U.S. energy firms this week reduced the number of oil rigs operating for a sixth week in a row as producers cut spending on new drilling and completions leading to lower production growth forecasts.Drillers cut six oil rigs in the week to Aug. 9, bringing the total count down to 764, the lowest since February 2018, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. That is the most weekly declines in a row since March when drillers [Read more]
Canada’s Inter Pipeline shares extend climb on takeover bid report
Shares of Inter Pipeline Ltd rose for a second day in a row on Friday on a newspaper report that the Canadian oil pipeline and storage company had received a takeover bid. The company declined to comment. Inter Pipeline's shares jumped nearly 9% on Thursday after Canada's Globe and Mail newspaper reported that it had received a takeover offer from an unnamed suitor that could be worth C$12.4 billion ($9.37 billion). The Globe reported that Inter Pipeline's board turned down the cash offer [Read more]
Enbridge works to return Texas Eastern natgas pipe after Kentucky blast
Canadian energy company Enbridge Inc said it is working on a plan to put in service a couple of pipelines adjacent to the Texas Eastern natural gas pipeline in Kentucky that exploded on Aug. 1, killing one person. The company, which made the announcement on Thursday, did not say when the two pipes would return to service. Earlier in the week, the company told customers it expected they would remain shut at least through Aug. 12. Enbridge said it is working with several agencies looking [Read more]
Oil rises despite IEA report showing demand growth at decade low
Oil prices rose on Friday, supported by expectations of more OPEC production cuts despite the International Energy Agency (IEA) reporting demand growth at its lowest level since the financial crisis of 2008. Brent crude futures were up 89 cents at $58.27 a barrel by 1057 GMT. West Texas Intermediate (WTI) futures were at $53.33 per barrel, up 79 cents. “Despite a further cut in oil demand growth by the IEA, oil prices are trading marginally higher, as the demand growth cut was already [Read more]
Heavy discount widens slightly
The differential on Canadian heavy crude against the North American benchmark widened slightly on Thursday: * Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, was trading at $13 per barrel below West Texas Intermediate (WTI) oil, according to Net Energy Exchange. On Wednesday, it settled at $12.90 below WTI. * A boost in rail shipments and draining crude supplies in Alberta are keeping the differential tight, a Calgary-based trader said. U.S. [Read more]
U.S. natgas futures rise nearly 2% on forecasts for hot weather ahead of storage report
U.S. natural gas futures rose almost 2% on Thursday as record power demand in Texas and forecasts for hotter weather and greater cooling demand in late August lifted prices from a near three-year low in the prior session. That increase comes despite the impending release of a federal report later Thursday that is expected to show a bigger than normal storage build. Analysts said utilities likely added a bigger-than-normal 59 billion cubic feet (bcf) of gas into storage during the week [Read more]
Saudi Arabia plans to keep Aug-Sept oil exports below 7 mln bpd – official
Saudi Arabia plans to keep its crude oil exports below 7 million barrels per day in August and September despite strong demand from customers, to help drain global oil inventories and bring the market back to balance, a Saudi oil official said. State-owned Aramco's oil nominations - the requests made by refiners and customers for Saudi crude - were high in September, a sign of healthy oil demand globally, the Saudi official, who asked not to be named, said on Thursday. Despite that, the [Read more]
Activist groups urge insurers to drop coverage of oil sands pipeline
A coalition of 32 environmental and indigenous groups on Thursday urged insurers to stop underwriting the Trans Mountain pipeline to pressure Canada to cancel its plan to expand the project which carries crude from Alberta's oil sands to British Columbia's Pacific coast. Self-insurance by the government for the expansion would cost taxpayers $1.1 billion, the groups said. The coalition sent a letter to 27 companies registered to insure the pipeline, including Munich RE , Talanx and Zurich [Read more]
Oil jumps on expectations producers may cut supply after 4% slump
Oil futures jumped more than $1 a barrel on Thursday, recovering half of the nearly 5% losses in the previous session, on expectations that lower prices may lead to production cuts. U.S. West Texas Intermediate (WTI) crude futures jumped $1.51, or 2.96%, to $52.60 a barrel, while Brent crude rebounded to $57.75 a barrel, up $1.52, or 2.7%, from its last close by 0401 GMT, Both contracts hit their lowest levels since January on Wednesday after a surprise build in U.S. crude inventories [Read more]
Western Canadian crude inventories fall to smallest level in nearly two years
Western Canadian crude oil inventories fell in July to their lowest level in nearly two years, energy information provider Genscape said on Wednesday, as crude-by-rail shipments accelerated. Total stocks were 27.7 million barrels as of July 26, down sharply from the record high of 37.1 million barrels set in April. The inventories were the lowest since November 2017. The decline follows Alberta government production curtailments that were imposed on Jan. 1 to help drain a glut of crude in [Read more]