Apr 27 - Maiden Bakken oil cargo to Asia ships out, with more to come
The first ever reported export of North Dakota's crude oil to Asia left port last month, according to a shipping document seen by Reuters on Wednesday, in what is expected to be the first of numerous cargoes once the key Dakota Access pipeline starts moving oil in May.Swiss-based Mercuria Energy Trading S.A. loaded more than 600,000 barrels of Bakken crude, as well as some Mars Sour crude and DSW crude, in late March off the coast of Louisiana onto the very large crude carrier (VLCC) Maran Canopus, destined for Singapore, according to the bill of loading and ship tracking data. Click here to read full stories.
Apr 27 - U.S. crude stocks draw down, products build amid record refining - EIA
U.S. crude oil inventories fell sharply and stockpiles of gasoline and distillates jumped last week as refiners hiked production rates to the highest since November 2015 to process a record amount of crude, the Energy Information Administration said on Wednesday.Crude inventories fell 3.6 million barrels in the week to April 21, compared with analyst expectations for a decrease of 1.7 million barrels. Click here to read full stories.
Apr 27 - Europe lures rare diesel cargoes from U.S. East Coast
U.S. East Coast refineries are stepping up exports of diesel despite a regional deficit of the fuel as strong overseas demand, particularly in Europe, is proving more profitable.Two tankers carrying 60,000-tonne cargoes of diesel have been booked in recent days out of New York Harbor to go to Northwest Europe, traders said. Click here to read full stories.
Apr 27 - Drilling costs rise as U.S. oil, gas activity picks up: Kemp
U.S. oil and gas drilling costs have started to rise in response to a surge in activity and are set to increase further as the slack in the rig market declines.Drilling costs increased by 7 percent between November 2016 and March 2017, according to preliminary data on producer prices from the U.S. Bureau of Labor Statistics. Click here to read full stories.
Apr 26 - Russia seeks oil market data before backing output cut extension
Russia wants to see more analysis of the global oil market and will wait for OPEC's meeting next month before deciding whether to back an extension to an oil supply reduction deal, Russian Energy Minister Alexander Novak said on Tuesday.The Organization of the Petroleum Exporting Countries, along with Russia and other non-OPEC producers, pledged to cut output by 1.8 million barrels per day (bpd) in the first half of 2017. Click here to read full stories.
Apr 26 - Some oil companies in Venezuela pull expats as unrest escalates - sources
As political turmoil in Venezuela mounts, oil firms including Norwegian major Statoil ASA and Spain's Repsol SA have further reduced their already-dwindling ranks of expatriate employees in the country, sources familiar with the situation said.Statoil, Repsol and Chevron Corp are among the foreign oil companies that hold minority stakes in more than 40 joint ventures with state-run Petroleos de Venezuela (PDVSA), providing cash-strapped Venezuela with crucial crude production and income amid a debilitating economic crisis. Click here to read full stories.
Apr 26 - BHP Billiton puts U.S. shale gas assets on the block again
BHP Billiton has put its Fayetteville shale gas assets in the United States back on the block, the world's largest miner said on Wednesday, as it seeks to focus on more lucrative opportunities in oil.BHP first tried to sell the Fayetteville assets more than two years ago, having made the shale gas investment in 2011 before writing it down by $2.8 billion a year later after gas prices dropped. Click here to read full stories.
Apr 26 - Distillate export boom keeps U.S. refiners busy: Kemp
U.S. refiners have become a powerhouse of distillate exports, causing the supply-demand balance for fuels from the middle of the barrel to tighten in the United Statesdespite a very warm winter.Exports of distillate fuel oil rose to a record 1.4 million barrels per day (bpd) in the week ending April 14, according to the U.S. Energy Information Administration. Click here to read full stories.
Apr 26 - Baker Hughes expects N.America revenue to rise in 2nd quarter
Baker Hughes Inc said on Tuesday it expects revenue from North America to rise in the current quarter from the first as oil producers drill more onshore wells, helping the oilfield service provider make up for a fall in demand in the Gulf of Mexico.Oil producers are spending more on lucrative shale fields to take advantage of oil prices stabilizing at over $50 per barrel, while clamping down on expensive and time-consuming offshore projects. Click here to read full stories.
Apr 26 - Russia elbows Saudi Arabia aside as China's top crude oil supplier in March
Russia reclaimed its position as China's biggest crude oil supplier in March, customs data showed on Tuesday, displacing Saudi Arabia after two months in second place as Moscow fights to hang on to its slice of the Chinese market.Russian shipments grew nearly 1 percent to 1.104 million barrels per day (bpd) from the same month a year earlier, as China's private refineries maintained high processing rates and restocked inventories after receiving fresh 2017 import quotas. China's crude imports rose to a record in March, overtaking the United States and shattering expectations. Click here to read full stories.
Apr 26 - Norway doubles Barents Sea oil and gas estimate, alarms green lobby
Norway's portion of the Barents Sea could contain twice as much undiscovered oil and gas as previously thought when a newly mapped area bordering Russia is included, raising the prospect of drilling in environmentally sensitive ice-covered waters.Norwegian governments have often said they will only drill in ice-free areas in the Arctic, both because companies lack technology to clean up oil spills onto ice and because icebergs can damage drilling installations. Click here to read full stories.
Apr 25 - Russia indicates it can lift oil output if deal on curbs lapses
Russian oil output could climb to its highest rate in 30 years if OPEC and non-OPEC producers do not extend a supply reduction deal beyond June 30, according to comments by Russian officials and details of investment plans released by oil firms. The Organization of the Petroleum Exporting Countries, along with Russia and other non-OPEC producers, pledged to cut 1.8 million barrels per day (bpd) in output in the first half of 2017. Click here to read full stories.
Apr 25 - Iran becomes No.2 oil supplier to S.Korea in first quarter
Iran ranked as South Korea's second-biggest oil exporter over the first three months of 2017 as it ramped up output to regain market share after sanctions were lifted last year, the first time ever it has claimed the No.2 spot on a quarterly basis. South Korea's March imports from Iran more than doubled from a year ago to a record 18.54 million barrels, or 597,935 barrels per day (bpd), data from state-run Korea National Oil Corp (KNOC) showed on Monday. Click here to read full stories.
Apr 25 - Oil prices falter as hedge funds stop buying: Kemp
Hedge funds have tempered their bullishness towards crude oil as the short-covering rally that gripped the market since the end of March ran its course. Hedge funds and other money managers increased their net long position in the three major futures and options contracts linked to Brent and WTI by 8 million barrels in the week to April 18. Click here to read full stories.
Apr 25 - Cenovus earnings overshadowed by unpopular ConocoPhillips deal
As Cenovus Energy Inc prepares to release first-quarter earnings this week, investors are looking for answers about a recent C$17 billion ($12.6 billion) acquisition that wiped out about a fifth of its market value. Disgruntled shareholders will grill Cenovus at an annual meeting on Wednesday following results about its purchase of most of ConocoPhillips' Canadian oil and gas assets. Click here to read full stories.
Apr 25 - Atlantic Basin crude flow to Asia to rise after Brent premium to Dubai hits near 6-yr low
The price gap between Atlantic Basin sweet crude against Middle East sour grades hit its narrowest since 2010 on Monday and is likely to spur traders to ship more low-sulphur oil to Asia while OPEC cuts production. Front-month Brent crude's premium to Dubai, or the exchange of futures for swaps, dropped to 55 cents a barrel on Monday, the narrowest between the two crude oil benchmarks since June 2010, according to trade sources and Reuters data. Click here to read full stories.
Apr 24 - OPEC panel recommends 6-month extension of oil output cuts - source
An OPEC and non-OPEC technical committee recommended that producers extend a global deal to cut oil supplies for another six months from June, a source familiar with the matter said, in an effort to clear a glut of crude that has weighed on prices. The Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers originally agreed to cut production by 1.8 million barrels per day (bpd) for six months from Jan. 1 to support the market. Click here to read full stories.
Apr 24 - Iran's crude exports set to fall in May to 14-month low
Iran's crude oil exports are set to hit a 14-month low in May, a person with knowledge of the Middle Eastern country's tanker loading schedule said, suggesting the country is struggling to raise exports after clearing out stocks stored on tankers. Part of the drop may also be attributable to a decline in demand, as loadings bound for India are set to slump to a one-year low after a dispute over the award of a contract for a gas field and Japan's orders fall by more than half from April. Click here to read full stories.
Apr 24 - Schlumberger expects reactivation costs to squeeze margins
Schlumberger NV warned on Friday that margins would remain under pressure as the oilfield services provider spends more to bring back idled equipment to meet rising demand from North American shale producers after a two-year lull. Shares of the company, whose quarterly profit nearly halved due to a jump in costs, fell as much as 4.4 percent to $73.18, their lowest in nearly a year. Click here to read full stories.
Apr 24 - U.S. drillers add oil rigs for 14th week in a row - Baker Hughes
U.S. drillers added oil rigs for a 14th week in a row, extending an 11-month recovery that is expected to boost U.S. shale production in May in the biggest monthly increase in more than two years. Drillers added five oil rigs in the week to April 21, bringing the total count up to 688, the most since April 2015, energy services firm Baker Hughes Inc said on Friday. Click here to read full stories.
Apr 21 - Murky oil inventory picture leaves market grappling for clarity
The jury is still out over whether an OPEC-led production cut aimed at tightening oil markets is working, or if the producer club has simply enabled higher prices without making much of a dent in the global fuel supply overhang.Analysts say there are early indications that at least some inventories, key in gauging the health of the market, are starting to draw down. Click here to read full stories.
Apr 21 - Saudi Arabia, Kuwait signal likely extension of oil output cut
Leading Gulf oil exporters Saudi Arabia and Kuwait gave a clear signal on Thursday that OPEC plans to extend into the second half of the year a deal with non-member producers to curb supplies of crude.Consensus is growing among oil producers that a supply restraint pact that started in January should be prolonged after its initial six-month term, Saudi Energy Minister Khalid al-Falih said. Click here to read full stories.
Apr 21 - Weak U.S. gasoline prices prompts NY Harbor-bound tanker to change course
A tanker of gasoline en route to New York Harbor from Europe has been diverted to a Caribbean storage hub because a narrow window of opportunity for shipping profitably to the U.S. East Coast appears to have shut, traders said.At least 16 tankers carrying some 600,000 tonnes of gasoline blending components were booked early in April to send fuel from Europe to the East Coast. Click here to read full stories.
Apr 21 - Mexico plans second deepwater oil tie-up in Maximino, Nobilis areas - sources
Mexican state-run oil company Pemex plans a second deepwater "farm-out" joint venture in the Maximino and Nobilis areas in the Gulf of Mexico where super light crude has been found near the U.S. border, two people familiar with the matter said.Speaking this week, the people said Pemex would likely seek approval in June from the National Hydrocarbons Commission, or CNH, the industry regulator, to launch a tender for partners with the aim of announcing a winner in December. Click here to read full stories.
Apr 21 - Hedge fund confidence in OPEC starts to fray: Kemp
OPEC and some of the most important hedge funds active in commodities reached an understanding on oil market rebalancing during informal briefings held in the second half of 2016.OPEC committed to implement credible production cuts and reduce global crude stocks while hedge funds responded by establishing bullish long positions in both flat prices and calendar spreads. Click here to read full stories.
Apr 20 - China gathers state-led consortium for Aramco IPO - sources
China is creating a consortium, including state-owned oil giants and banks and its sovereign wealth fund, that will act as a cornerstone investor in the initial public offering of Saudi Aramco, people with knowledge of the discussions told Reuters.Saudi Aramco, a key exporter to China along with Russia's Rosneft, is due to list next year, with a potential $100 billion equity sale that is expected to be the world's largest to date. Click here to read full stories.
Apr 20 - China demand drives Singapore oil storage sales to nearly a year-high
Crude oil sales from storage tanks around Singapore rose to an 11-month high in March, with nearly half of the volumes going to China and traders clearing inventories ahead of record shipments to Asia expected to arrive in April.Traders sold a total of 22.6 million barrels of crude from storage in Singapore, southern Malaysia and northern Indonesia in March, Thomson Reuters Eikon trade data showed. Around half of the volumes went to China, partly to help quench the still-growing demand from the country's independent refiners. Click here to read full stories.
Apr 20 - OPEC, non-OPEC to meet on same day as group's May gathering-sources
OPEC plans to meet with non-OPEC oil producers on the same day as its scheduled May 25 conference, sources familiar with the arrangements said, as they decide whether to extend supply cuts into the second half of the year.Ministers from the Organization of the Petroleum Exporting Countries will convene at their Vienna headquarters. Joint talks with non-OPEC oil ministers will also take place that day, two sources said. Click here to read full stories.
Apr 20 - CNPC hands Chinaoil crown to domestic fuel veteran as "Madame Wang" retires
China National Petroleum Corp (CNPC) will install its domestic fuel sales chief to head the state-owned oil giant's trading arm, succeeding Wang Lihua who is retiring after two decades guiding one of the world's top oil merchants, sources said.Tian Jinghui, a vice president at PetroChina, CNPC's listed subsidiary, and a veteran of its fuel marketing business, will be appointed chairman of CNPC's trading unit China National United Oil Corp, or Chinaoil, three sources briefed on the matter said. This is the first major management reshuffle in Chinaoil's 24-year history. Click here to read full stories.
Apr 20 - U.S. crude stocks dip, but gasoline inventories rise - EIA
U.S. crude stocks fell last week as refineries hiked output, but gasoline supplies, which are already seasonally high, surprisingly increased, the Energy Information Administration said on Wednesday.Crude inventories fell by 1 million barrels in the week to April 14, compared with analysts' expectations for an decrease of 1.5 million barrels. Click here to read full stories.
Apr 20 - Exxon will not say if it is seeking waiver from Russia sanctions
Exxon Mobil Corp on Wednesday declined to comment on a media report that it is seeking permission from the U.S. government to drill in several areas of the Black Sea banned by U.S. sanctions on Russia. The Wall Street Journal reported that Exxon had in recent months applied to the U.S. Treasury Department for a waiver to drill with Russian oil producer Rosneft. Any such request is likely to draw attention because Exxon's former chief executive, Rex Tillerson, is now U.S. secretary of state. Click here to read full stories.
Apr 19 - E. Coast refiner shuns Bakken delivery as Dakota Access Pipeline starts
Philadelphia Energy Solutions Inc, the largest refiner on the U.S. East Coast, will not be taking any rail deliveries of North Dakota's Bakken crude oil in June, a source familiar with delivery schedules said on Tuesday - a sign that the impending start of the Dakota Access Pipeline is upending trade flows.At its peak, PES would have routinely taken about 3 miles' worth of trains filled with Bakken oil each day. But after the $3.8 billion Dakota Access Pipeline begins interstate crude oil delivery on May 14, it will be more lucrative for producers to transport oil to refineries in the U.S. Gulf Coast. Click here to read full stories.
Apr 19 - Saudi oil exports drop in February on OPEC cut deal - JODI data
Saudi Arabia's crude oil exports in February fell to their lowest level since mid-2015, official data showed on Tuesday, as the world's largest oil exporter complied with an OPEC-led agreement to cut output.Saudi Arabia crude shipments dropped to 6.957 million barrels per day (bpd) from 7.713 million bpd a month before, according to data from the Joint Organizations Data Initiative (JODI). Click here to read full stories.
Apr 19 - Rebalancing oil market will take more time, says UAE
Draining a global oil glut will take more time despite an improvement in oil market fundamentals since producers started cutting supplies, the energy minister of the United Arab Emirates said on Tuesday."It will take time...It took us from mid-2014 to now. We are correcting but that correction will take time," Suhail bin Mohammed al-Mazroui said in an interview at an event marking the 150th anniversary of Thomson Reuters in the Middle East. Click here to read full stories.
Apr 18 - Saudi's Falih says too soon to discuss extending oil output pact - Arabiya TV
The level of compliance among OPEC and non-OPEC oil producers with a global deal to cut output is very good, above 100 percent, but it is premature to talk about extending the deal, Saudi Energy Minister Khalid al-Falih said on Monday.Speaking to Al-Arabiya television on the sidelines of a renewable energy investment conference, Falih said he saw a consensus within OPEC on stabilising the oil market, and that producers would do whatever was necessary to achieve that goal, whether it took six months or more. Click here to read full stories.
Apr 18 - Blackstone to buy EagleClaw Midstream for about $2 bln
EagleClaw Midstream Ventures LLC, the largest privately held operator of pipelines and processing facilities in West Texas' Delaware Basin, said it agreed to be bought by funds managed by Blackstone Group LP for about $2 billion.Private equity firms, including Blackstone, Carlyle Group, and CVC Partners, have built up significant firepower in recent years to invest in the oil and gas industry, where asset prices have dipped sharply since crude oil prices collapsed mid-2014. Click here to read full stories.
Apr 18 - BP accuses Monroe Energy of wrongfully terminating contract
BP Plc has accused Monroe Energy of wrongfully terminating a crude supply contract in 2016, costing the oil major at least $59 million in damages, according to a federal court filing. BP said in the filing that Monroe Energy, a subsidiary of Delta Air Lines Inc, terminated the contract after misinterpreting a provision regarding the blending of crude oils. Click here to read full stories.
Apr 17 - Undaunted by oil bust, financiers pour billions into U.S. shale
Investors who took a hit last year when dozens of U.S. shale producers filed for bankruptcy are already making big new bets on the industry's resurgence.In the first quarter, private equity funds raised $19.8 billion for energy ventures - nearly three times the total in the same period last year, according to financial data provider Preqin. Click here to read full stories.
Apr 17 - Most oil producers want extension of output cuts - Iran minister
Most oil producers support an extension of output cuts by OPEC and non-OPEC countries, and Iran would also back such a move, Iranian Oil Minister Bijan Zanganeh was quoted as saying."(Zanganeh) stressed that most countries want OPEC's decision to be extended," the Iranian Students' News Agency (ISNA) reported. Click here to read full stories.
Apr 17 - Chevron exploring sale of Canada oil sands stake worth about $2.5 bln - sources
Chevron Corp, the second-largest U.S.-based oil producer, is exploring the sale of its 20 percent stake in Canada's Athabasca Oil Sands project, which could fetch about $2.5 billion, according to people familiar with the situation.The company has discussed with investment banks the prospect of selling the stake in the western Canadian oil sands project, a source said. Click here to read full stories.
Apr 17 - Speculators raise U.S. crude oil net longs - CFTC
Money managers raised their net long U.S. crude futures and options positions in the week to April 11, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.The speculator group raise its combined futures and options position in New York and London by 44,747 contracts to 337,225 during the period. Click here to read full stories.
Apr 17 - Brazil gov't mulls letting Petrobras back out of pre-salt bids
Brazil may allow Petrobras to pull out of auctions for exploration blocks in the offshore pre-salt area to which the state-run oil company committed, if it considers the price too high, two sources with knowledge of the matter told Reuters.Petroleo Brasileiro SA, as the company is formally known, had previously been obliged by Brazilian law to acquire a 30 percent stake and operate all newly auctioned blocks in the pre-salt area, where massive discoveries have been made since the end of the last decade. Click here to read full stories.
Apr 17 - Dakota Access Pipeline to start interstate service May 14
The controversial Dakota Access Pipeline will begin interstate crude oil delivery on May 14, according to a filing with the U.S. Federal Energy Regulatory Commission.Energy Transfer Partners LP on Thursday filed what is known as a tariff, which lays out details about the line and the oil to be delivered. Click here to read full stories.
Apr 13 - After years of soaring growth, Asia's fuel demand falters
After years of often explosive growth, fuel consumption in Asia's biggest economies is stuttering, undermining efforts led by the Organization of the Petroleum Exporting Countries (OPEC) to end a global supply glut and lift prices.Gobbling up over a third of global supplies, Asia is the world's biggest and fastest growing region for oil consumption, and its seemingly insatiable fuel thirst has long been a core support for prices. Click here to read full stories.
Apr 13 - Inside edge: Trump advisor Icahn's big bet against biofuels credits
Billionaire investor Carl Icahn's oil refining company, CVR Energy, made a massive bet in 2016 that prices for U.S. government biofuels credits would fall - just before Icahn started advising President Donald Trump on regulations driving that market.The size and specifics of the gamble - involving $186 million worth of biofuels credits the company said it needed at the end of 2016 to satisfy regulatory requirements - have not been previously reported by the media. Click here to read full stories.
Apr 13 - New U.S. pipelines to drive natural gas boom as exports surge
U.S. energy firms are scrambling to finish a slew of pipelines that will unleash rich reserves of shale gas in Pennsylvania, West Virginia and Ohio as the nation prepares to become one of the world’s top natural gas exporters.The pipelines are expected to boost output from shale fields in the three states by giving producers access to new domestic and international markets. Click here to read full stories.
Apr 13 - U.S. crude stockpiles fall unexpectedly - EIA
U.S. crude stocks fell unexpectedly last week, the Energy Information Administration said on Wednesday, while gasoline and distillate inventories also declined in a report that analysts said should be supportive for prices.Crude inventories fell by 2.2 million barrels in the week to April 7, compared with analysts' expectations for an increase of 87,000 barrels. Click here to read full stories.
Apr 13 - Oil rebalancing: delayed rather than derailed? Kemp
Oil market rebalancing has been pushed back by a few months rather than pushed off course, if recent movements in crude futures prices are to be believed.Brent futures prices for June delivery have risen in 10 of the last 11 trading sessions by a total of more than $5 per barrel.Click here to read full stories.
Apr 12 - OPEC figures show oil output cuts exceed pledge in March - sources
OPEC states cut oil output in March by more than they pledged under supply curbs, according to figures the exporter group uses to monitor its supply, extending a record of higher-than-expected adherence to its first production cut in eight years.The Organization of the Petroleum Exporting Countries agreed to cut output by about 1.2 million barrels per day (bpd) for six months from Jan. 1 to prop up prices and reduce a glut. Russia and 10 other non-OPEC states agreed to cut half as much. Click here to read full stories.
Apr 12 - As Texas oil output surges, cash crude discounts near 2-year lows
Surging West Texas oil production has pushed the value of the region's spot crude to its lowest discount to the U.S. oil benchmark in nearly two years, as an exuberant shale industry pumps more to take advantage of higher prices and demand from refiners who have seen supplies cut by top global producers.OPEC and non-OPEC suppliers are working toward cuts of 1.8 million barrels per day, around 2 percent of the 92 million bpd global market, as they try to bring down record oil inventories and raise prices. Click here to read full stories.
Apr 11 - Libya's Sharara oilfield shut again as pipeline blocked: sources
Production at Libya's Sharara oilfield has been halted after an unknown group blocked a pipeline just one week after a previous shutdown, a Libyan oil source and a field engineer told Reuters on Monday. Sharara's production had recovered to 213,000 barrels per day (bpd) by Sunday, when the latest stoppage began. The new blockade led the North African country's National Oil Corporation (NOC) to declare force majeure on loadings of Sharara crude from the Zawiya export terminal, the oil source said. Click here to read full stories.
Apr 11 - Oil surplus or scarcity? Shale makes it even harder to predict
The shale oil boom has transformed the U.S. and global energy sector to such an extent that it has upended traditional supply dynamics and made forecasts far more polarised.Investment banks, many of which finance new projects, along with oil majors such as Total and Eni, have warned that huge spending cuts caused by a plunge in oil prices since 2014 would lead to a supply crunch in the next two years. Click here to read full stories.
Apr 11 - China says accord reached at last with Myanmar on oil pipeline
China and Myanmar have reached an agreement on an oil pipeline between the neighbouring countries after almost a decade of talks, with the project due to start "very quickly", Chinese vice foreign minister Liu Zhenmin said on Monday.The new oil gateway fits with China's "One Belt, One Road" ambitions, linking it with central Asia and Europe, and will provide a more direct alternative route to sending Middle Eastern oil via the crowded Malacca Straits and Singapore. Click here to read full stories.
Apr 10 - Speculators raise U.S. crude oil net longs - CFTC
Money managers raised their net long U.S. crude futures and options positions in the week to April 4, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.The speculator group raised its combined futures and options position in New York and London by 23,035 contracts to 292,478 during the period. The increase was the first since February. Click here to read full stories.
Apr 10 - U.S. drillers add oil rigs for 12th straight week - Baker Hughes
U.S. drillers added oil rigs for a 12th week in a row, extending the recovery into an 11th month as energy companies boost spending on new production to take advantage of a recovery in crude prices.Drillers added 10 oil rigs in the week to April 7, bringing the total count up to 672, the most since August 2015, energy services firm Baker Hughes Inc said on Friday. Click here to read full stories.
Apr 10 - Iran security body reviewing new IPC oil contracts - minister
Iran's top security body is still reviewing the Iran Petroleum Contract (IPC) model, Oil Minister Bijan Zanganeh was quoted as saying on Sunday, as the contracts aimed at attracting foreign investors appear to face fresh delays.In January, Iran named 29 companies from more than a dozen countries as being allowed to bid for oil and gas projects under the IPC, which Tehran hopes will boost production after years of sanctions. Click here to read full stories.
Apr 10 - Nigeria to require higher quality on fuel imports from July 1
Nigeria will raise quality standards on its imported gasoline, diesel and kerosene from July 1, a change health campaigners have long said is necessary to protect citizens from toxic fuel.All imported diesel from July 1 can contain a maximum of 50 ppm sulphur, while gasoline and kerosene can contain a maximum of 150 ppm, according to an environment ministry official and information from the Standards Organization of Nigeria, the body responsible for setting requirements for imported goods. Click here to read full stories.
Apr 07 - Weak crude oil stunts U.S. energy IPOs, boosts outlook for M&A
The stream of U.S. energy companies going public at the start of 2017 has dried up on concerns over the future direction of oil prices, but private buyers seeking mergers and acquisitions are ready to take advantage of the volatility to secure cheap deals. Texas-based FTS International and Select Energy Services are among six U.S. energy companies that filed for listings in the first quarter but delayed, even after receiving the green light from local regulators, Thomson Reuters data showed. Click here to read full stories.
Apr 07 - Asia demand, hedging boosts trading in forward U.S. oil contracts
Trading volumes and open interest in U.S. crude futures soared in 2016, particularly among buyers out of Asia and shale companies locking in output, both of whom have shown an affinity for far-dated contracts, the CME Group Inc said on Thursday. NYMEX light sweet crude oil futures average daily volume hit an all-time high of 1.303 million contracts in November 2016, according to exchange data. Click here to read full stories.
Apr 07 - Traders bet their oil storage assets that OPEC cuts will work
The jury is still out on whether OPEC can rein in a global oil glut but top commodity traders are betting it can by selling stakes in storage tank businesses that profited from oversupply. Since January, Glencore, Vitol and Gunvor have completed or have been seeking to sell parts of their holdings in storage firms. Click here to read full stories.
Apr 07 - Traders clear Europe's tanks by shipping more gasoline to U.S.
Traders are shipping more gasoline from Europe to the U.S. East Coast ahead of the summer driving season as a steady reduction in inventories there props up prices. At least 16 tankers carrying some 600,000 tonnes of gasoline blending components including naphtha have been booked in recent days by traders including Glencore, ExxonMobil, Mercuria, Repsol and Total, shipping data shows. Click here to read full stories.
Apr 07 - Nigeria pushes to legalise illicit refineries in restive Delta oil region
Nigeria aims to legalise illicit oil refineries in the turbulent Niger Delta region, the vice-president's office said on Thursday, hoping to bring peace to the production heartland for the crude on which the country relies. If the refineries are legalised, it could help soothe tensions in the Delta states, where an uneasy peace is now being kept as the government holds talks with local communities, including militants whose attacks cut oil production by as much as a third last year. Click here to read full stories.
Apr 07 - Traders cancel light cycle oil cargoes ahead of China tax-sources
Traders in North Asia are rushing to cancel loadings of a range of oil products for sale to China, ahead of a planned Chinese consumption tax that will make the trade uneconomic. At least two light cycle oil (LCO) cargoes have been cancelled for late April loading from South Korea ahead of the planned tax on the refinery by-product, two sources familiar with the matter said on Thursday. They declined to be named as they were not authorised to speak with the media. Click here to read full stories.
Apr 06 - Asia demand, hedging boosts trading in forward U.S. oil contracts
Trading volumes and open interest in U.S. crude futures soared in 2016, particularly among buyers out of Asia and shale companies locking in output, both of whom have shown an affinity for far-dated contracts, the CME Group Inc said on Thursday.NYMEX light sweet crude oil futures average daily volume hit an all-time high of 1.303 million contracts in November 2016, according to exchange data. Click here to read full stories.
Apr 06 - U.S. crude inventories rise unexpectedly, product stocks dip - EIA
U.S. crude stocks unexpectedly rose last week to a fresh record high, while gasoline and distillate inventories fell less than expected, the Energy Information Administration said on Wednesday, interrupting a recent string of bullish news for the oil market.Crude inventories rose 1.6 million barrels in week ending March 31, compared with expectations for a decrease of 435,000 barrels. Stocks, which have been steadily building to record highs this year, once again were at a peak, reaching 535.5 million barrels. Click here to read full stories.
Apr 06 - Traders cancel light cycle oil cargoes ahead of China tax-sources
Traders are rushing to cancel loadings in North Asia of a range of oil products for sale to China, ahead of a planned Chinese consumption tax that will make the trade uneconomic.At least two light cycle oil (LCO) cargoes have been cancelled for late April loading from South Korea ahead of the planned tax on the refinery by-product, two sources familiar with the matter said on Thursday. They declined to be named as they were not authorised to speak with media. Click here to read full stories.
Apr 06 - Chevron pivots to Permian shale as mega-project era fades
Nearly a century after Chevron Corp amassed the No. 2 stake in America's largest oilfield, Chief Executive John Watson is hitting the accelerator on developing the company's vast Permian Basin holdings.In an interview, Watson made clear his desire to put the West Texas to New Mexico expanse in the ranks of Chevron's biggest ventures. That is a stark change from just five years ago, when Chevron executives rarely mentioned the shale basin. Click here to read full stories.
Apr 05 - Petrobras says Exxon expressed 'strong interest' in pre-salt oil
U.S. oil company Exxon Mobil Corp expressed to Brazil's state-controlled company Petrobras "strong interest" in the exploration of deep-water oil fields off the Brazilian coast, Petrobras Chief Executive Pedro Parente said on Tuesday."Considering movements towards a strategic partnership, we have nothing concrete with Exxon, but they have certainly expressed strong interest in the Brazilian pre-salt exploration," Parente told reporters. Click here to read full stories.
Apr 05 - Syncrude outage limits ConocoPhillips oil sands production
A shutdown at the Syncrude oil sands facility in northern Alberta has curbed output from ConocoPhillips' Surmont plant, the U.S. company said on Tuesday, as the shortage helped push heavy Canadian crude prices to the narrowest discount in nearly two years.The 350,000 barrel-per-day Syncrude project cut production for all of April to zero, according to market sources, following a fire last month that damaged the facility and forced the operator to bring forward planned maintenance. Click here to read full stories.
Apr 05 - U.S. gasoline consumption flattens as fuel economy improves: Kemp
Growth in U.S. gasoline consumption is slowing after two years of brisk increases between the middle of 2014 and the middle of 2016.The average fuel economy of vehicles on U.S. roads is improving, as a result of federal regulations, which is offsetting the continued growth in driving. Click here to read full stories.
Apr 04 - Libya oil output jumps after Sharara force majeure lifted
Libya's crude production rose on Monday after state-owned National Oil Corp (NOC) lifted force majeure on loadings of Sharara crude oil from the Zawiya terminal in the west of the country, sources familiar with the matter told Reuters. NOC lifted force majeure on crude loadings of Sharara on Monday morning, shortly after the field was restarted, a Libyan oil source told Reuters. Click here to read full stories.
Apr 04 - Brazil's black market pipeline: Gangs hijack Petrobras' oil, fuel
In September, police investigating a wave of killings in the northern Rio de Janeiro suburbs followed a tip to the isolated scrubland near the massive Duque de Caxias oil refinery. Police presumed the killings were linked to turf battles between criminal gangs in the run-up to municipal elections the following month. Click here to read full stories.
Apr 04 - Hedge funds square up most of their former record bullish position in oil: Kemp
Hedge funds have continued liquidating their large bullish position in crude amid doubts about the pace and timing of any rebalancing in the oil market. Hedge funds’ net position in Brent and WTI has been cut to 642 million barrels, down from a record 951 million barrels on Feb. 21. Click here to read full stories.
Apr 04 - U.S. East Coast refiners profit on winter gasoline at expense of summer stocks
The U.S. East Coast gasoline market looks set to begin the summer driving season with fewer barrels in storage than last year, as refiners have been profiting by producing winter grade gasoline longer than usual, trading sources said. Traders said the additional production of winter grade came because the price of butane, a key blending component for winter gasoline, has nearly halved in two months. That spurred traders and refiners to make more of the higher-volatility fuel that cannot be used in the summer. Click here to read full stories.
Apr 03 - Iraq has pledged to fully comply with oil cut deal, OPEC chief says
Iraq has assured OPEC it will fully comply with an agreement to cut oil supply in order to bolster crude prices, OPEC Secretary General Mohammed Barkindo said on Sunday in Baghdad. Iraq's compliance stands now at 98 percent, the nation's oil minister Jabar al-Luaibi told reporters, after addressing a conference in the Iraqi capital, also attended by Barkindo. Click here to read full stories.
Apr 03 - Venezuela's Maduro wins power over oil despite court reversal
The Venezuelan Supreme Court may have amended part of its explosive decision to take over the opposition-led congress, but it still gives embattled leftist President Nicolas Maduro broad new powers over the OPEC nation's vast oil wealth. The reversal on Saturday came after political leaders worldwide and street protestors at home accused the pro-government court of effectively making Maduro a dictator. Click here to read full stories.
Apr 03 - Brazil's oil exports set to jump this year, weakening OPEC curbs
Brazil is poised to sharply increase oil exports this year as heavy investments spur new output and demand for its lighter crudes win more buyers, especially in China and India. Production is projected to rise 210,000 barrels per day (bpd) in 2017, second only in the size of additional supply to the United States among non-OPEC producers. Higher output from the U.S. and Brazil are among the factors impeding an OPEC-led effort to lift crude prices through production cuts. Click here to read full stories.
Apr 03 - Speculators cut U.S. crude oil net longs-CFTC
Hedge funds and other money managers cut their net long U.S. crude futures and options positions in the week to March 28, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. The change was the fifth consecutive cut. The speculator group cut its combined futures and options position in New York and London by 12,362 contracts to 269,443 during the period. Click here to read full stories.
Mar 31 - IEA says oil prices will not jump sharply, despite OPEC supply cuts
The International Energy Agency (IEA) does not expect a major increase in global oil prices despite efforts by OPEC and non- OPEC members to reduce output, its executive director Fatih Birol told Reuters. OPEC and 11 other producers including Russia agreed in December to cut their combined output by almost 1.8 million barrels per day (bpd) in the first half of the year in an effort to eradicate a stubborn supply glut and boost prices. Click here to read full stories.
Mar 31 - Saudi Aramco formally appoints banks to advise on share sale
Saudi Aramco has formally appointed JPMorgan Chase & Co, Morgan Stanley and HSBC as international financial advisers for its initial public offering, sources familiar with the matter told Reuters. The trio join Moelis & Co and Evercore, which have been appointed independent financial advisers, one source said of what is expected to be the world's biggest share sale. Click here to read full stories.
Mar 31 - Cenovus shares slump on $13 bln deal to buy Conoco's assets
Cenovus Energy shares had their biggest one-day percentage fall ever on Thursday as investors balked at the company's C$17.7 billion ($13.3 billion) cash and stock deal to buy oil sands and natural gas assets from ConocoPhillips. The acquisition announced on Wednesday, the fifth-biggest Canadian energy deal on record, will more than double Cenovus production to 588,000 barrels of oil equivalent per day and make it the third-biggest Canadian producer. Click here to read full stories.
Mar 30 - OPEC compliance with oil curbs rises in March as UAE joins cut - survey
OPEC oil output is likely to fall for a third straight month in March, a Reuters survey found on Wednesday, as the United Arab Emirates made progress in trimming supplies while maintenance and unrest cut production in exempt nations Nigeria and Libya. The reduction by the UAE has helped boost OPEC compliance this month with its production-cutting deal to 95 percent, up from an initial February estimate of 94 percent and a record high, according to Reuters surveys. Click here to read full stories.
Mar 30 - U.S. crude oil stockpiles build as products draw down - EIA
U.S. gasoline stocks and distillate stockpiles dropped sharply last week as refinery runs jumped, while crude inventories grew less than anticipated, a relief for those hoping for a long-anticipated drawdown in petroleum stocks, the Energy Information Administration said on Wednesday. Crude inventories rose 867,000 barrels in the week ending March 24, compared with analysts' expectations for an increase of 1.4 million barrels. Total inventories were nearly 534 million barrels, EIA data shows, a record. Click here to read full stories.
Mar 30 - U.S. to review energy royalty rates on federal land
The U.S. Interior Department said on Wednesday that it would form a new committee to review royalty rates collected from oil and gas drilling, coal mining and renewable energy production on federal lands to ensure taxpayers receive their full value. Interior Secretary Ryan Zinke said the committee would advise him on whether the government is getting a fair price from companies that lease public land for energy and natural resource development. Click here to read full stories.
Mar 29 - BP to sell more refineries and sharpen focus on retail outlets
BP plans to sell more refineries without investing in new plants despite growing oil production and will focus on modernising existing operations while expanding its network of filling stations to generate $3 billion in additional cash. The group's head of refining told Reuters that even though BP's output was set to spike in the next five years as new fields become operational, its attitude to refining remains more cautious. Click here to read full stories.
Mar 29 - Major oil traders see high likelihood of output cuts being extended
Major oil traders gathered in Switzerland this week said they expected OPEC and non-OPEC producers to extend their pact to curb output in the second half of this year, providing Russia complies. "I think the surprise so far this year is how quickly shale came back on a relatively modest price rebound," Gunvor CEO Torbjorn Tornqvist told a panel at the FT Commodities Global Summit in Lausanne. Click here to read full stories.
Mar 29 - Libya's oil output down 252,000 bpd due to armed protests
Oil production from the western Libyan fields of Sharara and Wafa has been blocked by armed protesters, reducing output by 252,000 barrels per day (bpd), a source at the National Oil Corporation (NOC) said on Tuesday. NOC declared force majeure on loadings of Sharara crude from the Zawiya oil terminal in the west of the country and Wafa condensate loadings from the Mellitah terminal. Click here to read full stories.
Mar 29 - Goldman takes on the Brent spreads: Kemp
Progress towards oil-market rebalancing and the need for an extension of production cuts by OPEC and non-OPEC countries has become the most contentious issue in the oil market. "We believe that the rebalancing of the oil market is in fact making progress despite the record high U.S. crude inventories," Goldman Sachs analysts said in a note to clients on Sunday. Click here to read full stories.
Mar 28 - Saudi Arabia sweetens huge Aramco IPO with tax cut
Saudi Arabia's government has cut the income tax paid by national oil giant Saudi Aramco to smooth the company's initial public offer of shares next year, which is expected to be the world's largest equity sale. A royal decree on Monday, retroactive to Jan. 1, set a tax rate of 50 percent for the firm. Previously, Aramco had paid 85 percent tax, plus a 20 percent royalty levied at a different stage; the decree did not mention the royalty. Click here to read full stories.
Mar 28 - The DNA of oil wells - U.S. shale enlists genetics to boost output
A small group of U.S. oil producers has been trying to exploit advances in DNA science to wring more crude from shale rock, as the domestic energy industry keeps pushing relentlessly to cut costs and compete with the world's top exporters. Shale producers have slashed production costs as much as 50 percent over two years, waging a price war with the Organization of the Petroleum Exporting Countries (OPEC). Click here to read full stories.
Mar 28 - Asset sales plan secures EU backing for $130 bln Dow, DuPont merger
Dow Chemical and DuPont won the blessing of the European Union for their $130 billion merger on Monday by agreeing to sell substantial assets including key research and development activities. The European Commission had been concerned that the merger of two of the biggest and oldest U.S. chemical producers would leave few incentives to produce new herbicides and pesticides in the future. The deal is one of a trio of mega mergers that will reshape the industry and consolidate six companies into three. Click here to read full stories.
Mar 28 - Hedge funds unwind record bullish position in oil: Kemp
Hedge funds have unwound much of the concentration of bullish positions that contributed to a fall in oil prices this month, suggesting a broader range of views about where prices go next. Hedge funds and other money managers now hold a combined net long position in Brent and WTI of 684 million barrels, down from a record 951 million on Feb. 21, though still well above the recent low of 422 million on Nov. 15 before OPEC announced output cuts. Click here to read full stories.
Mar 28 - U.S. crude shipments set to pick up as export window opens
U.S. crude exports are poised to pick up, analysts and traders said, as rising domestic production has pushed the discount for U.S. futures versus Europe's Brent benchmark to its steepest since the United States lifted a ban on exports in late 2015. The discount for U.S. futures versus benchmark Brent settled at $3.02 per barrel on Monday after touching $3.07 per barrel, its widest since December 2015. That makes it more profitable for U.S. oil traders to ship crude to destinations where it fetches a higher price. Click here to read full stories.
Mar 27 - OPEC, non-OPEC to look at extending oil-output cut by six months
A joint committee of ministers from OPEC and non-OPEC oil producers has agreed to review whether a global pact to limit supplies should be extended by six months, it said in a statement on Sunday. An earlier draft of the statement had said the committee "reports high level of conformity and recommends six-month extension". Click here to read full stories.
Mar 27 - Shell and Anadarko mull clean break from Permian venture
Royal Dutch Shell Plc and Anadarko Petroleum Corp may let a 10-year joint venture in the oil-rich Permian Basin of Texas expire and split their properties, hoping to speed up development, according to a senior Shell executive. The divorce and re-parceling of acreage would let each company drill and develop new wells at its own pace in the Permian, which has become the U.S. oil industry's hottest development area for its low operating costs as crude prices hover under $50 per barrel. Click here to read full stories.
Mar 27 - Goodhart's Law and OPEC's output deal: Kemp
No evidence has emerged of cheating on the OPEC/non-OPEC production agreement so far. But Goodhart's Law is a reminder traders should expect countries to try to circumvent any target once it has been chosen. Goodhart's Law states that any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes ("Monetary Theory and Practice", Goodhart, 1983). Click here to read full stories.
Mar 27 - Libya's National Oil Corp warns of new attempt at independent oil sales
Libya's National Oil Corporation (NOC) said on Sunday that it had identified "illegal" efforts to sell crude oil without its approval and warned potential buyers not to enter into such contracts. Factions based in eastern Libya have previously tried to sell oil independently of NOC in Tripoli, but their moves have been frustrated by U.N. resolutions that remain in place. Click here to read full stories.
Mar 27 - U.S. drillers add most rigs in a week since January - Baker Hughes
U.S. drillers added oil rigs for a tenth week in a row, doubling the rig count in a ten-month recovery as energy companies boost spending on new production to take advantage of a recovery in crude prices. Drillers added 21 oil rigs in the week to March 24, the biggest weekly increase since the week to Jan. 20, bringing the total count up to 652, up from a six-year low of 316 in May, energy services firm Baker Hughes Inc said on Friday. Click here to read full stories.
Mar 27 - Speculators cut U.S. crude oil net longs to lowest since December - CFTC
Hedge funds and other money managers cut their net long U.S. crude futures and options positions to the lowest levels this year in the week to March 21, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. The speculator group cut its combined futures and options position in New York and London for the fourth time consecutive week. The positions were cut by 33,272 contracts to 281,804 during the period. The levels were the lowest seen since the week ended Dec. Click here to read full stories.
Mar 27 - U.S. oil refiners push for biofuels overhaul at White House
U.S. oil refining executives met with a senior official in President Donald Trump's administration at the White House last week to argue their position for an overhaul of the nation's biofuels program, two people in the meeting told Reuters. While it is not unusual for the White House to meet with stakeholders on key issues, the meeting is a sign the Trump administration is actively considering possible changes to the wide-reaching program. Click here to read full stories.
Mar 24 - All drill, no frack: U.S. shale leaves thousands of wells unfinished
U.S. shale producers are drilling at the highest rate in 18 months but have left a record number of wells unfinished in the largest oilfield in the country – a sign that output may not rise as swiftly as drilling activity would indicate. Rising U.S. shale output has rattled OPEC's most influential exporter Saudi Arabia and pushed oil prices to a near four-month low on Wednesday. U.S. production gains are frustrating Saudi-led attempts by the world's top oil exporters to cut supply, drain record-high inventories and lift prices. Click here to read full stories.
Mar 24 - Saudi exports to U.S. to fall by 300,000 bpd in March - official
Saudi Arabia's crude exports to the United States in March will fall by around 300,000 barrels per day from February, in line with OPEC's agreement to reduce supply, a Saudi energy ministry official said on Thursday. The United States imported about 1.3 million bpd from OPEC's top exporter in February, according to U.S. Energy Information Administration data. Click here to read full stories.
Mar 24 - Saudi in 'serious discussions' with NYSE for Aramco IPO listing - foreign min
Saudi Arabia is having "serious discussions" with the New York Stock Exchange about having the NYSE as one of the exchanges for state oil giant Saudi Aramco's IPO, the Saudi foreign minister told Fox News on Thursday. "Our objective is to try to complete the IPO sometime in 2018. There are serious discussions with the New York Stock Exchange about having the NYSE be one of the exchanges for the Aramco IPO and I believe the decision will be made on the financial merits," Adel al-Jubeir told Fox News. Click here to read full stories.
Mar 24 - U.S. asked to slap duties on biodiesel from Argentina, Indonesia
U.S. biodiesel producers on Thursday asked the U.S. government to impose antidumping duties on imports of biodiesel from Argentina and Indonesia that it says have flooded the U.S. market and violated trade agreements. The move by the National Biodiesel Board (NBB) trade group comes after two years of tension between U.S. and foreign producers over soaring imports that the group says have threatened the profitability of domestic producers. Click here to read full stories.
Mar 24 - Saudi Arabia tries to drain oil stocks while protecting customer relationships: Kemp
Saudi Arabia faces a difficult balancing act as it tries to work down excess global crude stocks while protecting relationships with important refining customers in the United States and Asia. Saudi Aramco exports most of its crude direct to refiners under long-term contracts that prohibit resale to other refiners or independent traders. Click here to read full stories.
Mar 24 - As Trump targets energy rules, oil companies downplay their impact
President Donald Trump’s White House has said his plans to slash environmental regulations will trigger a new energy boom and help the United States drill its way to independence from foreign oil. But the top U.S. oil and gas companies have been telling their shareholders that regulations have little impact on their business, according to a Reuters review of U.S. securities filings from the top producers. Click here to read full stories.
Mar 23 - Major oil companies open their wallets in Gulf of Mexico bidding
Royal Dutch Shell plc, Chevron Corp and Exxon Mobil Corp signaled the oil industry's return to the Gulf of Mexico's deep waters with high bids in a government auction up 76 percent over a year ago. The auction of offshore oil and gas parcels received nearly $275 million in high bids, compared with $156.4 million a year ago. The year-ago auction drew the fourth lowest total bids for leases in the central Gulf. Click here to read full stories.
Mar 23 - Libyan oil output rises to 700,000 bpd after port fighting ends - NOC
Libya's oil production has reached 700,000 barrels per day (bpd), the National Oil Corporation (NOC) said on Wednesday, recovering from a drop earlier this month caused by fighting at two key oil ports. "We are working very hard to reach 800,000 barrels by the end of April 2017, and, God willing, we will reach 1.1 million barrels next August," NOC Chairman Mustafa Sanalla was quoted as saying in a statement. Click here to read full stories.
Mar 23 - China's Sinopec buys first major refinery in Africa from Chevron
China's Sinopec will pay almost $1 billion for a 75 percent stake in Chevron Corp's South African assets and its subsidiary in Botswana to secure its first major refinery in Africa, the companies announced on Wednesday. China Petroleum and Chemical Corp, or Sinopec, Asia's largest oil refiner, said the assets include a 100,000 barrel-per-day oil refinery in Cape Town, a lubricants plant in Durban as well as 820 petrol stations and other oil storage facilities. Click here to read full stories.
Mar 23 - U.S. crude stockpiles at record high as imports surge -EIA
U.S. crude oil stocks rose to a fresh record last week, the Energy Information Administration said on Wednesday, as a surge in imports and rising domestic production more than offset a hike in refinery runs. Crude stocks in the world's top oil consumer have been building since the beginning of the year and undermining hopes that an OPEC-led deal to cut production will reduce a persistent global glut. Click here to read full stories.
Mar 23 - Britain awards 25 oil exploration licences in frontier tender
Britain has awarded 25 licences for oil and gas exploration in previously untapped waters and announced a new licensing round for mature areas to be held in late May or June, the Oil and Gas Authority (OGA) said on Thursday. Seventeen companies received exploration licences in a tender that closed in October. The tender attracted the lowest interest in 14 years as appetite for finding new oil in the North Sea has waned amid high costs and weak oil prices. Click here to read full stories.
Mar 22 - Beset by delays, Myanmar-China oil pipeline nears start-up
Nearly a decade in the making, a project to pump oil 770 km (480 miles) across Myanmar to southwest China is set for imminent start-up, with a supertanker nearing the port of Kyauk Phyu, marking the opening of a new oil trading route. Dogged by sensitive relations between Naypyitaw and Beijing, the $1.5 billion oil pipeline has been sitting empty for two years, but the two sides are now close to a deal, said Myanmar-based government and industry sources, despite some last-minute tensions. Click here to read full stories.
Mar 22 - New projects, shale boom could trigger oil oversupply by 2018-19: Goldman
New production projects and a fresh shale boom could boost oil output by a million barrels per year and result in an oversupply in the next couple of years, according to Goldman Sachs. "2017-19 is likely to see the largest increase in mega projects' production in history, as the record 2011-13 capex commitment yields fruit," the U.S. investment bank said in a research note on Tuesday. Click here to read full stories.
Mar 22 - Ex-oil traders seek buyer for Canadian refinery after bet fails
The former crude oil traders who bought a struggling, remote Canadian refinery in 2014 as a turnaround bet are quietly trying to unload the asset after facing weak margins and high regulatory costs, according to two people familiar with the efforts. SilverPeak Financial Partners was once seen as a buyer of refineries - not a seller. The former traders running the commodity venture had planned to build a merchant refiner with trading capabilities, using their purchase of a Newfoundland refinery as a beachhead into the industry. Though the company looked at refineries in Europe, South America and Africa, the deals never materialized, and the stand-alone Canadian plant floundered. Click here to read full stories.
Mar 22 - U.S. oil and gas industry reaps the benefits of international trade: Kemp
Rising exports have thrown a lifeline to U.S. shale producers and refiners, giving them an additional outlet at a time when the domestic market has been at risk of becoming saturated. The United States exported record quantities of natural gas, propane, gasoline, distillate fuel oil and light crude last year while continuing to import the heavy oils needed by its refineries. Click here to read full stories.
Mar 21 - OPEC leans towards oil cut extension, but non-members need to be in - sources
OPEC oil producers increasingly favour extending beyond June a pact on reducing crude supply to balance the market, sources within the group said, although Russia and other non-members need to remain part of the initiative. The Organization of the Petroleum Exporting Countries is curbing its output by about 1.2 million barrels per day (bpd) from Jan. 1 for six months, the first reduction in eight years. Russia and other non-OPEC producers agreed to cut half as much. Click here to read full stories.
Mar 21 - Hedge funds rush for exit after oil trade becomes crowded: Kemp
edge funds cut their bullish bets on oil by the largest amount on record in the week to March 14, according to the latest data published by regulators and exchanges. Hedge funds and other money managers cut their combined net long position in the three main futures and options contracts linked to Brent and WTI by a record 153 million barrels in just seven days. Click here to read full stories.
Mar 21 - Petrobras seen reversing loss on higher oil, lower writedowns
Petróleo Brasileiro SA, Brazil's state-controlled oil company, likely returned to a profit in the fourth quarter, reflecting the impact of higher average oil prices, lower asset writedowns and cost-cutting, analysts said on Monday. Rio de Janeiro-based Petrobras probably earned 3.701 billion reais ($1.2 billion) last quarter, reversing a net loss of 16.458 billion reais in the third quarter, according to the average analyst estimate compiled by Thomson Reuters. Petrobras lost a record 35.8 billion reais a year earlier. Click here to read full stories.
Mar 21 - TransCanada seeks pipe approval linked to Petronas LNG terminal
Transcanada Corp has secured shippers' commitment for a pipeline associated with Malaysian state-owned oil company Petronas' pending Pacific NorthWest liquefied natural gas (LNG) terminal in western Canada andtargets 2018 for construction, the company said on Monday. Government construction approval will allow the company to start building most of the North Montney Mainline before majority owner Petroliam Nasional Bhd, or Petronas, decides whether to commit to the project, TransCanada said in a statement. Click here to read full stories.
Mar 21 - Biofuels credits surge ahead of EPA deadline for 2017 requirements - traders
Prices of compliance credits used by oil companies to meet annual U.S. government biofuels requirements surged on Monday, as traders positioned themselves for the delayed implementation of the rule that set volumes for 2017. Prices of renewable fuel (D6) Renewable Identification Number (RIN) credits jumped as high as 50 cents apiece in late trade on Monday, traders said. That was up from as low as 40 cents earlier in the session and from 37.5 to 39 cents on Friday as buying resumed after weeks of uncertainty had gripped the market and kept oil refiners to the sidelines. Click here to read full stories.
Mar 20 - Beijing, Saudi Arabia agree to more oil cooperation, exports to China
China and Saudi Arabia will increase their cooperation in the oil sector, including in Saudi oil exports to China, the two countries said in a joint communique issued on Saturday at the end of Saudi Arabian King Salman's visit to Beijing. The world's largest oil exporter has been looking to cement ties with the world's second-largest economy. Click here to read full stories.
Mar 20 - Libya's NOC says expects to regain Es Sider, Ras Lanuf oil ports
Libya's National Oil Corporation (NOC) has been coordinating with military forces from eastern Libya and has "no reason to believe" it will not regain control of the Es Sider and Ras Lanuf oil ports, NOC's chairman said. The loss and recapture of the ports this month by the eastern-based Libyan National Army (LNA) had raised doubts over its willingness to let the Tripoli-based NOC manage the ports. Click here to read full stories.
Mar 20 - U.S. drillers add oil rigs for 9th week in a row - Baker Hughes
U.S. drillers added oil rigs for a ninth week in a row, extending a recovery that is expected to boost shale production by the most in six-months in April. Drillers added 14 oil rigs in the week to March 17, bringing the total count up to 631, the most since September 2015, energy services firm Baker Hughes Inc said on Friday. Click here to read full stories.
Mar 20 - Speculators cut U.S. crude oil net longs by record amount - CFTC
Hedge funds and other money managers cut their net long U.S. crude futures and options positions in the week to March 14, the third consecutive cut, U.S. Commodity Futures Trading Commission (CFTC) said on Friday. Hedge fund bets on crude have been closely watched as oil futures have retreated in the past two weeks, breaking out of a range had held since OPEC agreed in November to cut production to reduce a supply-glut. Click here to read full stories.
Mar 17 - Halfway into 2017's oil supply cut, Asia remains awash with fuel
Halfway into an OPEC-led oil supply cut, Asia remains awash with fuel in a sign that the group's efforts to rein in a global glut have so far had little effect. The Organization of the Petroleum Exporting Countries (OPEC) and other suppliers including Russia have pledged to cut production by almost 1.8 million barrels per day (bpd) during the first half of this year to rein in oversupply and prop up prices. Click here to read full stories.
Mar 17 - Venezuela's cash-strapped PDVSA offers Rosneft oil stake - sources
Venezuelan state oil company PDVSA has offered Russian counterpart Rosneft a stake in a joint venture in the country's Orinoco Belt extra-heavy crude area, five industry sources said, in a sign of the Latin American nation's dire economic situation and Moscow's growing muscle there. Rosneft, Russia's top oil producer, has been offered a 10 percent stake in the Petropiar joint venture. Click here to read full stories.
Mar 17 - U.S. EPA hit hardest as Trump budget targets regulations
President Donald Trump's administration on Thursday proposed a 31 percent cut to the Environmental Protection Agency's budget, as the White House seeks to eliminate climate change programs and trim initiatives to protect air and water quality. The EPA would sustain the biggest cut of any federal agency in the White House 2018 budget, as Trump seeks to clear away regulations he claims are hobbling U.S. oil drillers, coal miners and farmers. Click here to read full stories.
Mar 17 - Latin America struggles to stem pricey fuel imports
Latin American countries are becoming more reliant on costly fuel imports amid floundering efforts to bolster domestic oil output and expand refinery capacity. Incomplete reform projects and budget cuts that have stalled investments are aggravating the situation for many Latin American countries Click here to read full stories.
Mar 17 - Saudi oil minister says output cuts may be extended if necessary - Bloomberg
A deal to cut oil output by the Organization of the Petroleum Exporting Countries could be extended if inventories remain above average, Saudi Energy Minister Khalid al-Falih said in an interview with Bloomberg on Thursday. OPEC and some non-OPEC producers agreed to cut production from Jan. 1 to reduce record stocks of global crude oil, but the deal has been dampened by data showing persistently rising U.S. stockpiles. Click here to read full stories.
Mar 16 - IEA says oil market could tilt into deficit in H1 if OPEC sticks to cuts
Global oil inventories rose for the first time in January as the market grappled with a swell in production last year, but if OPEC maintains its output cuts, demand should overtake supply in the first half of this year, the International Energy Agency said on Wednesday. The IEA's monthly report struck a more bullish note than that issued by the Organization of the Petroleum Exporting Countries on Tuesday. Click here to read full stories.
Mar 16 - China, Saudi Arabia eye $65 bln in deals as king visits
Saudi Arabia's King Salman oversaw the signing of deals worth potentially $65 billion as he began a visit to Beijing on Thursday, as the world's largest oil producer looks to cement ties with the world's second-largest economy. The octogenarian monarch, who has overseen the launch of an ambitious economic reform plan since his accession two years ago, is on a month-long Asian tour. Click here to read full stories.
Mar 16 - U.S. oil stockpile decline reverses 9 weeks of builds - EIA
U.S. crude stocks fell last week as imports plummeted, dropping after nine consecutive increases, while gasoline and distillate inventories declined more than expected, the Energy Information Administration said on Wednesday. The stockpiles have been closely watched by oil traders eager to determine whether a November agreement to cut output by the Organization of the Petroleum Exporting Countries is reducing a global supply glut. Click here to read full stories.
Mar 16 - Syncrude Canada site output down as fire continues burning
Several crude bitumen processing upgrader units at Syncrude Canada's oil sands plant in Alberta were shut or running at minimized rates on Wednesday as a fire continued to burn for a second day, the company said. Mining and extraction of bitumen at Syncrude's Mildred Lake and Aurora sites are also being paced to balance the resulting lower demand, the company said in a statement. Click here to read full stories.
Mar 16 - Libya's eastern parliament supports end of unified National Oil Corp
Libya's eastern parliament said on Wednesday it supported ending a deal to unify the country's National Oil Corporation (NOC), a day after eastern forces recaptured major oil ports from a rival faction. The fighting for control of the ports in Libya's Oil Crescent, a strip of coast southwest of Benghazi, has raised fears of an escalation of violence and a reversal for the OPEC member state's efforts to revive its oil output. Click here to read full stories.
Mar 16 - Brazil audit court clears Petrobras to restart asset sales
Brazil's federal audit court TCU on Wednesday allowed state-run oil company Petroleo Brasileiro SA to proceed with its divestment program, but required the company to restart the process except for two projects. The decision means that moves by Petrobras, as the company is known, to sell off a controlling stake in its fuels distribution unit BR Distribuidora will start from scratch. Click here to read full stories.
Mar 15 - OPEC's compliance with output cuts high, rebalancing progresses - Goldman
OPEC's compliance with output cuts remained high even though the group's monthly report indicated a rise in global crude stocks and a production jump from Saudi Arabia, Goldman Sachs said on Tuesday. Goldman said in a research note that market rebalancing is still progressing, and it saw demand for oil finally exceeding supply in the second quarter aided by production cuts, despite an expected rise in U.S. shale output. Click here to read full stories.
Mar 15 - OPEC says oil stocks still increasing, Saudis raise output
OPEC said on Tuesday oil inventories have risen despite a global deal to cut supply and raised its forecast of production in 2017 from outside the group, suggesting complications in an effort to clear a glut and support prices. In a monthly report, OPEC also said its biggest producer Saudi Arabia increased output in February by 263,000 barrels per day to 10 million bpd, after in January making a larger cut than required by the OPEC accord to ensure strong initial compliance. Click here to read full stories.
Mar 15 - East Libyan forces recapture oil ports
East Libyan forces said they had regained control on Tuesday of the major oil ports of Ras Lanuf and Es Sider from a rival faction that seized them earlier this month and were pursuing their opponents into the desert. Ahmed al-Mismari, spokesman for the eastern-based Libyan National Army (LNA), said fighters from the Benghazi Defence Brigades (BDB) were retreating towards the coastal town of Harawa, more than 100 km (60 miles) west of Es Sider and to Jufra, their desert base nearly 300 km to the south. Click here to read full stories.
Mar 15 - China crude oil stockpiling impervious to OPEC price hike: Russell
China's stockpiling of crude oil appears to have increased in the first two months of the year, despite prevailing higher prices caused by OPEC and its allies curbing output. The country rarely releases detailed inventory levels for strategic and commercial storage, but it's possible to work out an estimate from net crude imports, domestic output and refinery throughput. Click here to read full stories.
Mar 15 - Delta hires consultant to study refinery options -sources
Delta Air Lines has hired a consultant to assess the impact on jet fuel prices if the carrier sells or closes the Philadelphia-area refinery it purchased five years ago to keep fuel affordable, two sources familiar with the process said. They said the consultant will also study other scenarios involving jet fuel prices and the refinery sector, including the impact if other refineries close. Click here to read full stories.
Mar 15 - Brent spreads become battleground amid doubts over oil rebalancing: Kemp
Global oil markets are gradually rebalancing, but progress has been slower and more uneven than the Organization of the Petroleum Exporting Countries and bullish hedge funds expected. OPEC as well as most commentators, crude traders and hedge funds have assumed the rebalancing of the oil market will be accompanied by a shift from contango towards backwardation in oil futures prices. Click here to read full stories.
Mar 14 - Russian oil major says U.S. shale growth imperils OPEC deal
A recovery in U.S. oil output may deter OPEC and non-OPEC producers from extending production cuts beyond June and might lead to a new price war, Russia's top oil major said on Monday. U.S. shale oil production had been in retreat as oil prices tumbled from above $100 a barrel in 2014 to below $30 in 2015, making costly fracking processes less profitable. Click here to read full stories.
Mar 14 - Oil prices drop as hedge funds head for the exit: Kemp
Hedge funds and other money managers had barely started liquidating their record bullish position in crude oil futures and options before prices tumbled on March 8. The critical question is how much more of the position will need to be liquidated before the market stabilises again. Click here to read full stories.
Mar 14 - U.S. shale oil output to soar in April, Permian to hit fresh record
U.S. shale oil production in April was set for its biggest monthly increase since October as output in the Permian Basin, America's fastest growing shale oil region, was expected to hit another record high, government data showed on Monday. Total shale oil production was expected to rise 109,000 barrels per day to 4.96 million bpd, according to the U.S. Energy Information Administration's drilling productivity report. Click here to read full stories.
Mar 14 - Iran leapfrogs Iraq as India's no. 2 oil supplier in Feb - trade data
India's oil imports from Iran rose nearly 17 percent in February from a month earlier as refiners received less crude from key OPEC producers Saudi Arabia and Iraq after an OPEC deal to cut output, shipping data showed on Monday. The jump meant Iran replaced regional rival Iraq as India's second-biggest oil supplier - a role Tehran used to occupy before Western sanctions were imposed against it over the country's disputed nuclear programme. Click here to read full stories.
Mar 14 - Japan PM Abe seeks Saudi support for Aramco listing in Tokyo
Japan's Prime Minister Shinzo Abe asked Saudi Arabia's King Salman on Monday to support a listing of oil giant Aramco's shares in Tokyo, as financial centres in Asia and elsewhere step up efforts to win the coveted $100 billion listing. Abe made the request for support on the Aramco listing to the Saudi monarch, who responded by saying the kingdom would look into the request because he wants Japanese investors to buy Aramco shares, Japan'sDeputyChief Cabinet Secretary Kotaro Nogami told reporters. Click here to read full stories.
Mar 13 - Commodities mark worst week in months amid glut, China drag
Global commodities from oil to metals and grains were on course to post their steepest weekly declines in months on Friday as the recent rallies in the asset class showed signs of fatigue, pressured by a glut and tepid demand from top consumer China. Gold, which investors typically run to when they flee risky assets, was not spared from this week's selloff as the metal dropped below the critical $1,200 an ounce support amid a looming U.S. interest rate hike. Click here to read full stories.
Mar 13 - OPEC aims in vain for the Goldilocks oil price: Kemp
CERAWeek has exposed all the contradictions at the heart of OPEC’s attempt to rebalance the oil market without rekindling the shale boom or conceding too much market share to rivals. The oil industry conference in Houston started with a celebration of higher prices, progress towards drawing down global stockpiles, and optimism about the outlook for shale producers. Click here to read full stories.
Mar 13 - Despite sanctions relief, Shell still cool on Iranian oil buys
Royal Dutch Shell has bought only three cargoes of Iranian oil since sanctions were eased a year ago, a small fraction ofwhat it used to buy and an indication of the legal difficulties and high prices that still hamper the trade. The Anglo-Dutch firm did not give a reason for the drop in purchases, which were disclosed in its annual report, and the company declined to comment further. Click here to read full stories.
Mar 13 - Trillion-dollar question looms as Aramco audits oil reserves
When Saudi Aramco reveals a Western audit of its oil reserves, investors will be looking for two answers: How much oil and how much detail? Saudi Energy Minister Khalid al-Falih has hinted at a surprise on the upside on reserve volumes ahead of Aramco's 2018 share listing, but industry sources say detail on individual deposits – which investors have long sought - will be thin. Click here to read full stories.
Mar 13 - U.S. refiners' biofuel bill soars to record high as debate heats up
Oil refiners shelled out a record over $2 billion to meet U.S. biofuels requirements in 2016, a 70 percent surge that helps fuel a growing debate over who should shoulder the costs for meeting environmental regulations. A Reuters review of regulatory filings from ten refiners, including Valero Energy Corp and CVR Energy Inc, showed that they paid $2.22 billion last year for compliance credits that companies use to prove they are meeting annual government requirements for volumes of biofuels to be blended with gasoline and diesel. Click here to read full stories.
Mar 13 - Oil trading giant Vitol bets on fuel retail for growth
From Pakistan to Turkey, the world's largest independent oil trader Vitol is betting on a spike in gasoline and diesel demand in young and growing nations by snapping up filling stations that disappointed oil companies are prepared to sell. With the sharp drop in global oil prices, major integrated oil companies have been shedding assets, including the marginally profitable retail outlets, to cut costs. Click here to read full stories.
Mar 13 - China's teapot refineries lobby for fuel export permits
China's independent oil refineries, known as "teapots", have sought to lobby the government to lift a ban on fuel exports, in a proposal made to the annual meeting of parliament this week, two refinery executives said on Friday. China has suspended the grant of export quotas to independent refiners for this year, ending a year-old policy allowing some independents to sell diesel, gasoline and naphtha abroad and dealing a blow to the group. Click here to read full stories.
Mar 13 - Speculators cut U.S. crude oil net longs for second week - CFTC
Hedge funds and other money managers cut their net long U.S. crude futures and options positions in the week to March 7, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. The move was the second consecutive cut, the data showed. The speculator group cut its combined futures and options position in New York and London by 19,513 contracts to 401,659 during the period. Click here to read full stories.
Mar 10 - CERAWEEK-Oil industry revives quest for deepwater reserves
Deepwater oil drilling can be expensive, time-consuming and a hard sell to investors. But the world's top energy firms are restarting their search for giant oilfields under the ocean after a two-year lull. A recovery in oil prices to about $50 a barrel from a 12-year low in 2016 is reviving oil majors' appetite for risk. Click here to read full stories.
Mar 10 - Saudis tell U.S. oil: OPEC won't extend cuts to offset shale - sources
Senior Saudi energy officials told top independent U.S. oil firms in a closed-door meeting this week that they should not assume OPEC would extend output curbs to offset rising production from U.S. shale fields, two industry sources told Reuters on Thursday. Oil producers led by Saudi Arabia and top non-OPEC exporter Russia are in an uneasy truce with U.S. shale firms after a two-year price war that sent many shale producers to the wall. The Saudis and Russia led a deal to curb output in late 2016 to end a global supply glut that pushed oil prices to a 12-year low. Click here to read full stories.
Mar 10 - Order for Venezuela to pay Exxon $1.4 bln in damages overturned - lawyer
A World Bank tribunal's order for Venezuela to pay $1.4 billion in damages to Exxon Mobil Corp over nationalizations has been annulled, a lawyer for the Venezuelan government said on Thursday. The case at the World Bank's International Centre for Settlement of Investment Disputes is one of many arising from nationalizations during late President Hugo Chavez's 1999-2013 rule of the South American OPEC member country. Click here to read full stories.
Mar 10 - China's CEFC courts "teapots" for first domestic refinery acquisition
Privately-run conglomerate CEFC China Energy has approached several independent Chinese oil processors seeking to acquire its first domestic refinery operation, its next move towards becoming a global integrated oil player. New details of CEFC's attempts to buy a refinery in China come less than three weeks after the little-known Shanghai-based firm announced its first major upstream oil investment, a $900 million deal for a 4 percent stake in an Abu Dhabi oilfield. Click here to read full stories.
Mar 10 - U.S. oil production forecasts revised higher: Kemp
U.S. oil production forecasts for 2017 and 2018 have been boosted significantly as a result of rising prices as well as improved modelling techniques for predicting output down to the well level. Crude production is expected to reach 9.53 million barrels per day (bpd) in December 2017, according to the latest forecasts from the U.S. Energy Information Administration (EIA). Click here to read full stories.
Mar 10 - Libya's oil output drops to 620,000 bpd - NOC head
Libya's oil output has fallen to 620,000 barrels per day, a drop of about 80,000 bpd since clashes erupted around some of the country's major export terminals, the head of the National Oil Corporation (NOC) said on Thursday. Mustafa Sanalla told Reuters that production by Waha Oil Co, a joint venture between NOC and foreign partners, had been entirely halted. Waha pumps oil to Es Sider, one of two ports that the eastern-based Libyan National Army (LNA) lost control of last Friday to a rival faction. Click here to read full stories.
Mar 09 - CERAWEEK-U.S. shale plots production growth despite OPEC's warning
U.S. shale oil producers are plotting ambitious production growth outside the red-hot Permian Basin in Texas, widening a resurgence that could confound OPEC's strategy to tighten global supplies. As shale firms rebound from a two-year price war with OPEC, many are planning to expand production in North Dakota, Oklahoma and other shale regions. Click here to read full stories.
Mar 09 - Oil bulls blink after months of attempts to push crude prices higher
Oil bulls trying to push the crude market higher finally waved the white flag on Wednesday, triggering the biggest rout in a year, on concerns that stubbornly high inventory levels would persist despite supply cuts. Prices had been locked in the tightest trading range in over a decade as traders and speculators piled into bets that oil prices would rise after the world's top producers cut output. Click here to read full stories.
Mar 09 - CERAWEEK-Oil executives cautiously optimistic about Trump policies
Oil executives cautioned it is too soon to gauge the impact of President Donald Trump's policy proposals on their businesses, but they are looking forward to hearing more about plans for energy regulation, trade and taxation. Tougher environmental regulations under the Obama administration stymied energy infrastructure projects like the Keystone XL crude pipeline and Dakota Access Pipeline, and required automakers and refiners to spend more to reduce pollutants. Click here to read full stories.
Mar 09 - Aramco IPO has limited destination choices
Aramco is too big to experiment. Every global stock exchange would love to handle the debut of the world's biggest oil producer. A Reuters Breakingviews analysis weighing six market-related, political and other factors suggests New York is the most attractive locale and Tokyo a top wild-card. Kingdom authorities reckon the fossil-fuel colossus may be worth some $2 trillion. If only 5 percent of the company is listed next year, as expected, that would translate into $100 billion of shares on offer. Aramco Chief Executive Amin Nasser said this week that Riyadh's Tadawul and one or two other venues internationally would host. Click here to read full stories.
Mar 09 - U.S. crude stockpiles soar, gasoline inventory plunges - EIA
U.S. crude oil inventories surged last week to another record high, while gasoline stocks went the other direction, posting their largest one-week drop in nearly six years, the Energy Information Administration said on Wednesday. Crude inventories rose 8.2 million barrels in the week to March 3, compared with analysts' expectations for a 2 million-barrel build. Most of that - 4.6 million barrels - came from an unexpectedly large surge in stocks on the west coast. Click here to read full stories.
Mar 08 - CERAWEEK-Saudi energy minister says oil market fundamentals improving
Saudi Energy Minister Khalid al-Falih said on Tuesday that oil market fundamentals were improving after an agreement struck with top oil producers to curb supply and end a two-year glut took effect. The kingdom led a pact between the Organization of the Petroleum Exporting Countries and other major producers, including Russia,Mexico and Kazakhstan, to cut global crude output by about 1.8 million barrels per day (bpd) from Jan. 1, and bring supply closer to demand. Click here to read full stories.
Mar 08 - Oil-for-loan debts cost Venezuela's PDVSA hard-won India market share
Venezuela's state-run oil company, PDVSA, has spent at least a decade trying to build business ties and boost shipments to refineries in India, where crowds once welcomed the late socialist leader Hugo Chavez with cries of "Viva!" Now, the ailing firm is being forced to slash sales to its crucial trade partner. Click here to read full stories.
Mar 08 - CERAWEEK-OPEC invites U.S. shale firms, hedge funds into talks on glut
The Organization of the Petroleum Exporting Countries is moving to bring U.S. shale producers and hedge funds into widening talks about how best to tame a global oil glut. The group held unprecedented talks with fund executives on Tuesday and earlier held meetings with shale producers, including Pioneer Natural Resources Co and ConocoPhillips. Click here to read full stories.
Mar 08 - Burning less oil at home will help Saudi exports and Aramco IPO
Saudi Arabia is likely to reduce the amount of oil it burns to generate power this summer as the kingdom hikes domestic energy prices and uses more natural gas in power stations, industry sources said. Burning less crude at home means the world's top oil exporter may not need to push output to the record high of 10.67 million barrels per day (bpd) reached in July last year, even if the Organization of the Petroleum Exporting Countries and other producers end supply curbs in June. Click here to read full stories.
Mar 08 - Oil industry costs will rise as focus shifts to growth: Kemp
Oil industry costs are notoriously pro-cyclical, which is one of the main reasons for the pattern of boom and bust that has afflicted in the industry from the beginning. The cost of everything from skilled and unskilled labour to engineering contracts, field services, raw materials, equipment, spare parts and rig hire tends to rise and fall with price of oil. Click here to read full stories.
Mar 08 - EIA revises U.S. crude oil output growth in 2017 higher
The U.S. Energy Information Administration expects U.S. crude oil production in 2017 to rise by more than it had previously forecast, according to its monthly short term energy outlook released on Tuesday. The agency said that crude oil output will rise to 9.21 million barrels per day this year from 8.88 million bpd in 2016, a 330,000-bpd increase. Last month, it forecast a 100,000 bpd year-over-year increase. Click here to read full stories.
Mar 07 - CERAWEEK-Too early to discuss oil deal's extension - Russia, Iraq
Russia and Iraq said on Monday it was too early to discuss an extension of a historic deal to curb oil output beyond June while cash-strapped Angola supported the move to boost oil prices. Members of the Organization of the Petroleum Exporting Countries (OPEC) including Iraq and non-OPEC countries such as Russia last year agreed to cut oil production by some 1.8 million barrels per day (bpd)for six months beginning Jan. 1 to reduce global oil supplies that have weighed on prices. Click here to read full stories.
Mar 07 - CERAWEEK-Exxon to invest $20 bln on U.S. Gulf Coast refining projects
Exxon Mobil Corp, the world's largest publicly traded oil producer, said on Monday it would invest $20 billion through 2022 to expand its chemical and oil refining plants on the U.S. Gulf Coast. The investments at 11 sites should create 35,000 temporary construction jobs and 12,000 permanent jobs, Chief Executive Darren Woods said in a speech at CERAWeek, the world's largest gathering of energy executives. Click here to read full stories.
Mar 07 - IEA warns of oil "supply crunch" by 2020 with no capex renaissance
Global oil supply may struggle to match demand after 2020, when the pinch of a two-year decline in investment in new production could leave spare capacity at a 14-year low and send prices sharply higher, the International Energy Agency said on Monday. Investors generally are not betting on a sharp rise in the price of crude oil any time soon, but the contraction in global spending in 2015 and 2016 and growing global demand means the world could well face a "supply crunch" if new projects are not soon given the go-ahead, the IEA said in its five-year "Oil 2017" market analysis and forecast report. Click here to read full stories.
Mar 07 - Saudi cuts to lighter crude prices show shifting oil market: Russell
A decision by Saudi Aramco to cut the price of its benchmark Arab Light crude to Asian refiners for April-delivery cargoes has prompted speculation that the world's top oil exporter is chasing market share. There is always a risk in over-interpreting moves in Aramco's official selling prices (OSPs), and trying to fit them into a narrative that supports a particular view of the state of the market. Click here to read full stories.
Mar 07 - East Libyan forces mobilising for counter attack at oil ports - officials
East Libyan forces carried out fresh air strikes on Monday and said they were mobilising ground forces as they attempt to win back two of Libya's largest oil ports, military officials said. Forces loyal to the eastern-based Libyan National Army (LNA) lost control of the ports of Sider and Ras Lanuf on Friday to a rival faction known as the Benghazi Defence Brigades (BDB), and have been unable to dislodge them with air strikes and ground operations since then. Click here to read full stories.
Mar 06 - Inventories are responding to OPEC cuts - CeraWeek secretary general
Oil inventories onshore and offshore are responding to production cuts implemented by OPEC, the secretary general of the organization, Mohammad Barkindo, said on Sunday. OPEC-led production cuts have helped raise global oil prices by more than 10 percent since they were approved in November. Click here to read full stories.
Mar 06 - Titans of oil world meet in Houston after 2-yr price war - CeraWeek
The biggest names in the oil world come together this week for the largest industry gathering since the end of a two-year price war that pitted Middle East exporters against the firms that drove the shale energy revolution in the United States. When OPEC in November joined with several non-OPEC producers to agree to a historic cut in output, the group called time on a fight for market share that drove oil prices to a 12-year low and many shale producers to the wall. Click here to read full stories.
Mar 06 - Armed faction enters major Libyan oil ports, putting output at risk
An armed faction entered two major Libyan oil ports on Friday, pushing back forces that captured and reopened the terminals in September, officials and residents said. The move risks increasing the fighting around the ports and casts new doubt over Libya's attempt to revive its oil production. The terminals at Es Sider and Ras Lanuf are two of Libya's largest, with potential combined production capacity of about 600,000 barrels per day (bpd). Click here to read full stories.
Mar 06 - U.S. ethanol group clashes with Icahn over details of biofuels negotiation
The head of the Renewable Fuels Association says billionaire investor Carl Icahn told him last week President Donald Trump was about to issue an order overhauling the U.S. biofuels program - something both Icahn and the White House have denied. Confusion over Trump's plans for the Renewable Fuel Standard (RFS), which requires increasing volumes of biofuels to be added to gasoline and diesel each year, triggered gyrations in the energy and agricultural markets this week and reopened questions about Icahn's role shaping the president's regulatory policy. Click here to read full stories.
Mar 06 - Speculators cut U.S. crude oil net longs from record high - CFTC
Hedge funds and other money managers cut their net long U.S. crude futures and options positions in the week to Feb. 28, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. The speculator group cut its combined futures and options position in New York and London by 22,533 contracts to 421,171 during the period. The contracts were at a record high the previous week. Click here to read full stories.
Mar 03 - Saudi cuts light oil prices to Asia as global oversupply persists
World's top crude exporter Saudi Arabia cut April prices of light crude it sells to Asia for the first time in three months in a bid to shore up demand in an oversupplied market, trade sources said on Friday. The OPEC kingpin raised prices for two straight months to March after production cuts by the Organization of the Petroleum Exporting Countries and Oman strengthened Middle East oil benchmark Dubai, but it unexpectedly cut prices in April as oversupply of light crude persisted. Click here to read full stories.
Mar 03 - China's largest 'teapot' refiner, CEFC team up in Shandong oil terminal venture
Dongming Petrochemical, China's largest independent or 'teapot' refiner, has signed a deal with privately run CEFC China Energy and a local port authority to build a crude oil terminal in Shandong province, seeking to ease a logistics bottleneck gripping the country's teapot oil sector. The 3.9 billion yuan project with conglomerate CEFC China Energy and Rizhao port authorities comes as China's teapots refiners emerge as a catalyst in the global oil market, ramping up Russian and U.S. imports in frenzied buying that has led to tanker queues and scarce storage space. Click here to read full stories.
Mar 03 - U.S. shale producers renew their challenge to OPEC: Kemp
U.S. crude oil production appears to be rising strongly thanks to increased shale drilling as well as rising offshore output from the Gulf of Mexico. Production averaged almost 9 million barrels per day (bpd) in the four weeks to Feb. 24, according to the latest weekly estimates published by the Energy Information Administration. Click here to read full stories.
Mar 03 - Peak gasoline demand looms with engine efficiency gains
Demand for gasoline in the United States, which accounts for a tenth of global oil consumption, is expected to peak next year as engines become more efficient, WoodMackenzie analysts said. Global demand for gasoline, which accounts for more than a quarter of the world's oil consumption, is set to peak as early as 2021 even in the face of relentless growth in the vehicle fleet, according to the Edinburgh-based consultancy. Click here to read full stories.
Mar 03 - Sinopec to start operating Zhanjiang commercial oil tanks; SPR site delayed -sources
Sinopec Corp is expected to start operating by June a new commercial crude oil tank farm in the southern Chinese city of Zhanjiang, where a large strategic reserve site is also under construction, three industry sources said this week. The new commercial tanks will store 8.5 million barrels, equivalent to over four supertankers. Click here to read full stories.
Mar 03 - Nigeria files new charges against Shell, Eni, others over 2011 oilfield purchase - court documents
Nigeria's financial crime watchdog has filed new corruption charges against Royal Dutch Shell, Eni and others regarding the $1.3 billion purchase of a long-disputed oilfield in 2011, according to court documents released on Thursday. The charges of conspiracy to commit a felony and official corruption were made after an investigation by Nigeria's Economic and Financial Crimes Commission found new evidence, Jonson Ojogbane, an EFCC senior prosecutor named in the documents, told Reuters by telephone. Click here to read full stories.
Mar 03 - Russian cuts to oil production stall in February
Russia's oil output stayed unchanged in February from the previous month, with cuts at just a third of the levels pledged by Moscow under a global deal to reduce production, Energy Ministry data showed on Thursday. The country's oil and gas condensate output remained at 11.11 million barrels per day (bpd) last month, down 100,000 bpd from levels agreed as the starting point for the accord. Click here to read full stories.
Mar 02 - Exxon touts growth potential with eye toward dividend
Exxon Mobil Corp, the world's largest publicly traded oil producer, sought to reassure anxious investors on Wednesday about its growth potential, highlighting both short- and long-term projects executives said should continue to help fund the 106-year-old dividend. "Our job is to compete and succeed in any market," new Chief Executive Officer Darren Woods said at the company's annual analyst day in New York. Click here to read full stories.
Mar 02 - U.S. crude oil stocks rise, production up again - EIA
U.S. crude oil stocks rose last week even as refineries boosted output, while inventories of gasoline and distillates fell, the U.S. Energy Information Administration said on Wednesday. Crude inventories rose by 1.5 million barrels in the last week, compared with analysts' expectations for an increase of 3.1 million barrels. Click here to read full stories.
Mar 02 - China loads up on West African oil in March, hitting fresh record
China's loadings of West African crude oil are set to rise to a new record in March as the nation stocks up on medium and heavy oil in the midst of OPEC production cuts, according to a Reuters survey of shipping fixtures and oil traders on Wednesday. Some 1.41 million barrels per day (bpd) of West African oil are expected to load for China over the coming month, surpassing February and hitting a fresh high since Reuters began tracking the shipments in 2004. Click here to read full stories.
Mar 02 - Russia cuts oil output in February but compliance is low - sources
Russian oil production fell in February to around 11.10 million barrels per day (bpd), from over 11.2 million bpd in October, two sources familiar with the data told Reuters on Wednesday, showing weak compliance with agreed supply curbs. Russia pledged to cut its oil output by 300,000 barrels per day in the first half of 2017 under an agreement with the Organization of the Petroleum Exporting Countries and non-OPEC countries reached in December to lift prices. Click here to read full stories.
Mar 01 - OPEC compliance with oil curbs rises to 94 pct in Feb - Reuters survey
OPEC has cut its oil output for a second month in February, a Reuters survey found on Tuesday, allowing the exporter group to boost already strong compliance with agreed supply curbs on the back of a steep reduction by Saudi Arabia. The Organization of the Petroleum Exporting Countries is cutting its output by about 1.2 million barrels per day (bpd) from Jan. 1 - the first such deal since 2008 to get rid of a glut. Non-OPEC countries pledged to cut about half as much. Click here to read full stories.
Mar 01 - Aramco's Malaysia deal gives Saudis upper hand in fight for Asia oil share
Top global oil exporter Saudi Arabia broke from the pack in the race to lock up Asian market share after agreeing on Tuesday to pump $7 billion into a refinery-petrochemical complex in Malaysia, analysts said. State oil giant Saudi Aramco's investment into Malaysia's RAPID project will secure an outlet for its crude oil for at least two decades and beefs up its downstream portfolio ahead of its initial public offering (IPO) next year. Click here to read full stories.
Mar 01 - Rising U.S. shale to rein in oil below $60 despite OPEC cuts - Polls
Oil may struggle to rise beyond about $60 a barrel by the end of 2017, even if OPEC extends its supply cuts and global demand continues to improve, as U.S. shale production ramps up. Brent crude futures are expected to average $57.52 a barrel in 2017, according to a Reuters poll of 31 analysts and economists. The current forecast is slightly lower than the $58.01 forecast in the previous survey. Brent has averaged about $55.73 this year. Click here to read full stories.
Mar 01 - Oil traders back off bets on accelerated rebalancing: Kemp
Brent spreads have weakened sharply in recent days as traders become less convinced the oil market will rebalance early in the second quarter. The calendar spread from May to June has eased from 6 cents contango per barrel on Feb. 21 to 30 cents contango on Feb. 27. Click here to read full stories.
Mar 01 - U.S. oil output fell 91,000 bpd in Dec to 8.783 mln bpd -EIA
U.S. oil production in December fell 91,000 barrels per day to 8.783 million bpd, according to data from the U.S. Energy Information Administration released on Tuesday. Oil companies pared activity onshore, with production in North Dakota falling 17.6 percent and Texas down 5.8 percent from a year earlier. Offshore, oil production rose, climbing 7.7 percent to 1.728 million barrels a day in the offshore Gulf of Mexico. Click here to read full stories.
Feb 28 - Saudi Arabia wants oil prices to rise to around $60 in 2017 - sources
Saudi Arabia wants crude oil prices to rise to around $60 a barrel this year, five sources from OPEC countries and the oil industry said. This is the level the OPEC heavyweight and its Gulf allies - the United Arab Emirates, Kuwait and Qatar - believe would encourage investment in new fields but not lead to a jump in U.S. shale output, the sources said. Click here to read full stories.
Feb 28 - All participating countries committed to oil output deal, says OPEC Sec-Gen
OPEC-led oil production cuts have been well supported by all participating countries despite some teething troubles for non-OPEC members, the cartel's secretary-general, Mohammed Barkindo, said on Monday. Barkindo also said OPEC remained optimistic that the "worst was over" for the oil market, almost two months into the group's supply cut deal with Russia and other producers. Click here to read full stories.
Feb 28 - Hedge funds find plenty of willing sellers in oil: Kemp
For every buyer of futures and options there must be a seller. For every long position there must be a corresponding short position. Hedge funds and other money managers have purchased a record number of futures and options contracts linked to Brent and WTI, betting that prices will rise. Click here to read full stories.
Feb 28 - Hyundai Oilbank buys S.Korea's first U.S. Southern Green Canyon crude
South Korean refiner Hyundai Oilbank has purchased a cargo of U.S. Southern Green Canyon crude oil, the country's first import of the grade, three trade sources said on Tuesday. The country's smallest refiner by capacity has bought 1 million barrels of the U.S. heavy crude from a major oil company to arrive in May, according to the sources, who asked not to be identified as they were not authorised to speak with media. Click here to read full stories.
Feb 28 - Total in talks to buy Iranian LNG project - sources
Total is in talks to buy a multi-billion dollar stake in Iran's partly-built liquefied natural gas export facility, Iran LNG, seeking to unlock vast gas reserves. The French oil major -- the first of its peers to strike deals in Iran after sanctions -- seeks entry into Iran LNG at a discount to the pre-sanctions price in exchange for reviving the stalled project, two sources with knowledge of the matter said. A third source confirmed Total was in the running for a stake, alongside several other oil majors, but any deal was still some way off. Click here to read full stories.
Feb 28 - Russia's Lukoil hopes to secure deal on two Iranian oilfields in April
Russia's No. 2 oil producer Lukoil hopes to reach a deal to develop two oilfields in Iran in April, Chief Executive Vagit Alekperov said on Monday. Lukoil said last month that it was in talks with the National Iranian Oil Company on taking part in development of the Abe Timur and Mansuri fields in central-western Iran. It said it would start talks on contractual terms if Iran agrees to the development plans Lukoil has already submitted. Click here to read full stories.
Feb 27 - Funds prepare $2 bln oil market play as supply tightens
Passive investment funds are poised to shift an estimated $2 billion from far-term to near-term crude futures over the next week, anticipating an energy market rally as a historic OPEC output cut slashes supply. The switch may foreshadow the end of a global oil glut that built up during a two-year price war. Click here to read full stories.
Feb 27 - Cuts, what cuts? Asia gets more crude oil from OPEC, Russia: Russell
If you were looking for evidence of reduced crude oil supply from OPEC and its main ally in cutting output to boost prices, Russia, then stay away from Asia's top importers. January import data from China, India and Japan do little to show the impact of reduced crude supply, but do suggest that prices have risen in response to move by the producer group and its allies to remove some 1.8 million barrels per day (bpd) from global oil markets. Click here to read full stories.
Feb 27 - Oil volatility migrates from flat prices to spreads: Kemp
"Volatility can be neither created nor destroyed, rather it transforms from one form into another," is a pretty fair summary of how the oil market works (with apologies to physicists). The benchmark price of Brent crude has been unusually stable since the middle of December, but there has been plenty of movement in the futures strip and crack spreads. Click here to read full stories.
Feb 27 - OPEC compliance seen growing as laggards Iraq and UAE pledge action
OPEC has so far surprised the market by showing record compliance with oil-output curbs and could do so further in coming months as the biggest laggards - the United Arab Emirates and Iraq - pledge to catch up quickly with their targets. The Organization of the Petroleum Exporting Countries has pledged to curb its production by about 1.2 million barrels per day (bpd) from Jan. 1, the first cut in eight years, to boost prices and get rid of a supply glut. Click here to read full stories.
Feb 27 - As Saudis prepare to sell shares in oil giant, some have misgivings
Jamil Farsi, a prominent Saudi Arabian jewellery tycoon, made an impassioned plea to the investment minister at a meeting of the Jeddah Chamber of Commerce this month. "I don't know anything about economics but I beg you, and I beg the officials in the country, not to sell Aramco - not 5 percent, not 1 percent," he said. Click here to read full stories.
Feb 27 - Dakota protesters regroup, plot resistance to other pipelines
Opponents of the Dakota Access Pipeline who were pushed out of their protest camp this week have vowed to keep up efforts to stop the multibillion-dollar project and take the fight to other pipelines as well. The Oceti Sakowin camp in Cannon Ball, North Dakota, was cleared by law enforcement on Thursday and almost 50 people, many of them Native Americans and environmental activists, were arrested. Click here to read full stories.
Feb 27 - Canada energy sector sidelined as Big Oil chases fatter profits
Canada's energy sector has fallen out of favor with international oil majors, who are scaling back ambitions and walking away from reserves in the ground there to focus on lower-cost and higher-margin opportunities elsewhere. Billion-dollar bets on Canada's oil sands went sour this week for Exxon Mobil Corp and Conoco Phillips. Between them, the two companies erased from their books nearly 5 billion barrels of bitumen, the heavy, viscous oil found under Alberta's boreal forest. This has wiped about $250 billion worth of oil from their reserves. Click here to read full stories.
Feb 24 - Oil sold out of tanker storage in Asia as market slowly tightens
Traders are selling oil held in tankers anchored off Malaysia, Singapore and Indonesia in a sign that the production cut led by OPEC is starting to have the desired effect of drawing down bloated inventories. Yet in the short-term, the crude released from tankers will weigh on markets and possibly undermine OPEC's goal of achieving a balanced market by mid-2017. Click here to read full stories.
Feb 24 - Traders drain pricey U.S. oil storage as OPEC deal bites
Traders are turning the spigots to drain the priciest storage tanks holding U.S. crude stockpiles as strengthening markets make it unprofitable to store for future sale and cuts in global production open export opportunities. That could signal the beginning of the end for a two-year trade play that came about during an international price war and global oil glut. It is also what the world's largest oil exporters wanted to see when they agreed last year to work together in a historic supply cut to end the glut. Click here to read full stories.
Feb 24 - U.S. crude oil stocks build for seventh straight week - EIA
U.S. crude oil stockpiles rose last week for a seventh straight week but less than forecast, while gasoline inventories fell far more than expected as refineries cut output, the Energy Information Administration said on Thursday. Crude inventories rose 564,000 barrels in the week to Feb. 17, compared with analysts' expectations for an increase of 3.5 million barrels, the EIA said. Click here to read full stories.
Feb 24 - Saudi regains top oil supplier spot to China in Jan - customs
Saudi Arabia regained its spot as top crude oil supplier to China in January, with shipments up 18.9 percent from a year ago to 5.03 million tonnes, or 1.18 million barrels per day, according to data from the Chinese General Administration of Customs on Friday. Angola stood second with shipments up 63.5 percent from a year ago to 4.95 million tonnes, or 1.17 million bpd, while Russia came in third with volumes up 36.5 percent from a year ago to 4.6 million tonnes, or 1.08 million bpd, the data showed. Click here to read full stories.
Feb 24 - U.S. shale revival likely to cap oil price gains: Kemp
U.S. shale producers are growing production again, renewing the challenge to OPEC’s market share and potentially limiting further increases in oil prices during 2017/18. U.S. crude and condensate production increased in both October and November, the first back to back increases since early 2015, according to the U.S. Energy Information Administration. Click here to read full stories.
Feb 24 - Arrests among dwindling demonstrators as Dakota pipeline camp cleared
Dozens of armed law enforcement officials swept through a protest camp near the site of the Dakota Access pipeline Thursday, clearing the camp that for months served as a base of opposition to the multi-billion dollar project. About 50 police in riot gear, aided by National Guardsmen, moved slowly through the camp in Cannon Ball, North Dakota, checking structures for any of the several dozen protesters who had stayed beyond the Wednesday deadline to evacuate. Click here to read full stories.
Feb 23 - OPEC cuts, weak freight rates help traders profit on Asia crude routes
Oil traders from around the world, including the United States, Britain and Brazil, have tripled their sales to Asia as they take advantage of an emerging supply gap following OPEC-led production cuts announced late last year. Around 30 supertankers have this month made long-haul trips to ship crude oil from the Americas, the North Sea and the Mediterranean to refineries across Asia, the world's biggest and fastest growing consumer, data extracted from Thomson Reuters Oil Research and Forecasts shows. Click here to read full stories.
Feb 23 - Dakota pipeline protesters face police standoff, deadline passes
Several dozen demonstrators, the last holdouts from a mass protest of the Dakota Access Pipeline, faced off against riot police on Wednesday as they defied a deadline to end their months-long occupation of an encampment on federal land. Police arrested a handful of protesters who confronted them with taunts late in the day outside the camp entrance, then retreated as tensions mounted in the standoff, about 40 miles south of Bismarck, the state capital. State officials said about 10 arrests were made throughout the day. Click here to read full stories.
Feb 23 - Malaysia's Petronas, Saudi Aramco to sign deal on RAPID refinery project
Malaysia's state oil firm Petroliam Nasional Bhd and Saudi Aramco are expected to sign an agreement to collaborate in Malaysia's Refinery and Petrochemical Integrated Development project, two industry sources said on Wednesday. Petronas and Saudi Aramco, the state-owned oil company of Saudi Arabia, appear to be closer to agreeing to terms after sources told Reuters last month that Aramco was suspending a planned partnership in RAPID, a $27 billion refining and petrochemical complex in Malaysia's southern state of Johor. Click here to read full stories.
Feb 23 - Russia asks energy companies to provide PR info ahead of election
The Russian government summoned energy companies last week to give it advance notice about developments that could influence public opinion in the period up to May next year, when President Vladimir Putin's term ends. The meeting suggests that Russia's government has enlisted firms to help plan its public relations strategy ahead of the presidential election, due to take place in March 2018 with a second round if needed the following month. Click here to read full stories.
Feb 23 - Mexico presidential frontrunner might halt new energy contracts - adviser
Mexican presidential hopeful Andres Manuel Lopez Obrador might halt new oil and gas privatization contracts and would review existing ones if he won the 2018 election, a top adviser said, in a sign the leftist could try to freeze Mexico's energy market reform. Lopez Obrador, frontrunner in polls for the 2018 race, fought the overhaul of Mexico's state-run energy sector by the current government, saying the move to open the industry to private producers was anti-constitutional. Click here to read full stories.
Feb 23 - Exxon revises down oil and gas reserves by 3.3 billion barrels
U.S. oil major Exxon Mobil Corp has revised down its proved crude reserves by 3.3 billion barrels of oil equivalent as a result of low oil prices throughout 2016, a company filing showed on Wednesday. The de-booking includes the entire 3.5 billion barrels of bitumen reserves at the Kearl oil sands project in northern Alberta, operated by Imperial Oil, a Calgary-based company in which Exxon has a majority share. Click here to read full stories.
Feb 22 - Goldman says global crude stocks likely to keep falling
Goldman Sachs expects global crude oil inventories to keep falling due to production cuts and strong growth in demand, although stocks are likely to rise in the United States. "We do not view the recent U.S. builds as derailing our forecast for a gradual draw in inventories, with in fact the rest of the world already showing signs of tightness," analysts at the bank said in a note dated Feb. 21. Click here to read full stories.
Feb 22 - OPEC chief sees higher compliance with oil cut, says confidence returning
OPEC and outside producers including Russia will boost compliance with agreed oil output curbs in a bid to clear a supply glut that has weighed on prices, the group's secretary general said on Tuesday. OPEC Secretary General Mohammad Barkindo also said he was "cautiously optimistic" on the outlook for the oil market, almost two months into the group's supply cut deal with Russia and other producers. Click here to read full stories.
Feb 22 - China's Sinochem may sell 40 pct stake in Brazil's Peregrino oilfield - sources
China's Sinochem is exploring the sale of its 40 percent stake in Brazil's Peregrino offshore oilfield, four people familiar with the matter told Reuters, a deal that could see the state-owned conglomerate walk away from what was once touted as a key overseas asset because of historically low oil prices. The oil and chemicals firm agreed to buy the stake from Norway's Statoil for $3.07 billion in 2010 - beating out a raft of Chinese rivals chasing high-quality assets. The Norwegian giant owns the other 60 percent of Peregrino, the largest heavy oilfield it operates outside its home patch. Click here to read full stories.
Feb 22 - Saudi Aramco selects lead underwriters for $100 bln IPO -WSJ
Oil company Saudi Aramco has selected JPMorgan Chase & Co, Morgan Stanley, and HSBC Holdings Plc as lead underwriters for its planned initial public share offering, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. The listing of Aramco is expected to be the world's biggest initial public offering and could raise up to $100 billion. The IPO is the centrepiece of the Saudi government's ambitious plan, known as Vision 2030, to diversify the economy beyond oil. Click here to read full stories.
Feb 22 - Pipeline fights move from Dakota prairie to Louisiana bayous
When Hope Rosinski's father gave her a six-acre plot in Louisiana more than a decade ago, she was surprised to find oil and gas pipelines crisscrossing the property. Pipeline companies later secured her permission for two more lines, one of which has since caused flooding and consistently leaves her land saturated. Click here to read full stories.
Feb 22 - Brent market tightens sharply as traders eye stock draws, possible squeeze: Kemp
Brent futures prices for the second quarter have risen strongly in recent days suggesting traders expect the oil market to move into deficit earlier or that a squeeze is underway. Calendar spreads for nearby months have tightened sharply since the middle of February to a level that will make storing oil outside the United States unprofitable from the start of the second quarter onwards. Click here to read full stories.
Feb 22 - U.S. refiners cut output as gasoline glut hurts profits
U.S. refiners are cutting output to reverse slumping profit margins due to record high inventories ahead of the critical summer driving season. Profits for making gasoline have hit their lowest levels for a year as higher prices at the pump combine with the seasonal lull in demand from motorists to cut consumption and push up inventories. Click here to read full stories.
Feb 22 - New U.S. environmental chief says agency can also be pro-jobs
The new head of the U.S. Environmental Protection Agency said on Tuesday that America need not choose between jobs and the environment, in a note to the energy industry, as the White House prepares executive orders that could come as soon as this week to roll back Obama-era regulation. "I believe that we as an agency, and we as a nation, can be both pro-energy and jobs, and pro-environment," Scott Pruitt. Click here to read full stories.
Feb 22 - Freepoint Commodities expands in Asia to feed China demand for oil, metals
U.S.-based Freepoint Commodities said on Tuesday it has expanded its presence in Asia, hiring 25 traders and support staff in the last several months with an eye on opportunities in metals, oil and agricultural markets to meet demand in China. The expansion puts Freepoint in direct competition with major Swiss commodity traders Glencore and Trafigura, who are also expanding their businesses in Asia. Click here to read full stories.
Feb 21 - After OPEC cuts heavy oil, China teapot refiners pull U.S. supply to Asia
Chinese independent, or teapot, refiners are bringing in rare cargoes of North American heavy crude in a new long-distance flow that traders say has only been made possible by OPEC's output cuts and ample supplies in Canada and the United States. In April, at least 1 million barrels of the heavy crude Mars, pumped from the U.S. Gulf of Mexico, are expected to land in China's Shandong province and 1 million barrels of a second unidentified heavy grade will arrive in China, trade and shipping sources said last week. This follows the arrival in January of 600,000 barrels of U.S. Gulf Blend, a heavy crude made up of a blend of various U.S. and Canadian grades loaded onto ships on the U.S. Gulf Coast, according to the sources and shipping data.Click here to read full stories.
Feb 21 - Platts revamps Brent oil benchmark for first time in a decade
Oil pricing agency S&P Global Platts is making the first major overhaul of its Brent oil price assessment in a decade, to address falling supplies of the crude oil grades underpinning the benchmark that prices most of the world's oil. A decline in supply from North Sea fields has led to concerns that physical volumes could become too thin and hence at times could be accumulated in the hands of just a few players, making the benchmark vulnerable to manipulation.Click here to read full stories.
Feb 21 - Hedge funds bet big on oil as OPEC gives them a free put option: Kemp
Hedge funds and other money managers have amassed a very large bullish position in crude oil futures and options without so far having much impact on oil prices. Hedge funds raised their combined net long position in the three main derivative contracts linked to Brent and WTI by another 51 million barrels in the week to Feb. 14. Click here to read full stories.
Feb 21 - Petronas considers $1 bln stake sale in offshore gas project-sources
Malaysian state-owned oil and gas firm Petronas is aiming to sell a large minority stake in a prized upstream local gas project for up to $1 billion as it seeks to raise cash and cut development costs, two sources familiar with the matter said. Petroliam Nasional Bhd (Petronas) is looking to sell a stake of as much as 49 percent in the SK316 offshore gas block in Malaysia's Sarawak state, the sources told Reuters, a move that would be among its first major recent sales as it grapples with oil prices that have slumped by half over two-and-a-half years. Click here to read full stories.
Feb 21 - Singapore says carbon tax likely to include oil refineries
A tax proposed by Singapore on emissions of greenhouse gases will likely cover the city-state's oil refineries, a government official said on Tuesday, driving up costs in one of the region's key energy hubs. Singapore said in budget proposals announced on Monday that a carbon tax on direct emitters was set to be introduced from 2019. Click here to read full stories.
Feb 21 - Rosneft-led consortium plans to complete Essar acquisition next month - sources
A consortium led by Russian oil major Rosneft plans to finally complete its $12.9 billion acquisition of India's Essar Oil next month, two Russian sources close to the deal told Reuters. Acquiring the refiner will give state-owned oil Rosneft access to India, one of the world's fastest-growing energy markets. The deal was announced to fanfare in October but has still not closed. Click here to read full stories.
Feb 21 - Saudi favors New York for Aramco IPO, also considers Toronto, London - WSJ
Saudi Arabia is favoring New York to list state oil giant Saudi Aramco , while also considering London and Toronto for the prospect of floating the firm, the Wall Street Journal reported on Monday. Saudi officials also talked to exchanges in Singapore, Hong Kong, Tokyo and Shanghai but are unlikely to pursue listing in those places, the newspaper said, citing people familiar with the matter. Click here to read full stories.
Feb 21 - Iraq, Iran consider building pipeline to export Kirkuk crude
Iraq and Iran signed a memorandum of understanding on Monday to study the construction of a pipeline to export crude oil from the northern Iraqi fields of Kirkuk via Iran, the Iraqi oil ministry said in a statement. The agreement, signed in Baghdad by the oil ministers of the two countries, also calls for a commission to solve a conflict about joint oilfields and the possible transportation of Iraqi crude to Iran's Abadan refinery, it said. Click here to read full stories.
Feb 20 - Iran sees oil output reaching 4 mln bpd by April, aims for 4.7 mln bpd
Iran expects its oil production to reach 4 million barrels per day by mid-April, and plans to drill 500 new wells over the next five years to raise output to 4.7 million bpd, a senior oil official was quoted as saying on Saturday. Iran said in January its daily output was close to 3.9 million barrels.Click here to read full stories.
Feb 20 - Saudi Arabia debating shape of Aramco ahead of IPO - sources
Saudi Arabia is considering two options for the shape of Saudi Aramco when it sells shares in the national oil giant next year: a global industrial conglomerate, and a specialised international oil company, industry and banking sources said. The listing of Aramco, expected to be the world's biggest initial public offer and raise tens of billions of dollars, is a centrepiece of the government's ambitious plan - known as Vision 2030 - to diversify the economy beyond oil.Click here to read full stories.
Feb 20 - Sportsmen fight Trump energy plans alongside environmental left
When Republican Congressman Jason Chaffetz of Utah introduced legislation last month to transfer about 3 million acres of federally-held public land to state control, he was bombarded by thousands of angry phone calls, letters and social media posts urging him to back off. The pressure came not only from liberal environmentalists – but also from gun-toting, often conservative outdoors enthusiasts who are central to Chaffetz’ political base. Both camps fear that transferring federal lands to state control could open them up to drilling and coal mining rather than recreation and preservation.Click here to read full stories.
Feb 20 - Speculators raise U.S. crude oil net longs setting new record - CFTC
Hedge funds and other money managers raised their net long U.S. crude futures and options positions in the week to February 14 to a new record high, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. The speculator group raised its combined futures and options position in New York and London by 32,945 contracts to 421,926 during the period, surpassing the previous record of 412,380 set late last month.Click here to read full stories.
Feb 20 - U.S. shale oil braces for the unfamiliar in 2017: inflation
U.S. shale producers are facing their first production cost increase in five years in 2017 as industry activity picks up and energy service providers hike fees to take a bigger share of the profits generated by higher oil prices. Drilling innovations over the past decade have generated a dizzying reduction in the cost of pumping oil from shale formations across the United States - the world's largest energy consumer - triggering an energy revolution and a production boom.Click here to read full stories.
Feb 17 - Big bets on oil remain stalwart, despite bearish signals
Oil traders for the last two weeks have shrugged off reports that U.S. stockpiles are brimming at their largest levels ever recorded, as the market continues to bet that crude prices will climb higher. Oil has maintained its buoyancy because the market is betting that cuts by the Organization of the Petroleum Exporting Countries (OPEC) will largely rebalance the oil market, despite continued production increases from shale formations in the United States. Click here to read full stories.
Feb 17 - OPEC could extend or deepen supply cut if oil glut persists - sources
OPEC could extend its oil supply-reduction pact with non-members or even apply deeper cuts from July if global crude inventories fail to drop to a targeted level, OPEC sources said. The group, together with Russia and other non-OPEC oil producers, agreed late last year to cut output by 1.8 million barrels per day (bpd) to reduce a price-sapping glut. The deal took effect on Jan. 1 and lasts six months. Click here to read full stories.
Feb 17 - As U.S. shale oil activity surges, sand could be in short supply
Demand for frac sand has surged in recent weeks as U.S. producers rush back to the oil patch, stoking concern that supplies of the key component of drilling may not be able to keep up with demand later this year, industry professionals said. The growing appetite for frac sand comes as oil producers have added hundreds of rigs in U.S. oil fields from Texas to North Dakota. Last week, the U.S. rig count hit 591, the highest since October 2015 and nearly double the figure seen seven months ago. Click here to read full stories.
Feb 17 - U.S. diesel demand poised for boost from freight recovery: Kemp
Freight movements across the United States are showing signs of sustained growth, which should help push domestic diesel consumption higher this year. Freight was hit hard in 2015/16 by the switch from coal to gas-fired power generation, the slump in oil and gas drilling, and more generally by an unplanned build up in business inventories. Click here to read full stories.
Feb 17 - TransCanada files Keystone XL route application in Nebraska
TransCanada Corp filed an application with Nebraska authorities on Thursday to route its Keystone XL pipeline through the state, saying it expected a decision this year for this crucial leg of the $8 billion project that had been stymied by environmental groups and other opponents. U.S. President Donald Trump cleared the way for the project at the federal level last month, reversing an earlier decision by former President Barack Obama, who had blocked it over environmental concerns. Click here to read full stories.
Feb 16 - Belarus buys Iran crude oil to replace Russian barrels
Belarus's Bel Oil has bought 80,000 tonnes of Iranian Light and Heavy crude oil from National Iranian Oil Company (NIOC) for loading in February, four sources told Reuters. It is the first time Belarus has bought Iranian crude oil. The country is looking for alternative crude oil supplies after Russia cut exports to Belarus in the second half of 2016 and is threatening further cuts this year over a row about gas pricing between Minsk and Moscow. Click here to read full stories.
Feb 16 - U.S. crude and gasoline stockpiles hit record highs - EIA
U.S. crude oil and gasoline inventories soared to record highs last week as refineries cut output and gasoline demand softened, the Energy Information Administration said on Wednesday. Crude inventories rose 9.5 million barrels in the week ended Feb. 10, nearly three times more than analysts' expectations, boosting stocks - not including the U.S. Strategic Petroleum Reserve - to an all-time record at 518 million barrels. Click here to read full stories.
Feb 16 - Proposed border tax could harm U.S-Mexico energy trade -official
A border tax floated by aides to U.S. President Donald Trump is "not a good idea" for bilateral energy trade, a senior Mexican official said on Wednesday, also confirming that Mexico's second-ever deepwater oil auction would happen this year. A 20 percent border tax on Mexican imports to the United States has been pitched by the Trump administration as one way to force Mexico to pay for a new border wall, a top campaign promise. Click here to read full stories.
Feb 16 - Governor orders evacuation of Dakota pipeline protest camp
The governor of North Dakota ordered protesters on Wednesday to evacuate a demonstration camp near the site of the Dakota Access Pipeline in the latest move to clear the area that has served as a base for opposition to the multibillion dollar project. Republican Doug Burgum ordered demonstrators to leave the camp located on land owned by the U.S. Army Corps of Engineers by Feb. 22, citing safety concerns that have arisen due to accelerated snowmelt and rising water levels of the nearby Cannonball River. Click here to read full stories.
Feb 16 - Republican Senator Collins opposes Pruitt for U.S. EPA chief
Republican U.S. Senator Susan Collins of Maine said on Wednesday she would oppose Oklahoma Attorney General Scott Pruitt's nomination to head the Environmental Protection Agency, citing his numerous lawsuits against the agency. Pruitt is scheduled to face a Senate confirmation vote on Friday. Unless more Republicans join Collins in opposing Pruitt, his nomination is likely to be approved. Republicans hold 52 of the 100 seats in the chamber and Vice President Mike Pence could cast the deciding vote in case of a tie. Click here to read full stories.
Feb 16 - Argentina could double percentage of ethanol in fuels - official
Argentina in the next two to three years could double the proportion of ethanol used in gasoline from the current 12 percent of the blend, a government official told Reuters. If the government goes forward with the increase, the South American agricultural country's annual consumption of ethanol, composed of corn or sugar cane, would total about 2 million cubic meters (70.6 million cubic feet) annually. The move could help the country reduce its energy deficit. Click here to read full stories.
Feb 15 - Shell, Eni ask Nigerian court to lift forfeiture on oilfield - documents
Royal Dutch Shell and Italy's Eni have asked a Nigerian court to lift a temporary forfeiture of a long-disputed oilfield, the firms said on Tuesday. A Nigerian court last month ordered the temporary forfeiture of assets and the transfer of operations of the OPL 245 field owned by Shell and Eni, among others, to the federal government. Click here to read full stories.
Feb 15 - Milestones on the oil market's road to rebalancing: Kemp
Crude oil stockpiles are expected to empty significantly during the third quarter as continued production restraint from OPEC interacts with the seasonal increase in consumption. OPEC and non-OPEC countries are committed to reducing production by an average of nearly 1.8 million barrels per day in the first six months of 2017, with an option to extend cuts for a further six months. Click here to read full stories.
Feb 15 - Singapore's IEG to start trading crude oil, tap China demand
Singapore-based trading start-up International Energy Group (IEG) this year plans to expand its portfolio to crude oil from products such as gasoline and gasoil, looking to tap growing Chinese demand. World No.2 oil consumer China posted record crude import growth in 2016 on demand from independent refiners, with shipments expected to increase again this year. Click here to read full stories.
Feb 15 - Native tribes seek judgment against Army Corps over Dakota Access
The Native American tribes looking to stop the Dakota Access pipeline asked a judge to find that the Army Corps violated federal regulations when it recently granted the last permit needed for the project to be finished, according to a Tuesday court filing. In a filing in U.S. District Court in Washington, Jan Hasselman, a lawyer with Earthjustice who represents the tribes, said the court should rule, in a partial summary judgment, that the U.S. Army Corps of Engineers violated the National Environmental Policy Act and Clean Water Act by issuing the final permit. Click here to read full stories.
Feb 15 - EU gets wake-up call as Gazprom eyes rival TAP pipeline
Gazprom's bid to tap into a pipeline meant to wean Europe off Russian gas threatens to undermine a pillar of European energy policy and slow plans to develop rival deposits in the east Mediterranean. As the European Union struggles against the "iron embrace" of Russian pipelines, it has made opening a new Southern Gas Corridor to carry gas from Azerbaijan by 2020 a priority. The 10 billion cubic metre (bcm)-capacity Trans Adriatic Pipeline (TAP) is the project's end piece, joining up with the Trans Anatolian Pipeline at the Turkish border, then crossing Greece and Albania to reach Italy. Click here to read full stories.
Feb 14 - OPEC reports big Saudi oil cut, boosting compliance with deal
Top OPEC oil producer Saudi Arabia made a large cut in its crude output in January to support prices and lessen a glut, helping boost compliance with the group's supply-reduction deal to a record high of more than 90 percent. The Organization of the Petroleum Exporting Countries is curbing its output by about 1.2 million barrels per day (bpd) from Jan. 1, the first cut in eight years. Russia and 10 other non-OPEC producers agreed to cut half as much. Click here to read full stories.
Feb 14 - U.S. shale oil output to rise in March to highest in 10 mths -EIA
U.S. shale oil production for March is expected to rise by the most in five months to its highest rate since May last year, government data showed on Monday, as energy companies boost drilling on the back of crude prices that are hovering over $50 a barrel. March oil production is forecast to rise by nearly 79,000 barrels per day to 4.87 million bpd, according to the U.S. Energy Information Administration's drilling productivity report. That would be the biggest monthly rise since October. Click here to read full stories.
Feb 14 - Judge denies tribes' request to block final link in Dakota pipeline
A U.S. federal judge on Monday denied a request by Native American tribes seeking to halt construction of the final link in the Dakota Access Pipeline, the controversial project that has sparked months of protests by activists aimed at stopping the 1,170-mile line. At a hearing, Judge James Boasberg of the U.S. District Court in Washington, D.C., rejected the request from the Standing Rock Sioux and Cheyenne River Sioux tribes, who argued that the project would prevent them from practicing religious ceremonies at a lake they contend is surrounded by sacred ground.Click here to read full stories.
Feb 13 - OPEC figures show over 90 pct compliance with supply cut - sources
OPEC has delivered more than 90 percent of pledged oil output curbs in January, according to figures the exporter group uses to monitor its supply, making a strong start to implementation of its first production cut in eight years. The Organization of the Petroleum Exporting Countries is cutting its crude output by about 1.2 million barrels per day (bpd) from Jan. 1 to prop up oil prices and reduce a supply glut. Russia and 10 other non-OPEC countries agreed to cut half as much. Click here to read full stories.
Feb 13 - Oil overhang points to need for extended OPEC output cuts
An OPEC-led production cut may well be accelerating a drawdown in global oil stocks that began last year, but implementing the reduction for just six months means the producer group will fall short of achieving its objective of rebalancing the market. The Organization of the Petroleum Exporting Countries and non-OPEC producers in December reached their first deal since 2001 to curtail oil output jointly, by around 1.8 million barrels per day. Click here to read full stories.
Feb 13 - Gasoline sails away from American drivers as East Coast stocks swell
Traders are preparing to export cargoes of coveted gasoline from the U.S. East Coast after months of heavy importing and local production swamped the region. At least two cargoes of gasoline are lined up to sail to West Africa, according to three market sources, with others eyeing their own shipments. Click here to read full stories.
Feb 13 - Brent spreads imply big draw down in crude stocks after June: Kemp
Brent futures prices indicate the crude market is expected to move into a deficit with a significant draw down in stocks from the middle of the year. Brent futures are trading close to full contango or full carry through until June but thereafter the calendar spreads are no longer wide enough to cover the cost of storing and financing oil stocks. Click here to read full stories.
Feb 13 - Speculators cut U.S. crude oil net long from record high -CFTC
Money managers cut their net long U.S. crude futures and options positions from a record high in the week to Feb. 7, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. The speculator group cut its combined futures and options position in New York and London by 23,397 contracts to 388,983 during the period. The managed net position remained the third-highest on record. Click here to read full stories.
Feb 13 - U.S. boosts monthly rate of oil rig additions to most since 2012 - Baker Hughes
U.S. energy companies accelerated the rate of growth in oil rigs added over the past four weeks by the most since 2012 as drillers take advantage of a rise in crude prices since OPEC agreed to cut supplies in late November. Drillers added eight oil rigs in the week to Feb. 10, bringing the total count up to 591, the most since October 2015, energy services firm Baker Hughes Inc said on Friday. Click here to read full stories.
Feb 10 - Construction resumes on Dakota pipeline despite tribe's challenge
The company building an oil pipeline that has fueled sustained public protests said on Thursday it has started drilling under a North Dakota lake despite a last-ditch legal challenge from a Native American tribe leading the opposition. Energy Transfer Partners LP is building the $3.8 billion Dakota Access Pipeline (DAPL) to move crude from the Northern Plains to the Midwest and then on to the Gulf of Mexico, now saying it could be operational by early May. Click here to read full stories.
Feb 10 - Venezuela falls behind on oil-for-loan deals with China, Russia
Venezuela's state-run oil company, PDVSA, has fallen months behind on shipments of crude and fuel under oil-for-loan deals with China and Russia, according to internal company documents reviewed by Reuters. The delayed shipments to such crucial political allies and trading partners - which together have extended Venezuela at least $55 billion in credit - provide new insight into PDVSA's operational failures and their crippling impact on the country's unraveling socialist economy. Click here to read full stories.
Feb 10 - OPEC supply surge has left oil market nursing a hangover: Kemp
OPEC members have reportedly achieved a high level of compliance with the production cuts announced in November but their efforts to ramp up output ahead of the accord have left the market with a nasty hangover from 2016. Compliance has been estimated at between 80 percent and 100 percent by the major reporting agencies, as deeper cuts by Saudi Arabia and some of its allies make up for poorer compliance by other members. Click here to read full stories.
Feb 10 - U.S. gasoline tax hike may dent fuel demand in oversupplied market
A potential increase in gasoline taxes in several U.S. states could put a dent in demand at the pumps and mark another setback for a market already flooded with excess fuel. States where gasoline taxes in some cases have not risen in decades, are discussing hikes. Conditions might be ripe for the proposed increases to win approval in state legislatures, tax experts said this week. Click here to read full stories.
Feb 09 - Qatar says oil market can cope with higher shale output
Higher oil prices may boost shale oil production but the global oil market can accommodate this as demand remains healthy, Qatar's energy minister said on Wednesday. U.S. energy companies have been adding oil rigs and redeploying cash and workers, cautiously confident the energy sector has turned a corner after the election of President Donald Trump and a commitment signed by OPEC to curb production in the first half of 2017. Click here to read full stories.
Feb 09 - U.S. crude stocks surge, gasoline draws down unexpectedly - EIA
U.S. crude stockpiles surged last week, driven by a big rise in imports and inventory build at the key oil hub at Cushing, Oklahoma, while gasoline drew down unexpectedly, the Energy Information Administration said on Wednesday. Crude inventories were up 13.8 million barrels in the week to Feb. 3, compared with expectations for an increase of 2.5 million barrels. Click here to read full stories.
Feb 09 - U.S. refiners give mixed reviews of GOP-backed border tax plan
U.S. independent refiners like Phillips and Valero have offered mixed support for Republican efforts to boost American jobs and products, expressing concerns about how a border tax on imports could upend the energy ecosystem. The comments by refining executives in a wave of recent earnings calls offer the first glimpse of the balancing act U.S. refiners must perform under the Trump Administration: Applaud pro-business proposals while raise alarms about protectionist policies that may hurt American consumers - and perhaps their own balance sheets. Click here to read full stories.
Feb 09 - North Dakota tribe says running out of options to stop pipeline
The leader of a Native American tribe attempting to block the Dakota Access oil pipeline said on Wednesday the Standing Rock Sioux Tribe may have exhausted legal options to stop the project after the company building it won federal permission to tunnel under the Missouri River. Legal experts agreed the tribe faces long odds in convincing any court to halt the $3.8 billion project led by Energy Transfer Partners LP, which could now begin operation as soon as June. Click here to read full stories.
Feb 08 - Oil benchmark futures play back in vogue as U.S. debates import tax
After several years of neglect, oil investors are again betting heavily on the price difference between two global benchmarks - Brent and U.S. crude futures - due to a push in Washington to impose a controversial import tax. At the start of this decade, the play on the spread between North Sea Brent and U.S. West Texas Intermediate (WTI) contracts futures earned traders and banks hundreds of millions of dollars, provided they played the high-stakes game right. Click here to read full stories.
Feb 08 - China's oil demand growth at three-year low in 2016
China's 2016 oil demand grew at the slowest pace in at least three years, Reuters' calculations based on official data showed, the latest indication that demand from the world's largest energy consumer has diminished. China's implied oil demand growth eased to 2.5 percent in 2016, down from 3.1 percent in 2015 and 3.8 percent in 2014, Reuters' data showed, led by a sharp drop in diesel consumption and as gasoline usage eased from double-digit growth. Click here to read full stories.
Feb 08 - Hedge fund positioning in oil looks stretched: Kemp
Hedge funds have accumulated a large net long position in crude oil futures and options but the size of the position and its implications for future movements in prices are disputed. Hedge funds and other money managers had accumulated a net long position in the three main futures and options contracts linked to Brent and West Texas Intermediate (WTI) equivalent to 885 million barrels by Jan. 31. Click here to read full stories.
Feb 08 - Controversial Dakota pipeline to go ahead after Army approval
The U.S. Army will grant the final permit for the controversial Dakota Access oil pipeline after an order from President Donald Trump to expedite the project despite opposition from Native American tribes and climate activists. In a court filing on Tuesday, the Army said that it would allow the final section of the line to tunnel under North Dakota's Lake Oahe, part of the Missouri River system. This could enable the $3.8 billion pipeline to begin operation as soon as June. Click here to read full stories.
Feb 08 - U.S. crude output to grow less than expected in 2017 - EIA
U.S. crude output will rise 100,000 barrels per day to 8.98 million barrels in 2017, 0.3 percent less than previously forecast, due to slower offshore growth in the U.S. Gulf of Mexico, according to a monthly U.S. government report released on Tuesday. U.S. shale producers have reacted quickly and increased drilling to take advantage of the rise in crude prices since the Organization of the Petroleum Exporting Countries (OPEC) began cutting output in an agreement that took effect on Jan. 1. Click here to read full stories.
Feb 07 - Iran says U.S. sanctions stop American oil firms taking part in projects
Iran has imposed no restrictions on U.S. oil firms willing to participate in energy projects in the country but American sanctions make such cooperation impossible, Iran's deputy oil minister said on Monday. "Iran has not imposed any restrictions on the U.S. companies, but they cannot participate in our (oil and gas) tenders due to the U.S. laws," Amir Hossein Zamaninia, deputy oil minister for trade and international affairs, was quoted as saying by state news agency IRNA. Click here to read full stories.
Feb 07 - Shell expects to split Motiva assets with Saudi Aramco in Q2
Shell Oil Co, the U.S. unit of Royal Dutch Shell Plc, said on Monday it expects to divide the refineries and other assets of the Motiva Enterprises joint venture with co-owner Saudi Aramco in the second quarter of 2017. "We are pleased with the progress we have made to date, and anticipate completion of the transaction in Q2 2017," Shell spokesman Ray Fisher said in an email. "The April 1 date is a target that the internal project teams are working toward." Click here to read full stories.
Feb 07 - Oil becoming a crowded trade as hedge funds pile in: Kemp
Hedge funds have accumulated a record bullish position in crude futures and options, betting on further price rises, but the lopsided nature of the positioning has become a key source of risk in the oil markets. Hedge funds and other money managers had accumulated a record net long position in the three main Brent and West Texas Intermediate (WTI) futures and options contracts equivalent to 885 million barrels by Jan. 31. Click here to read full stories.
Feb 07 - U.S. could grant final permit for Dakota pipeline as soon as Friday - govt lawyer
The U.S. Army secretary could make a decision on the final permit needed to complete the controversial Dakota Access Pipeline as soon as Friday, the government's lawyer told a Washington, D.C., court on Monday. The Army Corp of Engineers told the court it has submitted its recommendation to Robert Speer, the acting secretary of the Army, on whether it needs to complete a full environmental review before it can grant the final permit allowing work to start on a contested tunnel under a lake. The review was requested in December by former President Barack Obama. Click here to read full stories.
Feb 07 - Israel's Delek expands in North Sea with Ithaca Energy deal
Israel's Delek Group has agreed to buy Ithaca Energy Inc in a deal valuing the North Sea oil producer's equity at $646 million and building on Delek's expansion in the North Sea ahead of a planned London listing. The deal follows a number of transactions in the British North Sea after a rise in oil prices above $50 a barrel has given confidence to buyers and sellers to agree on valuations. Click here to read full stories.
Feb 06 - Traders rush to ship U.S. oil as export window to Asia opens
Oil majors and trading houses are set to ship an unprecedented volume of U.S. crude oil to Asia in coming weeks, boosting already high flows to the region due to higher prices from OPEC production cuts. Traders have estimated that some 700,000 to 900,000 barrels per day is set to leave the United States in February, with the majority of the cargoes headed to Asia. Click here to read full stories.
Feb 06 - Iran to hold tender for oil, natural gas fields in mid-February
Iran will launch new contracts to develop oil and natural gas fields in mid-February in the country's first such tender since the lifting of international sanctions a year ago, an oil official said on Saturday. "The plan was to hold the first tender at the end of January, but it will be held with 15 days of delay on February 15," Ali Kardor, managing director of the National Iranian Oil Company (NIOC), was quoted as saying by ISNA news agency. Click here to read full stories.
Feb 06 - Flood of light crude to Asia may push prices of regional grades lower
A flood of light crude oil set to arrive in Asia will likely push prices for regional grades lower, crimping revenues and potentially creating a supply surplus since local refiners are ill-equipped to process all of the flow. Price differentials for Malaysian crude grades, particularly the light Kimanis grade, should decline as a surge in cargoes from the United States and Europe is due in Asia in March and April, said multiple traders who participate in the Asian regional crude market. Light crudes are grades with a lower density and typically produce more gasoline and diesel fuel when refined. Click here to read full stories.
Feb 06 - U.S. gasoline stocks are rising much faster than usual: Kemp
U.S. gasoline stocks are rising much faster than normal at the start of the year, threatening to leave refiners struggling to clear an overhang of motor fuel later in the year. Gasoline stockpiles rose by almost 21 million barrels during the first 27 days of 2017, compared with an average increase of less than 12 million barrels at the same time of year during the previous decade. Click here to read full stories.
Feb 06 - Hedge funds raise U.S. crude oil net longs to most on record -CFTC
Hedge funds and other speculators raised their net long U.S. crude futures and options positions in the week to Jan. 31 to the highest level on record, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. The speculator group raise its combined futures and options position in New York and London by 16,826 contracts to 412,380 during the period. Click here to read full stories.
Feb 06 - Hammer could fall on Europe's vulnerable refineries from 2018
Strong residual demand for oil products and the emergence of only a handful of new refineries will protect the profits of Europe's long struggling operations this year, but experts expect the hammer to fall on the weakest from 2018. State-of-the art new refineries in Asia and the Middle East have sharply increased the amount of oil products flowing into global markets and threaten the existence of Europe's ageing and less sophisticated units. Click here to read full stories.
Feb 03 - Citi sees oil majors carving out modest role in hedging
Citigroup said investment banks will remain the main players in hedging energy products even though oil majors are carving out a role in the sector as some banks cut their exposure. Citi, Goldman Sachs and JP Morgan are the top three banks active in commodities trading, while peers such as Barclays and Deutsche Bank have cut back following the 2007-9 financial crisis and the introduction of the Dodd-Frank regulations. Click here to read full stories.
Feb 03 - Energy sector could see favor in NAFTA talks - Canada minister
Canada's energy sector could find itself more favored than other industries when it comes time to renegotiating the North American Free Trade Agreement, Canadian Minister of Natural Resources Jim Carr said on Thursday. Carr is currently on a four-day trip to Mexico to meet his counterparts in the Mexican government and strengthen the two countries' business ties. Click here to read full stories.
Feb 03 - Magellan Midstream takes legal action against Trafigura
Pipeline and terminal operator Magellan Midstream Partners LP said on Thursday it had started legal action against Trafigura after the commodity trader said it would terminate a contract to use Magellan's condensate splitter in Corpus Christi, Texas. Trafigura is the only customer that uses the condensate splitter, under a contract it signed in 2014. Magellan said it is negotiating with Trafigura, but is also talking with other potential customers for use of the splitter. Click here to read full stories.
Feb 03 - Crackdown on bush refineries unsettles Nigeria's oil heartland
Listening for the engines of navy boats hunting illegal refineries in the swamps of Nigeria's Niger Delta, workers heat up crude oil in a tank next to a waterway. The young men are ready to abandon their bush refinery at a moment's notice. Nerves are on edge now that the military has started sending boats, jeeps and helicopters to destroy hundreds of such facilities in the country's main oil region. Click here to read full stories.
Feb 02 - As oil recovers, U.S. firms descend on the Permian Basin in West Texas
In most U.S. shale oil regions, energy firms are making strategic but cautious bets as the price of oil holds above $50 a barrel. Here in the Permian Basin of West Texas, the largest U.S. oil patch, the industry poured more than $28 billion into land acquisitions last year - more than triple what they spent in 2015. Click here to read full stories.
Feb 02 - Trump's EPA pick vote delayed in boycott by Senate Democrats
Republican U.S. senators on Wednesday delayed a committee vote on President Donald Trump's pick to head the Environmental Protection Agency after the panel's Democrats boycotted the meeting, saying that nominee Scott Pruitt doubts the science of climate change. The boycott in the Senate Environment and Public Works Committee delayed the transition to a new administrator for the agency. Senator Ben Cardin, a Democrat, said he could not support Pruitt, a Republican and the attorney general of Oklahoma, for a public health position because he "denies the sum of empirical science and the urgency to act on climate change." Click here to read full stories.
Feb 02 - U.S. crude and distillate stocks rise sharply -EIA
U.S. crude stocks rose last week, along with gasoline and distillate inventories, the Energy Information Administration said on Wednesday, as refiners continued to let stocks build in a seasonally slow season for production. Crude inventories rose 6.5 million barrels in the week to Jan. 27, far exceeding analyst expectations for an increase of 3.3 million barrels. Click here to read full stories.
Feb 02 - Activist ire rises as Dakota pipeline review begins
Native Americans and activists protesting the Dakota Access Pipeline project expressed alarm on Wednesday after federal lawmakers from North Dakota said the final permit had been granted for the project, a statement later contradicted by the Army, which issues such permits. The U.S. Army Corps of Engineers said on Wednesday it has started a review for the permit but that the easement had not been granted. Click here to read full stories.
Feb 02 - Saudi Arabia cannot escape destiny as swing producer: Kemp
Saudi Arabia has been forced to return to the role of swing producer in the oil market, despite the country’s insistence for three decades it would never play the role again. Saudi Arabia and its allies in the Gulf Cooperation Council (GCC) account for the majority of production cuts made so far under the OPEC and non-OPEC accords reached in November and December. Click here to read full stories.
Feb 02 - Iraq complies with scale, if not absolute level, of OPEC cut - sources, data
Iraq significantly reduced oil output in January, according to industry sources and export data on Wednesday, but has yet to reach levels expected by OPEC from its second largest producer. A Reuters survey on Tuesday found Iraq lowered output by 200,000 barrels per day (bpd) compared with December - almost all the 210,000 bpd reduction it was supposed to make under the deal by the Organization of the Petroleum Exporting Countries. Click here to read full stories.
Feb 01 - Dakota Access pipeline moves closer to completion - lawmakers
The U.S. Army Corps of Engineers will grant the final approval needed to finish the Dakota Access Pipeline project, U.S. Senator John Hoeven and Congressman Kevin Cramer of North Dakota said on Tuesday. However, opponents of the $3.8 billion project, including the Standing Rock Sioux Tribe, whose reservation is adjacent to the route, claimed that Hoeven and Cramer were jumping the gun and that an environmental study underway must be completed before the permit was granted. Click here to read full stories.
Feb 01 - Glencore challenges Trafigura by ramping up Russian oil
Glencore has become the largest buyer of Russian Urals oil from Rosneft, overtaking rival Trafigura after taking a stake in Russia's biggest oil major last month, a Reuters analysis of trade data showed. Ivan Glasenberg, Glencore’s chief executive, said last week during a meeting with Russian President Vladimir Putin that the company was studying cooperation with Rosneft in a number of areas, including supplies to India and China. Click here to read full stories.
Feb 01 - After slump in energy deals, hints of recovery: EY
A sharp pick up in deal-making in the oil and gas sector in recent weeks has scope to accelerate as oil prices recover, advisory company EY said in a report. While the number of deals in 2016 dropped year-on-year by 27 percent, their value rose to $395 billion from $340 billion in 2015. Click here to read full stories.
Feb 01 - Lured by discounts, U.S. East Coast refiners snatch up Brazilian crude
U.S. East Coast refiners are on a Brazilian crude buying spree, market sources say, displacing West African cargoes as producers such as Royal Dutch Shell and Norway's Statoil sell rising output from fields off Brazil's coast. The uptick in Brazilian imports into the region comes as the only Latin America producer to increase output in recent years seeks markets close to home for the oil it is pumping from the massive offshore subsalt oilfields under development. Click here to read full stories.
Feb 01 - Saudi Arabia resumes swing producer role in oil: Kemp
Saudi Arabia and its Gulf allies have accounted for almost all the production cuts delivered by OPEC so far as the kingdom resumes its familiar role as swing producer. Saudi Arabia cut production by 564,000 barrels per day (bpd) in January, or 16 percent more than the 486,000 bpd reduction it pledged in November. Click here to read full stories.
Feb 01 - Exxon boosts capital budget but takes $2 bln charge from XTO deal
Exxon Mobil Corp boosted its 2017 capital budget on Tuesday on a bet that oil prices have stabilized, but posted its lowest quarterly profit since 1999 as it took a $2 billion charge against the value of natural gas reserves from its buyout of XTO Energy. The world's largest publicly traded oil producer wrote down the book value of part of its North American natural gas and crude reserves, some of which were acquired in 2009's all-stock buyout of XTO Energy, a deal worth roughly $30 billion at the time. Click here to read full stories.
Feb 01 - OPEC achieves 82 pct of pledged oil output cut in January - Reuters survey
OPEC's oil output is set to fall by more than 1 million barrels per day (bpd) this month, a Reuters survey found on Tuesday, pointing to a strong start by the exporter group in implementing its first supply cut deal in eight years. The Organization of the Petroleum Exporting Countries agreed to cut its output by about 1.2 million bpd from Jan. 1 to prop up oil prices and reduce a supply glut. Click here to read full stories.
Feb 01 - U.S. oil production rose 105,000 bpd in November - EIA
U.S. crude output rose for the second consecutive month in November, according to a U.S. government report released Tuesday. Evidence of the growth in U.S. production comes as the oil market is weighing whether output cuts from major producing nations will be enough to reduce a supply glut that has weighed on global markets for more than two years. Click here to read full stories.
Jan 31 - Industry group boosts Canadian oil well drilling forecast
The Petroleum Services Association of Canada upped its 2017 oil and gas well drilling forecast by 23 percent on Monday as global oil prices recover from a two-year rout. The industry body now estimates 5,150 wells will be drilled across Canada this year, up from its previous 2017 forecast, made in November, of 4,175 wells. Click here to read full stories.
Jan 31 - Halliburton asks workers from banned countries not to travel to U.S.
Halliburton Co has advised workers from the countries named in President Trump's immigration ban not to travel to the U.S., according to an email from a spokeswoman. The U.S. President on Friday announced a four-month hold on allowing refugees into the United States and a temporary ban on travelers from seven Muslim-majority countries. Click here to read full stories.
Jan 31 - Hedge funds prepare for possible border tax adjustment on U.S. oil imports: Kemp
Hedge funds seem to be quietly positioning for the possible imposition of a border tax adjustment on imports of crude oil into the United States. The principal impact of a border tax adjustment would be to raise the price of domestic crude compared with international grades such as Brent.Click here to read full stories.
Jan 31 - Commodities broker OTC Global Holdings opens Singapore office
Commodities brokerage OTC Global Holdings (OTCGH) said on Monday it had opened a new office in Singapore as it seeks to expand its market share in the Asian market, a growing part of the global commodity trade. OTCGH, the world's largest independent institutional broker of commodities, covers financial and physical instruments from its offices in Chicago, Geneva, Houston, New Jersey, London, Louisville and New York.Click here to read full stories.
Jan 31 - Venezuela's Maduro seen bolstering grip on PDVSA after shake-up
PDVSA's new senior executive line-up includes a Venezuelan navy rear-admiral, Hugo Chavez's former Twitter manager and a leader of the late leftist president's failed 1992 coup. The selections, announced as part of a sweeping executive shakeup of Venezuela's struggling state oil company on Sunday, suggest former President Chavez's unpopular successor Nicolas Maduro is strengthening his grip on the enterprise that powers the OPEC country's economy. Click here to read full stories.
Jan 31 - U.S. lawmakers move to scrap SEC's 'resource extraction' rule
Two senior U.S. lawmakers unveiled legislative plans on Monday to scrap a rule devised under the 2010 Dodd-Frank financial reform law requiring publicly-traded mining, oil and gas companies to disclose payments they make to foreign governments. Michigan Republican Bill Huizenga, who chairs the House of Representatives Financial Services subcommittee on capital markets, and Oklahoma Republican James Inhofe, chairman of the Senate Environment Committee, took aim at the U.S. Securities and Exchange Commission's so-called "resource extraction" rule, saying it makes it harder for U.S. energy companies to compete.Click here to read full stories.
Jan 30 - Russia's Lukoil hopes for Iran oilfield development decision this year
Lukoil, Russia's No.2 oil producer, hopes to reach a decision on developing two new oilfields in Iran and wants to expand its operations further in the Middle East this year, a senior executive said on Sunday. Lukoil is talking with the National Iranian Oil Company (NIOC) on taking part in development of the Abe Timur and Mansuri fields in central-western Iran, said Gati al-Jebouri, vice president and head of upstream operations in the Middle East. Click here to read full stories.
Jan 30 - OPEC January oil output shows high compliance with supply cut deal -Petro-Logistics
OPEC oil output is set to fall by 900,000 barrels per day (bpd) this month, a company that tracks OPEC supply said on Friday, pointing to a strong start by the exporter group in implementing a supply cut deal. The Organization of the Petroleum Exporting Countries is cutting its output by 1.2 million bpd from Jan. 1 -- its first such deal since 2008 -- to prop up oil prices. Click here to read full stories.
Jan 30 - Border tax ideas roil oil markets, favor Gulf Coast refiners
As with many industries now fretting over the uncertain future of U.S. trade policy, the oil business is sizing up the potential impact of the various protectionist measures being bandied about Washington - which have sent crude markets into a tizzy. The trade proposal with the most momentum may be the controversial tax reform, pushed by Republicans in Congress, that could slap a tax of up to 20 percent on all imports, including crude oil. Click here to read full stories.
Jan 30 - Energy pipelines back in investor favor after Trump orders
Investors have rushed back into North American pipelines after U.S. President Donald Trump revived growth prospects in a sector that struggled to cope with a two-year oil price slump and strident opposition from environmental and Native American activists. Investor confidence in the industry was shaken last year when the administration of former President Barack Obama halted the $3.8 billion Dakota Access Pipeline, just as Energy Transfer Partners had nearly finished building it. Click here to read full stories.
Jan 30 - Hedge funds load up on oil calendar spread options to bet on rebalancing: Kemp
Hedge funds are betting heavily that crude oil markets will move into a supply deficit and start to draw down excess stockpiles in 2017. Hedge funds and other money managers have amassed net long positions equivalent to 160 million barrels in calendar spread options on the New York Mercantile Exchange (NYMEX). Click here to read full stories.
Jan 30 - Bullish hedge fund bets on U.S. crude hit high since mid-2014
Hedge funds and money managers boosted bullish wagers on U.S. crude oil to the highest level since mid-2014, data showed on Friday, as agreed output cuts by the world's top producers began to eat into a global glut. The speculator group raised its combined futures and options position in two major NYMEX and ICE markets by 24,015 contracts to 395,553 in the week to Jan. 24, the highest since mid-June 2014, U.S. Commodity Futures Trading Commission (CFTC) data showed. Click here to read full stories.
Jan 30 - U.S. oil rigs rise to most since November 2015 -Baker Hughes
U.S. energy companies this week added oil rigs for a 12th week in the last 13, extending an eight-month recovery as drillers take advantage of a deal by OPEC to cut production that has kept crude prices over $50 a barrel since early December. Drillers added 15 oil rigs in the week to Jan. 27, bringing the total count to 566, the most since November 2015, energy services firm Baker Hughes Inc said on Friday. Click here to read full stories.
Jan 27 - Saudi Aramco selects U.S. firms to audit its reserves for IPO - sources
State oil giant Saudi Aramco has tasked two U.S. industry leaders in oil reserves auditing to review the content of its deposits as it pushes ahead with a share listing next year, industry sources said on Thursday. Aramco, whose fields are estimated to contain 15 percent of the world's oil, has asked a unit of oil services firm Baker Hughes Gaffney, Cline and Associates - to carry out the review, three sources familiar with the move told Reuters. Click here to read full stories.
Jan 27 - Millions of barrels of Venezuelan oil stuck at sea in dirty tankers
More than 4 million barrels of Venezuelan crude and fuels are sitting in tankers anchored in the Caribbean sea, unable to reach their final destination because state-run PDVSA cannot pay for hull cleaning, inspections, and other port services, according to internal documents and Reuters data. About a dozen tankers are being held back because the hulls have been soiled by crude, stemming from several oil leaks in the last year at key ports of Bajo Grande and Jose, which has resulted in delayed operations for loading and discharging. Click here to read full stories.
Jan 27 - Red tape chokes off drilling on Native American reservations
When the U.S. oil boom hit North Dakota a decade ago, wells sprang up quickly on the edges of the Fort Berthold Indian Reservation, an expanse of prairie and rolling hills three times larger than Los Angeles. Tribe members here, facing a 40 percent unemployment rate and sending their children to 1950s-era school buildings, were eager to tap some of state’s most promising reserves. But layers of federal regulation - applying only to tribal lands - slowed them down for years, frightened away investors and cost them millions of dollars.Click here to read full stories.
Jan 27 - Keystone XL pipeline: A 'Canada First' energy plan?
U.S. President Donald Trump's move this week to revive the Keystone XL oil pipeline marked a major step under his "America First" energy plan to boost U.S. drillers and create new U.S. jobs. But the project's biggest winners may be Canadian. If built, TransCanada’s Keystone XL from Alberta to Nebraska would yield about $2.4 billion (C$3.2 billion) a year for Canada, split between government revenues, shareholder profits and re-investment into the still-recovering Canadian oil patch, according to a Conference Board of Canada research note prepared for Reuters on Thursday. Click here to read full stories.
Jan 27 - First Iranian-owned oil tankers head to Rotterdam post-sanctions
Two Iranian-owned oil tankers are sailing to the heart of northern Europe's refining and trading hub for the first time since sanctions on the country were lifted last year, oil trading and shipping sources told Reuters. The development shows Iran breaking through yet another barrier in its bid to regain oil market share lost during years of international sanctions that hindered its sale of crude oil and condensates to the international market. Click here to read full stories.
Jan 27 - U.S. gasoline stock build weighs on prices and margins: Kemp
U.S. gasoline stocks are rising faster than normal for the time of year and are starting to put pressure on prices and refining margins. Stocks have risen by more than 17 million barrels since the end of 2016, according to an analysis of data from the U.S. Energy Information Administration. Click here to read full stories.
Jan 26 - OPEC cuts will not impact Saudi oil supply to Japan -Saudi official
Last year's agreement between OPEC and non-OPEC countries to cut output will not impact Saudi Arabia's oil supplies to Japan, Aabed Al-Saadoun, deputy minister for company affairs at Saudi Arabia's Ministry of Energy, Industry and Mineral Resources, said on Thursday. "The recent agreement among OPEC (Organization of the Petroleum Exporting Countries) and non-OPEC members for oil exports reduction will not impact our commitments and oil exports to Japan," the official said, speaking at an oil industry symposium in Tokyo. Click here to read full stories.
Jan 26 - PetroChina aims to meet a third of China's shale gas target by 2020
China's biggest energy giant PetroChina plans to step up shale gas development in Sichuan province this year, aiming to meet a third of a 2020 government target for the unconventional resource, according to state media and a government official. News agency Xinhua reported on Wednesday that PetroChina will step up drilling in southern parts of Sichuan province, China's top gas-producing region and a key area for early shale gas development. Click here to read full stories.
Jan 26 - Pipeline opponents face high legal hurdles challenging Trump
Opponents of two controversial oil pipelines face a long and difficult legal path if the U.S. government approves their construction, experts said after the Trump administration issued orders on Tuesday intended to advance the Keystone XL and Dakota Access projects. U.S. President Donald Trump issued a pair of memoranda to several agencies paving the way to revive Keystone XL, which would bring oil from Canada, and Dakota Access, a nearly completed pipeline which had sought to build under a lake near a Native American reservation in North Dakota. Click here to read full stories.
Jan 26 - U.S. gasoline stockpiles build for fourth week on weak demand
Inventories of gasoline rose sharply in the United States for the fourth straight week amid weaker-than-usual demand, while crude oil stocks were also higher, the Energy Information Administration said on Wednesday. Crude inventories rose 2.8 million barrels in the week to Jan. 20, in line with expectations. Click here to read full stories.
Jan 26 - India to fill Mangalore strategic reserve with UAE oil
India signed a deal with the United Arab Emirates on Wednesday that allows the Gulf OPEC country to fill half of an underground crude oil storage facility at Mangalore that is part of New Delhi's strategic reserve system. New Delhi announced a series of pacts with the UAE ranging from defence, trade, maritime cooperation to energy after a meeting between Prime Minister Narendra Modi and Abu Dhabi's Crown Prince Sheikh Mohamed bin Zayed al-Nahyan. Click here to read full stories.
Jan 26 - El Niño may return in 2017 - Braun
It is time to say goodbye to La Niña, and possibly hello to El Niño again later in the year. Ever since the record-setting El Niño of late 2015 started winding down early last year, commodity markets have been fully focused on the La Niña that forecasters had predicted would dominate late 2016 and potentially much of 2017. Click here to read full stories.
Jan 26 - Saudi Aramco shelves plan for joint venture with Malaysia's Petronas - sources
Saudi Aramco has shelved plans for a partnership with Malaysian state-oil firm Petroliam Nasional Berhad in a $27 billion refining and petrochemical project in the southeast Asian country, industry sources familiar with the matter told Reuters on Wednesday. Aramco had been in talks with Petronas about a joint venture in the Refinery and Petrochemical Integrated Development (RAPID) project in the southern Malaysian state of Johor. Click here to read full stories.
Jan 26 - U.S. biofuels credits drop as EPA delay uncertainty grips market
Prices of paper credits used to meet U.S. biofuels standards dropped to over one-year lows on Wednesday, extending the previous day's slide on news of a government freeze that heightened uncertainty over the program. The U.S. Environmental Protection Agency (EPA) said in a notice this week that the federal agency is delaying implementation of 30 regulations finalized recently by the Obama administration. Click here to read full stories.
Jan 25 - Trump clears way for controversial oil pipelines
U.S. President Donald Trump signed orders on Tuesday smoothing the path for the controversial Keystone XL and Dakota Access oil pipelines in a move to expand energy infrastructure and roll back key Obama administration environmental actions. Oil producers in Canada and North Dakota are expected to benefit from a quicker route for crude oil to U.S. Gulf Coast refiners. Click here to read full stories.
Jan 25 - How Russia sold its oil jewel -- without saying who bought it
More than a month after Russia announced one of its biggest privatisations since the 1990s, selling a 19.5 percent stake in its giant oil company Rosneft, it still isn't possible to determine from public records the full identities of those who bought it. The stake was sold for 10.2 billion euros to a Singapore investment vehicle that Rosneft said was a 50/50 joint venture between Qatar and the Swiss oil trading firm Glencore. Click here to read full stories.
Jan 25 - U.S. tax reforms could 'transform' global oil market- Goldman Sachs
The push by Republicans in the U.S. House of Representatives for a shift to border-adjusted corporate tax (BTA) could push U.S. crude prices higher than the global benchmark Brent, triggering large-scale domestic production, according to analysts at Goldman Sachs on Tuesday. The measure, known as border adjustment, intends to boost U.S. manufacturing by taxing imports while exempting U.S. business export revenues from corporate taxation. Click here to read full stories.
Jan 25 - Libya needs $19 bln to boost oil output to 2.1 mln bpd by 2022
Libya needs $19 billion in investment over the next five years in order to meet its goal of boosting production to 2.1 million barrels per day (bpd), its oil chief told Reuters on Tuesday. Libya's production has risen slowly since the Libyan National Army took over eastern oil export terminals in September after ending a multi-year blockade by a group from the Petroleum Facilities Guard and allowing the National Oil Corp (NOC) to more than double production. Click here to read full stories.
Jan 25 - Shale revival looms over oil prices and spreads: Kemp
Saudi Arabia's energy minister has predicted production cuts by OPEC and non-OPEC countries will reduce global oil inventories by 300 million barrels by the middle of 2017. Six months of full compliance with the agreement would cut inventories to their five-year average and make any extension of the accord unnecessary, according to Khalid Al-Falih. Click here to read full stories.
Jan 24 - Iraq says most oil majors participating in its OPEC cuts
Iraq's oil minister said on Monday that most oil majors working on its territory were participating in oil output reductions agreed as part of the deal between OPEC and non-OPEC producers to help to balance the market.OPEC and several independent producers agreed last year to cut supply, the first such deal in 15 years, as of Jan. 1, 2017 to remove a glut. The effort has helped oil prices to rise to $55 a barrel, from a 12-year low near $27 a year ago. Click here to read full stories.
Jan 24 - Russia beats Saudi Arabia as China's top crude oil supplier in 2016
Russia overtook Saudi Arabia in 2016 to became China's biggest crude oil supplier for the first year ever, customs data showed on Monday, boosted by robust demand from independent Chinese "teapot" refineries. Russian shipments surged nearly a quarter over 2015 to about 1.05 million barrels per day (bpd), the data showed, with Saudi Arabia coming in a close second with 1.02 million bpd, up 0.9 percent in 2016 versus the previous year. China is the world's second-largest oil buyer and the fastest-growing major importer. Click here to read full stories.
Jan 24 - Canada oil pipeline spills 200,000 liters on aboriginal land
A pipeline in the western Canadian province of Saskatchewan has leaked 200,000 liters (52,834 gallons) of oil in an aboriginal community, the provincial government said on Monday. The government was notified late in the afternoon on Friday, and 170,000 liters have since been recovered, said Doug McKnight, assistant deputy minister in the Ministry of the Economy, which regulates pipelines in Saskatchewan. Click here to read full stories.
Jan 24 - U.S. shale oil and gas sector surges back to life: Kemp
The number of rigs drilling for oil and gas in the United States has recorded the largest one-week increase for over five years, confirming a rapid upturn is now underway. The number of active oil and gas rigs jumped by 35 to 694 last week, according to oilfield services company Baker Hughes. Click here to read full stories.
Jan 24 - Shell's exploration boss Powell to step down
Royal Dutch Shell's head of exploration Ceri Powell will step down next month, capping seven years in the role marked by sharp cutbacks in the company's search for new oil and gas reserves amid the industry's deep downturn since mid-2014. Powell, a geologist who joined Shell in 1990 and a vocal supporter for strengthening female involvement in the sector, will depart on February 13 and become managing director of Brunei Shell Petroleum the following month, according to a Shell spokeswoman. Click here to read full stories.
Jan 24 - Liquidation risk hangs over oil and gas prices: Kemp
The threat of liquidation hangs over oil and gas prices in the short term as hedge funds have built the most bullish positions in both commodities since 2014. Hedge funds are running enormous net long positions in crude and gas even though prices have risen sharply in the last year, and they may have reason to expect further price strength in 2017. Click here to read full stories.
Jan 23 - Ministers laud strong start to OPEC, non-OPEC oil output cuts
OPEC and non-OPEC countries have made a strong start to lowering their oil output under the first such pact in more than a decade, energy ministers said on Sunday as producers look to reduce oversupply and support prices. "The deal is a success ...All the countries are sticking to the deal ...(the) results are above expectations," Russian Energy Minister Alexander Novak said after the first meeting of a committee set up to monitor the deal. Click here to read full stories.
Jan 23 - China's crude oil futures dilemma - control or success? : Russell
The quiet demise of China's plans to launch a new crude oil futures contract shows the innate conflict of wanting the financial clout that comes with being the world's biggest commodity buyer, but also seeking to control the market. It has been a long-standing ambition for a new global oil price benchmark to be established in Shanghai, a move that would reflect China's rise to vie with the United States as the world's largest importer of the fuel. Click here to read full stories.
Jan 23 - Money managers boost bullish bets on U.S. crude to highest in over 2 years
Hedge funds rushed to place bullish wagers on U.S. crude oil last week, boosting it to the highest levels since mid-2014, data showed on Friday, as prices rallied on hopes that Saudi Arabia and the world's top producers were sticking to a plan to rein in output. The speculator group raised its combined net long futures and options position in two major NYMEX and ICE markets by 44,481 contracts to 371,539 in the week to Jan. 17, its highest since July 2014, U.S. Commodity Futures Trading Commission (CFTC) data showed. Click here to read full stories.
Jan 23 - North Dakota landowners sue over pipeline easement payments
Over a dozen landowners in North Dakota have filed a lawsuit against a company involved in the development of the Dakota Access Pipeline, charging they were misled into accepting unfair compensation for allowing the pipeline to cross their land, according to court documents. Dakota Access LLC used false statements to get some landowners in Morton County, North Dakota, to accept less money than others for the necessary easements, according to the lawsuit, filed Jan. 6 in U.S. District Court of North Dakota in Bismarck. Click here to read full stories.
Jan 23 - U.S. drillers add the most oil rigs since April 2013 - Baker Hughes
U.S. energy companies this week added the most oil rigs in nearly four years, extending an eight-month recovery as drillers take advantage of a deal by OPEC to cut supplies that has boosted prices over $50 a barrel since early December. Drillers added 29 oil rigs in the week to Jan. 20, bringing the total count up to 551, the most since November 2015, energy services firm Baker Hughes Inc said on Friday. Click here to read full stories.
Jan 20 - OPEC output cuts under scrutiny as market tightens - IEA
World oil markets are slowly tightening as demand rises while investors wait to see if production cuts agreed by OPEC and other producers will be implemented as promised, the International Energy Agency (IEA) said on Thursday.In its monthly oil market report, the IEA said output cuts announced by the Organization of the Petroleum Exporting Countries and 11 non-OPEC producers in November had "entered their probation period". Click here to read full stories.
Jan 20 - Trump's energy pick Perry softens stance on climate change
Rick Perry, President-elect Donald Trump's pick to run the U.S. Energy Department, said during a Senate confirmation hearing on Thursday that global warming caused by humans is real, but that efforts to combat it should not cost Americanjobs. The comment marks a shift for the former Texas governor, who had previously called the science behind climate change "unsettled" and a "contrived, phony mess." Click here to read full stories.
Jan 20 - OPEC chief sees oil stocks declining as cuts take effect
Oil stocks around the world need to decline by at least another 270 million barrels to reach a five-year industry average for OPEC to be able to say the markets are becoming balanced, OPEC Secretary General Mohammed Barkindo told Reuters. "The primary goal is to accelerate the stocks drawdown," Barkindo said on the sidelines of the World Economic Forum in Davos. Click here to read full stories.
Jan 20 - Brazil plans two subsalt auctions in 2017, another in 2018
Brazil plans to hold two subsalt oil auctions in 2017, putting new exploration areas up for bidding in November for what should be the "most competitive" round of the year, Oil Secretary Marcio Felix said in an interview on Thursday. The auctions, an effort to lure foreign investment in a sector that for much of the past decade has been the object of protectionist policies in Brazil, will be the first since 2013 for the offshore region known as the subsalt, where giant discoveries were made starting about a decade ago. Click here to read full stories.
Jan 20 - Fracking gets conditional endorsement from Church of England advisers: Kemp
Two groups of Church of England advisers have cautiously endorsed fracking for shale gas in the United Kingdom provided it does not conflict with climate change policy and robust regulations are put in place. If the Church’s advisory panel had come out against fracking, the decision would have been widely cited by lobbying groups active on climate issues as well as local issues to oppose further drilling and fracturing. Click here to read full stories.
Jan 20 - Tensions rise at North Dakota pipeline as Trump set to take White House
Tensions have increased this week near the construction site of the Dakota Access pipeline, with repeated clashes between protesters and police ahead of Friday's inauguration of President-elect Donald Trump, an unabashed fan of the $3.8 billion project. Police used tear gas and fired bean-bag rounds to disperse crowds, and have arrested nearly 40 people since Monday, many of them on a bridge that has been the site of frequent confrontations, law enforcement officials said. Click here to read full stories.
Jan 20 - U.S. crude oil stocks build unexpectedly as refining slows down - EIA
U.S. crude inventories rose unexpectedly last week as refineries sharply slowed production, while gasoline stocks soared amid weak demand, the Energy Information Administration said on Thursday. Crude inventories rose 2.3 million barrels in the week to Jan. 13, compared with analysts' expectations for an increase of 342,000 barrels. Click here to read full stories.
Jan 19 - OPEC sees smaller oil glut in 2017 but flags U.S. shale recovery
OPEC signalled a falling oil supply surplus in 2017 on Wednesday as the exporter group's output slips from a record high ahead of a deal to cut supply and outside producers show positive initial signs of complying with the accord. However, the Organization of the Petroleum Exporting Countries, in a monthly report, also pointed to the possibly of a rebound in U.S. output, as higher oil prices following supply cuts by other producers support increased shale drilling. Click here to read full stories.
Jan 19 - Trump EPA pick expresses doubts on climate, defends oil industry funding
President-elect Donald Trump's choice to lead the U.S. Environmental Protection Agency expressed doubt about the science behind global climate change during a contentious Senate confirmation hearing on Wednesday, but added he would be obliged for now to uphold the EPA's finding carbon dioxide poses a public danger. Oklahoma Attorney General Scott Pruitt, 48, sued the agency he intends to run more than a dozen times on behalf of his state. Click here to read full stories.
Jan 19 - OPEC output cuts boost appeal of light crude, but market yet to respond: Russell
One of the consequences of the cuts to crude oil supply by OPEC and its allies has been the sharp narrowing of the premium that light crude commands over heavier grades. In theory, this should result in increased flows of light crude to Asia, with refiners substituting gasoline-rich grades for the heavier crudes typically more popular in the region. Click here to read full stories.
Jan 19 - Volatility and its various meanings in the oil market: Kemp
"We are entering a period of much more volatility in the (oil) market", the head of the International Energy Agency warned on Sunday. "The name of the game is volatility" Fatih Birol said in an interview with Reuters Television, repeating similar comments he made at the end of 2016. Click here to read full stories.
Jan 19 - China sets first crude 2017 import quotas at 68.8 mln tonnes for non-state companies
China has issued the first batch of crude oil import quotas for non-state companies at 68.81 million tonnes, or 1.38 million barrels per day (bpd), four refining sources with knowledge of the matter said. Twenty-nine companies received quotas, including independent refiners and trading companies, the sources said, citing an official document. Click here to read full stories.
Jan 19 - Global oil, gas discoveries drop to 70-year low - Rystad Energy
Oil and gas discoveries around the world dropped last year to their lowest since the 1940s after companies sharply cut back in their search for new resources amid falling oil prices. The decline in discoveries means companies such as Exxon Mobil and Royal Dutch Shell will struggle to offset the natural depletion of existing fields, reinforcing forecasts of a supply shortage by the end of the decade. Click here to read full stories.
Jan 19 - Oil and Trump: Russians full of optimism in Davos
What a difference a year makes. Twelve months ago, the mood of the Russian delegation at the World Economic Forum in Davos was distinctly gloomy, with oil prices near 12-year lows below $30 per barrel and Western sanctions depressing their economy and financial markets. Click here to read full stories.
Jan 18 - Saudi Aramco to continue building oil, gas capacity to meet demand - CEO
Saudi Aramco Chief Executive Amin Nasser said the state oil giant was working on building its oil and gas production capacity to meet futurse demand growth. "What we are doing at Saudi Aramco is building our capacity in oil, we are the most reliable oil producer, we have a maximum sustained capacity of 12 million barrels per day (bpd). The kingdom has a capacity of 12.5 million bpd," Nasser said on Tuesday. Click here to read full stories.
Jan 18 - U.S. shale oil output set to grow in February as prices rise
The month-on-month increase in production would be the first since October and the third rise in a year, according to the U.S. Energy Information Administration's drilling productivity report. February production will edge up 40,750 barrels per day (bpd) to 4.748 million bpd, the EIA said. In January, it was expected to drop by 5,900 bpd. Click here to read full stories.
Jan 18 - Trump Interior nominee would review Obama's limits on oil drilling
Representative Ryan Zinke of Montana, President-elect Donald Trump's nominee for secretary of Interior, on Tuesday said he would consider an expansion of energy drilling and mining on federal lands but would ensure sensitive areas remain protected. The former Navy SEAL sought to outline a measured approach to the job of managing America’s national parks, forests and tribal lands during a four-hour Senate confirmation hearing that was mostly cordial, lacking some of the hot-tempered grilling that has marked other sessions to vet Trump’s cabinet nominees. Click here to read full stories.
Jan 18 - U.S. crude discount to Brent widens on Trump tax talk, OPEC
U.S. oil prices hit their biggest discount to global benchmark Brent crude in five months on Tuesday as President-elect Donald Trump said an oil import tax plan would be too complex and as a global deal to reduce supply hits Middle East output. The deeper the discount, the easier it is for U.S. crude producers to export oil to refiners worldwide. A glut in global supply had limited the appetite for crude from the United States until late last year, even after the United States had lifted a long-standing ban on exports. Click here to read full stories.
Jan 18 - Iraq's southern oil exports fall since start of OPEC cut - loading data
Oil exports from Iraq's southern terminals have fallen so far in January, according to loading data and an industry source, a sign that OPEC's second-largest producer is following through on the group's decision to cut output. Baghdad's initial request to be exempt from the deal, plus loading programmes pointing to continued high Iraqi exports, have added to scepticism that the country would comply with the output cuts. Iraq is supposed to curb production by 210,000 barrels per day. Click here to read full stories.
Jan 18 - Global ship insurers to resume near full coverage for Iran oil - officials
Global shipping insurers have devised a way to ensure nearly full coverage for Iranian oil exports from next month after striking a deal to provide cover without involving U.S.-domiciled reinsurers, officials in Tokyo and London said. Restrictions on U.S. firms handling Iranian goods had greatly limited the number of reinsurers of cargoes, but the new arrangements - which essentially allow re-insurance of ships without the involvement of U.S. firms - should boost the number of eligible shipments. Click here to read full stories.
Jan 18 - U.S. oil and gas industry has turned the corner: Kemp
U.S. petroleum producers are looking forward to better times in 2017 as the industry has passed the low-point in the cycle and embarked on the road to renewed expansion. Domestic oil and gas production hit a trough in the first half of 2016 and showed signs of rising in the second half as drilling picked up in response to higher prices. Click here to read full stories.
Jan 18 - Canadian energy firms at bigger risk from cyber, bomb attacks -spy agency
Canada's main spy agency last year warned energy companies about an increasing risk of cyber espionage and attacks on pipelines, oil storage and shipment facilities and power transmission towers using homemade explosives, according to a classified document seen by Reuters. The Canadian Security Intelligence Service (CSIS) warning last May highlights an additional risk for the energy sector, where opposition to pipelines has ramped up in Canada, home to the world's third-largest oil reserves, and the United States. Click here to read full stories.
Jan 17 - OPEC sees market stability in 2017, Venezuela aims for $70 price
OPEC Secretary-General Mohammed Barkindo forecast on Monday that stability would return to oil markets this year while price hawk Venezuela said it hoped its crude basket would rise to $70 in coming months. The head of the Organization of the Petroleum Exporting Countries was back in Caracas for a second meeting in two months with President Nicolas Maduro whom he lavishly praised for an "inspirational" role in the producers' pact to cut output. Click here to read full stories.
Jan 17 - China's crude oil output will fall 7 pct by 2020 - govt
China's crude oil output is expected to drop by 7 percent by 2020 compared with the previous five-year plan as output from some of the nation's largest, but oldest wells falls, while natural gas supplies will rocket by almost two-thirds. Under a plan covering the period 2016-2020 published by the National Development and Reform Commission (NDRC) on Tuesday, crude output will be around 200 million tonnes by 2020, equivalent to 4.0 million barrels per day (bpd). That would be down from 215 million tonnes in the 2011-2015 plan. Click here to read full stories.
Jan 17 - Saudi pledges adherence to oil cut, confident others will
Saudi Arabia will adhere strictly to its commitment to cut output under the global agreement among oil producers, its energy minister said on Monday, expressing confidence that OPEC's plan to prop up prices would work. Saudi Energy Minister Khalid al-Falih, speaking at an industry event in Abu Dhabi, also said he was encouraged by signs of commitments by other participants in the deal since it took effect on Jan. 1. Click here to read full stories.
Jan 17 - Noble Energy to buy Clayton Williams Energy for $2.7 bln
Oil producer Noble Energy Inc said on Monday it would buy smaller rival Clayton Williams Energy Inc for about $2.7 billion in a cash-and-stock deal to enhance its presence in the Permian Basin, the top U.S. oil field. Noble Energy said the deal includes 71,000 net acres in the core of the Southern Delaware Basin in Reeves and Ward counties in Texas, which are a part of the larger Permian Basin. Click here to read full stories.
Jan 17 - Oil prices stall as hedge funds stop adding to longs: Kemp
Hedge fund bullishness towards the price of crude oil appears to have peaked for the time being, with fund managers booking some profits after the strong rally in the final seven weeks of 2016. Few managers are willing to bet on a pull back in prices at the moment with the number of short positions still towards the bottom end of the range that has prevailed since 2014. Click here to read full stories.
Jan 16 - Oil prices will be much more volatile in 2017 - IEA
Global oil prices will witness "much more volatility" in 2017 even though markets may rebalance in the first half of the year if output cuts pledged by producers are implemented, the head of the International Energy Agency (IEA) said on Sunday. The Organization of the Petroleum Exporting Countries (OPEC) agreed on Nov. 30 to cut output by 1.2 million bpd to 32.5 million bpd for the first six months of 2017, in addition to 558,000 bpd of cuts agreed by independent producers such as Russia, Oman and Mexico. Click here to read full stories.
Jan 16 - China's crude oil juggernaut to roll on, but more slowly: Russell
There is little doubt China's crude oil imports enjoyed a robust 2016, hitting a record high. The question is how long the party can continue?. Customs data released on Jan. 13 showed Chinese imports of crude reached 36.38 million tonnes in December, or 8.57 million barrels per day (bpd), the most in a month and well above the previous mark of 8.04 million bpd set in September. Click here to read full stories.
Jan 16 - Volatility and cyclicality in oil prices - will this time be different? Kemp
Extreme volatility and strong cyclicality have been the defining characteristics of oil prices and the industry since the first modern oil well was drilled in Pennsylvania in 1859. Oil prices are much more volatile than the prices of manufactured goods or services, and in this they resemble other industrial and agricultural commodities. Click here to read full stories.
Jan 16 - Venezuela will circulate new proposal next week to support oil prices
Venezuela will next week circulate a new proposal to crude producers in a bid to support oil prices, President Nicolas Maduro said on Sunday, without providing details. The Organization of the Petroleum Exporting Countries agreed on Nov. 30 to cut output by 1.2 million barrels per day to 32.5 million bpd for the first six months of 2017, in addition to 558,000 bpd of cuts agreed to by independent producers such as Russia, Oman and Mexico. Click here to read full stories.
Jan 16 - Hedge funds scale back bullish bets on U.S. crude
Hedge funds and money managers trimmed their bullish wagers on U.S. crude oil for the second week in a row, data showed on Friday, as skepticism over OPEC delivering on its promised cuts grew and inventories in the U.S. began to swell once again. The speculator group cut its combined futures and options position in two major NYMEX and ICE markets by 5,151 contracts to 327,057 in the week to January 10, U.S. Commodity Futures Trading Commission (CFTC) data showed. Click here to read full stories.
Jan 16 - U.S. oil drillers cut rigs for 2nd week in 7 months - Baker
U.S. oil drillers cut rigs this week for only the second week in the last seven months, likely just a brief pause in a recovery expected to last into 2018 as shale producers plan to boost spending as crude prices hold near an 18-month high. Drillers cut seven oil rigs in the week to Jan. 13, bringing the total rig count down to 522, compared with 515 rigs seen a year ago, according to energy services firm Baker Hughes Inc on Friday. Click here to read full stories.
Jan 13 - Venezuela's PDVSA sees 2017 oil output stuck near historic lows - document
Venezuelan state energy company PDVSA projects oil production will remain near 23-year lows in 2017, an internal document shows, suggesting more hardship ahead for the crisis-wrought OPEC member country. Cash-squeezed PDVSA, which accounts for nearly all of Venezuela's export revenues and is the socialist government's financial motor, saw production tumble by nearly 10 percent in 2016 due to an unraveling economy and low oil prices. Click here to read full stories.
Jan 13 - Despite Saudi signals, OPEC unlikely to deliver all promised oil cuts
OPEC is unlikely to deliver fully on its target to cut production despite Saudi Arabia saying it had trimmed more than it had committed to, OPEC delegates say, but compliance of 80 percent would be good and as low as 50 percent acceptable. The Organization of the Petroleum Exporting Countries is planning to cut its output by 1.2 million barrels per day to 32.50 million bpd from Jan. 1. Russia and other non-members are planning to cut about half as much. Click here to read full stories.
Jan 13 - Pemex sells Maya crude to U.S. West Coast for first time since 2008
Mexico's Pemex has begun selling heavy Maya crude for the first time since 2008 to U.S. West Coast refiners, the head of the state oil company's international trading arm said on Thursday. Pemex will also market more light Isthmus crude this year to the U.S. West Coast, most, if not all destined for California. Click here to read full stories.
Jan 13 - Saudis cut oil output to lowest in 2 years, pledge further reductions
Saudi Arabia has cut oil output to its lowest in almost two years, its energy minister said on Thursday, as the world's largest oil exporter leads OPEC's drive to eradicate a global glut and prop up prices. Energy Minister Khalid al-Falih said output had fallen below 10 million barrels per day - more than it had promised as part of a global output cut deal between OPEC and non-OPEC producers. Click here to read full stories.
Jan 13 - Oil price forecasts for 2017, 2018 rise as downside risks fall: Kemp
Energy professionals have become less bearish about the outlook for oil prices in 2017 and 2018 as downside risks have fallen, an annual survey by Reuters shows. But price expectations for the end of the decade have changed little since the last survey in March 2016. Click here to read full stories.
Jan 13 - Nigeria's NNPC proposes changes to increase deepwater oil revenues
Nigeria's state oil company has proposed legal amendments aimed at enabling the government to increase royalties and other revenues from deepwater oil production. OPEC member Nigeria has been hit hard by a slump in crude oil prices in the last two years, which helped to push the country into recession. And militant attacks in the southern Niger Delta throughout 2016 have hampered production. Click here to read full stories.
Jan 12 - Saudi keeps Feb oil exports steady to most buyers in Asia; cuts India, Malaysia
Saudi Arabia has cut February term crude supplies to refiners in India and Southeast Asia, seeking to comply with an OPEC deal, but it has held most of its exports to the rest of Asia steady for a second month, industry sources said on Wednesday. State oil giant Saudi Aramco reduced February term supplies of mainly heavy crude to Indian refiners Reliance Industries and Hindustan Mittal Energy Ltd (HMEL), as well as to Malaysia's Petronas, four sources familiar with the matter said. Click here to read full stories.
Jan 12 - U.S. expected to launch WTO complaint over Chinese aluminum subsidies
The Obama administration is expected to launch a complaint against Chinese aluminum subsidies with the World Trade Organization on Thursday, a person familiar with the matter said. The complaint will likely add to rising trade tensions between the world's two largest economies as President-elect Donald Trump prepares to take office next week with pledges to reduce U.S. trade deficits with China as a top priority. Click here to read full stories.
Jan 12 - Nigeria oil union suspends three-day nationwide strike after talks
A Nigerian oil labour union has suspended a nationwide three-day strike over job losses that hit petrol stations and oil tankers, following talks with the government on Wednesday. The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) is one of several labour unions that have criticised oil companies for sacking workers in the last few months. Click here to read full stories.
Jan 12 - Trump taps well of protest with calls for more drilling in national parks
President-elect Donald Trump aims to open up federal lands to more energy development, tapping into a long-running and contentious debate over how best to manage America’s remaining wilderness. The U.S. government holds title to about 500 million acres of land across the country, including national parks and forests, wildlife refuges and tribal territories stretching from the Arctic to the Gulf of Mexico. Click here to read full stories.
Jan 12 - Pemex withdrawing request for oil field contract change
Mexico's cash-strapped state oil company Pemex requested authorities allow it to lower the tax regime on its top oil field Ku Maloob Zaap (KMZ), but the company said the request was now in the process of being withdrawn. Pemex had asked the government to place KMZ under an exploration and extraction contract to lower its taxes, sources told Reuters. Click here to read full stories.
Jan 12 - U.S. crude, fuel stockpiles soar amid record high refining - EIA
U.S. inventories of crude and refined oil rose sharply and more than expected last week, with stocks of distillates hitting six-year highs, as crude imports and refining hit record highs, government data showed on Wednesday. Crude inventories rose 4.1 million barrels in the week to Jan. 6, the U.S. Energy Information Administration said, higher than analyst expectations for a 1.2-million-barrel build. Click here to read full stories.
Jan 12 - British Columbia approves Kinder Morgan pipeline expansion
British Columbia on Wednesday gave the green light to Kinder Morgan Inc's plan to nearly triple its Trans Mountain oil pipeline, which runs from Canada's oil sands through the province to a marine terminal on the Pacific Coast. British Columbia Premier Christy Clark said in a statement the C$6.8 billion ($5.16 billion) project had satisfied or was close to satisfying the five conditions she laid out in 2012 for any company wanting to build pipelines in the province. Click here to read full stories.
Jan 12 - Enbridge may face tough legal battle to keep 60-yr-old pipeline running
Enbridge Inc may be set for a bruising legal battle in Wisconsin after a Native American tribe voted against renewing land use agreements on a major crude oil pipeline, potentially shutting down a conduit that has been in operation since the 1950s, legal experts said. The vote last week has ratcheted up tension on Enbridge, which already faces questions about the safety of the line elsewhere in the U.S. Midwest. Click here to read full stories.
Jan 11 - Asia's diesel profit may rise for first time since 2013 - analysts
Asian refiners' profit margins from producing diesel in 2017 may rise for the first time in four years as demand for the fuel improves in the infrastructure, construction, mining and oil and gas exploration sectors. A return to normal winter conditions after last year's warmer-than-average temperatures along with a recovery in crude oil prices that will stabilise the finances in some producer countries will also spur higher margins, analysts and traders said. Click here to read full stories.
Jan 11 - Argentina clinches deal to attract investment in Vaca Muerta shale
Argentina has clinched a deal with labor unions and energy companies aimed at luring investors to the Vaca Muerta formation in Patagonia, one of the largest shale reserves in the world, the government said on Tuesday. Vaca Muerta has attracted investment from Chevron Corp and Exxon Mobil Corp But the formation, which is about the size of Belgium, remains mostly unexplored, largely due to high production costs and a lack of labor flexibility, oil major executives have said. Click here to read full stories.
Jan 11 - Tokyo Commodity Exchange launches physical oil market
The Tokyo Commodity Exchange (TOCOM) on Wednesday launched a physical market for oil products including gasoline and kerosene, the first such contracts by a Japanese exchange. The listed contracts will be gasoline, kerosene, gas oil, bunker A and low sulphur bunker A (LSA) for delivery by maritime shipment or at a refinery. Click here to read full stories.
Jan 11 - India's gasoline thirst shows no sign of being slaked: Kemp
India’s gasoline consumption continues to grow rapidly as an increasing number of individuals purchase their first motorised vehicle, helping drive the fastest growth in fuel demand in the world. India’s gasoline consumption rose more than 12 percent in 2016 compared with 2015, according to preliminary fuel sales figures compiled by the Ministry of Petroleum and Natural Gas. Click here to read full stories.
Jan 11 - General Frost to the rescue: cold helps Russia comply with OPEC deal
It has defeated armies trying to invade Russia in the past, and now the fabled Russian winter has come to Moscow's rescue again, this time helping it comply with a deal among world oil exporters on cutting output. Russia, which has in the past been accused of dragging its feet in implementing oil production and exports deals, reduced production by 100,000 barrels a day in the first few days of January, industry sources told Reuters. That is a third of the way towards the total cut Russia promised to deliver by mid-2017. Click here to read full stories.
Jan 11 - U.S. crude output set to rise in 2017 as slump may be over - EIA
The decline in U.S. crude output that began amid a global slump in oil markets in mid-2014 appears finally to be over, the U.S. government said on Tuesday, as higher oil prices and increased drilling activity are set to boost output for this year. The news is good for U.S. shale producers reeling from a two-year price slump that has forced millions of dollars of cuts in capital spending and caused the layoff of thousands of workers. Click here to read full stories.
Jan 11 - Mexico's Pemex says protests cause 'critical' border city fuel shortage
Mexico's oil company, Pemex, is struggling to supply gas stations around the northern border city of Mexicali because of a blockade at a storage site, part of sometimes violent protests and looting over a gasoline price hike. In a post on Twitter on Tuesday afternoon, Pemex said its ability to supply gas stations in Mexicali, across the border from California, had reached "critical levels" because of the blockade of its local storage plant. Click here to read full stories.
Jan 10 - Oil companies may boost E&P spending after 2 years of declines - Barclays
Global oil and gas companies are expected to raise exploration and production (E&P) spending in 2017 by 7 percent, marking the first increase in three years, Barclays said on Monday. Oil prices have recovered after a more than two-year slump caused by a glut due to U.S. shale oil flooding the market. Prices have risen about 21 percent since the OPEC, which accounts for a third of global oil output, signed an agreement in November to curb supply. Click here to read full stories.
Jan 10 - Iraq says December oil exports from Basra at record 3.51 mln bpd
Oil exports from Iraq's southern Basra ports reached a record high of 3.51 million barrels per day (bpd) in December, the oil ministry said on Monday. However, Iraq's Oil Minister Jabar Ali al-Luaibi said the unprecedentedly high exports from the south would not affect Iraq's decision to lower production in January in line with an OPEC agreement, according to a ministry statement. Click here to read full stories.
Jan 10 - Hedge funds: fully invested in oil or not? Kemp
Hedge funds amassed a record bullish position in crude oil futures and options by the end of last year, which helped drive crude prices sharply higher in the final six weeks of 2016. Fund managers had accumulated a net long position in the three main futures and options contracts linked to Brent and West Texas Intermediate (WTI) equivalent to 796 million barrels by Dec. 27. Click here to read full stories.
Jan 10 - Russia cuts oil output by 100,000 bpd in early Jan - industry sources
Russia cut its oil production in early January by around 100,000 barrels per day (bpd) from the previous month after an agreement with OPEC to cap global crude output, twosources from the energy sector told Reuters on Monday. Russia's oil and gas condensate output averaged 11.1 million barrelsper day (bpd) in the period from Jan. 1 to Jan. 8, according to the two sources. This was down from 11.21 million bpd in December andOctober's level of 11.247 million bpd, a starting point for output reduction agreed with the Organization of the Petroleum Exporting Countries. Click here to read full stories.
Jan 10 - Gasoline taxes fall despite promises to slow climate change-study
Average taxes on gasoline worldwide have tended to fall in recent years despite promises by many nations to do more to limit global warming, a study showed on Monday. Gasoline, or petrol, the most common fuel used to power cars, emits the greenhouse gas carbon dioxide when burnt. Click here to read full stories.
Jan 09 - Iran capitalises on OPEC oil cut to sell millions of barrels - sources
Iran has sold more than 13 million barrels of oil that it had long held on tankers at sea, capitalising on an OPEC output cut deal from which it is exempted to regain market share and court new buyers, according to industry sources and data. In the past three months, Tehran has sold almost half the oil it had held in floating storage, which had tied up many of its tankers as it struggled to offload stocks in an oversupplied global market. Click here to read full stories.
Jan 09 - Shell battles Nigerian communities in high-stakes London lawsuit
A court in London will decide in coming weeks whether Royal Dutch Shell can face trial in the UK over oil spill allegations in Nigeria, a decision some legal experts predict could attract more cases against multinationals in Britain. The High Court will judge whether members from two communities, Bille and Ogale in Nigeria's oil-rich Delta region, can sue the Anglo-Dutch company in British courts. Click here to read full stories.
Jan 09 - Saudis, Russia to diverge on speed of oil output cuts - Kemp
OPEC and non-OPEC members have pledged to cut their combined oil production by an average of just over 1.7 million barrels per day (bpd) in the first six months of 2017. Saudi Arabia and its Gulf allies are expected to implement most of their cuts immediately, but other producers both within and outside the Organization of the Petroleum Exporting Countries are likely to phase in the reductions gradually. Click here to read full stories.
Jan 09 - U.S. drillers add oil rigs for 10th week in a row -Baker Hughes
U.S. energy companies this week added oil rigs for a tenth week in a row, extending the drilling recovery into an eighth month as crude prices remained near an 18-month high. Drillers added four oil rigs in the week to Jan. 6, bringing the total count up to 529, the most since December 2015, energy services firm Baker Hughes Inc said on Friday. Click here to read full stories.
Jan 09 - Hedge funds cut bullish bets on U.S. crude for first time in 5 weeks
Hedge funds and money managers trimmed bullish wagers on U.S. crude oil for the first time in five weeks, data showed on Friday, as a strong dollar weighed on prices and doubts about compliance of an output deal emerged. The speculator group cut its combined futures and options position in New York and London by 9,626 contracts to 332,207 during the week to Jan. 3, data from the U.S. Commodity Futures Trading Commission (CFTC) showed. Click here to read full stories.
Jan 06 - Saudi Aramco explores Feb oil supply cuts of 3-7 pct to meet OPEC target
Saudi Aramco has started talks with customers globally to discuss possible cuts of 3 percent to 7 percent in February crude loadings as it moves to implement an agreement on curbing global oil output, sources said on Thursday. The Organization of the Petroleum Exporting Countries agreed in late November to cut production in the first half of 2017 to reduce global oversupply and prop up prices. Click here to read full stories.
Jan 06 - Lebanon to restart oil, gas licensing round after three-year delay
Lebanon intends to restart its first oil and gas licensing round after a three-year delay, the energy minister said on Thursday, hoping to kick-start the development of a hydrocarbon industry stalled by national political paralysis. In its first sitting since being formed in December, Lebanon's new cabinet passed two decrees on Wednesday defining the blocks and specifying conditions for production and exploration tenders and contracts. Click here to read full stories.
Jan 06 - OPEC oil output falls from record high ahead of planned cuts - Reuters survey
OPEC's oil output in December fell from a record high ahead of a deal to cut production, a Reuters survey found on Thursday, helped by attacks on Nigeria's oil industry and top exporter Saudi Arabia trimming exports. The decline, the first since May according to Reuters surveys, occurred despite higher exports from second-largest OPEC producer Iraq and a further upward trend in Libyan output. Click here to read full stories.
Jan 06 - China's Iran oil imports to hit record on new production - sources
China's Iranian crude oil imports may rise to a record this year as state-owned oil firms lift more crude through their upstream investments while extending their current supply contracts, senior industry and trading sources said. Chinese firms were expected to lift between 3 million to 4 million barrels more Iranian oil each quarter in 2017 than last year, four sources with knowledge of the matter estimated. Click here to read full stories.
Jan 06 - U.S. crude stockpiles slump, fuel inventories surge at year end
U.S. crude oil inventories fell sharply as higher refining runs prompted a surge in gasoline and distillate stocks in the last week of 2016, the Energy Information Administration said on Thursday. Crude inventories fell 7.1 million barrels in the week to Dec. 30, much more than analysts' expectations for a decrease of 2.2 million barrels. Click here to read full stories.
Jan 05 - Vitol clinches $1 bln pre-finance oil deal with Iran-sources
The world's largest oil trader, Vitol, has clinched a deal with the National Iranian Oil Co. (NIOC) to loan it an equivalent of $1 billion in euros guaranteed by future exports of refined products, four sources familiar with the matter said. The pre-finance deal is the first such major contract signed between Iran and a trading house since sanctions were lifted in early 2016. Vitol and NIOC declined to comment. Click here to read full stories.
Jan 05 - New Lebanese govt OKs oil decrees to start stalled tender process
Lebanon's new government on Wednesday passed two decrees concerning oil and gas exploration blocks, meaning a tender process for offshore reserves, stalled since 2013, can begin. Beirut estimates it has 96 trillion cubic feet of natural gas reserves and 865 million barrels of oil offshore, but squabbling between parties has prevented it from kick-starting exploration and development of the sector. Click here to read full stories.
Jan 05 - U.S. EPA seeks to ban Genscape from verifying renewable fuel credits
The U.S. Environmental Protection Agency wants to revoke Genscape's ability to verify biofuels compliance credits after regulators say it failed to detect a massive fraud perpetrated by companies it was monitoring. The announcement, made Wednesday, will likely bolster calls to reform the U.S. biofuels programs from critics such as investor Carl Icahn, who was recently named as a special adviser to President-elect Donald Trump. Click here to read full stories.
Jan 05 - China to plough $360 bln into renewable fuel by 2020
China will plough 2.5 trillion yuan ($361 billion) into renewable power generation by 2020, the country's energy agency said on Thursday, as the world's largest energy market continues to shift away from dirty coal power towards cleaner fuels. The investment will create over 13 million jobs in the sector, the National Energy Administration (NEA) said in a blueprint document that lays out its plan to develop the nation's energy sector during the five-year 2016 to 2020 period. Click here to read full stories.
Jan 05 - Nigerian crude oil exports to edge higher in February
Nigeria's crude oil exports are on track to edge higher in February, due in part to deferred January cargoes, loading programmes compiled by Reuters showed on Wednesday. The loading programme of 1.62 million barrels per day (bpd) on 50 cargoes comes despite only three cargoes of Bonga crude being planned, compared with seven in January. Click here to read full stories.
Jan 04 - Oil business seen in strong position as Trump tackles tax reform
Big Oil could be in a unique position to protect its interests against a Republican proposal to tax imports, given that President-elect Donald Trump's cabinet is studded with oil champions sensitive to the risk of higher gasoline prices. Trump's emerging leadership includes Exxon Mobil Corp Chief Executive Officer Rex Tillerson as secretary of state, former Texas Governor Rick Perry as energy secretary and Oklahoma Attorney General Scott Pruitt asEnvironmental Protection Agency administrator. Click here to read full stories.
Jan 04 - Iraqi PM says Kurds exporting more oil than allocated
Iraq Prime Minister Haider al-Abadi said the autonomous Kurdish region was exporting more than its allocated share of oil as the country seeks to comply with an OPEC output cut. In November, OPEC agreed to cut output by 1.2 million barrels per day from January 2017 to support prices. Iraq, OPEC's second largest producer, agreed to reduce output by 200,000 bpd to 4.351 million bpd. Click here to read full stories.
Jan 04 - Refiner Delek to buy rest of Alon USA for $464 million
Refiner Delek U.S. Holdings Inc said it had agreed to buy the shares of Alon USA Energy Inc it does not already own for $464 million to increase its exposure to cheap crude produced in Texas's prolific Permian basin. The combined company, with an enterprise value of about $2.8 billion, will focus on the Permian basin with its refining system having access to about 207,000 barrels per day of Permian crude. Click here to read full stories.
Jan 03 - As smog returns, Beijing says skies are getting cleaner
The Chinese capital was on the second-highest orange smog alert in the depth of winter on Tuesday as city officials said the air quality was improving overall, citing data for the whole of last year. Over the new year holiday, hundreds of flights were cancelled and highways closed across northern China as average concentrations of small breathable particles known as PM2.5 soared above 500 micrograms per cubic metre in Beijing and surrounding regions. Click here to read full stories.
Jan 03 - Sinopec starts supplying cleaner fuel to Beijing in anti-smog drive
China's largest state refiner Sinopec Corp on Friday began supplying the Chinese capital with a new, lower-emission grade of petrol and diesel in line with efforts to combat smog that has plagued the country just a month into the winter. Beijing will be the first city in China to adopt Sinopec's new fuel standard - known as 'Beijing Six' - with the country as a whole set to roll out a grade dubbed 'National Five', similar to Europe's 'Euro V' grade fuel, for petrol and diesel from Jan 1. Click here to read full stories.
Jan 03 - U.S. gasoline demand falls in October for first time in nearly a year - EIA
U.S. gasoline demand fell year-over-year for the first time in 11 months in October, according to data released on Friday by the U.S. Energy Information Administration. Gasoline demand, which is still on pace for a record year, fell by 1.6 percent, or 150,000 barrels per day, to 9.095 million bpd in October, according to the EIA's petroleum supply monthly report. Click here to read full stories.