energy Inc and bigger rival [Read more]
Oil prices fall as rising coronavirus case numbers cast shadow over fuel demand pickup
Oil prices slid on Tuesday amid concerns that a nascent recovery in fuel demand could stall as a fresh wave of COVID-19 infections around the world sparks tighter lockdowns just as major producers ramp up output. U.S. West Texas Intermediate (WTI) crude futures fell 30 cents, or 0.7% to $40.71 a barrel. Brent crude futures fell 37 cents, or 0.8% to $43.78 a barrel. The slide comes after WTI rose 1.8% and Brent climbed 1.5% on Monday on better-than-expected data on manufacturing [Read more]