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.
Dec 29 - Our best wishes for a serene (and decisively less turbulent) New Year 2017 to all friends, tweeps, readers, followers and clients.
Dec 23 - One size fits all? In offshore oil sector, using standard gear could cut costs 30 pct - assoc
Offshore oil majors could shave nearly a third off their exploration and development costs by simply agreeing to industry-wide equipment standards, according to an industry association executive.Rather than having big companies continue to go their own, expensive ways in ordering drilling gear tailored for their individual needs, oil majors could take a leaf out of the U.S. shale oil industry's book, said Allen Leatt, chief executive of the International Marine Contractors Association (IMCA). Click here to read full stories.
Dec 23 - Blackstone in talks to buy stake in Energy Transfer assets
Private-equity firm Blackstone Group LP is in talks to buy a stake in assets owned by Energy Transfer Partners LP, the company building the controversial Dakota Access pipeline, a source familiar with the situation said on Thursday.Blackstone is discussing joining the deal with Jamie Welch, who previously served as chief financial officer of ETP parent Energy Transfer Equity LP. Click here to read full stories.
Dec 23 - U.S. refiners cash in on Mexico's record fuel imports
U.S. Gulf Coast refiners are cashing in on rising fuel demand from Mexico, shipping record volumes to a southern neighbor that has failed to expand its refining network to supply a fast-growing economy.The fuel trade could top a million barrels per day (bpd) at times in 2017 as Mexico becomes increasingly dependent on the United States for strategic energy supplies and providing business worth more than $15 billion a year to refiners such as Valero, Marathon Petroleum and Citgo Petroleum. Click here to read full stories.
Dec 23 - Wall Street and oil take the 2016 spoils
Oil is set to be 2016's top market performer, with its near 50 percent gain an outcome few would have predicted when it plunged to a 12-year low in January.In a year of shocks, including Britain's vote to leave the European Union and Donald Trump's election as U.S. president, several major assets have been on a rollercoaster. Click here to read full stories.
Dec 23 - OPEC monitoring committee to meet first half of Jan - Kuwaiti oil minister
An OPEC committee responsible for monitoring compliance with a global agreement to reduce oil output will meet in the first half of January, Kuwait's oil minister said on Thursday."We will meet... in January with OPEC and non-OPEC countries and we will coordinate over the method in which (compliance with) the cut will be implemented," Essam Abdul Mohsen Al-Marzouq told reporters on the sidelines of a meeting of the Organization of Arab Petroleum Exporting Countries (OAPEC) in Cairo. Click here to read full stories.
Dec 23 - China 'teapot' oil refinery sets up Singapore office - traders
Sinochem Hongrun Petrochemical Co. Ltd, a Shandong-based independent refiner and fuel exporter, plans to open a Singapore trading office early next year, the latest of China's so-called "teapot" refiners to seek a presence in the global oil market.The new Singapore operation will be headed by Lian Liping, a senior official at state-run Sinochem, which owns a stake in Hongrun's 140,000 barrels per day (bpd) Shandong plant in eastern China. Click here to read full stories.
Dec 22 - Libya's Sharara oilfield resumes production after pipeline blockade lifted
Production at the major Libyan oilfield of Sharara reached 58,000 barrels on Wednesday as operations gradually resumed after the lifting of a two-year pipeline blockade, the National Oil Corporation (NOC) said.The NOC hopes to be able to add 270,000 barrels per day (bpd) to national output over the next three months after announcing on Tuesday that pipelines leading from Sharara and a nearby field, El Feel, had been reopened. Click here to read full stories.
Dec 22 - Brent curve signals oil tanks will start emptying in second half of 2017: Kemp
OPEC and non-OPEC oil producers have agreed to reduce their combined output by more than 1.7 million barrels per day for six months from January 2017. But the agreement contains a provision that it can be extended for a further six months, subject to market conditions. Click here to read full stories.
Dec 22 - U.S. crude stocks rise unexpectedly, product inventories down - EIA
U.S. crude stocks rose unexpectedly last week, but gasoline and distillate inventories were lower, the U.S. Energy Information Administration said on Wednesday.Crude inventories rose by 2.3 million barrels in the week to Dec. 16, compared with expectations for a decrease of 2.5 million barrels. Click here to read full stories.
Dec 22 - Canada's Trudeau says Trump very supportive of Keystone XL pipeline
Canadian Prime Minister Justin Trudeau said on Wednesday that U.S. President-elect Donald Trump was "very supportive" of TransCanada Corp's proposed Keystone XL crude oil pipeline in their first conversation after the U.S. election."He actually brought up Keystone XL and indicated that he was very supportive of it," Trudeau told an event in Calgary, Canada's oil capital. "I’m confident that the right decisions will be taken." Click here to read full stories.
Dec 21 - Obama bans new oil, gas drilling off Alaska, part of Atlantic coast
U.S. President Barack Obama on Tuesday banned new oil and gas drilling in federal waters in the Atlantic and Arctic Oceans, in a push to leave his stamp on the environment before Republican Donald Trump takes office next month.Obama used a 1950s-era law called the Outer Continental Shelf Act that allows presidents to limit areas from mineral leasing and drilling. Environmental groups said that meant Trump's incoming administration would have to go court if it sought to reverse the move. Click here to read full stories.
Dec 21 - Libya's NOC says oil pipelines reopened, expects 270,000 bpd boost in 3 months
Libya's National Oil Corporation said on Tuesday that pipelines leading from the western fields of Sharara and El Feel had been reopened after a two-year blockade, paving the way for a major boost to production.The NOC said in a statement that it expected to add 175,000 barrels per day (bpd) to national production in the next month, and 270,000 bpd over the next three months. Click here to read full stories.
Dec 21 - North Dakota spill sixth largest pipeline leak in 2016 - data
Crews have recovered about 1,805 barrels of oil from a creek in North Dakota following a Dec. 5 spill that leaked 4,200 barrels, making it the sixth-largest pipeline leak this year, according to government data.The cause of the spill is still not known, said Wendy Owen, spokeswoman for True Companies, which owns the Belle Fourche Pipeline. Of the total spill, about 3,100 barrels leaked into the nearby Ash Coulee Creek, a small waterway that feeds the Little Missouri River, a tributary of the Missouri River. Click here to read full stories.
Dec 21 - Kinder Morgan wins dismissal of $171 mln investor lawsuit
The Delaware Supreme Court dismissed on Tuesday a $171 million investor lawsuit against Kinder Morgan Inc stemming from the pipeline operator's acquisition of El Paso Corp and its affiliates.The lower Court of Chancery ruled last year that Kinder Morgan was on the hook for the bulk of the damages owed to investors in a master limited partnership, or MLP, which was shortchanged in deals with its own parent, El Paso Corp. Click here to read full stories.
Dec 20 - Asia set for biggest refining capacity jump in three years
Asia will post its biggest net refining capacity addition in three years in 2017, further boosting demand for crude in the world's biggest and fastest growing oil consuming region. New and expanded refineries from China to India will offset closures in Japan, adding a net 450,000 barrels per day (bpd) of crude processing capacity in 2017, the highest since 2014, energy consultancy Wood Mackenzie says. Click here to read full stories.
Dec 20 - Tanker docks at Libya's Es Sider port to load first crude cargo in two years - officials
An oil tanker docked at the east Libyan port of Es Sider on Monday to load the first cargo of crude since the terminal reopened following a two-year closure, port officials said. Es Sider, Libya's biggest export terminal, had been shut due to a blockade by a military faction since 2014. It reopened in mid September, but repairs were needed before tankers could load at the port, and its capacity remains far below its pre-conflict level of 350,000 barrels per day (bpd). Click here to read full stories.
Dec 20 - BP splashes out on deals to beef up oil, gas reserves
BP on Monday agreed to buy stakes in gas-heavy exploration areas off the coast of Mauritania and Senegal from Kosmos, days after announcing the long-awaited renewal of an onshore oil concession in Abu Dhabi. The combined deals are worth around $3.4 billion and will add valuable oil and gas reserves to BP's books that have seen resources shrink on the back of divestments it needed to make to pay for the 2010 Gulf of Mexico oil spill. Click here to read full stories.
Dec 20 - Saudi Arabia crude exports fall to 7.636 mln bpd in Oct - JODI
Saudi Arabia's crude oil exports fell in October by 176,000 barrels per day from the month before, despite high production, but its refined products shipments rose as the kingdom expands its refining power, official data showed on Monday. The world's top exporter shipped 7.636 million barrels per day in October, down from 7.812 million bpd in September, according to data from the Joint Organizations Data Initiative (JODI). Click here to read full stories.
Dec 20 - Death of diesel in passenger cars of limited concern to refiners
Even if the diesel engine's scandal-driven fall from grace pushes it out of the world's passenger cars, an increasing need for it on ships, in trucks and heavy industry could save the refineries that invested heavily in producing the fuel. The unfolding crisis that kicked off when Volkswagen falsified U.S. car emissions has spurred a litany of changes at vehicle manufacturers, which are now putting their cash behind electric cars, or back to gasoline engines. Click here to read full stories.
Dec 20 - Idemitsu buys fewer Showa Shell shares after family opposes deal
Idemitsu Kosan Co said on Monday it completed the purchase of just under a third of rival refiner Showa Shell Sekiyu KK, cutting the amount of shares it planned to buy after facing opposition from Idemitsu's founding family. Idemitsu's purchase, made possible after anti-monopoly regulators gave the go-ahead, is the latest twist in a protracted struggle with the family over plans to merge with Showa Shell. Click here to read full stories.
Dec 19 - As bruising year ends, U.S. refiners brace for more costly regulations
U.S. refiners such as Valero Energy Corp and Marathon Petroleum Corp are bracing for stricter, smog-busting gasoline regulations set to hit in January, threatening more headwinds for an industry that has just endured its least profitable year since the shale boom started five years ago.Many refiners are grappling with record costs to meet U.S. biofuel standards and the prospects of rising crude prices in the wake of the decision by OPEC and other oil producers to cut production. Click here to read full stories.
Dec 19 - BP strikes deal for 10 percent stake in Abu Dhabi's ADCO concession
BP became the second Western oil major to renew a 40-year onshore concession in Abu Dhabi on Saturday after almost two years of negotiations to improve terms to help operate the United Arab Emirates' biggest oilfields.The British oil company signed an agreement with state-run Abu Dhabi National Oil Company (ADNOC) giving it a 10 percent stake in the Abu Dhabi Company for Onshore Petroleum Operations (ADCO), which operates the concession. Click here to read full stories.
Dec 19 - China to scrap fuel export quotas for 'teapot' refineries - sources
Beijing will not issue fuel export quotas for independent refineries next year, dealing a blow to the upstart group of companies and scrapping a key component of a scheme that has transformed China's oil markets, three sources said.The surprise move ends a policy launched at the start of this year that allowed some privately run refineries - known as 'teapots' - to sell their diesel, gasoline and naphtha abroad, just a few months after Beijing first allowed them to import crude oil. Click here to read full stories.
Dec 19 - Hedge funds boost bullish U.S. crude bets after OPEC deals
Hedge funds boosted their bullish bets on U.S. crude oil for a fourth week in five to a near two-and-a-half year high, data showed on Friday, as top producers agreed to cut output alongside OPEC members.The speculator group raised its combined futures and options position in New York and London by 42,389 contracts to 318,152 in the week to Dec. 13, its highest since July 2014, U.S. Commodity Futures Trading Commission (CFTC) data showed. Click here to read full stories.
Dec 19 - Iraq boosts oil sales to China, U.S., India before OPEC supply cuts bite - sources
Iraq is selling more crude oil to its biggest customer, China's Unipec, people familiar with the matter say, digging a deeper foothold in the global supply market just before production cuts agreed with OPEC and other producers are scheduled to kick in.With new deals with Indian and U.S. refiners also coming on stream, the expanded contract with the trading arm of Asia's largest refiner Sinopec means Baghdad will have to reduce supply to other clients to honour its commitment to cut output by 210,000 barrels per day (bpd) from 2017. Click here to read full stories.
Dec 16 - Cost of pump-at-will oil policy spurred Saudi OPEC U-turn
Saudi Arabia has long said it could produce as much as 12 million barrels per day (bpd) of oil if needed, but that pump-at-will claim - which would require huge capital spending to access spare capacity - has never been tested.Sources say the kingdom may have stretched its current limits by extracting a record of around 10.7 million bpd this year, which could be one reason why Riyadh pushed so hard for a global deal to cut production. Click here to read full stories.
Dec 16 - Pipeline from two Libyan oil fields "reopens" but output hampered
A group of oil guards in Libya said on Thursday they had reopened a long blockaded pipeline leading from the major oil fields of Sharara and El Feel, but an oil worker said a separate group had prevented a production restart at El Feel.The apparent agreement by a faction of the Petroleum Facilities Guard (PFG) in Rayana to open the pipeline after shutting it for more than two years has raised hopes of a major output boost from Sharara and El Feel, which together can produce more than 400,000 barrels per day (bpd). Click here to read full stories.
Dec 16 - OPEC supply still opaque despite more data - Petro-Logistics
OPEC's first supply cut deal in eight years came as good news for a Swiss family business founded by an economics analyst who once helped the then Rhodesian government procure oil supplies in the face of sanctions.Geneva-based Petro-Logistics earns money from the lack of timely and complete information from OPEC members and other oil exporters like Russia in the 95 million barrels-per-day global market, by tracking shipments to estimate production and supply. Click here to read full stories.
Dec 16 - U.S. Energy Department unfairly criticised over spending, forecasts: Kemp
The U.S. Department of Energy has become a lightning rod for criticism in parts of the Republican Party and the fossil fuels industry unhappy about the Obama administration's energy and climate policies.Presidential candidate Rick Perry promised to abolish the Department of Energy along with the Departments of Commerce and Education during a debate in 2011. Click here to read full stories.
Dec 16 - Energy East pipeline woes cast pall over Canada's Atlantic coast
For years, heavy equipment operator Ashley Underhill has tried to defy the notion that one could only make a good living in Canada's poorer east coast by spending most of the time away from the family in the nation's western oil patch. One reason Underhill had battled on, working on small private contracts, including snow clearing and wood cutting, was Energy East, a planned 4,600-km (2860-mile) pipeline between Alberta's oil sands and the east coast and the promise of an economic boost it could bring. But the approval for two western pipelines last month dimmed Energy East's prospects and now Underhill is looking to work in the oil sands in western Canada. Click here to read full stories.
Dec 16 - Nigeria signs $5.1 billion deal with five oil companies to clear unpaid bills
Nigeria will clear unpaid bills worth $5.1 billion for oil production joint ventures piled up over many years under a deal signed on Thursday with Shell, Chevron, Total, Eni and Exxon Mobil.The deal would unlock new investment in the OPEC member country, Oil Minister Emmanuel Ibe Kachikwu said in a speech at the signing ceremony, adding the repayment would take place over the coming five years. Click here to read full stories.
Dec 15 - OPEC signals larger 2017 oil surplus, unless cuts implemented
OPEC on Wednesday signalled a growing oil supply surplus next year unless members implement their deal to curb output from record levels and outside producers also deliver on cutback pledges made at the weekend. The Organization of the Petroleum Exporting Countries pumped 33.87 million barrels per day (bpd) last month, according to figures OPEC collects from secondary sources, up 150,000 bpd from October, OPEC said in a monthly report. Click here to read full stories.
Dec 15 - U.S. oil industry cheers Trump energy pick, seeks gas export boost
The U.S. oil and gas industry on Wednesday welcomed President-elect Donald Trump's choice of former Texas Governor Rick Perry to head the U.S. Department of Energy, and wasted no time making its first specific request of him: to support increased exports of America's natural gas overseas. Trump named Perry as his pick for the top U.S. energy job on Wednesday morning, handing the portfolio to a climate change skeptic with close ties to the oil and gas industry, and who previously proposed abolishing the department. Click here to read full stories.
Dec 15 - U.S. crude stocks down, though inventories up again in Cushing -EIA
U.S. crude stocks fell more than expected last week, though they once again rose at the key storage hub in Cushing, Oklahoma, the Energy Information Administration said on Wednesday. Crude inventories fell by 2.6 million barrels in the week to Dec. 9, compared with analyst expectations for an decrease of 1.6 million barrels. The data was affected by the largest draw in the West Coast since August, where stocks fell by 2.3 million barrels. Click here to read full stories.
Dec 15 - Petrobras to sell stake in Nova Fronteira ethanol venture - source
State-controlled Petróleo Brasileiro SA on Thursday will sign a deal to sell its 49 percent stake in Nova Fronteira Bioenergia SA to partner Sao Martinho SA for up to 500 million reais ($150 million), a person directly involved in the transaction said on Wednesday. Sao Martinho, one of Brazil's top-five sugar and ethanol producers, currently owns 51 percent of Nova Fronteira, which was founded six years ago and has a state-of-the-art mill in the center-west state of Goiás. Click here to read full stories.
Dec 15 - Maersk, DONG oil and gas merger talks stall over price - sources
Talks between shipping group A.P. Moller-Maersk and DONG Energy to merge their oil and gas business have stalled after the two Danish firms could not agree on a price, industry and banking sources said on Wednesday. The breakdown in talks aimed at creating a joint company worth more than $10 billion may open the door for other bids for DONG's operations, which it is spinning off as it moves away from fossil fuels to focus on offshore wind, the sources said. Click here to read full stories.
Dec 15 - S.Korea's Nov Iran crude imports jump fourfold from last year
South Korea's Iranian crude oil imports rose more than fourfold in November from a year earlier and nearly doubled from the previous month as Hyundai Chemical started its new condensate splitter, while Tehran continued to increase its output to pre-sanction levels. The world's fifth-largest crude importer imported 1.73 million tonnes of Iranian crude last month, or 423,020 barrels per day (bpd), compared with 395,132 tonnes during the same month a year earlier and 902,987 tonnes in the previous month, customs office data showed on Thursday. Click here to read full stories.
Dec 15 - Tillerson to hand over reins to Exxon's president Woods
Exxon Mobil Corp said on Wednesday its president, Darren Woods, will become chief executive and chairman in January following the retirement of Rex Tillerson, who is U.S. President-elect Donald Trump's choice for secretary of state. Tillerson, 64, will retire at the end of the year and Woods, 51, will take over effective Jan. 1, Exxon, the world's largest publicly traded oil company, said. Click here to read full stories.
Dec 15 - Protesters agree to end blockade of western Libya oil pipelines -officials
Protesters blockading pipelines to Libya's Sharara and El Feel oil fields have promised to reopen them and production could restart in the coming days, security officials and an oil industry source said on Wednesday. Reopening the fields could add 365,000 barrels per day (bpd) to Libya's production, which has been drastically reduced by conflict and political disputes. Click here to read full stories.
Dec 15 - Saudi Aramco in deals with foreign firms in push for local content
State oil giant Saudi Aramco signed deals with several foreign companies as part of a drive to expand the kingdom’s industrial base and manufacture a bigger share of products domestically. Deals include setting up joint ventures with U.S.-listed firms Rowan Companie and Nabors Industries to own, manage, and operate drilling rigs in Saudi Arabia. Click here to read full stories.
Dec 14 - Oil demand to grow more swiftly, too early to assess global output cut
Global oil demand will rise more strongly than expected next year, although it is too soon to assess fully the impact of a joint cut in supply by the world's largest producers, the International Energy Agency said on Tuesday. In its monthly oil market report, the IEA said revisions to its estimate of Chinese and Russian consumption had prompted it to raise its forecast for global oil demand growth this year by 120,000 barrels per day (bpd) to 1.4 million bpd, and to lift its forecast for 2017 by 110,000 bpd to 1.3 million bpd. Click here to read full stories.
Dec 14 - Saudi Arabia engineers big shift in oil market sentiment: Kemp
Saudi Arabia has transformed sentiment in the oil market by assembling an unprecedented coalition of oil producing countries to agree output cuts in 2017. Saudi officials have obtained pledges from OPEC members to cut production by almost 1.2 million barrels per day and from non-OPEC members by an extra 560,000 bpd during the first half of 2017. Click here to read full stories.
Dec 14 - Iran crude oil exports to hit 5-mth low in Dec -source
Iran's crude oil exports in December are set to fall 8 percent from November to a five-month low, a source with knowledge of its preliminary tanker schedule said, as lower shipments to China and others in Asia offset bumper exports to Europe. Iran was exempted from last month's OPEC deal to reduce output by 1.2 million barrels per day (bpd) starting from January, and had been expected to boost its output slightly. Click here to read full stories.
Dec 14 - S.Korea pairs state utility, private tech giants in $37 bln bid to seize global green energy lead
South Korea aims to vault from laggard to leader in the renewable energy industry, as Seoul prepares to hook the country's tech giants up to nearly $40 billion in public funds in a bold plan to become a new global leader in green power. Amid questions over the future of clean energy in the United States under President-elect Donald Trump, as well as China's appetite for cutting fossil fuel reliance, Seoul is accelerating into battery and 'smart' grid technology - vital to store and transmit power whose generation changes with the weather. Click here to read full stories.
Dec 14 - After Alaska flop, Shell's search for oil moves closer to home
In the waters off Malaysia, Royal Dutch Shell is finding gas quickly and cheaply to replenish depleting fields where only a few years ago geologists had lost hope of discovering any new reserves. The Anglo-Dutch group is combining the latest technology with the wisdom of industry veterans to unlock new oil and gas deposits where it already operates, usually within 20 km (12 miles) of existing platforms. Click here to read full stories.
Dec 14 - Slack data management exposed BP to high safety risk - leaked report
BP's refining operations are exposed to high safety risks that can lead to deadly accidents and pollution as a result of slack data management and a lack of investment, according to a leaked internal report from 2015. The report, co-authored by BP, IBM and industry consultancy WorleyParsons , states that the British company's refining and petrochemical business, known as downstream, is trailing rivals such as Royal Dutch Shell by up to seven years in managing information to reduce safety risks and financial losses. Click here to read full stories.
Dec 14 - Trump picks former Texas Governor Perry as energy secretary
Donald Trump has chosen former Texas Governor Rick Perry to head the U.S. Department of Energy, a source close to the president-elect said, putting him in charge of an agency he proposed eliminating during his bid for the 2012 Republican presidential nomination. The choice of Perry adds to the list of oil-drilling advocates skeptical about climate change who Trump has picked for senior positions in his Cabinet, worrying environmentalists but cheering an industry eager for expansion. Click here to read full stories.
Dec 13 - U.S. shale output set to rise in January as OPEC pulls back
U.S. shale production is set to snap a five-month decline in January, the U.S. government said on Monday, a move that comes just days after OPEC and rival producers agreed to reduce crude output in an effort to boost prices. The month-on-month increase in production would be the first since July and the second rise in a year, according to the U.S. Energy Information Administration's drilling productivity report. Click here to read full stories.
Dec 13 - Iraq to abide by OPEC cut, expects output growth in future
Iraq is committed to cutting its production to comply with a global pact to support prices, the country's oil minister said, adding he was nevertheless confident OPEC's No. 2 producer has the potential to boost its output in coming years. Iraq is reviewing several options to implement the reduction, including cuts from Kirkuk oilfield, southern fields being developed by oil majors or other state-run areas, Oil Minister Jabar al-Luaibi said in an interview. Click here to read full stories.
Dec 13 - Trump to announce Exxon chief Tillerson as secretary of state
President-elect Donald Trump will announce Exxon-Mobil Corp's Rex Tillerson as his choice for secretary of state on Tuesday, a senior transition official said, confident that the oil executive can get past questions about his ties to Russia. Trump is to make the announcement on Tuesday morning, going with a business leader whose experience in diplomacy is from making deals with foreign countries for the world's largest energy company. Click here to read full stories.
Dec 13 - UAE's ADNOC to cut Jan oil supplies to Asia; Kuwait, Oman to follow
Abu Dhabi National Oil Company on Tuesday said it would cut crude supplies by 3-5 percent across its three export grades to meet commitments under an OPEC deal to curb output. The move is one of the first visible indicators that oil markets could be physically tighter in 2017 as the Organization of the Petroleum Exporting Countries (OPEC) and other producers cut production to ease a supply glut and prop up prices. Click here to read full stories.
Dec 13 - Hedge funds establish record bullish position in oil after OPEC: Kemp
Hedge funds were badly caught out by the production cuts announced by OPEC at the end of last month, triggering a furious rally as managers raced to buy back loss-making short positions. When OPEC announced a deal had been reached on Nov. 30, a substantial number of short positions were still uncovered, providing the opportunity for a classic squeeze. Click here to read full stories.
Dec 13 - U.S. gasoline margin jumps as PES considers advancing planned work
Philadelphia Energy Solutions (PES) is considering advancing planned work after a weekend fire at its Philadelphia refinery complex, sparking a jump on Monday in the traded cost to refine crude oil into gasoline. The U.S. gasoline crack spread, a key indicator in refining margins, jumped by 3.48 percent to $12.22 a barrel on the New York Mercantile Exchange, in the minutes after Reuters reported that PES may move up work to upgrade units to new fuel standards. Click here to read full stories.
Dec 12 - OPEC, non-OPEC agree first global oil pact since 2001
OPEC and non-OPEC producers on Saturday reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices that overstretched many budgets and spurred unrest in some countries. With the deal finally signed after almost a year of arguing within the Organization of the Petroleum Exporting Countries and mistrust in the willingness of non-OPEC Russia to play ball, the market's focus will now switch to compliance with the agreement. Click here to read full stories.
Dec 12 - Oil traders prepare flotilla to ship U.S. exports to Asia
Oil traders and major producers are lining up a flotilla of carriers to ship more U.S. crude to Asia in December than in nearly two decades as higher prices, supported by OPEC's proposed supply cuts, offer a rare opportunity to boost sales to the region. A 40-year U.S. ban on crude exports was lifted in 2015 but only a few cargoes have shipped during a global glut in supply. The Organization of the Petroleum Exporting Countries last week agreed to its first supply cut in eight years as the cartel sought to end the two-year glut. Click here to read full stories.
Dec 12 - Advantage OPEC in global crude game, but no checkmate: Russell
The global crude oil market is starting to resemble a gigantic game of chess, with a bold opening gambit by OPEC and its allies giving them an advantage, but the game is still far from checkmate. The weekend deal by 12 countries outside OPEC to join the producer group's agreement to curb crude output certainly looks bullish for prices, as it takes the total amount of oil leaving the market in the first half of 2017 to almost 1.8 million barrels per day (bpd). Click here to read full stories.
Dec 12 - Goldman says non-OPEC output cut deal aimed at inventory glut
Goldman Sachs said the formal agreement by non-OPEC oil producers this weekend in Vienna to help curb output was reached with a goal of "normalization" of inventories and not necessarily just at raising oil prices. The Organization of the Petroleum Exporting Countries (OPEC) had previously agreed to cut output by 1.2 million barrels per day (bpd), and on Saturday, 11 non-OPEC producers agreed to join the effort and reduce output by 558,000 bpd. Click here to read full stories.
Dec 12 - U.S. drillers add the most oil rigs since July 2015 - Baker Hughes
U.S. energy companies this week added the most oil rigs since July 2015, extending the seven-month drilling recovery as crude prices rose to a near 17-month high. Drillers added 21 oil rigs in the week to Dec. 9, bringing the total count up to 498, the most since January, but still below the 524 rigs seen a year ago, energy services firm Baker Hughes Inc said on Friday. Click here to read full stories.
Dec 12 - Russia signs Rosneft deal with Qatar, Glencore
Russian state holding company Rosneftegaz on Saturday signed a deal with the Qatar Investment Authority (QIA) and commodities trader Glencore to sell a 19.5 percent stake in state-owned oil major Rosneft, Rosneft said. The privatisation deal, which Rosneft Chief Executive Igor Sechin called the largest in Russia's history, was announced by Rosneft in a meeting with President Vladimir Putin on Wednesday. Click here to read full stories.
Dec 12 - Hedge funds' bullish U.S. crude bets soar to 6-week high after OPEC deal
Hedge funds rushed to place bullish wagers on U.S. crude oil, data showed on Friday, after the world's largest producers agreed to curb output for the first time since 2008 in an effort to rein in a glut and support prices. The speculator group raised its combined futures and options position in New York and London by 86,085 contracts to 275,763 in the week to Dec. 6, data from the U.S. Commodity Futures Trading Commission (CFTC) showed. That was the biggest weekly increase since late August, when speculators boosted bullish bets by a record 88,924 contracts. Click here to read full stories.
Dec 12 - Tillerson choice raises questions of corporate vs national interest
The central question facing Exxon Mobil Corp Chief Executive Rex Tillerson if he becomes U.S. secretary of state is whether a lifelong oil man with close ties to Russia can pivot from advancing corporate interests to serving the national interest. Tillerson, 64, got his start as a production engineer at Exxon in 1975 and has worked there ever since, running business units in Yemen, Thailand and Russia before being named chief executive in 2006. He was expected to retire next year. Click here to read full stories.
Dec 09 - Only 5 non-OPEC producers so far attending talks to widen output cut
Only five of 14 non-OPEC oil producers have agreed so far to meet the group on Saturday for talks aimed at widening a deal to reduce output, casting doubt on whether OPEC will secure the full cuts it is seeking, two OPEC sources said. The Organization of the Petroleum Exporting Countries, which finalised its first oil output cut in eight years last month to prop up prices, is to hold talks with non-member countries in Vienna in the hope that they will also limit supply. Click here to read full stories.
Dec 09 - Saudi Arabia keeps full crude supply to Asia in January
Saudi Arabia will supply full contracted volumes of crude oil to at least four Asian buyers in January and will allocate extra volumes to at least two, despite commitments to cut production in an OPEC deal, refinery sources said on Friday. The move is in line with Saudi Arabia's strategy of maintaining market share in the fastest growing oil demand region even though the Organization of the Petroleum Exporting Countries agreed last week to scale back output from January, its first cut since 2008. Click here to read full stories.
Dec 09 - For U.S. veterans, pipeline protest promises to galvanize activism
U.S. veterans, thousands of whom last week helped stop a contested oil pipeline running through North Dakota, could become important partners of activists on the environment, the economy, race and other issues that divide Americans. Several academics said the effort to support the Standing Rock Sioux tribe and others opposed to the pipeline project was likely the biggest gathering of its kind of former military personnel since the early 1970s when U.S. veterans marched against the Vietnam War. Click here to read full stories.
Dec 09 - POLL-OPEC deal will pack little punch in raising oil prices
OPEC's landmark oil-production deal may prove effective in running down global inventories, but analysts hold little hope for much of a rise in prices, a Reuters poll showed on Thursday. If all members of the Organization of the Petroleum Exporting Countries honour the deal reached in Vienna on Nov. 30 to cut output, any ensuing price gain and drop in inventories could be quickly reversed by rising non-OPEC production. Click here to read full stories.
Dec 09 - Eyeing upswing, more US oilfield service firms restructure
After two years of hunkering down, struggling U.S. oilfield service providers are preparing for an expected oil-price recovery in an unexpected way: filing for bankruptcy. Companies that drill wells, haul water and provide other services to energy exploration firms have been waiting out a slump in oil prices by idling machinery, laying off workers and extending deadlines for repaying debts. Click here to read full stories.
Dec 09 - Oil traders see no market rebalancing until later in 2017: Kemp
Crude traders expect the oil market to begin tightening and gradually move into deficit, but the shift is not forecast to occur much before the second half of 2017. The expected timetable for rebalancing is revealed by the changing relationship between Brent futures prices for different months in 2017 and 2018. Click here to read full stories.
Dec 09 - Payoff on call options after OPEC deal disappoints oil traders
Oil traders who bought U.S. crude call options before OPEC's agreement last week to cut output did not get the windfall they were expecting as the rally in those options fell short of crude's massive surge. Early last week ahead of the Organization of Petroleum Exporting Countries meeting, traders piled into inexpensive West Texas Intermediate January $60 calls expiring in mid-December with premiums between 6 to 8 cents. The buying pumped open interest up by about 90,000 lots in just three days to a record for that contract. Click here to read full stories.
Dec 09 - Iran's Rouhani says OPEC cooperation key to stabilising oil - TV
Iran's President Hassan Rouhani said on Thursday that members of the Organization of the Petroleum Exporting Countries (OPEC) should work together to secure implementation of a deal reached last month aimed at stabilizing the oil market, Iran's state TV reported. Oil rebounded from the week's lows and hovered above $50 a barrel on Thursday ahead of a meeting on Saturday in Vienna between OPEC and non-OPEC producers that may result in an agreement to cut crude output further. Click here to read full stories.
Dec 09 - Italian bank Intesa to help fund Rosneft deal for Glencore and Qatar - sources
Italian bank Intesa Sanpaolo is expected to provide a consortium of Qatar and commodities trader Glencore with sizeable funds to help finance their purchase of a stake in Russian oil company Rosneft, two sources familiar with the transaction said. Intesa declined to say whether it was helping finance the deal, announced by the Kremlin, which said on Wednesday it had sold a 19.5 percent government stake in Rosneft for 10.5 billion euros ($11.3 billion) to Qatar's sovereign wealth fund and Glencore. Click here to read full stories.
Dec 08 - OPEC, U.S. begin "cat and mouse" oil game as producers pounce on hedges
As far as one of the world’s biggest commodities traders, Glencore’s chief Ivan Glasenberg, is concerned, the oil market will be at the mercy of "a cat and mouse game" between OPEC and its U.S. shale rivals in the coming year.A 16 percent price rally over the past week has delivered U.S. frackers a golden opportunity to hedge - or sell forward - their production for 2017 and beyond, to shore up their coffers against possible future price falls. Click here to read full stories.
Dec 08 - China teapots to extend oil buying spree into 2017
China's small, independent refiners are set to raise their crude oil imports again in 2017 on expectations that Beijing will keep their intake quotas steady, market participants said, a move that should help eat up some of the global supply glut.Officials at three independent refineries and an official involved in national import policy said they expected the government to keep next year's crude oil import quotas for independents unchanged to slightly higher. Click here to read full stories.
Dec 08 - U.S. gasoline consumption growth may slow in 2017: Kemp
U.S. gasoline consumption has been growing at the fastest rate for more than a decade as lower fuel prices and an expanding economy have combined to produce a big increase in demand.OPEC is relying on continued growth in U.S. gasoline consumption, as well as other fuels, coupled with faster growth in demand from emerging markets, to help rebalance the oil market in 2017. Click here to read full stories.
Dec 07 - In mammoth task, BP sends almost 3 mln barrels of U.S. oil to Asia
Oil major BP is shipping almost 3 million barrels of U.S. crude to customers across Asia, pioneering a lengthy and complex operation likely to become more popular after OPEC last week announced deep production cuts. BP's efforts, involving one of the world's longest sea routes, seven tankers and a series of ship-to-ship transfers, underscore a desire among oil traders to develop new routes to sell swelling supplies of cheap U.S. shale oil to Asia, the world's biggest consumer region. Click here to read full stories.
Dec 07 - Energy Transfer keeps up legal pressure after pipeline defeat
The company building the Dakota Access Pipeline turned to a federal judge late on Monday for a permit to finish the job after the federal government ruled against the controversial pipeline. The pipeline, which is being built by Energy Transfer Partners, has been the subject of protests from the Standing Rock Sioux tribe and climate activists for months, due to its proximity to the tribe's reservation. Click here to read full stories.
Dec 07 - U.S. crude output in 2016, 2017 to fall less than expected - EIA
The U.S. Energy Information Administration expects U.S. crude oil production for 2016 and 2017 to fall by less than previously expected, according to its monthly short term energy outlook released on Tuesday. The forecast comes after last week's deal between members of the Organization of the Petroleum Exporting Countries (OPEC) to cut output, a move that pushed global oil prices to near 18-month highs. Click here to read full stories.
Dec 07 - Junk energy companies rush to primary market - IFR News
Junk-rated energy companies are rushing to the US bond market at the fastest pace in nearly two years, looking to refinance debt following a sharp rally in spreads over the past week. Permian Basin independent producer Parsley Energy and natural gas giant Chesapeake Energy are pricing deals Tuesday, and follow a bond from Cheniere Energy a day earlier which was increased to US$1.5bn from US$1bn on the back of strong demand. Click here to read full stories.
Dec 07 - Oil firms and carmakers diverge in costly debate
Many carmakers are predicting a significant shift to electric vehicles in the next decade. Advances in battery technology and the growth of autonomous driving and ride sharing - suited to electric vehicles - will power this expansion, they reason. But some oil executives take a different view, predicting electricity will play only a bit part in transport out to 2040 at least. If they are on the wrong side of the argument, it could come at a cost to an industry where new projects often cost billions of dollars to build and need decades of at least moderate crude prices to pay off. Click here to read full stories.
Dec 07 - Glencore raises money for Kurdish oil deal, likely short of target -sources
Glencore will likely fall short of its target of raising $550 million to pre-finance the purchase of Kurdish oil, with investors exercising caution despite the offer of a 12 percent bond yield, industry sources told Reuters. Two sources familiar with the plans said that commodities giant Glencore will price the bond at 12 percent on Tuesday, having received investor commitments for between $200 million and $400 million. Glencore would have to cover the rest itself, though there is no obligation to hit the full $550 million. Click here to read full stories.
Dec 06 - Ahead of deal to cut, OPEC oil output hits record high - Reuters survey
OPEC's oil output set another record high in November ahead of a deal to cut production, a Reuters survey found on Monday, helped by higher Iraqi exports and extra barrels from two nations exempted from cutting supply - Nigeria and Libya. The latest rise in supply means the Organization of the Petroleum Exporting Countries will have a bigger task in complying with a plan to cut supply starting in 2017 - its first production-reduction deal since 2008. Click here to read full stories.
Dec 06 - Saudi Arabia cuts Jan oil price to Asia to 4-mth low to keep market share
Saudi Aramco has cut the January price for its Arab Light crude for Asian customers to the lowest in four months as it holds to a strategy of preserving market share in the world's fastest-growing demand centre. The price cuts are meant to ensure that Aramco can still sell more oil into Asia even after going along with the OPEC-Russia deal to cut output. The Saudis have been struggling over the last two years to fight off increased competition from other producers in the Middle East, Russia and the Atlantic Basin. Click here to read full stories.
Dec 06 - Sioux chief asks protesters to disband, Trump to review pipeline decision
A Native American leader asked thousands of protesters to return home after the federal government ruled against a controversial pipeline, despite the prospect of President-elect Donald Trump reversing the decision after he takes office. A coalition of Native American groups, environmentalists, Hollywood stars and veterans of the U.S. armed forces protested the $3.8 billion oil project. They said construction would damage sacred lands and any leaks could pollute the water supply of the Standing Rock Sioux tribe. Click here to read full stories.
Dec 06 - China stakes claim in Mexico oil opening at deep water auction
Mexico on Monday auctioned eight out of ten deep water oil and gas blocks up for grabs in the Gulf of Mexico, and scored a joint venture for a major crude field in the most hotly-anticipated round of the country's energy opening so far. China's Offshore Oil Corporation took two of the eight blocks, while Australia's BHP Billiton outbid Britain's BP in a bid to partner with Mexican state oil firm Pemex in the promising Trion light oil field in the Gulf of Mexico. Click here to read full stories.
Dec 06 - OPEC sees robust oil demand growth even if prices rise
The Organization of the Petroleum Exporting Countries expects oil demand in 2017 to be as robust as this year, the group's secretary general told an energy conference on Monday, though recently agreed production cuts could raise prices for buyers. Mohammed Sanusi Barkindo, briefing reporters on the sidelines of India's Petrotech energy conference, said Asia would have a big role to play in the demand growth and that there was plenty of room for OPEC and non-OPEC countries to grow in the global oil market. Click here to read full stories.
Dec 06 - Barclays' exit from energy trading stirs concerns over liquidity
British bank Barclays Plc has joined the list of top banks to exit energy trading, an exodus that analysts say raises concern among oil producers that falling liquidity means they cannot use derivatives for their basic function: to hedge risk by locking in future prices. Wall Street firms have scaled back in commodity markets since the 2008 financial crisis from owning physical assets or taking positions in the market in the face of regulatory scrutiny. The banks were big players in the market for derivatives years into the future. Click here to read full stories.
Dec 06 - Iran aims for oil, gas fields tender after January
Iran will launch after January 2017 its first new-style tender to develop oil and gas fields since the lifting of sanctions, an oil official said on Monday, noting that the deadline to submit pre-qualification documents has been extended until Dec 10. OPEC's third largest oil producer hopes its new Iran Petroleum Contracts (IPC), part of an effort to sweeten the terms it offers on oil development deals, will attract foreign companies and boost production after years of under-investment. Click here to read full stories.
Dec 06 - Russia's Rosneft offers $9.4 bln in local bonds and eyes Egyptian investment
Russian oil firm Rosneft opened the books for a 600 billion rouble ($9.4 billion) bond sale on Monday to raise money for foreign projects, and said it was interested in an offshore concession in Egypt. The bond issue is its first in two years and part of a wider 1.071 trillion rouble programme approved last month. Click here to read full stories.
Dec 05 - Ahead of promised cut, Russia's oil output hits record high
Russia plans to use its November oil production, which was its highest in almost 30 years, as its baseline when it cuts output under this week's deal with OPEC, Deputy Energy Minister Kirill Molodtsov said on Friday. Russia has promised to gradually cut output by up to 300,000 barrels per day (bpd) in the first half of 2017 as part of a deal with other producers aimed at supporting oil prices. Click here to read full stories.
Dec 05 - With Dakota denial, outlook for U.S. pipelines turns murky
The U.S. Army's denial of an easement for the Dakota Access Pipeline, after permitting and legal obligations were followed, sets an uncertain precedent for new projects despite President-elect Donald Trump's promise to support energy infrastructure. The decision came after months of protests by the Standing Rock Sioux tribe and others who said the line could desecrate tribal grounds, or a spill could contaminate drinking water. Click here to read full stories.
Dec 05 - HK's CKI returns to Australia with $5.4 bln bid for Duet Group
Hong Kong's Cheung Kong Infrastructure Holdings Ltd made a A$7.3 billion ($5.4 billion) approach for Australian energy giant Duet Group, the target said, a sign CKI has not been deterred by a recent regulatory knockback Down Under. In August, the Australian government rejected a A$10 billion bid by Hong Kong billionaire Li Ka-Shing's CKI for a controlling stake of state-owned energy grid Ausgrid, citing security concerns. Click here to read full stories.
Dec 05 - Saudi, Kuwait expect to restart Neutral Zone oilfields soon - sources
Saudi Arabia and Kuwait are expected to agree this month to resume oil production from the jointly operated oilfields in the Neutral Zone that lies between both countries, industry sources told Reuters on Sunday. The closure of the Neutral Zone's fields, mainly Khafji and Wafra, has become a political sticking point between the two Gulf OPEC allies and senior officials have been trying to resolve the issue for months. Click here to read full stories.
Dec 05 - Hedge funds trim bullish bets on U.S. crude ahead of OPEC deal
Hedge funds and money managers scaled back their bullish bets on U.S. crude oil in the days ahead of a landmark deal by the world's top crude exporters to cut production and rein in a global glut, data showed on Friday. The speculator group cut its combined futures and options position in New York and London by 2,418 contracts to 189,677 during in the week to Nov. 29, the U.S. Commodity Futures Trading Commission (CFTC) said. That cut was the first in three weeks. Click here to read full stories.
Dec 05 - BP approves $9 billion Mad Dog project in Gulf, a first since spill
Oil major BP has approved a $9-billion investment in its Mad Dog project in the Gulf of Mexico, its first major new platform in the region since a 2010 explosion at its Macondo well led to the worst offshore disaster in U.S. history. The decision shows confidence that the company can safely operate in the region and is a bet that oil produced in the deepwater offshore can compete with rival on-shore production. Click here to read full stories.
Dec 02 - How Putin, Khamenei and Saudi prince got OPEC deal done
Russian President Vladmir Putin played a crucial role in helping OPEC rivals Iran and Saudi Arabia set aside differences to forge the cartel's first deal with non-OPEC Russia in 15 years. Interventions ahead of Wednesday's OPEC meeting came at key moments from Putin, Saudi Deputy Crown Prince Mohammed bin Salman and Iran's Supreme Leader Ayatollah Ali Khamenei and President Hassan Rouhani, OPEC and non-OPEC sources said. Click here to read full stories.
Dec 02 - Red-letter day for oil spreads, as market now sees 2017 rebalancing
After OPEC's first output cut in eight years, long-dated oil futures spreads flipped into positive territory for the first time in two years on Thursday, suggesting an end to the global crude glut is in sight. The tell can be found in a trade known as "Dec Red" - the spread between the December 2017 and 2018 U.S. crude futures contracts. Click here to read full stories.
Dec 02 - The return of OPEC: Bordoff
Two years ago, when the Organization of Petroleum Exporting Countries chose not to cut output and let oil prices collapse, many pundits penned obituaries for the producer group. Yet on Wednesday, OPEC seemed to breathe new life, agreeing to cut output 1.2 million barrels per day (bpd). While OPEC may have been hibernating, the decision by Saudi Arabia, OPEC’s leading member, to let oil prices crash was always a pragmatic one, not an ideological one. OPEC has sent stark reminder that when circumstances change, it can change too -- and it would be foolish to write off OPEC as irrelevant. Click here to read full stories.
Dec 02 - Private equity funds, former oil execs eye Southeast Asia energy assets
Flush with cash, private equity-backed firms and former oil industry executives are eyeing energy assets in Southeast Asia as prolonged lower crude prices drive oil majors hungry for cash to divest or seek additional funds. The firms are banking on a rapid rise in economic growth in Southeast Asia - a region ripe with cheaper and smaller oil and gas fields which are nearing production - to boost oil demand and in turn enable them to resell the assets within a few years at a profit. Click here to read full stories.
Dec 02 - As winter nears, Dakota Access faces frigid weather and costly delays
Delays to the Dakota Access Pipeline have added millions of dollars to Energy Transfer Partners' construction tab - but even if the line is approved, the freezing temperatures will bring their own challenges to finishing the drilling process. Frigid weather makes some aspects of pipeline construction more difficult, though not impossible, engineers and experts interviewed by Reuters said this week. Click here to read full stories.
Dec 01 - OPEC in first joint oil cut with Russia since 2001, Saudis take "big hit"
OPEC has agreed its first oil output cuts since 2008 after Saudi Arabia accepted "a big hit" on its production and dropped its demand on arch-rival Iran to slash output, pushing up crude prices by around 10 percent. Fast-growing producer Iraq also agreed to curtail its booming output, while non-OPEC Russia will join output cuts for the first time in 15 years to help the Organization of the Petroleum Exporting Countries prop up oil prices. Click here to read full stories.
Dec 01 - OPEC's big cut to oil output may not be so impressive: Russell
The trick with the OPEC agreement is not to view it as a cut to output, but rather as the partial removal of excess crude oil from the global market. While there is little doubt that OPEC's agreement to remove 1.2 million barrels per day (bpd) will tighten the global oil market, there is still likely to be plenty of crude around in the first half of next year. Click here to read full stories.
Dec 01 - U.S. crude inventories fall unexpectedly, big distillate build - EIA
U.S. crude oil stockpiles fell unexpectedly last week, while distillate inventories rose sharply, the Energy Information Administration's data showed on Wednesday. Crude inventories fell 884,000 barrels in the week to Nov. 25, compared with analysts' expectations for an increase of 636,000 barrels. Click here to read full stories.
Dec 01 - U.S. veterans to form human shield at Dakota pipeline protest
More than 2,000 U.S. military veterans plan to form a human shield to protect protesters of a pipeline project near a Native American reservation in North Dakota, organizers said, just ahead of a federal deadline for activists to leave the camp they have been occupying. It comes as North Dakota law enforcement backed away from a previous plan to cut off supplies to the camp – an idea quickly abandoned after an outcry and with law enforcement’s treatment of Dakota Access Pipeline protesters increasingly under the microscope. Click here to read full stories.
Dec 01 - New pipelines no silver bullet for battered Canada oil industry
Canada's oil sands producers are getting a long-awaited boost in export capacity, but the two pipeline projects approved this week will not be a silver bullet for the industry's woes unless crude prices pick up or companies improve their operating efficiency. The Canadian government approved Kinder Morgan's plan to triple volumes on its Trans Mountain pipeline to 890,000 barrels per day, and cleared Enbridge Inc's Line 3 replacement project, which will roughly double capacity to 760,000 bpd. Enbridge's Northern Gateway pipeline was rejected. Click here to read full stories.