LONDON/SINGAPORE, Dec 4 - Several large liquefied natural gas (LNG) players have tried to offload their obligation to buy future cargoes from the United States, shedding excess commitments made years ago in the rush for new sources and commercial terms for the fuel. The sale of multi-year "strips" of LNG cargoes represent portfolio adjustments by the buyers rather than backlash against U.S. gas, several Asian and Europe-based traders said. But it was a timely reminder that there is only so [Read more]
Saudi energy minister says OPEC’s deal to cut output uncertain – BBG
Saudi oil minister said on Tuesday it was too soon to say if OPEC and its allies would cut production as the terms of a deal remain unresolved, Bloomberg reported.Khalid Al-Falih's comments come as OPEC and its allies are working towards a deal this week to reduce oil output by at least 1.3 million barrels per day, four sources told Reuters, adding that Russia's resistance to a major cut was so far the main stumbling block. Al-Falih told Bloomberg that he saw an oversupplied market, [Read more]
Bakken crude strengthens as Alberta seeks output cut
Bakken crude differentials firmed on Monday to the strongest level in a month, moving alongside rising Canadian prices after Alberta officials mandated oil-production cuts over the weekend, traders said. Bakken crude for delivery on the Enbridge Inc pipeline at Clearbrook, Minnesota, traded at a $5 per barrel discount to the calendar month average of U.S. crude futures, traders said. That is the strongest since Oct. 24 and up from a $9.40 discount on Friday. Crude from North Dakota's [Read more]
Cenovus CEO expects 2019 capital spending of $1.5 billion
The chief executive of Cenovus Energy Inc said on Monday that he expects the company to invest some $1.5 billion in 2019, in line with 2018 capital spending, after the Alberta government's mandated oil output cuts boosted Canadian crude prices. "My company will have a capital program that looks pretty similar to the program we had last year," Alex Pourbaix said in an interview. "We'll spend the better part of $1.5 billion, give or take, and that would not have been the case if the government [Read more]
Canadian oil producers move after Alberta orders output cuts
** Shares of Cenovus Energy Inc and Canadian Natural Resources Ltd up about 9 percent after Alberta mandates cuts in crude production** Alberta government to force producers to cut output by 8.7 pct, or 325,000 barrels per day (bpd), until excess crude in storage is reduced ** In Oct, Western Canada Select (WCS) heavy blend hit a record at $52.50 below the West Texas Intermediate (WTI) benchmark due to oil glut** CVE and CNQ have voluntarily curtailed production in recent weeks; CVE says [Read more]
Husky Energy says Alberta output cuts will have ‘negative consequences’
Canadian oil and gas producer Husky Energy Inc said on Monday Alberta's mandatory production cuts will have "serious negative investment, economic and trade consequences.""The devil will be in the details, and we'll work with the government on implementation with a view to minimizing negative consequences," spokesman Mel Duvall said in a statement. (Reporting by Devika Krishna Kumar in New York) [Read more]
Canada’s Imperial Oil CEO disagrees with Alberta decision to force output cuts
Canada's Imperial Oil Ltd's Chief Executive said the company disagrees with the Alberta government's decision to order mandatory production cuts, saying it introduces trade risks and sends a negative message to investors. "This intervention appears not to recognize the investment decisions companies have made to access higher value markets," Rich Kruger, chief executive of Imperial Oil said in a statement on Monday, adding that the company is reviewing the potential impact to its [Read more]
Canadian crude prices rally after Alberta orders output cuts
Canadian oil prices surged to a four-month high on Monday, a day after Alberta said it would mandate temporary production cuts that some producers had requested after pipeline bottlenecks forced their oil to be sold at severe discounts. Alberta Premier Rachel Notley said Sunday the government will force producers to cut output by 8.7 percent, or 325,000 barrels per day (bpd), until excess crude in storage is reduced. Canada is one of the world's largest oil producers, supplying more than 4 [Read more]
Bank of Canada to lift rates three times in 2019, but cautiously
The Bank of Canada will next raise interest rates early next year, and twice again by the end of 2019, according to economists polled by Reuters who say the central bank needs to be careful with the pace of tightening.As recently as late October there was a minority view that a rate rise might come in December. But a huge plunge in the price of oil - Canada's main export - along with evidence of household budget strain has largely erased those expectations.The unanimous call for no hike in [Read more]
Oil surges 3 pct on trade truce, expected supply cuts
Oil prices jumped by more than 3 percent on Monday after the United States and China agreed to a 90-day truce in a trade dispute and Canada's Alberta province ordered a production cut, while exporter group OPEC looked set to reduce supply.Brent crude futures rose $1.86, or 3.1 percent, to $61.32 a barrel, by 11:07 a.m. EST (1607 GMT). U.S. West Texas Intermediate (WTI) crude rose $1.68 to $52.61 a barrel, a 3.3 percent gain. Both benchmarks surged by more than 5 percent earlier in the [Read more]