Texas energy regulators will next week vote on a controversial proposal to reduce the state's oil output after delaying it on concerns of legal challenges. The vote follows a motion submitted by Texas Railroad Commissioner Ryan Sitton, who has already been vocal about the need for curtailments to address historically low oil prices. Oil and gas companies have been gushing red ink and cutting tens of thousands of workers as prices tumble, prompting regulators in the largest U.S. [Read more]
Canada’s economy in deepest recession on record, U-shaped recovery likely
The Canadian economy is likely in its deepest recession on record and will only recover modestly over the coming year as it takes a direct hit from the coronavirus outbreak and a collapse in oil prices, a Reuters poll of economists showed. After the economy contracted sharply last month and lost a record 1.01 million jobs, economists have slashed back their economic forecasts due to lockdown measures and reeling oil prices which hit a record low last week as global economic activity came to a [Read more]
Canadian oil sands hub floods, some residents evacuate amid virus fight
Floods have forced mandatory evacuations in parts of Fort McMurray, the hub for Canada's oil sands industry, even as the province of Alberta tries to stem the spread of the coronavirus. The Regional Municipality of Wood Buffalo, which includes Fort McMurray, ordered mandatory evacuations of some residents that began on Sunday and were expanded on Monday. Ice jams caused the Athabasca River to spill its banks. Canada's Deputy Prime Minister, Chrystia Freeland, said the federal government [Read more]
Oil falls as crude in U.S. storage nears all-time high
Oil prices fell on Monday on signs that worldwide oil storage is filling rapidly, raising concerns that production cuts will not be fast enough to catch up with the collapse in demand from the coronavirus pandemic. U.S. oil futures led losses after U.S. crude inventories rose to 518.6 million barrels in the week to April 17, near an all-time record of 535 million barrels set in 2017, while floating crude oil storage has hit an all-time high of 160 million barrels. U.S. West Texas [Read more]
When oil became waste: a week of turmoil for crude, and more pain to come
The magnitude of how damaged the energy industry is came into full view on April 20 when the benchmark price of U.S. oil futures , which had never dropped below $10 a barrel in its nearly 40-year history, plunged to a previously unthinkable minus $38 a barrel. In just a few months, the coronavirus pandemic has destroyed so much fuel demand as billions of people curtail travel that it has done what financial crashes, recessions and wars had failed to ever do - leave the United States with so [Read more]
U.S. drillers cut most oil rigs in a month since 2015
U.S. energy firms cut the most oil rigs in a month in April since 2015 with oil prices down over 70% since the start of the year as steps to curb the coronavirus pandemic cut global crude demand faster than producers can shut wells, causing storage tanks to fill rapidly. Drillers cut 60 oil rigs in the week to April 24, bringing the total count down to 378, the lowest since July 2016, energy services firm Baker Hughes Co said in its closely followed report on Friday. The oil rig count, an [Read more]
Oil prices rise more than $1 after week of turmoil amid viral outbreak
Oil prices jumped again on Friday, gaining more ground as producers like Kuwait said they would move to cut output and as the United States approved another package to cope with the economic disruption caused by the coronavirus outbreak. U.S. oil gained 63 cents, or 3.5%, at $17.69 a barrel, having surged 20% in the previous session. Brent crude was up 28 cents, or 1.4%, at $21.88, after having climbed 5% on Thursday. But barring a sharp jump later in the session, prices are heading [Read more]
Oil rises for 2nd day as producers trim output to respond to demand loss
Oil extended gains on Thursday amid signs that producers are cutting production to cope with a collapse in demand for fuel as the coronavirus outbreak ravages the world's economies. U.S. West Texas Intermediate (WTI) futures were up $2.82, or more than 19%, at $17.15 a barrel, having risen around a fifth in the previous session. U.S. crude futures fell to below minus $40 on Monday on concerns that buyers were running out of storage space to take deliveries. Brent crude was up $1.18, or [Read more]
Canada will backstop bank loans for crisis-hit oil companies
Canada's export credit agency on Wednesday said it would backstop loans to hard hit oil and gas producers, in the latest move by Ottawa to free up credit for the struggling energy industry. Banks are reviewing borrowing limits in the sector and could head off bankruptcies of small and mid-sized energy firms pummeled by the collapse in oil prices. Canadian banks have eased some lending standards but are expected to chop credit lines as they recalculate energy companies' borrowing bases to [Read more]
Canada’s export agency will backstop bank energy loans
Canada's export credit agency will backstop loans to hard hit oil and gas producers, a document seen by Reuters showed, in the latest move by Ottawa to free up credit for the struggling energy industry. The relief comes as banks review borrowing limits in the sector and could head off bankruptcies of small and mid-sized energy firms pummeled by the collapse in oil prices. Canadian banks have eased some lending standards but are expected to chop credit lines as they recalculate energy [Read more]