OPEC oil output sank to a new five-year low in June as a rise in Saudi supply did not offset losses in Iran and Venezuela due to U.S. sanctions and other outages elsewhere in the group, a Reuters survey found. The 14-member Organization of the Petroleum Exporting Countries pumped 29.60 million barrels per day (bpd) last month, the survey showed, down 170,000 bpd from May’s revised figure and the lowest OPEC total since 2014, the survey showed. The Reuters survey suggests that even though [Read more]
Heavy and synthetic oil differentials strengthen
Canada's heavy crude differential to U.S. futures narrowed slightly on Thursday:* Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, last traded at $12.60 per barrel below West Texas Intermediate (WTI) oil, according to Net Energy Exchange. On Wednesday, WCS for August delivery settled at $12.95 a barrel below WTI crude futures.* The government of Alberta, Canada's main crude-producing province, has capped oil production for August at 3.74 million [Read more]
Oil prices dip on signs of slowing U.S. demand, economic concerns
Oil prices fell on Thursday, weighed down by data showing a smaller-than-expected draw on U.S. crude stockpiles along with worries about the global economy. U.S. West Texas Intermediate (WTI) crude futures were down 23 cents or 0.40% at $57.11 per barrel. WTI closed up 1.9% on Wednesday. Markets appeared largely unmoved by the detention in Gibraltar by British Royal Marines of a supertanker possibly carrying Iranian crude oil bound for Syria, as tensions between Iran and the United [Read more]
Heavy oil differential tightens as inventories dip
Canada's heavy crude differential to U.S. futures narrowed on Wednesday:* Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, last traded at $12.95 per barrel below West Texas Intermediate (WTI) oil, according to Net Energy Exchange. On Tuesday, WCS for August delivery settled at $13.40 a barrel below WTI crude futures.* Falling western Canadian inventories helped lift prices, one industry source said. Crude stocks are declining after hitting record highs [Read more]
U.S. oil drillers cut rigs for first week in three -Baker Hughes
U.S. energy firms this week reduced the number of oil rigs operating for the first time in three weeks as drillers follow through on plans to cut spending this year.Drillers cut five oil rigs in the week to July 3, bringing the total count down to 788, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Wednesday. That compares with 863 rigs operating during the same week a year ago.The rig count, an early indicator of future output, declined [Read more]
Oil prices rise after U.S. crude stockpile drop
Oil prices rebounded slightly on Wednesday after a steep fall in the previous session as OPEC and its allies’ decision to extend output cuts was not enough to counter investors’ concerns about the slowing global economy. Prices were supported by widely-watched data showing a larger-than-expected drawdown in U.S. crude oil inventories, with government data due later in the day. U.S. crude futures for August were up 47 cents at $56.72 a barrel. Both benchmarks fell more than 4% on Tuesday as [Read more]
Heavy oil differential widens on first day of trade cycle
Canada's heavy crude differential to U.S. futures widened on Tuesday as the monthly Canadian crude market trade cycle began:* Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, last traded at $13.60 per barrel below West Texas Intermediate (WTI) oil, according to Net Energy Exchange. On Friday, WCS for August delivery settled at $13.30 a barrel below WTI crude futures.* Tuesday was the first day of the monthly trading window when liquidity picks up. It [Read more]
Canada aboriginal pipe dream might end Trudeau’s Trans Mountain nightmare
An indigenous-led group plans to offer to buy a majority stake in the Trans Mountain oil pipeline from the Canadian government this week or next, a deal that could help Prime Minister Justin Trudeau mitigate election-year criticism from environmentalists.The group, called Project Reconciliation, aims to submit the C$6.9 billion ($5.26 billion) offer as early as Friday, managing director Stephen Mason told Reuters, and start negotiations with Ottawa two weeks later.Project Reconciliation said the [Read more]
Oil dives 3% on demand worries even as OPEC, allies extend cuts
Oil prices fell more than 3% on Tuesday, even after OPEC and allies including Russia agreed to extend supply cuts until next March, as weak manufacturing data had investors worried that a slowing global economy could dent oil demand. U.S. West Texas Intermediate (WTI) crude futures fell $2.20, or 3.7%, to $56.89 a barrel, after touching their highest in more than five weeks on Monday. The Organization of the Petroleum Exporting Countries and other producers such as Russia, a group [Read more]
OPEC and allies extend oil supply cut in bid to boost prices
OPEC and its allies led by Russia agreed to extend oil output cuts until March 2020 on Tuesday, seeking to prop up the price of crude as the global economy weakens and U.S. production soars. The alliance, known as OPEC+, has been reducing oil supply since 2017 to prevent prices from sliding amid increasing competition from the United States, which has overtaken Russia and Saudi Arabia to become the world’s top producer. Asked by reporters whether agreement had been reached, Saudi Energy [Read more]