Continental Resources Inc and Diamondback Energy on Thursday unveiled drastic cuts to their annual budgets as oil and gas producers look to run a tight ship following the recent plunge in oil prices. North American shale producers have cut planned expenditures between 25% and 55% on average, as crude prices have plummeted to two-decade lows following a slump in demand due to the coronavirus outbreak and an expected surge in supplies after top producers Russia and Saudi Arabia pledged to pump [Read more]
Canada unveils major aid package to battle coronavirus outbreak, ready to do more
Canadian Prime Minister Justin Trudeau said on Wednesday his government would provide C$27 billion ($18.6 billion) in direct support to families and businesses struggling because of the coronavirus outbreak, and stood ready to do more. It was his biggest move yet to combat the economic impact of the fast-spreading virus, which has infected some 700 Canadians in all 10 provinces, killing nine. In an unprecedented move, Canada and the United States shut their vast common border on Wednesday to [Read more]
U.S. crude hits 18-year low as lockdowns, restrictions spread
Oil prices fell for a third session on Wednesday with U.S. crude futures tumbling to an 18-year low as travel and social lockdowns sparked by the coronavirus epidemic knocked the outlook for demand. U.S. crude was down $5.30 , or over 19%, at $21.50 per barrel. The last time oil was trading that low, China had only begun its rise as a major global economic power that propelled the world’s oil consumption to record highs in subsequent years. Brent crude was trading down $3.50, or over [Read more]
Heavy discount widens as monthly trading cycle winds down
Canadian heavy crude's discount widened versus U.S. benchmark West Texas Intermediate (WTI) oil on Monday, the last day of the monthly trading cycle. Western Canada Select (WCS) heavy blend crude for April delivery in Hardisty, Alberta, traded at $13.60 per barrel below WTI, according to NE2 Canada Inc, wider than Friday's settle of $12 under. The cycle ends the day before Enbridge Inc's due date for notices of shipments on its Mainline system. Apportionment may be reduced this month with [Read more]
U.S. could start buying crude for Strategic Petroleum Reserve in 2 weeks
The United States could begin purchasing U.S. produced crude oil for the Strategic Petroleum Reserve as soon as two weeks from now, and fill it in several months, an Energy Department source said on Monday. President Donald Trump said late on Friday that he has ordered the Energy Department to fill the reserve "to the top." The move was aimed at helping domestic energy producers suffering from the plunge in oil prices brought about by the spread of coronavirus and a price war between Saudi [Read more]
Oil slides again, squeezed between coronavirus demand hit and price war bite
Oil extended losses on Monday as an emergency rate cut by the U.S. Federal Reserve failed to soothe global financial markets panicked by the rapid spread of the coronavirus while a price war rages on between top producers. U.S. crude was at $28.97, down $4.28 despite U.S. President Donald Trump's pledge to fill strategic oil reserves in the world's largest oil consumer "to the top". Brent crude fell $4.61 to $30.18 a barrel, tumbling after last week's plunge of 25%, the largest weekly [Read more]
Saudi flood of crude about to crash into demand destroyed by coronavirus
Saudi Arabia's move to flood the crude oil market is on a collision course with global demand that is about to be pummelled by the coronavirus pandemic, especially in North America and Europe. As the outbreak intensifies and spreads across Europe and the United States, governments are trying to contain it by effectively shutting down many transport links and encouraging social distancing. While it's still too early to come up with a definitive number for how much global oil demand will be [Read more]
U.S. to fill strategic oil reserve ‘to the top,’ Trump says
President Donald Trump said on Friday that the United States would take advantage of low oil prices and buy a large quantity of crude to fill the nation's emergency crude oil reserve, in a move aimed to help energy producers struggling from the price plunge. "Based on the prices of oil, I've ... instructed the secretary of energy to purchase, at a very good price, large quantities of crude oil for storage in the U.S. strategic reserve," Trump told reporters at the White House. "We're going to [Read more]
Heavy discount widens as global prices rebound
Canadian heavy crude's discount widened versus U.S. benchmark West Texas Intermediate (WTI) oil on Friday, as global prices rebounded. Western Canada Select (WCS) heavy blend crude for April delivery in Hardisty, Alberta, traded at $13 per barrel below WTI, according to NE2 Canada Inc, wider than Thursday's settle of $12 under. The differential had been narrower this week as global prices plunged, and net Canadian prices approached break-even levels for some producers, a trader said. A [Read more]
U.S. oil rig count rises for second week in a row
The U.S. oil drilling rig count rose for a second week in a row despite a massive drop in both oil and natural gas prices this week and projections by many analysts that the number of rigs will fall as producers deepen their spending cuts on new drilling. Companies added one oil rig in the week to March 13, bringing the total count to 683, their highest since December, energy services firm Baker Hughes Co said in its closely followed report on Friday. That is down 18% from the same week a [Read more]