Friday, November 24, 2017

United States News

U.S. Crude Extends Rally to $58

File Image (CREDIT: AdobeStock / (c) mikesjc)

Keystone crude deliveries to U.S. cut by 85 pct through November. Oil extended gains on Wednesday, with U.S. crude hitting $58 a barrel for the first time since July 2015 as a major pipeline cut Canadian crude flows to the United States, where inventories are expected to have fallen further. The Keystone pipeline will cut deliveries by 85 percent or more through the end of November, sources said. A report from the American Petroleum Institute (API) showed a big drop in U.S.

Saudi Arabia Limits US Crude Shipments, Iraq Steps In

Photo courtesy of Motiva Enterprises

Saudi Arabia's efforts to reduce a worldwide crude supply glut by cutting shipments to the United States means others are now filling in, most notably Iraq, in a trend that is set to accelerate in coming months. Over the summer, normally one of the busiest periods for crude shipments, U.S. imports of crude from Iraq rose by 41 percent from a year ago, while similar shipments from Saudi Arabia have dropped by 22 percent. That trend has continued…

Trafigura's Purchases from State Oil Firms Rose in 2016

Trafigura's aggregate direct purchases of crude, refined products and natural gas from national oil companies rose in 2016 to a third of its traded volumes, up from about a quarter in 2015, according to the company's annual responsibility report published on Wednesday. In its 2016 annual financial report, Trafigura said oil purchases had increased significantly from Russian state firm Rosneft and the United States after the country removed a ban on crude exports. It said volumes out of the Middle East also rose.

US to Become Oil and Gas World Leader in Long Term - IEA

© travelview / Adobe Stock

The head of the International Energy Agency Fatih Birol said on Thursday the United States would - in the long term - become the "undisputed leader of oil and gas production worldwide".   Speaking at the U.N. climate conference in Bonn, Germany, he said the agency expected oil markets to rebalance next year if oil demand remained "more or less" as robust as it is today and if OPEC and non-OPEC continued with their oil production cuts.     (Reporting by Ahmad Ghaddar; Editing by Mark Potter)

U.S. to Export Large Ethanol Volume to Brazil

The United States will export a large volume of ethanol to Brazil in 2018 despite the 20 percent import tax implemented by the Brazilian government this year, analyst Platts Kingsman said on Wednesday. Platts estimates the United States will ship around 1.7 billion liters of ethanol to Brazil in 2018, compared to a projected 1.8 billion liters this year. "Brazil will continue to be a net importer of ethanol next year, at levels similar to this year…

Saudi Aramco Signs $4.5 bln Oil, Gas Deals

Photo: Saudi Aramco

Saudi Aramco on Thursday signed agreements worth $4.5 billion with firms from Europe, the United States, China and the United Arab Emirates for oil and gas projects in the kingdom. The companies are Spain's Tecnicas Reunidas, Italy's Saipem , China Petroleum Pipeline, U.S. McDermott, Jacobs Engineering and National Petroleum Construction of Abu Dhabi. The signing took place at the company's headquarters in Dhahran. Reporting by Reem Shamseddine

Venezuela Bondholders Mull Alliances

Holders of Venezuelan bonds are meeting with each other and considering forming committees, advisers and fund managers told Reuters, as questions mount about the feasibility of President Nicolas Maduro's proposal to restructure $60 billion of debt. Maduro has said the country will keep servicing its obligations for now. But bondholders ranging from longstanding investment funds to hedge funds and emerging markets funds in…

Offshore Oil Service Firms Dominate Energy Bankruptcies

(File photo: Ocean Rig)

Offshore oil drilling and service companies, hurt by the energy industry's shift to lower-cost shale and away from deepwater projects, are dominating the year's energy bankruptcies in North America, according to law firm Haynes and Boone. There were fewer oilfield service companies seeking protection this year than last but those that did have had larger debts. Through October, 44 oilfield services companies filed for bankruptcy in the United States and Canada owing creditors $24.8 billion…

India's U.S. Coal Imports Soar

File Image (CREDIT: AdobeStock) / (c) n neeleman)

Coal imports seen rising further amid fears ban may expand. India's coal imports from North America quadrupled to 2.1 million tonnes in October from a year ago, the highest since at least January 2015, Thomson Reuters data showed, and buyers are looking to boost purchases amid a domestic shortage of the fuel. A ban on the use of petroleum coke, a dirtier but better-burning alternative to coal, is spurring expectations India will buy even more coal from the United States in coming months.

Total Will Lose Entire Investment if it Pulls Out of South Pars

France's Total will lose all of its investment if it pulls out of a deal with Iran to develop South Pars, the world's largest gas field, the Iranian oil minister said on Tuesday. "If Total, without the enforcement of Security Council sanctions, announces that it has the intention to leave the contract, no capital will be returned to this company and no sum will be transferred to the company," oil minister Bijan Zanganeh was quoted as saying by SHANA, the news site of the Iranian oil ministry.

Saudi Arabia to Cut Crude Exports in Dec

Saudi Arabia plans to cut crude exports by 120,000 barrels per day (bpd) in December from November, reducing allocations to all regions, a spokesman for the energy ministry told Reuters on Thursday. Crude exports to the United States will be more than 10 percent lower than November levels, he said. The world's top oil exporter said it planned to ship slightly more than 7 million bpd this month, up from low levels during summer when domestic demand was at its peak.

Nebraska Mulls Keystone Pipeline's Fate

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Nebraska regulators will announce their decision on Monday on whether to approve TransCanada Corp’s Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. Just days ago, TransCanada's existing Keystone system spilled 5,000 barrels in South Dakota and pipeline opponents said the spill highlighted the risks posed by the proposed XL expansion. The stakes are big. President Donald Trump, a Republican, has made Keystone XL’s success a plank in his effort to boost the U.S. energy industry.

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.

Total Opens Washington Office as Iran Risks Loom

Total has opened an office in Washington in a bid to strengthen relations with the U.S. administration as the French oil and gas company prepares to invest billions in Iran. In July, Total became the first Western energy firm to sign a deal with Iran since the easing of international sanctions in 2015, agreeing to develop Phase 11 of the South Pars offshore gas field with a total investment of $5 billion. But the future of…

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.

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…

U.S. Crude Exports to Asia Complicate OPEC Strategy

file Image (CREDIT EuroNav)

U.S. crude oil is flooding into Asia, and may continue to do so as the arbitrage window that was initially created by Hurricane Harvey remains open, even though the disruption from the costliest storm to hit the Gulf of Mexico has faded. A record amount of U.S. crude is scheduled to arrive in Asia in November, according to vessel-tracking and port data compiled by Thomson Reuters Oil Research and Forecasts. The data show 19.7 million barrels of U.S.

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.

Is It Time for the US to Dump Saudi Arabia?

After the recent execution of Shi'ite cleric Nimr al-Nimr by Saudi Arabia, the Middle East once again risks devolving into sectarian chaos. A mob torched the Saudi Embassy in Tehran, prompting Saudi Arabia and a number of its Sunni allies to break diplomatic relations with Iran. In response to the unfolding chaos, the Wall Street Journal responded by asking "Who Lost the Saudis?" - fretting that the lack of support from the United States could lead to the overthrow of the Saudi regime.