Oil prices were mixed on Tuesday, with Brent pulling back from an early gain on profit-taking, while U.S. crude extended its rally amid signs that producers are cutting output as promised just as demand picks up on a resumption of economic activity. U.S. West Texas Intermediate crude was up 11 cents, or 0.4%, at $31.93 a barrel, giving up some of its earlier gains. It rose as high as $33.44 earlier in the session, hitting its highest since March 16. Brent crude fell 19 cents, or 0.6%, to [Read more]
U.S. oil output from major shale to drop in June to nearly 2-year low
U.S. crude production from seven major shale formations is expected to fall by a record 197,000 barrels per day in June to 7.822 million bpd, the U.S. Energy Information Administration said in a monthly report on Monday. The output from shale formations would be the lowest since August, 2018, according to data from the agency. U.S. crude production from shale formations has more than doubled since 2013, lifting the country's overall oil output to new record highs. [Read more]
U.S. natgas futures jump over 10% as output slows
U.S. natural gas futures jumped over 10% on Monday on slowing output as energy firms shut wells and slash spending on new oil drilling after crude prices sank earlier this year due to coronavirus-led demand destruction. Those oil wells also produce a lot of gas. Front-month gas futures for June delivery on the New York Mercantile Exchange (NYMEX) rose 17.1 cents, or 10.4%, to $1.817 per million British thermal units at 10:26 a.m. EDT (1426 GMT). That puts the contract on track for its biggest [Read more]
U.S. oil tops $31 as restrictions ease
Oil prices climbed more than $2 a barrel on Monday, with benchmark Brent hitting a one-month high and U.S. crude topping $30 supported by optimism about the re-opening of economies and output cuts by major producers. U.S. West Texas Intermediate (WTI) crude was up $2.63 or almost 9% at $32.06 per barrel, its highest since mid-March. Brent crude was up $2.03, or 6.2%, at $34.53 a barrel by 1217 GMT, its highest level since mid-April. “Optimism on the demand side of the oil equation [Read more]
A month after negative oil prices, U.S. crude contract expiry looms
A month after sellers had to pay nearly $40 a barrel to get rid of U.S. oil futures, the next watershed moment looms with the expiry of the June contract on Tuesday - and so far there is little sign of a repeat of the historic plunge. The extent of the damage that the coronavirus pandemic had inflicted on the oil industry came into focus on April 20, when the U.S. benchmark WTI contract plunged to minus $38 a barrel. The virus destroyed so much fuel demand as billions of people stopped [Read more]
U.S. oil & gas rig count plunges to record low for 2nd week
U.S. energy firms cut number of U.S. oil and natural gas rigs operating to an all-time low for a second week in a row as producers slash spending on new drilling after oil prices collapsed due to a slump in demand caused by global lockdowns to stop the coronavirus pandemic. The rig count, an early indicator of future output, fell by 35 to a record low of 339 in the week to May 15, according to data from energy services firm Baker Hughes Co going back to 1940. The prior all-time low was 374 [Read more]
Oil extends gains amid signs of China demand pickup, global supply overhang fading
Oil prices rose on Friday, extending day-earlier gains, as data showed demand for crude picking up in China after the easing of curbs to stem the coronavirus outbreak, boosting hopes that the global supply overhang may start to fade. West Texas Intermediate (WTI) oil was up 71 cents, or 2.5%, at $28.71 a barrel, having jumped 9% in the previous session. WTI is heading for a third weekly increase, up more than 12%. Brent crude was up 39 cents, or 1.3% at $31.52 a barrel by 0333 GMT, after [Read more]
Heavy discount widens but remains in low range on large curtailments
Canadian heavy crude's discount widened versus the U.S. benchmark West Texas Intermediate (WTI) on Thursday, but remained near decade lows as curtailments ease oversupply concerns. The modest widening this week is due to a few producers moving barrels to buyers as WTI prices rise and Canadian prices reflect only a modest discount, a trader said. Western Canada Select (WCS) heavy blend crude for June delivery in Hardisty, Alberta, traded at $4.75 per barrel below WTI, according to NE2 [Read more]
Oil prices inch higher on U.S. stockpile drop, but bleak outlook caps gains
Oil prices were lifted on Thursday by an unexpected drop in U.S. crude stocks, but gains were capped by both a bleak outlook for the world's no. 1 economy as the coronavirus pandemic crushes fuel demand and concern over a potential second wave of cases. U.S. West Texas Intermediate (WTI) crude futures were up 18 cents, or 0.7%, to $23.23 a barrel. Brent crude futures were up 48 cents, or 1.56%, at $29.94 per barrel at 0401 GMT. Prices have risen in the past two weeks as some countries [Read more]
Heavy discount narrows on oil curtailments
Canadian heavy crude's discount narrowed versus the U.S. benchmark West Texas Intermediate (WTI) on Wednesday, as production curtailments kept a supply glut from exceeding storage capacity. The discount, or differential, to WTI is trading near its lowest levels in 11 years because of deep Canadian output cuts and slowly improving demand as economic lockdowns related to the pandemic ease, a Calgary-based trader said. Western Canada Select (WCS) heavy blend crude for June delivery in [Read more]