U.S. oil output from seven major shale formations is expected to rise by about 49,000 barrels per day (bpd) in August, to a record 8.55 million bpd, the U.S. Energy Information Administration said in its monthly drilling productivity report on Monday.The largest change is forecast in the Permian Basin of Texas and New Mexico, where output is expected to climb by 34,000 bpd, to a fresh peak of about 4.21 million bpd in August. That was however, the smallest increase since production declined in [Read more]
Oil prices down on dwindling storm impact, Chinese economic data
Oil prices sank about 1% on Monday on signs that the impact of a tropical storm on U.S. Gulf Coast production and refining would be short-lived, while Chinese economic data dimmed the crude demand outlook. U.S. crude CLc1 settled at $59.58 a barrel, shedding 63 cents, or 1.1%. Brent crude futures LCOc1 settled at $66.48 a barrel, losing 24 cents. Both contracts last week made their biggest weekly gains in three weeks on cuts in U.S. oil inventories and diplomatic tensions in the Middle [Read more]
U.S. natgas futures slide on less hot weather forecasts
U.S. natural gas futures on Monday pulled back over 1% from a six-week high hit last week on forecasts for less hot weather over the next two weeks than previously forecast despite continued low production due to Tropical Storm Barry. Front-month gas futures for August delivery on the New York Mercantile Exchange (NYMEX) were down 3.2 cents, or 1.3%, at $2.42 per million British thermal units at 9 a.m. EDT (1300 GMT). On Friday, the contract closed at its highest since May 31. Gas [Read more]
Permian M&A activity heats up as Callon Petroleum set to buy Carrizo Oil & Gas in $3.2 bln deal
Callon Petroleum Co (CPE.N) said on Monday it would buy Carrizo Oil & Gas Inc (CRZO.O) in a $3.2 billion deal, the latest in a string of acquisitions as energy companies scale up to boost cash flow in the face of investor criticism. Energy companies have been under pressure to cut costs and increase buybacks and dividends to shareholders, who are no longer willing to back drilling programs in the absence of strong cash flow. Lion Point Capital, Carrizo’s fourth-largest shareholder with a [Read more]
Heavy crude differential tightens further
The discount on Canadian heavy crude narrowed on Friday to trade at less than $11 a barrel:* Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, last traded at $10.65 per barrel below West Texas Intermediate (WTI) oil, according to Net Energy Exchange. On Thursday, WCS for August delivery settled at $11.15 a barrel below WTI crude futures.* Heavy crude differentials have narrowed throughout the week, with traders citing lower western Canadian inventories as a [Read more]
U.S. oil companies put up $16.5 mln to build West Texas charter schools
Twenty top U.S. energy companies agreed to contribute $16.5 million to open new schools in West Texas, where an influx of oil and gas workers have strained schools, roads and other civic services.This is the first initiative by the Permian Strategic Partnership, a consortium of shale producers which has pledged to raise $100 million to address civic strains, a spokesman for the group said. The companies all operate in the Permian Basin, the top U.S. shale field. Another $22 million will be [Read more]
U.S. oil drillers cut rigs for second week in a row -Baker Hughes
U.S. energy firms this week reduced the number of oil rigs operating for a second week in a row as drillers follow through on plans to cut spending this year.Drillers cut four oil rigs in the week to July 12, bringing the total count down to 784, the lowest since February 2018, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. That compares with 863 rigs operating during the same week a year ago.The rig count, an early indicator of [Read more]
Mexico’s formula to execute annual oil hedge is ready -official
Mexico has finished calibrating the formula used as a basis for its massive oil hedging program, a finance ministry official said on Friday, clearing a major obstacle for the hedge, the world's largest and most secretive Wall Street oil trade.Mexico buys as much as $1 billion worth of financial derivatives in order to protect its oil-sales revenue for the coming year against price volatility, in a highly anticipated financial trade that can make or break an investment bank's deal [Read more]
Oil hovers near 6-wk highs amid Gulf of Mexico storm, Middle East tensions
Oil prices hovered near six-week highs on Friday as U.S. oil producers in the Gulf of Mexico cut more than half their output in the face of a tropical storm and as tensions continued to simmer in the Middle East. U.S. West Texas Intermediate (WTI) crude futures were up 42 cents, or 0.7%, at $60.62 a barrel. The U.S. benchmark marked its highest level since May 23 in the previous session at $60.94. Brent crude futures were up 53 cents, or 0.8%, at $67.05 per barrel by 0606 GMT. The [Read more]
IEA sees oil market oversupplied in 2019 on U.S. production
Surging U.S. oil output will outpace sluggish global demand and lead to a large stocks build around the world in the next nine months, the International Energy Agency (IEA) said on Friday.The forecasts appear to predict the need for producer club OPEC and its allies to reduce production to balance the market despite extending their existing pact, forecasting a fall in demand for OPEC crude to only 28 million barrels per day (bpd) in early 2020."Market tightness is not an issue for the time [Read more]