Global Oil Market - Mar 4
Posted: Mon Mar 04, 2019 12:29 pm
Bloomberg: Oil Rises as U.S.-China Trade Deal Nears While Supply Tightens
OPEC’s production slumped last month as key members Saudi Arabia, Kuwait and the United Arab Emirates delivered all -- and in some cases more -- of the cuts they had pledged under a deal between the group and its partners. Non-member Russia pumped the equivalent of 11.336 million barrels a day, down 82,000 barrels a day from the October baseline, Bloomberg calculations show.
“There continues to be very strong support for oil prices on the back of OPEC reducing their production,” said Howie Lee, a Singapore-based economist at Oversea-Chinese Banking Corp. “Also, if the U.S. and China manage to resolve their key differences, then we can raise the oil demand a few notches. I think there is hope.”
Substantial progress has been made in talks with the U.S., a spokesman for China’s National People’s Congress said before legislative meetings this week. People familiar with the discussions earlier said a deal is likely as long as Beijing sticks to pledges ranging from protecting intellectual property to buying U.S. products.
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Bloomberg: Canadian Oil Industry Takes Fresh Hit With Key Pipeline Delayed
Canada’s already beaten-down oil industry is facing a fresh setback as regulatory issues bog down another key pipeline project. The roughly one-year delay to Enbridge Inc.’s expansion of its Line 3 conduit, announced last week, threatens to prolong a shortage of pipeline space that has made it difficult for Canada’s drillers to ship their crude to refineries. That pinch caused a crisis in the industry last year, sending local oil prices to record lows and prompting the government of Alberta to embark on an unprecedented intervention in the market. Enbridge’s Line 3, which would help move 370,000 more barrels of crude out of Alberta, is particularly important because the province’s government was counting on it to help end mandated production cuts. The delay may scramble plans for drillers who were counting on the line and shift investors’ focus to efforts by producers and Alberta’s government to move more crude by rail. “While this represents a setback for the Enbridge Line 3 pipeline, we do not waver in our confidence that this project will be completed,” Michael McKinnon, a spokesman for Alberta’s energy ministry, said in an emailed statement. “As we lead the charge for pipelines, this kind of uncertainty is exactly why we have a plan to move more oil by rail until new pipelines are built.”
OPEC’s production slumped last month as key members Saudi Arabia, Kuwait and the United Arab Emirates delivered all -- and in some cases more -- of the cuts they had pledged under a deal between the group and its partners. Non-member Russia pumped the equivalent of 11.336 million barrels a day, down 82,000 barrels a day from the October baseline, Bloomberg calculations show.
“There continues to be very strong support for oil prices on the back of OPEC reducing their production,” said Howie Lee, a Singapore-based economist at Oversea-Chinese Banking Corp. “Also, if the U.S. and China manage to resolve their key differences, then we can raise the oil demand a few notches. I think there is hope.”
Substantial progress has been made in talks with the U.S., a spokesman for China’s National People’s Congress said before legislative meetings this week. People familiar with the discussions earlier said a deal is likely as long as Beijing sticks to pledges ranging from protecting intellectual property to buying U.S. products.
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Bloomberg: Canadian Oil Industry Takes Fresh Hit With Key Pipeline Delayed
Canada’s already beaten-down oil industry is facing a fresh setback as regulatory issues bog down another key pipeline project. The roughly one-year delay to Enbridge Inc.’s expansion of its Line 3 conduit, announced last week, threatens to prolong a shortage of pipeline space that has made it difficult for Canada’s drillers to ship their crude to refineries. That pinch caused a crisis in the industry last year, sending local oil prices to record lows and prompting the government of Alberta to embark on an unprecedented intervention in the market. Enbridge’s Line 3, which would help move 370,000 more barrels of crude out of Alberta, is particularly important because the province’s government was counting on it to help end mandated production cuts. The delay may scramble plans for drillers who were counting on the line and shift investors’ focus to efforts by producers and Alberta’s government to move more crude by rail. “While this represents a setback for the Enbridge Line 3 pipeline, we do not waver in our confidence that this project will be completed,” Michael McKinnon, a spokesman for Alberta’s energy ministry, said in an emailed statement. “As we lead the charge for pipelines, this kind of uncertainty is exactly why we have a plan to move more oil by rail until new pipelines are built.”