U.S. shale oil producers are reversing production cuts as prices recover from historic lows, underscoring shale's ability to quickly adjust to pricing and posing a challenge to OPEC as it considers extending production curbs. U.S. producers began cutting output in March as oil prices collapsed due to a supply glut and falling demand due to the COVID-19 pandemic. U.S. oil companies are forecast to pare their output by as much as 2 million barrels per day (bpd) this year, with half coming from [Read more]
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Oil prices inch up ahead of OPEC+ meeting on extended output cuts
Oil prices crawled higher on Tuesday, with traders waiting to see whether major producers agree to extend their huge output cuts to shore up prices at a meeting expected later this week. West Texas Intermediate (WTI) crude futures traded in a 38-cent range on either side of Monday's close, and last traded up 38 cents at $35.91 a barrel. Brent crude futures rose 1.09%, or 42 cents, to $38.96 a barrel. Brent has doubled over the past six weeks, thanks to supply cuts by the Organization [Read more]
U.S. natgas edges up as higher air-conditioning use offsets fall in LNG exports
U.S. natural gas futures edged up on Tuesday as power generators burned more fuel to keep air conditioners humming despite a drop in liquefied natural gas (LNG) exports to Europe and Asia, where prices recently fell to record lows due to coronavirus demand destruction. Front-month gas futures rose 2.2 cents, or 1.2%, to $1.796 per million British thermal units. Data provider Refinitiv said average gas output in the U.S. Lower 48 states fell to 88.2 billion cubic feet per day (bcfd) so far [Read more]
Spartan Delta Corp. announces closing of previously announced transformational acquisition
CALGARY, Alberta - Spartan Delta Corp. (formerly Return Energy Inc., "Spartan" or the "Company") (RTN: TSXV) is pleased to announce the closing of its previously announced acquisition of substantially all of the assets (the "Assets") of Bellatrix Exploration Ltd. (the "Acquisition"). The Acquisition was funded through a combination of cash on hand and a senior-secured lending facility with a syndicate of lenders comprised of National Bank of Canada, ATB Financial and Canadian Western Bank in [Read more]
Heavy discount narrows as monthly trading cycle begins
Canadian heavy crude's discount narrowed versus the U.S. benchmark West Texas Intermediate (WTI) on Monday, the first day of the monthly trading cycle. Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $6.55 per barrel below WTI, according to NE2 Canada Inc, narrower than Friday's settle of $7.10 under. Analysts at Tudor, Pickering, Holt & Co last week said steam-driven oil sands production in April fell to 1,345 mbpd in April, down 167 [Read more]
Trans Mountain reaches ‘key milestone’ as pipeline construction begins in B.C.
KAMLOOPS, B.C. - Trans Mountain says it has reached another "key milestone" in the project to triple capacity of a pipeline moving oil from the Edmonton area to port in Burnaby, B.C. A statement says construction on a seven-kilometre section of the line has begun in Kamloops. It says a crew of up to 50 is preparing the area, but the workforce will grow to about 600 during peak construction later this summer or early fall. The federal Crown corporation says completion of the Kamloops [Read more]
Oil prices slip as wary traders eye upcoming OPEC+ meeting
Oil prices fell nearly 1% on Monday as traders hedged bets with the Organization of the Petroleum Exporting Countries (OPEC) considering meeting as soon as this week to discuss whether to extend record production cuts beyond end-June. West Texas Intermediate (WTI) crude futures for July delivery were at $34.69 a barrel, down 49 cents. Brent crude fell 6 cents to $37.58 a barrel on the first day of trading in the contract with August as the front month. The price falls come after [Read more]
Lasting contango in oil: market spread to outlast supply-demand imbalance
While vast cuts by producer countries and renewed fuel consumption from easing coronavirus lockdowns may soon rebalance oil supply and demand, some analysts and traders see a glut in storage keeping the market in contango for much longer. A contango market structure means the current value is lower than it will be in later months and encourages traders to store oil to resell it in the future. An especially skewed spread for oil futures or "super-contango" emerged last month, prompting [Read more]
Pieridae graduates to the TSX
CALGARY, Alberta - Pieridae Energy Limited (Pieridae or the Company) (TSXV: PEA) is pleased to announce that its common shares have been approved for listing on the Toronto Stock Exchange (the "TSX") and are expected to commence trading on the TSX at the opening of the market on June 3, 2020. Concurrent with the TSX listing, the common shares of Pieridae are expected to be de-listed from the TSX Venture Exchange. Pieridae's trading symbol will remain "PEA". “This is a big step for our Company, [Read more]
Athabasca Oil Corporation announces renewal of its credit facility
CALGARY, Alberta - Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or the “Company”) announces that it has completed the annual review of its credit facilities. The Company’s banking syndicate has renewed the reserve-based facility until November 30, 2020. The credit facility has been reduced to $42 million which reflects the currently outstanding letters of credit for long term transportation commitments and is secured by the Company’s cash balances. The Company continues to pursue [Read more]