Oil prices rose on Thursday ahead of an OPEC meeting where members are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year. Sources told Reuters that OPEC was seeking to increase production cuts by the group and its allies led by Russia by more than 400,000 barrels per day (bpd) from their current level of 1.2 million bpd. The Organization of the Petroleum Exporting Countries meets on Thursday in Vienna followed by a meeting on Friday with [Read more]
Kinder Morgan expects earnings to decline in 2020
Pipeline operator Kinder Morgan Inc on Thursday forecast a drop in core earnings next year, as growth from expansion projects would likely be offset by higher spending and lower contract rates on some of its gas and oil pipelines. The company said it expects 2020 adjusted earnings before interest, tax and depreciation (EBITDA) to be $7.6 billion compared with 2019 forecast of $7.8 billion. Kinder Morgan would generate $5.1 billion of distributable cash flow in 2020, which is nearly 3% [Read more]
Canada’s Co-op Refinery to lock out workers, plans to keep operating
The Co-op Refinery in Regina, Saskatchewan, western Canada's third-largest oil refinery, plans to lock out workers on Thursday but continue operations. The refinery, owned by Federated Cooperatives Ltd, tweeted on Tuesday that it had issued a 48-hour lockout notice to 800 workers in the interest of public safety, after their union issued a strike notice. Talks had broken down over pensions. The refinery was running on Wednesday at full operation, spokesman Brad DeLorey said in an email. [Read more]
Heavy discount narrows after Syncrude cuts December oil production
The discount on Canadian heavy crude narrowed versus U.S. benchmark West Texas Intermediate (WTI) crude, and light oil sold at a premium on Wednesday, after the Syncrude oil sands site cut December production. Canada's Syncrude oil sands facility has reduced its December production by 1.6 million barrels because of operational problems, three market sources told Reuters, adding that the reduced output lifted Canadian prices. Western Canada Select (WCS) heavy blend crude for January [Read more]
Canada’s Syncrude oil facility cuts output over operational issues
Canada's Syncrude oil sands facility has reduced its December production by 1.6 million barrels due to operational problems, three market sources told Reuters on Wednesday. Syncrude is a joint venture majority owned by Suncor Energy Inc , with minority stakes held by Imperial Oil Ltd and others. It can produce up to 360,000 barrels per day, upgrading thick bitumen to light oil. The nature of the operational problems was not clear. Spokesmen for Syncrude, Suncor and Imperial could not be [Read more]
CN Rail CEO says crude by rail may help earnings in early 2020
Canadian National Railway Co's chief executive on Wednesday said crude-by-rail shipments may help earnings during the first three months of 2020, despite softer market conditions overall. CN, Canada's largest railroad, is ramping up its service following a crippling eight-day strike that ended last week, as it cuts jobs to meet softer economic conditions and less demand for freight services. "This year, crude by rail still hasn't got its traction, which it may early year," CN CEO JJ Ruest [Read more]
Canadian Natural Resources plans to spend C$250 million more in 2020
Canadian Natural Resources Ltd said on Wednesday it expects to spend C$4.05 billion in 2020, C$250 million more than in 2019, after the Canadian province of Alberta lifted some curtailments on new oil wells last month. The Alberta government in November said drilling of new conventional oil wells would not be subject to government production limits, in a bid to boost its ailing economy. Canadian Natural Resources, which operates in Western Canada as well as in the UK North Sea and offshore [Read more]
Oil rises before OPEC+ meet, lifted by drop in U.S. crude stocks
Oil prices rose on Wednesday ahead of a meeting of OPEC and its allies to discuss whether to extend production curbs to support the market, while industry data showing that U.S. crude stockpiles fell more than expected helped to lift prices. U.S. West Texas Intermediate (WTI) crude futures were up $1.68, or 2.97 %, at $57.94. Brent crude futures were up $1.74, or 2.85%, at $62.75 a barrel. The Organization of the Petroleum Exporting Countries (OPEC) and allies that include Russia - a [Read more]
Heavy discount widens to nearly one-month high as inventory builds
The discount on Canadian heavy crude widened to a nearly one-month high versus U.S. benchmark West Texas Intermediate (WTI) crude on Tuesday due to high inventory levels. Western Canada Select (WCS) heavy blend crude for January delivery in Hardisty, Alberta, was trading at $22.40 per barrel below WTI, according to NE2 Canada Inc, compared with Monday's settle of $21 below. The heavy differential reached its widest level for the benchmark month since Nov. 6. The wider differential was [Read more]
Heavy discount widens slightly as monthly trading cycle begins
The discount on Canadian heavy crude widened slightly versus U.S. benchmark West Texas Intermediate (WTI) crude on Monday, the start of a new monthly trading cycle. Western Canada Select (WCS) heavy blend crude for January delivery in Hardisty, Alberta, was trading at $20.90 per barrel below WTI, according to NE2 Canada Inc, compared with Friday's settle of $20.75 below in thin trading. The heavy differential remained wide amid large inventories following a Canadian railway strike that [Read more]