OPEC and its allies would only ease supply curbs and pump more oil once global crude inventories fall and pricing reflects a tighter market, Saudi Arabia's energy minister told Reuters. Saudi Arabia spearheaded a deal on Friday with Russia and the other so-called OPEC+ oil producers to deepen output cuts through the first quarter of 2020. In his first interview with Reuters since he became energy minister in September, Prince Abdulaziz bin Salman said he expected OPEC+ producers to [Read more]
Heavy discount unchanged at wide level
The discount on Canadian heavy crude was unchanged versus U.S. benchmark West Texas Intermediate (WTI) crude on Friday, trading at a wider than usual level. Prices were supported by the Keystone pipeline returning to near 90% utilization following a spill in North Dakota Oct. 29, said John Coleman, principal analyst for North American crude oil markets at consultancy Wood Mackenzie. Coleman said the Western Canada Select spread remained wide, however, as new standards for sulfur in marine [Read more]
U.S. oil drillers cut rigs for seventh consecutive week – Baker Hughes
U.S. energy firms reduced the number of oil rigs operating for a seventh week in a row as year-long declines in the rig count have only curbed growth of record U.S. production, prompting OPEC to deepen cuts in an effort to bolster prices amid a global glut. Drillers cut five oil rigs in the week to Dec. 6, bringing the total count down to 663, the lowest since April 2017, energy services firm Baker Hughes Co said in its closely followed report on Friday. In the same week a year ago, there [Read more]
Oil rises, U.S. crude trading near two-month high after OPEC cut
Oil edged up in early Asia trade on Friday, with U.S. crude trading near a two-month high after OPEC agreed to increase output curbs by nearly 50 percent in early 2020, although the cartel stopped short of promising any further steps after March. West Texas Intermediate oil futures were up by 96 cents at $59.30 a barrel. Brent futures were up $1.14 at $64.40. They fell 0.6% on Thursday. The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - a [Read more]
Heavy discount narrows on demand uptick, reduced Syncrude output
The discount on Canadian heavy crude narrowed versus U.S. benchmark West Texas Intermediate (WTI) crude on Thursday, due to stronger demand and reduced production from the Syncrude oil sands site. The slight narrowing reflected some buyers being short and favorable arbitrage opportunities, a trader said. Western Canada Select (WCS) heavy blend crude for January delivery in Hardisty, Alberta, was trading at $19.95 per barrel below WTI, according to NE2 Canada Inc, compared with Wednesday's [Read more]
Saskatchewan’s oil lures investors, producers from troubled Alberta
Alberta's congested pipelines and production limits are turning oil companies to neighboring Saskatchewan, driving up prices for drilling rights as the region weathers a deep slump. A survey of senior executives last month by the Fraser Institute said Saskatchewan was Canada's most attractive jurisdiction for upstream oil and gas investment. Saskatchewan produces 11% of Canada's oil, compared with Alberta's 80%, according to the Canada Energy Regulator. Saskatchewan's sale of oil and gas [Read more]
Oil rises as OPEC weighs deeper output cuts
Oil prices rose on Thursday ahead of an OPEC meeting where members are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year. Sources told Reuters that OPEC was seeking to increase production cuts by the group and its allies led by Russia by more than 400,000 barrels per day (bpd) from their current level of 1.2 million bpd. The Organization of the Petroleum Exporting Countries meets on Thursday in Vienna followed by a meeting on Friday with [Read more]
Kinder Morgan expects earnings to decline in 2020
Pipeline operator Kinder Morgan Inc on Thursday forecast a drop in core earnings next year, as growth from expansion projects would likely be offset by higher spending and lower contract rates on some of its gas and oil pipelines. The company said it expects 2020 adjusted earnings before interest, tax and depreciation (EBITDA) to be $7.6 billion compared with 2019 forecast of $7.8 billion. Kinder Morgan would generate $5.1 billion of distributable cash flow in 2020, which is nearly 3% [Read more]
Canada’s Co-op Refinery to lock out workers, plans to keep operating
The Co-op Refinery in Regina, Saskatchewan, western Canada's third-largest oil refinery, plans to lock out workers on Thursday but continue operations. The refinery, owned by Federated Cooperatives Ltd, tweeted on Tuesday that it had issued a 48-hour lockout notice to 800 workers in the interest of public safety, after their union issued a strike notice. Talks had broken down over pensions. The refinery was running on Wednesday at full operation, spokesman Brad DeLorey said in an email. [Read more]
Heavy discount narrows after Syncrude cuts December oil production
The discount on Canadian heavy crude narrowed versus U.S. benchmark West Texas Intermediate (WTI) crude, and light oil sold at a premium on Wednesday, after the Syncrude oil sands site cut December production. Canada's Syncrude oil sands facility has reduced its December production by 1.6 million barrels because of operational problems, three market sources told Reuters, adding that the reduced output lifted Canadian prices. Western Canada Select (WCS) heavy blend crude for January [Read more]