Oil edged higher on Thursday following sharp losses in the previous session on hopes that a big build-up in U.S. inventories may mean producers have little option but to deepen output cuts as the coronavirus pandemic ravages demand. With official data showing U.S. inventories surging the most on record, WTI fell on Wednesday to its lowest since February 2002, with Brent slumping more than 6%. U.S. West Texas Intermediate (WTI) was up 10 cents, or 0.5%, at $20.27. Brent crude was up 3 [Read more]
U.S. court rules against permit in new setback for Keystone XL oil pipeline
A U.S. court on Wednesday ruled against the U.S. Army Corps of Engineers' use of a permit that allows new energy pipelines to cross water bodies, in the latest setback to TC Energy Corp's plans to build the Keystone XL oil pipeline. Keystone XL, which would carry 830,000 barrels per day of crude from Alberta to the U.S. Midwest, has been delayed for more than a decade by opposition from landowners, environmental groups and tribes, but construction was finally supposed to start this [Read more]
Canadian banks ease credit rules for energy companies to stave off defaults, bankruptcies
Canadian banks are beginning to relax lending standards for energy firms struggling to operate with oil prices at half the level needed to cover costs, seeking to keep them afloat until the industry recovers from its deepest slump ever. Banks are extending credit and waiving covenants for some energy companies to avoid forcing defaults and bankruptcies that leave the lenders holding assets, in contrast to some U.S. counterparts preparing to seize oil and gas fields. A 2019 Canadian Supreme [Read more]
Heavy discount narrows on oil shut-ins
Canadian heavy crude's discount versus the U.S. benchmark West Texas Intermediate (WTI) oil narrowed on Wednesday, helped by curtailed production. Shut-ins, estimated so far at 325,000 barrels per day by consultancy Rystad Energy, are accelerating, leaving the Enbridge Mainline short of capacity and supporting prices, a Calgary trading source said. Canadian crude storage levels saw a small draw this week, the source said, which also underpins prices. Net prices remain among the lowest on [Read more]
Oil market falls too big to offset with output cuts, IEA warns
The International Energy Agency (IEA) on Wednesday forecast a 29 million barrel per day (bpd) dive in April oil demand to levels not seen in 25 years and warned no output cut by producers could fully offset the near-term falls facing the market. The IEA forecast a 9.3 million bpd drop in demand for 2020 despite what it called a "solid start" by producers following a record deal to curb supply in response to the coronavirus pandemic. "By lowering the peak of the supply overhang and [Read more]
Heavy discount narrows as output cuts look to ease glut
Canadian heavy crude's discount versus the U.S. benchmark West Texas Intermediate (WTI) oil narrowed on Tuesday, as traders factored in OPEC+ supply cuts that look to ease a global glut, and space on Canadian pipelines. Cuts totaling 9.7 million barrels per day take effect in May, although they fall well short of estimates for lost demand due to the COVID-19 pandemic. A Calgary-based industry source said the market was "extremely confused" trying to account for curtailments, plunging [Read more]
It will be weeks before Canada can start reopening economy – PM Trudeau
It will be weeks still before Canada can start reopening the economy and any such effort will be done in stages and in coordination with the 10 provinces, Prime Minister Justin Trudeau said on Tuesday. Trudeau also told a daily briefing that he would shortly have more to say about a promised aid package for the oil and gas industry, which has been hard hit by the coronavirus outbreak. He did not give details. Authorities across Canada have ordered a shutdown of non-essential businesses, [Read more]
Oil drops as demand worries offset gains from output cut deal
Oil prices were dropped on Tuesday, as the historic production-cut deal inked by major global oil producers was not enough to assuage existing worries about the demand destruction brought on by the coronavirus pandemic. U.S. West Texas Intermediate (WTI) crude slipped 58 cents, or 2.7%, to settle at $21.75. Brent futures fell 86 cents, or 2.6%, to settle at $30.99 a barrel. The Organization of the Petroleum Exporting Countries, along with Russia and other countries - known as OPEC+ - [Read more]
Heavy discount narrows after OPEC+ supply-cut deal
Canadian heavy crude's discount narrowed versus the U.S. benchmark West Texas Intermediate (WTI) oil on Monday, as a global deal on output cuts failed to substantially lift oil prices in the face of a worldwide plunge in demand due to the coronavirus pandemic. Western Canada Select (WCS) heavy blend crude for May delivery in Hardisty, Alberta, traded at $17.20 per barrel below WTI, according to NE2 Canada Inc, narrower than Thursday's settle of $19.25 under. The Organization of the [Read more]
Alberta not asked by OPEC to curtail -premier
Canada's oil-producing province of Alberta has not been asked by OPEC for further crude curtailments to ease a global glut and has made clear to OPEC and the United States it already did its part, Alberta's premier said on Thursday. The coronavirus pandemic has slashed oil demand as countries shut down much of their economies, and the Organization of the Petroleum Exporting Countries has also flooded the world with additional oil in a dispute with Russia. Alberta's energy minister was [Read more]