The discount on Canadian heavy crude narrowed versus U.S. benchmark West Texas Intermediate (WTI) crude on Tuesday, as fears of a lengthy Keystone oil pipeline outage eased. Western Canada Select (WCS) heavy blend crude for December delivery in Hardisty, Alberta, was trading at $21.90 per barrel below WTI, according to Net Energy Exchange, narrower than Monday's settle of $22.30. Worries about the possible duration of the Keystone pipeline outage abated, as available storage capacity in [Read more]
Heavy discount widens to fresh 11-month high due to Keystone pipeline shutdown
The discount on Canadian heavy crude widened versus U.S. benchmark West Texas Intermediate (WTI) crude on Monday, hitting a fresh 11-month high, as the shutdown last week of the Keystone oil pipeline made it harder to ship oil. Western Canada Select (WCS) heavy blend crude for December delivery in Hardisty, Alberta, was trading at $22.35 per barrel below WTI, according to Net Energy Exchange, a larger discount than Friday's settle of $22. The precise source of a leak on TC Energy Corp's [Read more]
Keystone oil pipeline in North Dakota remains closed, leak source unclear
The precise source of a leak on TC Energy Corp's Keystone oil pipeline in North Dakota has not yet been identified, a spokesman for the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) said on Monday. There is no estimated timeline for restart of the pipeline and the company is continuing excavation work to isolate the affected part of the pipeline, the spokesman said by phone. Clean-up crews in Walsh County, North Dakota, have been working to plug the Keystone pipeline [Read more]
Oil prices creep higher on tentative U.S.-China hopes
Oil prices crept upwards on Monday, with Brent reaching its highest in more than a month after the previous day’s boost from growing expectations of a U.S.-China trade deal and Iran flagging OPEC discussions of a deeper output cut next month. December U.S. crude futures up 97 cents at $57.03 a barrel. Brent crude futures for January also swung back into positive territory, rising 80 cents to $62.49 a barrel by 1203 GMT, erasing earlier losses and reaching peaks last seen on Sept. [Read more]
Shippers seek alternatives for oil as crews work toward plugging Keystone leak
Cleanup crews in Walsh County, North Dakota, are working toward plugging the Keystone pipeline after a more than 9,000-barrel oil leak this week, a state official said Friday, while crude shippers are searching for alternative means of transport. The shutdown caused by the spill threatens a large amount of regular supply of heavy Canadian crude to the United States. Canada is the biggest foreign provider of oil to the United States, with exports to the U.S. averaging about 3.6 million barrels [Read more]
Heavy discount grows to 11-month high after Keystone pipeline leak
The discount on Canadian heavy crude widened versus U.S. benchmark West Texas Intermediate (WTI) crude on Friday to the biggest level in 11 months, after a leak in North Dakota this week shut down the Keystone oil pipeline. Western Canada Select (WCS) heavy blend crude for December delivery in Hardisty, Alberta, was trading at $21 per barrel below WTI, according to Net Energy Exchange. It was the largest differential since Dec. 5, 2018. The pipeline's closure gave shippers fewer options to [Read more]
U.S. oil drillers cut rigs for second week in a row
U.S. energy firms this week reduced the number of oil rigs operating for a second week in a row as independent producers cut spending as record crude production weighs on the outlook for energy prices. Drillers cut five oil rigs in the week to Nov. 1, bringing the total count down to 691, the lowest since April 2017, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. In the same week a year ago, there were 874 active rigs. The oil rig [Read more]
Enbridge wins court backing to keep Great Lakes pipeline running
Canadian pipeline operator Enbridge Inc on Thursday won backing from a Michigan state court to permit a 66-year-old crude oil pipeline to continue to run under a state waterway, pushing back authorities' efforts to have the pipeline decommissioned. The Enbridge Line 5 pipeline runs under the Straits of Mackinac, where Lakes Huron and Michigan meet, and ships 540,000 barrels per day of light crude oil and propane. It is a critical part of the company's network that delivers the bulk of [Read more]
Alberta loses producer Encana, moves to boost rail shipping
Canada is losing the headquarters of major oil and gas producer Encana Corp to the United States, the latest blow to an industry crippled by a pipeline shortage, even as the Alberta government moved to stimulate crude shipping by rail. The Western-based oil industry has been forced to curtail production this year, as proposed pipeline expansions stalled and stranded much of Alberta's oil from the U.S. refineries that buy it and depressed prices. The slump has chased away foreign companies [Read more]
U.S. oil output soars to record 12.4 mln bpd in August
U.S. crude production soared nearly 600,000 barrels per day in August to record of 12.4 million, buoyed by a 30% increase in Gulf of Mexico output, according to government data released on Thursday. The U.S. has become the world's largest oil producer with output surging to records above 12 million bpd this year as technological advances have increased production from shale formations across Texas, North Dakota and New Mexico. All three states saw output rise in August. Additionally, oil [Read more]