Oil Falls on Demand Worries, Market Awaits Fed Advice
Oil prices eased about 1% to a one-week low on Tuesday on demand worries following the release of negative economic news from Germany and China, while investors remained cautious ahead of a U.S. Federal Reserve decision on interest rates.Brent futures fell 90 cents, or 1.2%, to $73.01 a barrel by 1:36 p.m. EST (1836 GMT), while U.S. West Texas Intermediate crude slipped 86 cents, or 1.2%, to $69.85. That puts both crude benchmarks on track for their lowest closes since Dec. 10 and cut the premium of Brent over WTI to a 12-week low of $3.56 a barrel…
Cenovus Energy predicts increased production by 2025 for new projects
Cenovus Energy, a Canadian energy company, forecasted higher oil and natural gas production in 2025. It expects to benefit from the new projects that will be coming online. According to LSEG, the company expects upstream production of between 805,000 and 845,000 boepd by 2025. The midpoint is higher than analyst estimates of 820140 boepd. The company anticipates between 770,000 and 810,000 boepd this year. The U.S. Energy Information Administration has predicted that power consumption in the U.S. will increase in 2025, with data centers, manufacturing and other operations driving the demand. This could help gas producers like Cenovus.
EIA says that US power consumption will reach new highs by 2024 and 25.
The U.S. Energy Information Administration stated in its Tuesday Short Term Energy Outlook that the U.S. will reach record levels of power consumption in 2024-2025. EIA projects that the power demand in 2024 will reach 4,086 kilowatt hours and 4,165 kWh. This compares to 4,012 billion in 2023, and a record of 4,067 in 2022. EIA predicts that by 2024, residential customers will purchase 1,494 billion kWh of electricity, commercial customers 1,420 billion and industrial customers 1,026 billion. These forecasts are compared to the all-time records of 1…
EIA: US natgas production will decline in 2024 as demand reaches record levels, EIA reports
The U.S. Energy Information Administration's (EIA) Short Term Energy Outlook, released on Tuesday, predicted that U.S. Natural Gas production would decline by 2024 and demand would rise to a new record. EIA predicted that dry gas production would decline from a record 103,8 billion cubic feet per a day in 2023 down to 103.2 bcfd by 2024 due to fewer drilling activities. The producers have reduced drilling following the average monthly Henry Hub spot gas price. In March, the number of people who are employed fell to its lowest level in 32 years. Since then, it has remained low. EIA predicted that by 2025, the output would increase to 103.7 bcfd.
AVG US Gasoline Price Lowest in 3 Years
On Monday, the average U.S. gas prices dropped below $3 per gallon for the very first time in more than three years. This is a welcome relief for Americans who have been struggling with high inflation rates in recent years.Since the summer driving peak, fuel prices have steadily declined, boosting consumer spending, even though progress on inflation slowed in October and prices of other goods rose.GasBuddy.com, a market-tracker, reports that the national average price of regular gasoline dropped to $2.97 per gallons on Monday. This is the lowest it has been since May 2021.Oklahoma had the lowest average retail price of $2.42 a gallon in the United States.
Sechin, Rosneft CEO, says that OPEC+ cuts in output made the US the top energy exporter.
Igor Sechin, head of Russia's biggest oil producer Rosneft, said that the OPEC+'s decision to reduce oil production in 2016 and 2020 has helped the U.S. shale sector and made it a major global energy exporter. Sechin said, at a forum held in the United Arab Emirates that Russia and its partners had made the most significant contributions to stabilising the global energy markets in the last 10 years. Sechin, a long-time ally of Russian president Vladimir Putin, has expressed scepticism in the past about Russia's collaboration with OPEC. He said that the United States benefited the most from the 2016 deal.
EIA: US natgas stored volumes are highest since 2016, as the winter heating season begins.
U.S. Energy Information Administration reported on Monday that the United States has started winter heating season with its highest level of natural gas storage since 2016. The EIA's Weekly Natural Gas Storage Report, published in November, estimates that the working natural gas stored in Lower 48 States ended the natural injection season at 3,922 billion cubic feet. The winter heating season is from November 1 to March 30. Meanwhile, the injection season is between April 1 and October 31. The EIA reported that inventories are currently 6% higher than the average for the past five years (2019-23) despite lower-than-average storage injections throughout the entire season.
EIA reports that US oil production fell by the most in September since January.
The U.S. Energy Information Administration's (EIA) data showed that the crude oil production in the United States fell by 157,000 barrels a day (bpd), month-over-month, to 13,20 million bpd during September. This was the biggest decline since January. As Hurricane Francine, and Hurricane Helene made landfall in the Gulf of Mexico in September, many oil and gas facilities were forced to close for extended periods of time. EIA data released on Friday showed that output from the U.S. Gulf of Mexico offshore fell by 12% in September, to 1,58 million bpd. This is the lowest level in three years. Texas, the top oil producing state in the US, saw its output rise to 5.81 millions bpd.
US natural gas drillers will increase output in 2025, reversing a year-long cut
The U.S. Natural Gas producers will increase output in 2025 after a series production cuts this past year. Rising demand from LNG export plants should raise prices, which had dropped to multi-decade lows. According to the latest U.S. Energy Information Administration outlook, U.S. natural gas production will decline in 2024, for the first drop since 2020 when the COVID epidemic reduced demand. After the average monthly spot price at the U.S. Henry hub benchmark, drillers started cutting back on gas production. In Louisiana, gas prices fell to their lowest level in 32 years in March and have been relatively low ever since.
TC Energy expects higher core profit in 2025 on natgas and electricity demand
TC Energy announced on Tuesday that it expects its core profit in 2025 to be between C$10.7 and C$10.9 Billion, higher than the C$9.9 to C$10.1 Billion forecast for 2024. This is due to an increase in demand for electricity and natural gas. In its most recent short-term energy outlook report, the U.S. Energy Information Administration predicted that gas consumption in the United States would reach a new record of 90 billion cubic feet (bcfd), in 2024. In 2025 the consumption will be lower, but still higher than its previous record of 89.1 billion cubic feet per day in 2023.
Baker Hughes: US drillers reduce oil and gas rigs in the US for the first time in 4 weeks.
Baker Hughes, a leading energy services company, said that the U.S. oil and gas companies have cut back on the number of oil rigs for the first time since four weeks. The number of oil and gas drilling rigs, a good indicator of future production, dropped by one in the week ending Nov. 15 to 584, the lowest level since early September. This is a reduction of 34 rigs, or 6% from the same time last year. Baker Hughes reported that oil rigs dropped by one this week to 478. This is their lowest level since the week of July 19. Gas rigs were also down by one, to 101.
EIA increases US and global oil production estimates by a small amount
The U.S. Energy Information Administration announced on Wednesday that both U.S. oil production and global oil output are expected to reach record highs in this year, slightly higher than previous forecasts. Oil prices have fallen to their lowest level since 2021 despite the Organization of the Petroleum Exporting Countries (OPEC+) and its allies cutting production. The EIA reported that the U.S. oil production is expected to reach an average of 13.23 million barrels a day (bpd), which is about 300,000 more than last year's 12.93 million bpd record. The EIA had earlier predicted that U.S. crude oil production would average 13,22 million barrels per day (bpd) this year.
EIA says that US power consumption will reach new highs by 2024 and 25.
The U.S. Energy Information Administration stated in its Wednesday Short Term Energy Outlook that the U.S. will reach record levels of power consumption in 2024-2025. EIA projects that the demand for electricity will increase to 4,090 kilowatt hours in 2024, and 4,158 kWh in 2020. This compares to 4,012 billion kWh by 2023, and a record of 4,067 in 2022. EIA predicted that by 2024, residential customers would purchase 1,492 billions of kWh, commercial customers 1,426 billions kWh, and industrial customers 1,027 billions kWh. This compares to all-time records of 1,509 kWh for residential customers in 2022, and 1,391 kWh for commercial customers in 2022.
Analyst says US onshore wind industry is struggling despite government push to clean energy
Geoffrey Hebertson told attendees of an energy conference organized by the Federal Reserve Banks of Dallas & Kansas City that the Onshore Wind Industry is still struggling to attract investment despite the U.S. Inflation Reduction Act. Hebertson stated that despite the Inflation Reduction Act of 2022, which allowed production tax credits and investments tax credits for 10 years, onshore wind is still struggling to maintain its investment levels. He added, "We expect 2024 will be a historically-low year for wind. According to the U.S. Energy Information Administration, the installed wind power capacity in the U.S. currently stands at 152 gigawatts.
Henry Hub natgas price drops to a 25-year low, while Waha is in negative territory
According to LSEG's pricing data, U.S. natural gas spot prices fell to a new 25-year low in Louisiana at the Henry Hub benchmark and entered negative territory at the Waha hub for the 47th consecutive time. The energy traders noted that the mild weather this year has had a negative impact on Henry Hub prices next day, resulting in lower heating and cooling demands than usual. LSEG reports that Henry Hub futures have been under pressure due to the low prices of next-day Henry Hub contracts. Spot contracts traded below Henry Hub front-month futures in 190 out 217 trading sessions so far this calendar year. On Monday, they were down 19% at $1.21 per million Btu.
Baker Hughes: US Rig Count Remains Steady
U.S. energy firms this week kept the number of oil and natural gas rigs operating unchanged for a record third week in a row, according to energy services firm Baker Hughes' data going back to 1987.The oil and gas rig count, an early indicator of future output, was steady at 585 in the week to Nov. 8, Baker Hughes said on Friday. Baker Hughes said that puts the total rig count down 31 rigs, or 5% below this time last year. Baker Hughes said oil rigs held at 479 this week, while gas rigs were unchanged at 102.The oil and gas rig count dropped about 20% in 2023 after rising by 33% in 2022 and 67% in 2021…
EOG Resources beats Q3 profit estimates, boosts share buyback program
EOG Resources increased its share-repurchase program after beating Wall Street expectations for the third-quarter profits, due to higher production and lower prices. The U.S. Energy Information Administration reported that total oil consumption in the United States rose to its highest level for the season since 2019. In July, the gasoline demand also reached its highest levels for the season since 2019. The demand for jet fuel was at its highest level since August 2019 and benefited oil companies like EOG Resources. The quarterly crude oil equivalent volume was up 7.7% to 1.08 million barrels per day (MMboepd).
AEP considers additional asset sales to fund capital expenditure plan boost
American Electric Power executives announced on Wednesday that they are considering asset sales in order to fund their five-year capital expenditure plan of $54 billion, a 25% increase from the previous plan. AEP also considers cutting layers of management as well as various equity strategies in order to reduce costs and raise funds to fund its build out plan, which includes $10 Billion in transmission construction for new power demands from data centers and large customers. Bill Furman, CEO of AEP, said in a conference call about the company's earnings that "we have a lot more wood to cut around the company." Furman refused to reveal which parts of AEP could be sold.
Devon Energy beats profit estimates, raises production forecast
Devon Energy, an oil and gas company, reported a third-quarter profit that was above expectations due to strong production. It also forecast higher production for the current quarter as a result of its $5 billion Grayson Mill purchase. In after-market trading, shares of the company rose 1.5% to $39.92. The U.S. Energy Information Administration reported that total oil consumption in the United States reached its highest level for the season since 2019. The demand for jet fuel was the highest since August 2019. Oil companies like Devon benefited from this. Devon's quarterly production increased by 9.5% to 728,000 barrels equivalent per day (boepd).
Cenovus Energy reports 56% drop in quarterly profits on lower production
Cenovus Energy, a Canadian oil and natural gas producer, reported a 56% drop in its third-quarter profits on Thursday. This was due to lower commodity prices and a decrease in production volumes and throughput. Global Brent crude averaged $78,3 per barrel during the quarter reported, a drop of nearly 9% from a year ago, while Canadian gas prices plummeted to their lowest levels in over two years. Cenovus reported that its total upstream output was 771.300 barrels equivalent per day (boepd), down from 797,000 a year ago. Canada's oil-sands refineries and projects undergo maintenance or turnarounds that often require a temporary shutdown of production.
