Canadian heavy crude's discount widened modestly versus the U.S. benchmark West Texas Intermediate (WTI) oil on Thursday, as data showed western Canadian crude inventories fell in March and investors awaited details on a massive OPEC supply-cut agreement. Western Canada Select (WCS) heavy blend crude for May delivery in Hardisty, Alberta, traded at $19.25 per barrel below WTI, according to NE2 Canada Inc, wider than Wednesday's settle of $19 under. Brent LCOc1 futures fell 19 cents to [Read more]
U.S. oil rig count drops to lowest since Dec. 2016
U.S. energy firms cut oil rigs for a fourth week in a row to the lowest since December 2016 with oil futures down over 50% since the start of the year after Saudi Arabia and Russia cut prices and boosted output in a battle for market share. That price war came at the same time government steps to slow the spread of coronavirus have reduced global economic growth and energy demand. Drillers cut 58 oil rigs in the week to April 9, bringing the total count down to 504, energy services firm [Read more]
Even big OPEC+ cuts won’t offset oil demand collapse
OPEC and other major oil producers on Thursday discussed potential big output cuts in the face of a huge fall in demand due to the coronavirus crisis. The Organization of the Petroleum Exporting Countries and other producers including Russia, a group known as OPEC+, began a meeting on Thursday, which was expected include discussion of record cuts equivalent to 10% to 15% of global supplies, although demand has plunged by up to 30%. Analysts say that, even if such record cuts are agreed, [Read more]
Oil prices rise on optimism OPEC+ meeting will result in supply cut
Oil prices rose on Thursday on expectations the world's largest oil producers would agree to cut production at a meeting later in the day as the industry grapples with a coronavirus-driven collapse in global oil demand. U.S. West Texas Intermediate (WTI) crude futures were up 2.3%, or 61 cents, at $26.69 a barrel, after earlier climbing by as much as 6.1%. Brent crude futures rose 0.6%, or 64 cents, to $34.30 a barrel. The contract rose to an intra-day high of $33.90, climbing for a [Read more]
Heavy discount narrows despite oil storage pressure
Canadian heavy crude's discount narrowed slightly versus the U.S. benchmark West Texas Intermediate (WTI) oil on Wednesday, as Canada's largest oil producer signaled support for government curtailments to ease storage pressure amid a global glut. Western Canada Select (WCS) heavy blend crude for May delivery in Hardisty, Alberta, traded at $19.50 per barrel below WTI, according to NE2 Canada Inc, narrower than Tuesday's settle of $20.25 under. "Canadian storage capacity is going to be [Read more]
Canadian Natural Resources signals support for broad Canada oil output cut
Canadian Natural Resources Ltd , Canada's biggest oil producer, would support any commitment by the federal government to cut oil production as long as it was applied fairly to the industry, company president Tim McKay said on Wednesday. "We supported curtailments here in Alberta to help balance the market when you have these issues," McKay told a virtual investor conference hosted by Bank of Nova Scotia and the Canadian Association of Petroleum Producers. "To me, as long as it's a [Read more]
Oil prices jump on hopes for OPEC, Russia meeting on output cuts
Oil bounced back on Wednesday, with U.S. crude jumping over $1, lifted by hopes that a meeting between OPEC members and allied producers on Thursday will trigger output cuts to shore up prices that have crumbled amid the coronavirus pandemic. U.S. West Texas Intermediate (WTI) crude rose 70 cents, or 3%, to $24.84 a barrel after dropping 9.4% in the previous session. Brent crude was up by 1 cent at $32.36 per barrel by 0246 GMT after falling 3.6% on Tuesday. Thursday's videoconference [Read more]
OPEC+ talks face challenges over baseline for cuts and U.S. role
OPEC and its allies are due to hold talks on Thursday to discuss the biggest coordinated supply production cut in history but they must agree on two major points: the levels from which any cuts should be made and how the United States will respond. U.S. President Donald Trump said last week he had brokered a deal between Russia and Saudi Arabia to cut 10 million to 15 million barrels per day (bpd) of crude, or 10 to 15% of global oil supplies. The coronavirus crisis has slashed demand by [Read more]
Heavy discount edges wider as Canada producers eye cuts
Canadian heavy crude's discount widened versus the U.S. benchmark West Texas Intermediate (WTI) oil on Tuesday, as Alberta producers braced for deeper output cuts and doubts grew that OPEC and its allies would agree on a global pact to reduce a supply glut. Western Canada Select (WCS) heavy blend crude for May delivery in Hardisty, Alberta, traded at $19.75 per barrel below WTI, according to NE2 Canada Inc, wider than Friday's settle of $18 under. "We think the demand and refinery cuts [Read more]
Canada oil cuts set to deepen as Alberta province eyes global deal
Steep Canadian oil production cuts are expected due to a crash in oil prices, two of the country's major energy companies said on Tuesday. Some 20-25% of Western Canada's crude oil production could be shut in during the current second quarter, said Enbridge Inc Chief Executive Al Monaco. Western Canada produced an estimated 4.5 million barrels per day in March, according to the Canada Energy Regulator. That estimate is in line with a forecast of 1.1 million to 1.7 million barrels from [Read more]