Oil prices steadied on Tuesday as a resumption of production in the Gulf of Mexico after Hurricane Barry and a boom in U.S. supply from shale oil countered tensions in the Middle East. Uncertainty about China’s economic prospects also pressured prices after data on Monday showed that growth in the country slowed to 6.2% from a year earlier, the weakest pace in at least 27 years. West Texas Intermediate crude futures fell by 8 cents to $59.50 a barrel. The U.S. benchmark hit a session high [Read more]
U.S. natgas futures fall on forecasts of less hot weather, rising output
U.S. natural gas futures on Tuesday fell more than 3% to their lowest in over a week on forecasts for less hot weather over the next two weeks than previously forecast and a slow return of production from the Gulf of Mexico after Tropical Storm Barry. Front-month gas futures for August delivery on the New York Mercantile Exchange were down 7.6 cents, or 3.2%, to $2.332 per million British thermal units at 8:23 a.m. EDT (1223 GMT), their lowest since July 5. With the weather expected to [Read more]
Heavy crude discount shrinks
The differential on Canadian heavy crude narrowed on Monday to trade at the tightest discount since April:* Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, settled at $9.15 per barrel below West Texas Intermediate (WTI) oil, according to Net Energy Exchange. On Friday, WCS for August delivery settled at $10.85 a barrel below WTI crude futures.* One Calgary-based industry source described the sharply narrower differential as "insane" and said the [Read more]
U.S. Gulf of Mexico oil, gas producers begin restarting after Barry
U.S. oil companies on Monday began restoring some of the more than nearly 74% production shut at U.S. Gulf of Mexico platforms ahead of Hurricane Barry, the U.S. offshore drilling regulator said.There was 1.3 million barrels per day (bpd) of oil production off line in the U.S.-regulated areas of the Gulf of Mexico on Monday, about 80,000 barrels less than on Sunday, according to the U.S. Bureau of Safety and Environmental Enforcement (BSEE). Workers also were returning to the more than 280 [Read more]
U.S. shale oil output forecast to hit record 8.55 million bpd in August
U.S. oil output from seven major shale formations is expected to rise by about 49,000 barrels per day (bpd) in August, to a record 8.55 million bpd, the U.S. Energy Information Administration said in its monthly drilling productivity report on Monday.The largest change is forecast in the Permian Basin of Texas and New Mexico, where output is expected to climb by 34,000 bpd, to a fresh peak of about 4.21 million bpd in August. That was however, the smallest increase since production declined in [Read more]
Oil prices down on dwindling storm impact, Chinese economic data
Oil prices sank about 1% on Monday on signs that the impact of a tropical storm on U.S. Gulf Coast production and refining would be short-lived, while Chinese economic data dimmed the crude demand outlook. U.S. crude CLc1 settled at $59.58 a barrel, shedding 63 cents, or 1.1%. Brent crude futures LCOc1 settled at $66.48 a barrel, losing 24 cents. Both contracts last week made their biggest weekly gains in three weeks on cuts in U.S. oil inventories and diplomatic tensions in the Middle [Read more]
U.S. natgas futures slide on less hot weather forecasts
U.S. natural gas futures on Monday pulled back over 1% from a six-week high hit last week on forecasts for less hot weather over the next two weeks than previously forecast despite continued low production due to Tropical Storm Barry. Front-month gas futures for August delivery on the New York Mercantile Exchange (NYMEX) were down 3.2 cents, or 1.3%, at $2.42 per million British thermal units at 9 a.m. EDT (1300 GMT). On Friday, the contract closed at its highest since May 31. Gas [Read more]
Permian M&A activity heats up as Callon Petroleum set to buy Carrizo Oil & Gas in $3.2 bln deal
Callon Petroleum Co (CPE.N) said on Monday it would buy Carrizo Oil & Gas Inc (CRZO.O) in a $3.2 billion deal, the latest in a string of acquisitions as energy companies scale up to boost cash flow in the face of investor criticism. Energy companies have been under pressure to cut costs and increase buybacks and dividends to shareholders, who are no longer willing to back drilling programs in the absence of strong cash flow. Lion Point Capital, Carrizo’s fourth-largest shareholder with a [Read more]
Heavy crude differential tightens further
The discount on Canadian heavy crude narrowed on Friday to trade at less than $11 a barrel:* Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, last traded at $10.65 per barrel below West Texas Intermediate (WTI) oil, according to Net Energy Exchange. On Thursday, WCS for August delivery settled at $11.15 a barrel below WTI crude futures.* Heavy crude differentials have narrowed throughout the week, with traders citing lower western Canadian inventories as a [Read more]
U.S. oil companies put up $16.5 mln to build West Texas charter schools
Twenty top U.S. energy companies agreed to contribute $16.5 million to open new schools in West Texas, where an influx of oil and gas workers have strained schools, roads and other civic services.This is the first initiative by the Permian Strategic Partnership, a consortium of shale producers which has pledged to raise $100 million to address civic strains, a spokesman for the group said. The companies all operate in the Permian Basin, the top U.S. shale field. Another $22 million will be [Read more]