Canadian oil sands production will rise more than half a million barrels per day in 2019 and growth will moderate thereafter, according to a forecast by data firm IHS Markit . Canada has emerged as the primary source of heavy oil supply in the world as output from other large producers, such as Venezuela, has declined. However, the pace of growth of Canadian oil sands is uncertain after 2019 and depends on the timing of investment decisions that are yet to be made. By then, ongoing [Read more]
U.S. oil boom delivers surprise for traders – and it’s costly
LONDON/NEW YORK (Reuters) - The world’s biggest oil traders are counting hefty losses after a surprise doubling in the price discount of U.S. light crude to benchmark Brent in just a month, as surging U.S production upends the market. Trading desks of oil major BP and merchants Vitol, Gunvor and Trafigura have recorded losses in the tens of millions of dollars each as a result of the “whipsaw” move when the spread reached more than $11.50 a barrel in June, insiders familiar with their [Read more]
Syncrude Canada to cut Aug crude deliveries by 35 pct after outage
Syncrude Canada on Friday told buyers it would cut crude deliveries in August by about 35 percent after an outage last month at its oil sands site in northern Alberta, two market sources familiar with the matter said. Suncor Energy Inc, the biggest stakeholder in the northern Alberta project, said earlier this week the site will resume some operations in July and reach full production in September. A Suncor spokeswoman did not immediately respond to a request for comment. The cut in [Read more]
U.S. drillers leave oil rig count unchanged
(Reuters) - U.S. energy companies left the oil rig count unchanged this week as the rate of growth has slowed over the past month or so with a decline in crude prices from late May through late June. U.S. crude prices were on track to fall almost 4 percent this week as escalating U.S.-China trade tensions threatened to hurt oil demand after last week rising to their highest level since November 2014. The number of active oil rigs held steady at 863 in the week to July 13, General Electric [Read more]
World’s oil cushion could be stretched to the limit, IEA warns
LONDON (Reuters) - The world’s oil supply cushion could be stretched to the limit due to prolonged outages, supporting prices and threatening demand growth, the International Energy Agency said on Thursday. The expected drop in Iranian crude exports this year due to renewed U.S. sanctions, coupled with a decline in Venezuela’s production and outages in Libya, Canada and the North Sea have driven oil prices to their highest since 2014 in recent weeks. OPEC and other key producers including [Read more]
U.S. agency continues probe of Husky Superior refinery blast
The U.S. Chemical Safety Board is analyzing metal shrapnel from an April explosion at a Husky Energy Inc refinery in Wisconsin that forced the evacuation of thousands of residents as it continues to investigate the cause of the blast, the agency's chief said on Wednesday. The metal shrapnel blown out from the gasoline-producing fluidic catalytic cracking unit (FCCU) at the refinery in Superior, Wisconsin, tore through a tank containing hot asphalt, which spread fire through the plant, [Read more]
OPEC sees lower 2019 demand for its oil, points to return of surplus
OPEC on Wednesday forecast world demand for its crude will decline next year as growth in consumption slows and rivals pump more, pointing to the return of an oil market surplus despite an OPEC-led pact to restrain supplies.Giving its first 2019 forecasts in a monthly report, the Organization of the Petroleum Exporting Countries said the world would need 32.18 million barrels per day (bpd) of crude from its 15 members next year, down 760,000 bpd from this year.The drop in demand for OPEC crude [Read more]
Canadian oil executives downplay transportation bottlenecks
CALGARY (Reuters) - Executives at Canada’s largest integrated oil and gas producers on Tuesday downplayed the severity of transportation bottlenecks to move oil in the near term, citing existing pipeline commitments and refining capabilities. Canadian producers have faced steep discounts for western Canadian heavy crude this year due to bottlenecks, while new pipeline projects have dealt with delays and protests from environmental groups. Still, executives at Husky Energy Inc and Suncor [Read more]
Sale of Newfoundland refinery falls through as owners clash over price
(Reuters) - The sale of a remote Canadian refinery has been scuttled as two former oil traders running the company locked horns over the value of the plant, according to three people familiar with the discussions. The partners, former traders Neal Shear and Kaushik Amin, sought to sell the 130,000 barrel-per-day refinery in Come By Chance, Newfoundland last year to privately held Canadian refiner Irving Oil, which was seen as the leading bidder. The deal fell apart in recent months and is [Read more]
OPEC to Canada: Build pipelines or watch investment flow south
CALGARY, Alberta (Reuters) - The president of OPEC urged Canada on Tuesday to invest in infrastructure to move oil and gas, or risk watching investment flow away to the United States. The Canadian government agreed in May to buy the Trans Mountain oil pipeline and a related expansion project from Kinder Morgan Canada (KML.TO) for $4.5 billion, highlighting the lengths deemed necessary to overcome stiff opposition to such projects. Insufficient space in the country’s oil pipelines has [Read more]