Canadian heavy crude's discount widened versus the U.S. benchmark West Texas Intermediate (WTI) on Tuesday as global oil prices rose. Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $7.75 per barrel below WTI, according to NE2 Canada Inc, wider than Monday's settle of $6.80 under. Data showed oil production in Canada's Alberta province fell in April to 3,008 mbpd, down roughly 490 mbpd from the previous month, led by production cuts in the [Read more]
U.S. shale producers begin restoring output as oil prices turn higher
U.S. shale oil producers are reversing production cuts as prices recover from historic lows, underscoring shale's ability to quickly adjust to pricing and posing a challenge to OPEC as it considers extending production curbs. U.S. producers began cutting output in March as oil prices collapsed due to a supply glut and falling demand due to the COVID-19 pandemic. U.S. oil companies are forecast to pare their output by as much as 2 million barrels per day (bpd) this year, with half coming from [Read more]
Oil prices inch up ahead of OPEC+ meeting on extended output cuts
Oil prices crawled higher on Tuesday, with traders waiting to see whether major producers agree to extend their huge output cuts to shore up prices at a meeting expected later this week. West Texas Intermediate (WTI) crude futures traded in a 38-cent range on either side of Monday's close, and last traded up 38 cents at $35.91 a barrel. Brent crude futures rose 1.09%, or 42 cents, to $38.96 a barrel. Brent has doubled over the past six weeks, thanks to supply cuts by the Organization [Read more]
U.S. natgas edges up as higher air-conditioning use offsets fall in LNG exports
U.S. natural gas futures edged up on Tuesday as power generators burned more fuel to keep air conditioners humming despite a drop in liquefied natural gas (LNG) exports to Europe and Asia, where prices recently fell to record lows due to coronavirus demand destruction. Front-month gas futures rose 2.2 cents, or 1.2%, to $1.796 per million British thermal units. Data provider Refinitiv said average gas output in the U.S. Lower 48 states fell to 88.2 billion cubic feet per day (bcfd) so far [Read more]
Heavy discount narrows as monthly trading cycle begins
Canadian heavy crude's discount narrowed versus the U.S. benchmark West Texas Intermediate (WTI) on Monday, the first day of the monthly trading cycle. Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $6.55 per barrel below WTI, according to NE2 Canada Inc, narrower than Friday's settle of $7.10 under. Analysts at Tudor, Pickering, Holt & Co last week said steam-driven oil sands production in April fell to 1,345 mbpd in April, down 167 [Read more]
Oil prices slip as wary traders eye upcoming OPEC+ meeting
Oil prices fell nearly 1% on Monday as traders hedged bets with the Organization of the Petroleum Exporting Countries (OPEC) considering meeting as soon as this week to discuss whether to extend record production cuts beyond end-June. West Texas Intermediate (WTI) crude futures for July delivery were at $34.69 a barrel, down 49 cents. Brent crude fell 6 cents to $37.58 a barrel on the first day of trading in the contract with August as the front month. The price falls come after [Read more]
Lasting contango in oil: market spread to outlast supply-demand imbalance
While vast cuts by producer countries and renewed fuel consumption from easing coronavirus lockdowns may soon rebalance oil supply and demand, some analysts and traders see a glut in storage keeping the market in contango for much longer. A contango market structure means the current value is lower than it will be in later months and encourages traders to store oil to resell it in the future. An especially skewed spread for oil futures or "super-contango" emerged last month, prompting [Read more]
Suncor CEO sees electric vehicles disrupting oil demand as much as coronavirus
The shift to electric vehicles and other low-carbon technologies could disrupt crude oil demand on a similar scale to the coronavirus pandemic, Suncor Energy Inc's chief executive said on Monday. The comments are a stark prediction in an industry that frequently downplays the impact of electrification and points to forecasts of rising global oil demand to justify new investment and pipeline expansions. Canada is the world's fourth-largest oil producer and the sector accounts for 10.6% of [Read more]
Fire extinguished on Suncor offshore oil vessel that faces uncertain future
A fire on the idled Terra Nova oil facility that Suncor Energy operates off the coast of Newfoundland & Labrador has been extinguished, the energy regulator for the province said on Saturday, even as the vessel faced an uncertain future. No one was hurt in the fire, the Canada-Newfoundland and Labrador Offshore Petroleum Board said in a statement. There was no oil or gas held onboard the vessel as it was not producing, the regulator said. Further details were not available and Suncor [Read more]
Russia has no objection to earlier OPEC+ meeting
Russia has no objection to the next meeting of OPEC and its allies, known as OPEC+, being brought forward to June 4 from the following week, three OPEC+ sources familiar with the meeting's preparations told Reuters on Sunday. Algeria, which currently holds the presidency of the the Organization of the Petroleum Exporting Countries (OPEC), has proposed the meeting planned for June 9-10 be brought forward to facilitate oil sales for countries such as Saudi Arabia, Iraq and Kuwait. The lack [Read more]