Heavy, sour U.S. Gulf Coast crudes firmed to the strongest levels in three months this week on tight supplies of heavy oils, traders said on Thursday. Heavy Louisiana Sweet (HLS), a heavy coastal grade delivered into Empire, Louisiana, traded around an $8-per-barrel premium to U.S. West Texas Intermediate crude futures (WTI) on Wednesday, the strongest since mid-October and up $1 over last week. Valero Energy Corp, Marathon Petroleum Corp and other Gulf Coast refiners have plants that are [Read more]
MEG Energy: Plunges as Husky abandons hostile bid
** Shares of Canadian oil sands producer MEG Energy plunge 38 pct to C$5.29 after Husky Energy ends C$3.3 bln unsolicited pursuit of MEG** HSE's offer to buy MEG for C$11 in cash per share or 0.485 of a HSE share, expired at 5 p.m. E.T. on Wednesday ** HSE was expecting to secure over 50 pct support from MEG's shareholders, sources told Reuters Wednesday** HSE up 14 pct at C$17.64 on the Toronto Stock Exchange; stock had fallen ~20 pct in 2018** Analysts at Tudor, Pickering [Read more]
Canadian oil companies cut 2019 capital spending
Canada's oil producers are cutting their capital spending for 2019 due to volatility in Canadian crude prices and forced production cuts in the province of Alberta. Global crude prices have also been under pressure as markets worry about a supply glut and an economic slowdown.Last month, Alberta Premier Rachel Notley said the Western Canadian province would mandate temporary oil output cuts of about 325,000 barrels per day to deal with a pipeline bottleneck that has led to a [Read more]
Husky Energy to receive majority support in hostile MEG takeover
Husky Energy Inc expects to secure over 50 percent support from MEG Energy shareholders for Husky's $3.3 billion unsolicited offer to take over the rival oil producer by Wednesday's deadline, people familiar with the situation told Reuters. The numbers may still fall short of the two-thirds threshold required to get the deal across the finish line, the sources said, declining to be named as the details were not public. In that case, Husky plans to extend the deadline to buy more time to [Read more]
Alberta’s oil cuts offer lifeline to producers but create new problems
Alberta's OPEC-style decision to force production cuts is benefiting oil companies with higher prices, but it is also pushing capital elsewhere and threatens to undermine booming crude-by-rail shipments. After Alberta cut 325,000 barrels per day (bpd) starting this month, the discount on Canadian heavy oil compared to benchmark U.S. crude oil shrank to less than $7 per barrel from more than $40 in October, providing relief for producers. But drilling activity has dropped sharply in the [Read more]
Heavy crude differential widens slightly after narrowing all week
The Canadian heavy oil differential widened slightly against the West Texas Intermediate (WTI) benchmark on Friday, after narrowing throughout the week: * Western Canada Select (WCS) heavy blend crude for February delivery in Hardisty, Alberta, settled at $7.45 a barrel below WTI crude futures , wider than Thursday's settle of $7.35 below WTI, according to Net Energy Exchange. * But the intraday price of $6.95 is the smallest discount on Canadian heavy crude to WTI since June 2015, [Read more]
U.S. oil drillers cut rigs for second week in a row
U.S. energy firms cut oil rigs for a second week in a row as more producers, like Occidental Petroleum Corp , turned conservative in their 2019 drilling plans due to uncertainty over a recovery in crude prices. Drillers cut four oil rigs in the week to Jan. 11, bringing the total count down to 873, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. The U.S. rig count, an early indicator of future output, is still much higher [Read more]
Canada regulator issues draft conditions in oil pipeline review
Canada's energy regulator released draft revisions of conditions and new recommendations on Thursday as part of the Trans Mountain oil pipeline expansion re-review, ordered last year after a Canadian court overturned the approval of the project. The National Energy Board proposed amendments to existing conditions related to marine safety and mammal protection, and introduced 13 new draft recommendations for comment. A final report is due by Feb. 22. Canada's Federal Court of Appeal last [Read more]
Heavy crude differential tightens again
The Canadian heavy oil differential narrowed against the West Texas Intermediate (WTI) benchmark on Thursday, as curtailments and brisk rail movement reduced bloated supplies: Western Canada Select (WCS) heavy blend crude for February delivery in Hardisty, Alberta, settled at $7.35 a barrel below WTI crude futures , narrower than Wednesday's settle of $8.15 below WTI, according to Net Energy Exchange. The intraday price of $7.20 is the lowest discount on Canadian heavy crude to WTI since [Read more]
Heavy crude differential narrowest since mid-2015
The Canadian heavy oil differential moved to the narrowest level since mid-2015 against the West Texas Intermediate (WTI) benchmark on Wednesday, as government-ordered curtailments and brisk crude-by-rail shipments boosted prices:* Western Canada Select (WCS) heavy blend crude for February delivery in Hardisty, Alberta, settled at $8.15 a barrel below WTI crude futures , narrower than Tuesday's settle of $9.20 below WTI, according to Net Energy Exchange.* The settled price is the lowest [Read more]