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Oil prices settled higher on Friday but fell week-on-week after health authorities in China eased some of the country’s heavy COVID-19 curbs, raising hopes for improved economic activity and demand in the world’s top crude importer. Brent crude futures settled up $2.32 at $95.99 a barrel, extending a 1.1% rise from the previous session but falling 2.6% on the week. U.S. West Texas Intermediate (WTI) crude futures settled up $2.49, or 2.9%, at $88.96 a barrel, after climbing 0.8% in the previous session but down nearly 4% on the week. The easing curbs include shortening quarantine times for close contacts of cases and inbound travellers by two days, as well as eliminating a penalty on airlines for bringing in infected passengers. The benchmark oil contracts fell during the week due to rising U.S. oil inventories, and lingering fears over capped fuel demand in China, but late-week gains limited the losses. “China’s changing response to stubbornly high COVID-19 cases has added to the oi...

Oil and gas producers Canada and Nigeria have become the latest countries to tackle the potent greenhouse gas methane with laws to rein in emissions in the fossil fuel energy sector. The announcements came as the United States on Friday said it would expand its own rules to require oil and gas drillers to find and fix leaks of methane at all of the country’s well sites. Methane has more than 80 times the planet-warming potency of CO2 in its first 20 years, but breaks down faster in the atmosphere, making it a high value target for near-term efforts to slow climate change. Canada said its new rules would target a 75% cut in methane emissions from the oil and gas sector by 2030, including through a proposed monthly requirement for oil and gas companies to find and fix methane leaks in their infrastructure. “It’s kind of a big deal for us, we are the fourth biggest producer of oil and gas. So we have a big responsibility, but it’s also a big challenge,” Canadian Environment Minister Ste...

A ReconAfrica oil drilling site in Namibia. John Grobler/Tausi Insider A Canadian oil company says it will push ahead with exploration drilling and seismic work in Namibia, despite its failure to find commercial amounts of oil in its latest well. Reconnaissance Energy Africa Ltd. RECO-X, also known as ReconAfrica, is exploring for oil in the Kalahari region of Namibia, not far from the Okavango River, which flows into the Okavango Delta, a world-famous wildlife region that attracts thousands of tourists annually. Environmentalists have been fighting the project for the past three years, with help from celebrities such as Prince Harry and Leonardo DiCaprio. They are concerned that it could jeopardize elephant migration routes and underground water sources that reach the Okavango River. ReconAfrica announced on Wednesday that it did not find enough oil for its Makandina 8-2 Well to be commercially viable. The well, which it began drilling in late June, was at a total depth of 2,056 met...

The processing facility at the Suncor oil sands operations near Fort McMurray, Alta., on Sept. 17, 2014. Todd Korol/Reuters Not that many years ago, the idea of showcasing the Canadian oil sands at an international summit on climate change would have been laughable. It is just three years since green energy think tank the Pembina Institute declared the oil sands as on a “collision course” with this country’s climate goals, and fewer than six years since Prime Minister Justin Trudeau sparked fury in Alberta by commenting in a public forum that the province’s oil sands industry needs to be “phased out” as part of Canada’s transition off fossil fuels. So the fact that representatives of the Pathways Alliance – a consortium of Canada’s largest oil sands companies – not only attended the United Nations’ COP27 climate conference in Egypt this week but made a presentation Friday in the federal-government-hosted Canada Pavilion shows just how far the industry has come in terms of its willing...

Oil prices settled around $3 lower on Monday, dragged down by a firmer U.S. dollar while surging coronavirus cases in China dashed hopes of a swift reopening of the economy for the world’s biggest crude importer. Brent crude futures settled down $2.85, or 3%, at $93.14 a barrel after gaining 1.1% on Friday. WTI crude futures settled down $3.09, or 3.47%, to $85.87 after advancing 2.9% on Friday. On Friday, commodities prices rallied after China’s National Health Commission adjusted its COVID-19 prevention and control measures to shorten quarantine times for close contacts of cases and inbound travellers. But COVID-19 cases climbed in China over the weekend, with Beijing and other big cities on Monday reporting record infections. “The surge in COVID cases will only lead to more lockdowns in the near term … for now China is not a source of bullish support for the petroleum complex,” said John Kilduff, partner at Again Capital LLC in New York. The U.S. dollar also rose against the euro ...

OPEC on Monday cut its forecast for 2022 global oil demand growth for a fifth time since April and also trimmed next year’s figure, citing mounting economic challenges including high inflation and rising interest rates. Oil demand in 2022 will increase by 2.55 million barrels per day (bpd), or 2.6 per cent, the Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report, down 100,000 bpd from the previous forecast. “The world economy has entered a period of significant uncertainty and rising challenges in the fourth quarter of 2022,” OPEC said in the report. “Downside risks include high inflation, monetary tightening by major central banks, high sovereign debt levels in many regions, tightening labour markets and persisting supply chain constraints.” This report is the last before OPEC and its allies, together known as OPEC+, meet on Dec. 4 to set policy. The group, which recently cut production targets, will remain cautious, Saudi Arabia’s energy minister was q...

Minister of Environment and Climate Change Steven Guilbeault takes part in a news conference in Ottawa, on Sept. 15. Adrian Wyld/The Canadian Press Canada’s Environment Minister said he sees at least one advantage of using an emissions cap over a pricing system to bring down the oil and gas industry’s burgeoning output of greenhouse gas. In an interview on Monday with Tausi Insider at the COP27 climate conference in Egypt, Steven Guilbeault, who has been Minister of Environment and Climate Change for a year, said “one of the advantages of a cap is emissions reduction certainty,” that is, a cap would allow the government to predict with some degree of accuracy that Canada’s emissions targets would be met. Canada is struggling to reduce its carbon output by at least 40 per cent by 2030 and achieve net-zero emissions by 2050. The government wants the oil and gas industry to cut its emissions by 42 per cent from 2019′s levels by 2030. A modified carbon pricing system is the alternative t...

Oil tanks at the Volodarskaya LPDS production facility, in the village of Konstantinovo, Russia, on June 8. MAXIM SHEMETOV/Reuters Russian oil output is set to fall 1.4 million barrels per day (bpd) next year after a European Union ban on seaborne exports of Russian crude comes into effect, the International Energy Agency said on Tuesday. The move to deprive Moscow of revenue will create more uncertainty for oil markets and add to pressure on prices, including diesel, the Paris-based energy agency said in its monthly oil report. “The approaching EU embargoes on Russian crude and oil product imports and a ban on maritime services will add further pressure on global oil balances, and, in particular, on already exceptionally tight diesel markets,” the IEA said. “A proposed oil price cap may help alleviate tensions, yet a myriad of uncertainties and logistical challenges remain … the range of uncertainty has never been so large.” The EU will ban Russian crude imports from Dec. 5 and Russ...

Oil prices settled more than a dollar lower on Wednesday after Russian oil shipments via the Druzhba pipeline to Hungary restarted and as rising COVID-19 cases in China weighed on sentiment. Brent crude futures settled a dollar lower at $92.86 a barrel, down 1.1%. U.S. West Texas Intermediate (WTI) crude futures slid by $1.33, or 1.5%, to settle at $85.59 a barrel. The market gave up early gains after Hungarian Foreign Minister Peter Szijjarto said that flows through the Druzhba oil pipeline from Russia had resumed following a brief outage. The market later recovered some losses after U.S. crude stocks fell more than expected on the back of heavy refining activity. The Energy Information Administration said U.S. crude inventories fell by 5.4 million barrels last week, compared with expectations for a 440,000-barrel drop. In addition, tanker-tracker Petro-Logistics said in a report that exports from the Organization of Petroleum Exporting Countries (OPEC) have fallen significantly so ...

BP BP-N is paying more tax as it is making more profit, its U.K. head Louise Kingham told the Reuters Energy Transition Europe 2022 event on Wednesday. “It’s right that (the government) should think about how they protect the most vulnerable and taxation is not for companies to determine,” Kingham said. “I think when companies make more profits, they expect to pay more taxes, and that’s exactly what we are doing,” she added. British finance minister Jeremy Hunt is considering increasing a windfall tax on oil and gas firms and extending it to power generation firms as he tries to find ways to repair the country’s public finances, sources said on Saturday. Hunt is due to announce his new budget plan on Thursday “Taxes that we will pay here in the U.K. will be about two and a half billion dollars, all told, with the (existing) additional levy,” Kingham added, referring to the 25 per cent windfall tax, or Energy Profits Levy, approved by British lawmakers for oil and gas producers in the...

The Canadian dollar CADUSD weakened against its U.S. counterpart on Wednesday, pulling back from an eight-week high, as oil prices fell and investors weighed domestic inflation data that could leave the door open to a smaller rate Bank of Canada rate hike. Canada’s annual inflation rate held steady at 6.9 per cent in October, matching analyst forecasts, while core inflation measures were mixed, Statistics Canada data showed. Money markets have fully priced in a 25 basis point interest rate hike by the BoC at its next policy decision on Dec. 7 and see a 35 per cent chance of a larger hike of 50 basis points, up from about 30 per cent before the data. The central bank hiked by 50 basis points last month, lifting its policy rate to a 14-year high of 3.75 per cent. The price of oil, one of Canada’s major exports, fell as geopolitical tensions following an attack on an oil tanker off the coast of Oman were offset by concerns over rising COVID-19 cases in China. U.S. crude prices fell 2 pe...

RCMP say two workers have died in an explosion at an oil and gas site in northern Alberta. Officers and emergency crews were called Saturday to the site near Slave Lake, about 250 kilometres north of Edmonton. The deaths are being investigated by Alberta Occupational Health and Safety. A government official says no further information is being released at this time. The site is operated by Calgary-based Tamarack Valley Energy. https://www.tausiinsider.com/two-workers-killed-in-blast-at-oil-and-gas-site-in-northern-alberta/?feed_id=344197&_unique_id=6488cfb023f71

Oil prices fell more than 3% on Thursday, with demand squeezed by mounting COVID-19 cases in China and fears of more aggressive hikes in U.S. interest rates. Brent crude fell $3.08 to settle at $89.78 a barrel, down 3.3%. U.S. West Texas Intermediate (WTI) crude slid $3.95, or 4.6%, to settle at $81.64 per barrel. “It’s kind of a triple whammy. We’ve got COVID-19 cases rising in China, interest rates are continuing to rise here in the U.S. and now we’ve got technical weakness in the market,” said Dennis Kissler, senior vice president of trading at BOK Financial. St. Louis Federal Reserve President James Bullard said a basic monetary policy rule would require interest rates to rise to at least around 5%, while stricter assumptions would recommend rates above 7%. The dollar also rose as investors digested U.S. economic data. A stronger dollar makes dollar-denominated oil more expensive for holders of other currencies. China reported rising daily COVID-19 infections and Chinese refiners...

Norway’s oil and gas firms have raised their investment forecasts for 2022 and 2023 as more development plans are being made, a national statistics office (SSB) survey showed on Thursday. The country’s biggest business sector now expects to invest 175.3 billion Norwegian crowns ($17.50-billion) in 2022, up from a forecast of 172.8 billion made in August, the SSB said. Next year’s investments are seen at 149.7 billion crowns, up from a previous view of 135.3 billion, but the figure is expected to increase as companies plan to approve more projects by the end of this year, it added. Spending on new offshore fields is only included in the survey when companies submit plans for development and operation (PDO) to the authorities. Oil companies are expected to approve more than a dozen new projects by the end of this year, when Norway’s temporary tax incentives, which were approved in 2020 to support offshore investments, expire. As a result, the estimate for 2023 will likely increase sign...

A pumpjack works at an oil and gas installation near Cremona, Alta. on Oct. 29, 2016. The Alberta government is considering a controversial plan that would provide incentives to oil and gas companies to clean up their wells. The Canadian Press The Alberta government is considering a controversial plan that would provide incentives to oil and gas companies to clean up their wells, but critics say it amounts to a royalty giveaway that would essentially compensate industry for work it is mandated to do. Alberta Energy Minister Peter Guthrie told Tausi Insider this week that details of a new site liability program haven’t yet been finalized, but the government is looking at something along the lines of the RStar program – an idea Danielle Smith floated to the United Conservative Party government before she became Alberta premier. Ms. Smith laid out the details in a July, 2021, letter to then-energy minister Sonya Savage, when Ms. Smith was president of the Alberta Enterprise Group, a non...

European refiners have found themselves oversupplied with crude as an expected shortage owing to the looming EU ban on Russian oil has yet to materialize. The front-month Brent crude futures spread narrowed sharply this week, reflecting better supply in the physical oil market as fears over the EU embargo on Russian crude begin to subside. Premiums on prompt prices to future prices – known as a backwardated market structure – usually indicate supply tightness. Traders cited Europe’s ability to replace Russian oil with grades from the Middle East, the United States and Latin America while Asia is asking for less crude because of an economic slowdown and increased use of Russian barrels. Brent futures prices have also slumped by about 7 per cent this week, weakening for a second week in a row. “There’s too much oil around,” one European crude trader said. “(European] refiners seem to have overbought in November and December, probably because of fears around Urals,” he said, adding that...

The Canadian CADUSD dollar weakened to its lowest level in 11 days against its U.S. counterpart on Monday as rising COVID-19 cases in China weighed on investor sentiment and speculation that OPEC would increase output led to volatility in the price of oil. The loonie was trading 0.4% lower at 1.3440 to the greenback, or 74.40 U.S. cents, after touching its weakest intraday level since Nov. 10 at 1.3495. “It’s predominantly being driven by exogenous factors,” said Bipan Rai, North America head of FX strategy at CIBC Capital Markets. “We see the (U.S.) dollar up across the board; including against the Canadian dollar.” The safe-haven U.S. dollar advanced against a basket of major currencies, recouping some recent losses, as fresh COVID-19 curbs in China fuelled worries over the global economic outlook and made traders shun riskier currencies. The price of oil, one of Canada’s major exports, whipsawed as reports varied about whether Saudi Arabia and other OPEC oil producers are consider...

Britain’s competition watchdog said on Tuesday U.S.-listed oil field services firm Baker Hughes Co’s acquisition of Altus Intervention could reduce competition among U.K. oil and gas operators. The Competition and Markets Authority (CMA) said it was concerned that the loss of rivalry between the merging companies could lead to higher prices, reduced choice and lower quality services for businesses in the U.K. that purchase coiled tubing and pumping services. In the U.K., both Baker Hughes BKR-Q and Altus supply various well intervention services – essential services used by oil and gas operators to manage well production. Baker Hughes said it was reviewing the regulator’s findings and would work constructively with the CMA. The U.S. company added that the regulator had not questioned the deal rationale but only highlighted overlapping businesses in the areas of coil tubing and pumping services in the UK. Altus did not immediately respond to a Reuters request for comment. The CMA said...

Enbridge Inc ENB-T is increasing apportionment on its Mainline pipeline system, which ships the bulk of Canadian crude exports to the United States, as demand to transport barrels climbs due to rising production and colder weather. Enbridge will apportion December deliveries on its heavy crude system by 11% and ration space on the light oil system by 13%. The rationing is the highest it has been since last winter and comes after a period of very low or zero apportionment in 2022. Higher apportionment, or rationing of pipeline space, on the 3.1 million-barrel per day (bpd) Mainline system could lead to crude getting backed up in Alberta and weigh on prices at the Hardisty storage hub, where benchmark Canadian heavy oil is already trading at a steep discount to U.S. grades. “If this is the beginning of real additional tightness it’s going to really hurt,” said Rory Johnston, founder of the Commodity Context newsletter. “Having a transportation backlog on top of the quality discount wou...

The Canadian dollar CADUSD weakened on Wednesday against its U.S. counterpart and all the other G10 currencies as oil prices fell and ahead of a parliamentary appearance by Bank of Canada Governor Tiff Macklem. The price of oil, one of Canada’s major exports, declined as the Group of Seven (G7) nations looked at a price cap on Russian oil above where the crude grade is currently trading. U.S. crude prices were down 3.1 per cent at $78.43 a barrel. Bank of Canada Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers will appear before the House of Commons Standing Committee on Finance at 4:30 p.m. ET (2130 GMT). On Tuesday, Rogers said that higher interest rates are starting to slow the Canadian economy, putting pressure on households with elevated debt and people who recently bought a home with a variable-rate mortgage. To reduce inflation pressures, Canada’s central bank is aiming to slow demand so that supply can catch up. But spending on affordability measures by federal...