Oil prices were steady on Monday, holding on to strong gains last week, after Russia affirmed its commitment to a deal with OPEC producers to keep production in check and support prices. West Texas Intermediate (WTI) crude futures were up 6 cents at $56.68 a barrel, having risen more than 5% last week, also the biggest weekly increase since Sept. 20. Brent crude was up 22 cents at $62.18 a barrel by 0055 GMT, having logged a weekly gain of more than 4% last week, its best weekly gain since [Read more]
U.S. drillers cut oil rigs for record 11th month
U.S. energy companies reduced the number of oil rigs operating this week, leading to a record 11-month decline as producers follow through on plans to cut spending on new drilling. Drillers cut 17 oil rigs in the week to Oct. 25, bringing the total count down to 696, the lowest since April 2017, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. That was the biggest weekly decline since April. For the month, drillers cut 17 oil rigs, [Read more]
Alberta forecasts increased 2019-20 budget deficit
Alberta, Canada's main oil-producing province, said on Thursday its budget deficit would increase in the 2019-20 fiscal year because of a provision made for potential losses on crude-by-rail contracts that were signed by the previous government. Alberta's deficit is expected to reach C$8.7 billion ($6.7 billion) in the fiscal year ending March 31, up from C$6.7 billion in 2018-19. The government said it would return to a surplus by 2023. Alberta's real GDP is forecast to grow 0.6% in 2019, [Read more]
Oil jumps up 2.5% on U.S. stockbuild; deeper output cut prospects give support
Oil rose on Wednesday after gaining over 1% in the previous session as U.S. industry data showed a bigger-than-expected build in crude stockpiles, but the possibility of deeper output cuts from OPEC and its allies contained the decline. West Texas Intermediate (WTI) crude futures for December delivery, the new front-month contract, grew $1.48, or 2.74%, to $55.79 per barrel. The November contract expired on Tuesday at $54.16. Brent crude futures grew $1.48, or 2.48%, to $61.04 a barrel [Read more]
Canadian election stokes sense of alienation in western oil patch
Canada's federal election on Monday left the country's western oil patch without any representation in Ottawa, furthering a sense of alienation in a region already deeply frustrated with the government's energy and pipeline policies. Prime Minister Justin Trudeau's Liberals, who will form a minority government, failed to win a seat in either Alberta or Saskatchewan, the heart of the struggling oil industry. The party received just 13.7% of the vote in Alberta and 11.6% in Saskatchewan. The [Read more]
Husky Energy lays off workers as energy sector struggles
Canadian oil and gas producer Husky Energy Inc laid off a number of employees on Tuesday, a company spokeswoman said, the latest sign of how Canada's energy sector is struggling with declining capital investment and sluggish growth. Calgary, Alberta-based Husky declined to say how many jobs were affected by the cuts. "Husky has been taking steps to better align the organization and workforce with our capital plan and strategy," spokeswoman Kim Guttormson said in a statement. The layoffs [Read more]
Trans Mountain pipe expansion in question after Trudeau minority
Analysts questioned the fate of the long-delayed Trans Mountain pipeline expansion on Tuesday after Canadian Prime Minister Justin Trudeau retained power but failed to win a majority, forcing him to seek the support of left-leaning parties opposed to new oil pipelines. Trudeau's Liberals will most likely need the support of the New Democratic Party and possibly the Green Party to enact key legislation - both of which are firmly opposed to the expansion of the pipeline, which will triple the [Read more]
Canada’s oil and gas sector wary of left-leaning parties in minority government
Canada's energy industry saw its worst-case election result materialize on Monday as the Liberals failed to secure a majority government, leaving them in need of support from left-leaning parties that are opposed to new oil pipelines. Liberal Prime Minister Justin Trudeau won enough seats to form a minority government but fell short of an overall majority. That means he will most likely need the support of the New Democratic Party (NDP) and possibly the Green Party to enact key [Read more]
Canada’s energy policy as Liberals look set to form minority government
Canada's Liberal Party is set to form a minority government after Monday's federal election, CBC TV said, following a tight election. That means Prime Minister Justin Trudeau will have to rely on support from other parties to govern. Here are some of the implications of a minority government for energy policy: Political scientists say instead of going into a formal coalition with another party, the Liberals will instead most probably govern on a vote-by-vote basis. The Conservative opposition [Read more]
Oil prices dragged lower by sluggish demand, supply outlooks
Oil prices dropped on Monday amid persistent concerns about the global economic outlook and the impact on oil demand, while Russia again missed its target to cut oil output last month. U.S. West Texas Intermediate crude oil futures declined 68 cents, or 1.23%, to $53.00 a barrel. Global benchmark Brent crude oil futures fell by 83 cents, or 1.4%, to $58.44 a barrel. Signs of still ample global oil supply combined with concerns about economic growth in China, the world's largest oil [Read more]