As Texas Output Surges, Cash Discounts Soar
Surging West Texas oil production has pushed the value of the region's spot crude to its lowest discount to the U.S. oil benchmark in nearly two years, as an exuberant shale industry pumps more to take advantage of higher prices and demand from refiners who have seen supplies cut by top global producers. OPEC and non-OPEC suppliers are working toward cuts of 1.8 million barrels per day, around 2 percent of the 92 million bpd global market, as they try to bring down record oil inventories and raise prices. But supply cuts by exporters worldwide have given an incentive and opportunity to U.S.
Oil Trades at Fresh August Highs
Oil prices reached their highest levels in more than five weeks on Tuesday as the market rode optimism over potential producer action to prop up the market. Oil production losses in Nigeria, where more than 700,000 barrels per day (bpd) was missing due to militant attacks and pipeline problems, were also helping to support prices in the Atlantic Basin. Brent crude futures hit a high of $48.74 per barrel, their highest since July 7, in morning trade. They were trading at $48.59 per barrel at 1042 GMT, up 24 cents from their last close, and around 17 percent higher than the $41.51 low for the month on Aug.
Traders Eye Export Markets as U.S. Crude Futures Pummeled
Brent/WTI spread presents window of opportunity; Vitol said to have secured two vessels. A ballooning spread between the price of U.S. and European oil, coupled with lower shipping costs, has traders scrambling to take advantage of what may be a brief window of opportunity to ship crude to higher priced markets. The premium for Brent futures relative to U.S. West Texas Intermediate (WTI) crude rose above $1.50 barrel on Thursday, its largest level since April, up 50 cents from the start of the week. European futures have mostly traded at less than a dollar premium to the U.S.
Oil Drops After Saudi Oil Min Rules Out Production Cuts
Oil prices fell 4 percent on Tuesday after Saudi Oil Minister Ali Al-Naimi ruled out any production cuts, restating the kingdom's rationale for maintaining output was that demand would pick up excess crude that has crushed prices over the past 20 months. Big oil exporters Saudi Arabia and Russia have proposed to freeze output at January levels, which were near record highs, only if other producers also do the same. More meetings on the potential freezes will be held in March, al-Naimi told the IHS CERAweek conference in Houston…
Saudi's Rule Out Production Cuts, Oil Drops 4%
Oil prices fell 4 percent on Tuesday after Saudi Oil Minister Ali Al-Naimi ruled out any production cuts, restating the kingdom's rationale for maintaining output was that demand would pick up excess crude that has crushed prices over the past 20 months. Big oil exporters Saudi Arabia and Russia have proposed to freeze output at January levels, which were near record highs, only if other producers also do the same. More meetings on the potential freezes will be held in March, al-Naimi told the IHS CERAweek conference in Houston…
Oil Slips on Potential Output Cap Impact
Iran not expected to join pact to freeze output; freezing at record levels will prolong glut - analyst. Oil prices eased on Tuesday, eroding some of the previous day's gains, over doubts a potential production freeze will have any impact on the existing global overhang of unwanted crude. Big oil exporters Saudi Arabia and Russia have proposed to freeze output at January levels, which were near record highs, only if other producers also do the same. "If they freeze production at January levels when you're already over supplied by around a million barrels per day it just prolongs that situation of oversupply…
Oil Dips, Even After Output Freeze
Saudi Arabia, Russia, Qatar and Venezuela agree freeze; market sceptical about cuts but wary of being wrong. Oil prices slipped off session highs on Tuesday after four of the world's largest producers agreed to freeze output at January levels if other major exporters joined the pact, dashing hopes among the price bulls for an outright cut to supply. Qatari energy minister Mohammad bin Saleh al-Sada told a news conference that the step would help to stabilise the oil market, which has experienced price declines not seen since the early 2000s because of the pace at which supply has outstripped demand.
Saudis, Russia Agree on Output Freeze
Saudi Arabia, Russia, Qatar and Venezuela agree plan - Iran says no. Top oil exporters Russia and Saudi Arabia agreed on Tuesday to freeze output levels but said the deal was contingent on other producers joining in - a major sticking point with Iran absent from the talks and determined to raise production. The Saudi, Russian, Qatari and Venezuelan oil ministers announced the proposal after a previously undisclosed meeting in Doha. It could become the first joint OPEC and non-OPEC deal in 15 years, aimed at tackling a growing oversupply of crude and helping prices recover from their lowest in over a decade.
Phillips 66 Sheds Cushing Crude, Traders Spy Output Cuts
U.S. refiner Phillips 66 dumped crude for immediate delivery in Cushing, Oklahoma on Wednesday, sparking speculation that the move reflected advance warning of looming output cuts amid sluggish winter demand and record inventories. The unusual sales of excess oil added pressure to the March/April WTI futures spread <CLc1-CLc2>, with the front-month discount widening to as much as $2.37 a barrel on Wednesday, the most since November. It was unclear how many barrels one of the largest U.S. independent refiners sold, but three traders confirmed at least two deals traded at negative $2.50 and $2.75 a barrel.
Oil Nears $34 on Production Cut Hopes
Brent down around 10.5 percent this month. Oil rose towards $34 per barrel on Thursday, hitting a three-week high and bouncing well off a 12-year low set this month, supported by the possibility that major producers may cooperate to cut production. Russian Energy Minister Alexander Novak said on Thursday that it was reasonable to discuss the situation on the oil market and that exporters group OPEC was trying to organise a meeting with other producers next month. Members of the Organization of the Petroleum Exporting Countries such as Nigeria and Venezuela have called for cuts to bolster the oil price…
Crude Tanker Backlog in US Gulf Eases on Robust Imports
A backlog of tankers off the shores of the U.S. Gulf Coast that swelled in the final quarter of 2015 is easing, with the volume of crude waiting to discharge declining by more than half in just a month's time. There currently are 27 vessels offshore in the U.S. Gulf Coast waiting to discharge an estimated 15 million barrels of crude, compared to 36 million barrels at the start of December, ClipperData said on Tuesday. There are typically 10 million to 12 million barrels of oil waiting to discharge at any one time, Clipper said.
Oil Steady on IEA, U.S. Output Forecast
IEA sees world oversupply lasting through 2016; U.S. crude inventories rising. Brent crude oil steadied near $50 a barrel on Tuesday after the west's energy watchdog forecast a global supply glut would last through 2016 thanks to slowing demand growth and a supply glut. The International Energy Agency (IEA) said the world oil market would remain oversupplied for at least another year despite falls in output from non-OPEC producers. North Sea Brent crude was up 24 cents a barrel at $50.10 by 1210 GMT. U.S. light crude was up 12 cents at $47.22. Both benchmarks have been volatile over the last year.
Gulf Coast Sweet Crude Supply Dwindles
Oil traders are scrambling to secure quickly dwindling supplies of light, sweet crude in the U.S. Gulf Coast, signaling potential declines from shale production and propping up the U.S. market as a clear destination for foreign imports. Even as traders contend with less light crude, the region remains flooded with sludgier barrels of heavy crude that are harder for some refineries to process. As a result, the spread between Light Louisiana Sweet <WTC-LLS> and Mars Sour <WTC-MRS> widened to $5.30 a barrel on Tuesday, the most in 11 months, according to Reuters data.
US Shale Cash Markets Offer Hope amid Gloom
In shale strongholds of North Dakota and Texas, physical crude grades are trading at the highest premiums to futures prices in years, offering a glimmer of hope that a pickup in global oil markets might follow. While crude futures hover around 6-1/2-year lows, the cash markets, where producers and refiners buy and sell physical barrels of oil, are sending a more optimistic, if short-term, signal. West Texas Intermediate crude delivered to Midland, Texas <WTC-WTM>, at the heart of the Permian Basin, is trading at a record $2.75 premium to benchmark U.S. futures.
US Oil Glut Heads North as Traders in Canada Scramble for Storage
The U.S. oil glut is about to repeat itself north of the border in Canada, raising prospects that the world's cheapest oil may be set to get even cheaper. Oil traders are scrambling to secure more storage space in western Canada as crude stockpiles in the region surge to record highs and rental rates in the normally sleepy spot market jump. Meanwhile, an outage at a major U.S. refinery that has weakened demand for crude from the region is likely to put further pressure on tank space. Such a trend is worrisome ahead of fall refinery maintenance when a big portion of capacity in the U.S.
Canadian Heavy Crude Slumps to Lowest in at Least a Decade
Heavy Canadian crude slumped to its lowest level in at least a decade on Wednesday after Enbridge Inc closed two of its main pipelines in the United States because of a leak, piling fresh misery on Canadian oil companies that are close to producing at a loss. Western Canada Select heavy blend crude for September delivery last traded at $21.75 per barrel below the West Texas Intermediate benchmark, according to Shorcan Energy brokers, having settled at $19.80 per barrel below on Tuesday. It…
Oil Glut Strains West Texas Storage Logistics
Four-hundred miles from the near overflowing tanks at the U.S. oil hub in Cushing, Oklahoma, a second glut in the Permian Basin of West Texas is pressuring oil prices once again as pipeline disruptions strand millions of barrels in the region. The Permian, the fastest-growing shale play, accounts for about a fifth of the country's total oil production, and is expected to produce about 2 million barrels of crude a day in May. The region houses over 20 million barrels of crude storage. Stockpiles in the Permian have hit several records in the last four weeks…
Brent Falls Below $53 on Record U.S. Stocks
U.S. crude stockpiles rise by 10.5 mln barrels (API). Brent oil prices fell below $53 a barrel on Wednesday on oversupply concerns as industry data indicated U.S. crude stocks had hit a new record high. U.S. crude inventories rose by 10.5 million barrels to 450 million barrels in the week to March 13, American Petroleum Institute (API) figures showed on Tuesday. Analysts had expected a 3.8-million-barrel increase. Brent for May delivery was down 62 cents at $52.89 per barrel by 1058 GMT after ending the previous session up 7 cents. U.S.
Sustained Oil Rally Promising More Gains
Saudi Arabian prices to Asia lowest in over a decade. U.S. refinery strike to continue into sixth day. Brent crude oil traded almost $2 higher on Friday, on track for its second weekly increase, as fighting in Libya and stronger economic signals from the United States helped futures rebound from near-six-year lows. Prices remain roughly 50 percent below their peak from the middle of last year, and no rapid recovery is expected amid rising global inventories and steady OPEC supply. But further declines in the U.S.
