U.S. Natural Gas Futures Pick Up With Colder Weather Seen
Natural gas futures advanced on some cooler weather forecasts for the back half of March and lower U.S. production.
The start-up of LNG Canada, the country's first such export terminal, is likely to strain its natural gas supplies for multiple years and force producers to reduce exports to the U.S., where demand for the fuel is record high, companies said. Shell-led LNG Canada has begun testing its C$40-billion British Columbia terminal ahead of commercial operations starting in mid-2025. The terminal will process up to 2 billion cubic feet per day (bcfd), representing 11% of current Canadian gas output.
Mexican export cuts and a rerouting of Canadian output are shrinking already limited supplies of heavy crude in the Atlantic basin, driving up refiners' costs with a likely knock-on effect to industries ranging from shipping and construction to Middle Eastern power plants. Heavy-sour crudes yield more residual fuel oils that are either upgraded into higher-value road fuels, or converted into marine fuels and bitumen. "The combination of tighter heavy crude and fuel oil supplies, as well as the seasonal rise in power generation demand is expected to push up fuel oil cracks in the weeks ahead," said Vortexa analyst Xavier Tang, referring to the spread between the price of crude and the refined product.
Oil prices have been declining on optimism regarding a possible ceasefire between Hamas and Israel and rising crude inventories.
(Bloomberg) -- After years of skepticism, criticism and trader furore, the world’s most important oil price is working better than ever thanks to an infusion of crude from west Texas.Most Read from BloombergSaudi Arabia Steps Up Arrests Of Those Attacking Israel OnlineApple Rallies on Upbeat Forecast, Record-Setting BuybackTurkey Confirms All Trade Halt With Israel Over War in GazaHuawei Secretly Backs US Research, Awarding Millions in PrizesTrump Auditions VP Picks Before Wealthy Donors in Palm
(Bloomberg) -- Oil headed for its biggest weekly decline since February on signs of easing geopolitical risks in the Middle East and weakening fuel markets.Most Read from BloombergSaudi Arabia Steps Up Arrests Of Those Attacking Israel OnlineApple Rallies on Upbeat Forecast, Record-Setting BuybackTurkey Confirms All Trade Halt With Israel Over War in GazaHuawei Secretly Backs US Research, Awarding Millions in PrizesTrump Auditions VP Picks Before Wealthy Donors in Palm BeachBenchmark Brent trade
Voters correctly remember that gas prices were cheaper when Trump was president. But that's unlikely to happen again, no matter what Trump might do if he wins a second term.
(Reuters) -U.S. oil producer ConocoPhillips missed Wall Street bets for first-quarter profit on Thursday, as lower natural gas prices and increased costs offset gains from higher oil production. A milder-than-expected winter hurt demand for the heating fuel in the quarter and pulled down U.S. natural gas prices to a three-and-a-half-year low in February, also affecting earnings of U.S. oil majors Exxon Mobil and Chevron. ConocoPhillips CEO Ryan Lance said energy prices have been volatile, but should not prevent the company from increasing cash distribution to shareholders.
HOUSTON (Reuters) -U.S. regulators gave the go-ahead on Thursday to Exxon Mobil's $60 billion purchase of Pioneer Natural Resources, but barred Pioneer's former CEO from Exxon's board on allegations he attempted to collude with OPEC to raise oil prices. Former Pioneer CEO Scott Sheffield coordinated efforts with U.S. shale oil producers to constrain their output and raise energy prices, the Federal Trade Commission said.
LONDON (Reuters) -Oil prices edged higher on Friday, but headed for their steepest weekly loss in three months as uncertainty about demand and high interest rates drove a sell-off limited by the prospect OPEC+ will continue to curb output. Brent crude futures for July rose 31 cents, or 0.4%, to $83.98 a barrel by 0755 GMT. Both benchmarks are set for weekly losses as investors are concerned higher-for-longer interest rates will curb economic growth in the U.S., the world's leading oil consumer, as well as in other parts of the world.
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