U.S. natural gas futures for Wednesday slipped close to a 38-month low with a 5% drop in crude prices and forecasts for less gas demand next week than previously expected. The move lower came despite a decline in production and forecasts that power demand in Texas would rise to a record high over the next week as a heat wave bakes the state. Front-month gas futures for September delivery on the New York Mercantile Exchange fell 2.8 cents, or 1.3%, to settle at $2.083 per million British [Read more]
Heavy discount stays tight despite easing oil curtailments
The differential on Canadian heavy crude remained at tight levels compared to the North American benchmark on Tuesday, despite easing production limits in Alberta. * Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $13 per barrel below West Texas Intermediate (WTI) oil, according to Net Energy Exchange, unchanged from Friday's settlement. * Canadian crude markets were closed on Monday for a Canadian holiday. * The continued tight [Read more]
U.S. natgas output, demand seen rising to record highs in 2019
U.S. dry natural gas production will rise to an all-time high of 91.03 billion cubic feet per day (bcfd) in 2019, breaking last year's record of 83.39 bcfd, the Energy Information Administration said in its Short Term Energy Outlook (STEO) on Tuesday. The latest output projection for 2019 was down from EIA's 91.35 bcfd forecast in July. EIA also projected U.S. gas consumption would rise to 84.65 bcfd in 2019, beating the record-high of 82.07 bcfd a year ago. The 2019 demand projection [Read more]
U.S. crude output in 2019 slightly below previous forecast – EIA
U.S. oil output is expected to rise 1.28 million barrels per day to 12.27 million bpd this year, the U.S. Energy Information Administration said in a monthly report, slightly lowering its annual growth forecast from 1.40 bpd last month. The agency increased its forecast for production growth in 2020 to 990,000 bpd from 900,000 bpd previously. [Read more]
Enbridge to keep gas pipe shut for at least a week after Kentucky blast
Enbridge Inc said it plans to keep the section of its Texas Eastern pipe in Kentucky shut through at least Aug. 12 after it exploded on Thursday, killing one person. Enbridge said in a notice to customers Monday afternoon that it is working with federal and state officials investigating the incident. The company has not estimated when the damaged section of pipe will return to service. The blast near Danville, Kentucky was the second so far this year on the Texas Eastern system following [Read more]
Oil hovers around $55 as U.S.-China trade tensions weigh
Oil prices rebounded slightly on Tuesday from big falls in recent sessions. Prices have lost more than 9% in the past week, with U.S. President Donald Trump vowing to impose new tariffs on Chinese imports and China making further moves against U.S. agricultural cargoes. The United States also responded to a decline in China's yuan on Monday by branding the country a currency manipulator. West Texas Intermediate crude futures rose 25 cents to $54.94 per barrel. International benchmark [Read more]
Heavy discount widens, remains in trading range
The differential on Canadian heavy crude widened on Friday, remaining in its recent trading range as government-ordered curtailments continued to underpin the market. * Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $13.15 per barrel below West Texas Intermediate (WTI) oil, according to Net Energy Exchange. On Thursday, WCS for September delivery settled at $12.35 a barrel below WTI crude futures. * The differential is unlikely to widen [Read more]
U.S. oil drillers cut rigs for fifth week in a row -Baker Hughes
U.S. energy firms this week reduced the number of oil rigs operating for a fifth week in a row as most independent producers cut spending even though majors were still pushing ahead with investments in new drilling. Drillers cut six oil rigs in the week to Aug. 2, bringing the total count down to 770, 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 [Read more]
Enbridge to solicit bids for Mainline
Canadian pipeline company Enbridge Inc said on Friday it would invite bids for contracted space on its Mainline system, in the face of opposition from some oil shippers who worry the changes could disadvantage small producers.The Mainline ships 2.85 million barrels per day of crude from Alberta in Canada to the United States, making it Canada's biggest network of export pipelines. Currently, shippers nominate barrels on a monthly basis, but Enbridge is proposing to switch to a system in [Read more]
Oil prices rebound after Trump trade tariffs trigger plunge
Oil prices rose more than 2% on Friday, rebounding from their biggest falls in years after U.S. President Donald Trump imposed more tariffs on Chinese imports, intensifying the trade war between the world's two biggest economies and crude consumers. Brent crude futures slumped more than 7% on Thursday, their steepest drop in more than three years. U.S. West Texas Intermediate (WTI) crude futures fell nearly 8%, posting its worst day in more than four years, The collapse ended a fragile [Read more]