Tuesday, April 24, 2018

United States News

Hedge Fund Oil Bulls on Rampage as Bears Vanish

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Hedge fund managers have never seemed so convinced that oil prices are set to rise rather than fall in the near term, according to the latest positioning data published by regulators and exchanges. Fund managers remain super-bullish even though benchmark Brent prices have almost tripled over the last two years and are now trading at the highest level since November 2014. Hedge funds and other money managers raised their net…

Oil Falls After Trump Criticizes OPEC

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Russia committed to cuts until end of year as 2018 demand looks strong (Goldman Sachs). Oil prices fell on Friday after U.S. President Donald Trump criticised OPEC and said oil prices were artificially high, but they were still set for a weekly gain. Brent crude oil futures were at $73.26 per barrel at 1139 GMT, down 52 cents from their last close. U.S. West Texas Intermediate (WTI) crude futures were down 48 cents at $67.81 a barrel. "Looks like OPEC is at it again," Trump wrote in a post on Twitter.

Oil Climbs on Saudi Ambitions, U.S. Stock Draw

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Saudi Arabia seen seeking oil price of $80-$100 a barrel as U.S. commercial crude stocks decline towards five-year average. Oil prices kept rising to their highest since late 2014 as U.S. crude inventories declined, moving closer to five-year averages, and after sources told Reuters that top exporter Saudi Arabia aims to push prices even higher. Brent crude futures reached $74.73 a barrel, the highest since Nov. 27, 2014 -- the day OPEC decided to pump as much as it could to defend market share…

Enbridge's Line 5 Pipeline Shut Due to Power Outage

Enbridge's Line 5 pipeline was temporarily shut down due to a power outage at its terminal in Superior, Wisconsin, the company said in a statement on Sunday. "Out of an abundance of caution, Enbridge will be electing to leave the line down until the weather conditions improve at the Straits," the company said. The company had, on April 12, said the line was operating normally after damage was discovered on the pipeline in the Straits of Mackinac.

Oil Breaks Above $70 as Trade War Shadow Wanes

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Dispute between top two oil consumers has rattled markets; China promises to open economy further, cut import tariffs. Oil broke above $70 a barrel on Tuesday, extending strong gains from the previous day, as investors grew more optimistic that a trade dispute between the United States and China may be resolved without greater damage to the global economy. Brent crude futures were up $1.39 at $70.04 a barrel by 1131 GMT, while West Texas Intermediate crude futures rose $1.23 to $64.65 a barrel.

Schlumberger Fights to Boost Patent Damages at US Supreme Court

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The U.S. Supreme Court on Monday appeared divided over whether to make it easier for companies to recoup profits lost due to the unauthorized use of their patented technology overseas in a dispute involving Schlumberger NV, the world's largest oilfield services provider.The nine justices heard about an hour of arguments that will resolve the amount of money that rival ION Geophysical Corp must pay for infringing Schlumberger technology that helps search for oil and gas beneath the ocean floor.

Brent at Three-Year High on Possible U.S. Syria Response

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Rising U.S. output, inventories weigh, however. Oil hit its highest in more than three years on Wednesday after U.S. President Donald Trump threatened to fire missiles at Syria in response to a suspected chemical attack last week. Some major airlines were re-routing flights on Wednesday after Europe's air traffic control agency warned aircraft flying in the eastern Mediterranean to exercise caution due to possible air strikes on Syria. Trump has criticised Moscow for standing by Syrian President Bashar al-Assad.

US Drillers Add Oil Rigs for Third Consecutive Week

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U.S. energy companies added oil rigs for a third week in a row as energy firms follow through on plans to spend more on drilling this year with crude prices near three-year highs.Drillers added five oil rigs in the week to April 20, bringing the total count to 820, the highest level since March 2015, General Electric Co's        Baker Hughes energy services firm said in its closely followed report on Friday.More than half the total oil rigs are in the Permian basin in west Texas and eastern New Mexico.

Oil Edges Up But U.S.-China Trade Tensions Weigh

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Trade dispute between U.S./China unsettles markets as U.S. drillers add 11 rigs drilling for new oil. Oil markets stabilised on Monday after having lost around 2 percent last Friday as concerns grew over the impact on global growth from an intensifying trade dispute between the United States and China, as well as increased U.S. drilling activity. Markets were also eyeing the situation in Syria after reports - denied by the Pentagon - that U.S. forces had struck a major air base there.

Eni has no plans to pull out of Rosneft deal after sanctions

Claudio Descalzi (Photo: Eni)

First Cove Point LNG Lifting Departs Maryland

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The first contractual liquefied natural gas (LNG) cargo from Dominion Energy Inc's newly constructed Cove Point LNG export plant in Maryland in the United States left the facility on Monday, Thomson Reuters Eikon ship tracking data showed. The cargo is expected to act as a drag on spot LNG prices <LNG-AS> as it coincides with the resumption of exports of the fuel from the Papua New Guinea LNG plant, which had been shut following a powerful earthquake.

Saudis Curtail Crude Flow to United States

Saudi Arabia is making good on promises to curtail oil shipments to the United States with the likely intention to drain visible inventories and support prices. The United States imported an average of 524,000 barrels per day (bpd) of crude from Saudi Arabia in the week ending July 14, the lowest volume for more than seven years (http://tmsnrt.rs/2vI1iE2). Imports from Saudi Arabia averaged just 810,000 bpd over the last four weeks, according to the U.S.

Oil Inches Nearer to $70 on Lower U.S. drilling, Iran Worries

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U.S. drillers cut rigs for first time in three weeks; concerns of U.S. sanctions against Iran also support crude. Oil rose towards $70 a barrel on Monday, lifted by a drop in drilling activity in the United States and concerns that Washington could reintroduce sanctions against Iran. U.S. drillers cut seven oil rigs in the week to March 29, bringing the total down to 797, the first decline in three weeks. The rig count is closely watched as an indicator of future U.S. oil output.

Pemex Proposes Oil Swap for US Light Crude, Condensates

Mexican state oil giant Pemex said on Thursday it has proposed an oil swap with the United States under which it would import up to 100,000 barrels a day of light crude and condensates to mix with its own heavier crude at domestic refineries. Pemex said in a statement that under the proposal Mexico would provide the United States with heavier Mexican crude for processing at U.S. refineries, and would use the imports from its northern neighbor to boost local gasoline and diesel output.

Lithuania Receives First U.S. LNG Cargo

File Image: A typical LNG Carrier at Sea (CREDIT: QGTC))

Lithuania received its first spot shipment of liquefied natural gas (LNG) from the United States on Monday, the result of a deal aimed at reducing dependence on Russia and consolidating relations with Washington amid increased tension in the region. Russia's annexation of Crimea in 2014 has spooked the Baltic states, once ruled from Moscow but now members of both NATO and the European Union. "This is crucially important for the whole region," said Lithuania's Foreign Affairs Minister Linas Linkevicius.

Gazprom CEO Proud of Inclusion on US Sanctions List

The CEO of Russia's Gazprom, Alexei Miller, said on Friday he was proud of having been included on a new U.S. sanctions list and that the company's policies were right."Not being included in the first list I even had some doubts - maybe something is wrong (with me)? But I am finally included. This means that we are doing everything right," Miller said through his spokesman.The United States imposed sanctions against Russian businessmen…

Canada Can Move Faster than U.S. on Oil Rail Cars

Canada has the ability to move faster than the United States in eliminating older oil tanker rail cars that are more dangerous in accidents, Transport Minister Lisa Raitt said on Friday. "It really is about making sure that we have an effort that makes sense on a North American basis, understanding what the timeline is in the United States, which is longer than ours. We have the ability to move more quickly in Canada by virtue of our system…

US Becomes Net Natgas Exporter for a Day with Sale to Brazil

The United States turned into a net natural gas exporter for a day after the first liquefied natural gas export from Cheniere Energy Inc's Sabine Pass terminal in Louisiana left for Brazil on Wednesday. The United States however is not expected to become a net exporter of gas on an annual basis until 2017 after more pipelines to Mexico and LNG export terminals enter service, according to federal energy estimates. The United States was last a net exporter of gas on an annual basis in 1957.

OPEC Sees Higher 2018 Supply from Rivals, Stronger Demand

OPEC on Thursday revised its forecast for supply growth from its rivals for 2018 by nearly three times more than its revised projection of growth in global oil demand. It said growth in non-OPEC oil supply was forecast to rise by a further 80,000 barrels per day this year to 1.71 million bpd, driven largely by higher-than-anticipated growth in the first quarter in the United States and the former Soviet Union. At the same time…

Oil Dips as Rising U.S. Yields Steer Bulls

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U.S. rig count rises to 820, highest since March 2015; but strong demand, OPEC cuts still support prices overall. Oil prices were little changed at around $74 a barrel on Monday on rising U.S. borrowing costs and the prospect of further output rises after another increase in the weekly rig count, although the overall picture for crude remained bullish. Brent crude futures were down 1 cent at $74.05 a barrel by 1145 GMT, while U.S. West Texas Intermediate (WTI) crude futures were down 11 cents at $68.29 a barrel.