Canadian oil and gas producer Husky Energy Inc said on Tuesday it has received regulatory approvals to buy rival MEG Energy Corp , but MEG has yet to agree on the deal.In October, Husky made an unsolicited formal offer to buy MEG Energy in a deal valued at C$6.4 billion, in an effort to integrate assets and offset the deep price discounts on Canadian crude.MEG had rejected Husky's offer. The company could not be reached immediately for comment.Husky's offer is open for MEG to [Read more]
Oil drops 4 percent on oversupply, equities sell-off
Oil prices fell 4 percent on Tuesday, dropping for a third consecutive session as reports of swelling inventories and forecasts of record U.S. and Russian output combined with a sharp sell-off in global stock markets. U.S. crude oil dropped $2.04, or 4.1 percent, to a low of $47.84, its weakest since September 2017, before recovering to around $48.40 by 1115 GMT. North Sea Brent crude lost $2.41, or 4.0 percent, to a low of $57.20, a 14-month low, and last traded around $58.06, down [Read more]
Suncor says Alberta oil site continues to produce after minor fire on Dec. 9
* Suncor Energy on Friday said its oil sands upgrader facility in northern Alberta, Canada "continued to produce" following a minor fire on Dec. 9.* The fire was quickly extinguished and did not result in any injuries, a company spokeswoman said in an e-mailed statement, adding the incident was a "minor operational upset."* Suncor did not comment on current production rates at the 350,000-barrel-per-day mining and upgrading site. (Reporting by Arpan Varghese in Bengaluru [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 this week, prolonging a move by drillers over the past month to reduce the number of active rigs after crude prices collapsed in October and November. Drillers cut 4 oil rigs in the week to Dec. 14, 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 higher than a year ago when 747 rigs [Read more]
IEA sees global oil supply tightening more quickly in 2019
The global oil market could move into deficit sooner than expected thanks to OPEC's output agreement with Russia and to Canada's decision to cut supply, the International Energy Agency said on Thursday.The Paris-based IEA kept its 2019 forecast for global oil demand growth at 1.4 million barrels per day, unchanged from its projection last month, and said it expected growth of 1.3 million bpd this year.Uncertainty over the global economy stemming from U.S.-China trade tensions could [Read more]
Heavy crude differential narrows further to strongest in over a year
The Canadian heavy oil differential narrowed further against the West Texas Intermediate (WTI) benchmark on Tuesday, climbing to the strongest level in more than a year, after Alberta said it would require producers to curtail output to clear a glut: * Western Canada Select (WCS) heavy blend crude for January delivery in Hardisty, Alberta, was last seen at about $11.75 a barrel below WTI crude futures , narrower than Monday's level at about $12.25 a barrel discount, according to traders. [Read more]
Enbridge says working on easing pipeline capacity shortages
Canada's largest pipeline operator Enbridge Inc said on Tuesday it was working on alternatives to ease the ongoing pipeline capacity shortage in the country and is in talks with shippers for a new agreement for its Mainline system.Enbridge's Mainline system runs from western Canada to the United States and ships about 1.2 million barrels per day (bpd).Calgary-based Enbridge said it can increase pipeline capacity by 50,000 to 100,000 bpd on a short-term basis by the end of the first [Read more]
Heavy crude differential tightens to narrowest in over a year
The Canadian heavy oil differential narrowed against the West Texas Intermediate (WTI) benchmark on Monday, climbing to the strongest level in more than a year, after Alberta mandated production curtailments to clear a glut: * Western Canada Select (WCS) heavy blend crude for January delivery in Hardisty, Alberta, settled on Thursday at $12.25 a barrel below WTI crude futures , narrower than Friday's level of about $15.35, according to traders. That was the strongest level since October [Read more]
Hess, Conoco raise 2019 production outlook
Oil and gas producer Hess Corp and Conocophillips both expect production for 2019 to be higher than this year even as they spend roughly the same amount of money on exploration, the companies said on Monday.Investors have been urging U.S. oil companies to increase returns on tight spending at a time when they are also looking beyond the Permian Basin, which is getting crowded and costly.Hess said the lion's share of its 2019 capital expenditure will go towards exploration in Guyana [Read more]
U.S. oil drillers cut most rigs since May 2016
U.S. drillers this week cut oil rigs by the most in over two year even as record production has turned the United States into a net oil exporter for the first time in history. Drillers cut 10 oil rigs in the week to Dec. 7, the biggest weekly decline since May 2016, bringing the total count down to 877, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. The United States last week exported more crude and refined products than it imported [Read more]