Oil futures dropped on Wednesday, extending losses from the previous day, after U.S. crude stockpiles grew more than expected, adding to worries about oversupply. U.S. West Texas Intermediate (WTI) crude futures fell 35 cents, or 0.9%, to $39.60 a barrel. Brent crude was down 29 cents, or 0.7%, at $42.34 a barrel. U.S. crude inventories rose by a much bigger than expected 1.7 million barrels last week, according to industry group the American Petroleum Institute (API), well ahead of [Read more]
BP’s stranded Canadian, Angolan assets expose wider industry risks
When BP slashed its long-term oil price outlook last week, prospects in Canada and Angola were rendered worthless, company sources and analysts said, exposing broader risks the industry faces as the world pivots to low-carbon energy. The $17.5 billion write-down, part of Chief Executive Bernard Looney's drive to wean BP off fossil fuel, was the biggest the London-based company booked since the aftermath of the 2010 Deepwater Horizon disaster. BP lowered its long-term oil price outlook from [Read more]
Oil prices steady amid signs of demand coming back after coronavirus
Oil prices were steady on Tuesday, holding onto the previous session's gains, amid more signs of fuel demand picking up after the depths of the coronavirus pandemic as major crude producers continue to stick to supply cuts. U.S. oil was up 8 cents at $40.81 a barrel, having risen 1.8% in the previous session. Brent crude was up 6 cents at $43.14 a barrel at 0046 GMT, after gaining 2.1% on Monday. "We're starting to see the green shoots of recovery," Exxon Mobil Australia Chairman [Read more]
Oil edges up on tighter supply, but demand worries limit gains
Oil prices nudged higher on Monday on tighter supplies from major producers, but a record rise in global coronavirus cases raised concerns a recovery in fuel demand could stall, checking gains. U.S. crude was at $39.93 a barrel, up 39 cents, or 1.01%. Brent crude rose 26 cents, or 0.62%, to $42.16 a barrel. Both contracts rose about 9% last week and Brent crude futures have flipped into backwardation, where oil for immediate delivery costs more than supply later, usually an indication [Read more]
U.S. and Canadian oil & gas rig count falls to record lows
U.S. and Canadian energy firms cut the number of oil and natural gas rigs operating to a record low even as higher oil prices prompt some producers to start drilling again. In Canada, the oil and gas rig count fell four to an all-time low of 17 this week, according to Baker Hughes. That was 102 rigs, or 86%, below this time last year. View a full breakdown of Western Canada’s rig activity. The U.S. oil and gas rig count, an early indicator of future output, fell to a record low for a [Read more]
Oil prices rise on faith in supply cuts, demand recovery
Oil prices pushed higher in early trade on Friday, building on gains in the previous session, after OPEC producers and allies promised to meet their supply cut commitments and two major oil traders said demand was recovering well. U.S. West Texas Intermediate (WTI) crude futures climbed $1.25, or 3.23%, to $40.05 a barrel. Brent crude futures rose $1.14, or 2.78%, to $42.52 a barrel. Both contracts rose around 2% on Thursday. Plans by Iraq and Kazakhstan to make up for overproduction [Read more]
Oil prices tick up as drop in U.S. product stocks encourages bulls
Oil prices ticked up on Thursday after U.S. oil product stocks shrank, providing bulls with ammunition ahead of a meeting between OPEC producers and their allies to discuss their future output strategy. U.S. West Texas Intermediate (WTI) crude futures rose 34 cents to $38.04 a barrel. Brent crude futures were up 36 cents at $40.90 a barrel. Both benchmarks were down about 2% earlier in the session as worries about fuel demand rose after a surge in coronavirus cases led Beijing to [Read more]
U.S. shale companies to boost oil output by 500,000 bpd by month-end
U.S. shale producers are expected to restore roughly half a million barrels per day (bpd) of crude output by the end of June, according to crude buyers and analysts, amounting to a quarter of what they shut since the coronavirus pandemic cut fuel demand and hammered oil prices. Such a swift rise in U.S. production would complicate efforts by top producers Saudi Arabia and Russia to encourage global allies to fulfill their pledges to make record production cuts. They, along with allies in a [Read more]
Oil slumps as U.S. crude stocks build amid virus resurgence fears
Oil prices fell on Wednesday as data showed an increase in U.S. crude and fuel inventories, raising the prospect of oversupply as a potential second wave of the coronavirus pandemic threatened to halt any recovery of demand. U.S. West Texas Intermediate (WTI) futures fell 2 cents, or 0.07%, to $37.89 a barrel. Brent crude futures were down 8 cents, or 0.25%, at $40.60 a barrel. Both benchmarks rose more than 3% on Tuesday, after the International Energy Agency (IEA) raised its 2020 [Read more]
Oil prices rise on supply cuts, improving demand
Oil prices rose on Tuesday, with Brent crude above $40 a barrel, after the IEA increased its oil demand forecast for 2020 and as record supply cuts provided support. Both the North Sea and U.S. contracts gained around 4%, with U.S. oil rising $1.75 to $38.77 a barrel. Brent crude was up $1.49 at $41.32 a barrel. In its monthly report on Tuesday, the International Energy Agency (IEA) forecast oil demand at 91.7 million barrels per day in 2020, 500,000 bpd higher than its estimate in [Read more]