Canadian Insight into the markets here and abroad

Markets Insight

Friday, February 26, 2021

Editor’s oil & gas markets analysis and weekly U.S. Energy Information Administration reports...

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Acidizing was first performed in 1932 by Pure Oil Company in cooperation with Dow Chemical Company to stimulate a low productive oil well. It was successful and by 1934 acidizing was commonly used.  The process dissolves and breaks up certain rock formations and reduces  well bore resistance.

Markets commentary for Friday, February 26, 2021

All commodity markets including crude oil and natural gas are down this morning. The markets are reacting to strengthening dollar and a bond selloff.

 Brent crude oil futures for April are down by 1.15% and bids this morning at $66.11 per barrel. WTI crude oil futures for March are down by 1.92% and bids this morning at $62.31 per barrel. WCS crude oil prices are up by 0.5% and bids this morning at 51.93 per barrel.

It is estimated that the Texas cold snap and winter storm has created a loss of 18 to 40 million barrels in crude oil sales. Gulf refineries are still not operational. This is approximately 20% of the total US refineries. Refining operations are not expected to be in full swing until early next week.

Indications are that OPEC will be increasing its output following the cartel’s meeting to be held on March 4 in Vienna. OPEC producers are expecting to normalizing their production and exports, as crude oil prices are continuing to rise.

 

 

Markets commentary for Thursday, February 25, 2021

Crude oil markets are down this morning while the natural gas sector is showing some gains. Continuing cold weather conditions throughout North America  causing a strong demand for natural gas. Expectations are for strong demand in the following weeks.

Brent crude oil futures for April are down by 0.37% and bids this morning at $66.79 per barrel. WTI March futures are down by 0.25% and bids at $63.06 per barrel. WCS crude oil futures for March are up by 3.08% and bids this morning at $$52.16 per barrel.

Alberta natural gas on spot prices base Calgary are holding steady at $2.77 per gigajoule; that is down from last weeks high of $2.81 per gigajoule. US natural gas as on NYMEX for the month of March are at $2.79 per MMBtu. Henry Hub natural gas prices for March are $2.799 per MMBtu.

 

 

 

Markets commentary for Wednesday, February 24, 2021

Energy Information Administration released its weekly petroleum inventory report this morning. Report indicates that crude oil inventories are up.  Distillates, propane and total inventories are down. Gasoline inventories remain unchanged. Refineries significantly decreased their operations  as compared to the previous week.

Crude oil imports decreased by 1.3 million barrels per day and averaged at 4.6 million barrels per day. Four week average was 5.7 million barrels per day 13.3% less than the 4 week average last year.

US commercial inventories of crude oil increased by 1.3 million barrels and totaled at 463.0 million barrels. Storage volumes are at a five year average.

Inventories of gasoline remained unchanged. Distillates inventories decreased by 5.9 million barrels. Propane supplies decreased by 5.2  million barrels. Total petroleum inventories decreased 13.8  million barrels as compared to last week.

US refineries increased their operations by 14.5% over the previous week and operated at 68.6% of their optimum operating capacity. Operations processed 12.2 million barrels per day, and produced 7.7 million barrels per day of gasoline and 3.6 million barrels of distillates daily.

 

 

 

Markets commentary for Tuesday, February 23, 2021

Crude oil and natural gas markets are down this morning. This is mainly due to investors selling off and locking in their profits. Commodity prices have risen to their highest level since 2013.

Brent crude oil futures for April are down by 0.89% and bids this morning at $64.66 per barrel. WTI crude oil futures for March are down by 1.35% and bids this morning at $60.87 per barrel. WCS crude oil is up by 5.36% and bids this morning at $49.95 per barrel.

Crude oil prices have reacted positively to reports that the Covid-19 pandemic is easing and vaccination is progressing in some countries at a quick pace. Indications are that with the pandemic slowing there will be an economic upturn.

 

 

Markets commentary for Monday, February 22, 2021

Cruder oil markets back on track and early morning trading showing positive gains. US Natural gas prices have fallen below $3.00 per MMBtu and March futures trading at $2.95.

Brent crude oil futures for April are up by 1.73% and bids this morning at $64.00 per barrel. WTI crude oil futures for March are up by 2.04% and bids this morning at 60.45 per barrel. WCS crude oil futures for March are down by 2.61% and bids are at $47.64 per barrel.

Goldman Sachs has announced its crude oil forecast for the first half of 2021. The leading American investment institution believes that demand for crude oil will see a rise as the covid pandemic wanes and as a result oil prices will increase much higher than previously predicted.

The American bank foresees significant positive gains in the first half of this year. Goldman Sachs forecasts Brent crude oil to rise to $70 per barrel in the second quarter and rise to $75 per barrel in mid-summer.

 

 

 

 

Markets commentary for Friday, February 19, 2021

Crude oil markets are down this morning after making significant gains this week. Oil and natural gas prices reacted to electrical power blackouts and shortages following the blast of Arctic air into the state of Texas.

Brent crude oil futures for April are down by 0.08% and bids this morning at $63.88 per barrel. WTI crude oil futures for March are down by 0.59% and bids this morning at $60.16 per barrel. WCS crude oil futures for March are down by 1.28% and bids this morning at $$48.93 per barrel.

Alberta natural gas spot prices basis Calgary began this week at $5.21 per gigajoule and are presently down to $3.69 per gigajoule. Nymex and Henry Hub natural gas bids for March are $3.12 per MMBtu.

Crude oil prices are down this morning following concerns that US refineries may be shut down much longer than originally reported and demand for crude oil is uncertain. Investors are also concerned that global crude oil demand may not recover as quickly as previously forecasted..

 

 

 

Markets commentary for Thursday, February 18, 2021

Energy Information Administration released its weekly petroleum inventory report this morning. Report indicates that crude oil, distillates, propane and total inventories are down. Gasoline inventories are up. Refineries increased their operations marginally as compared to the previous week.

Crude oil imports increased by 41,000  barrels per day and averaged at 5.9 million barrels per day. Four week average was 5.8 million barrels per day 13% less than the 4 week average last year.

US commercial inventories of crude oil decreased by 7.3 million barrels and totaled at 461.8 million barrels. Storage volumes are at a five year average.

Supplies of gasoline increased by 0.7 million barrels. Distillates inventories decreased by 3.4 million barrels. Propane supplies decreased by 2.9 million barrels. Total petroleum inventories decreased 15.12  million barrels as compared to last week.

US refineries increased their operations by 0.8% over the previous week and operated at 83.1% of their optimum operating capacity. Operations processed 14.8 million barrels per day, and produced 9.0 million barrels per day of gasoline and 4.6 million barrels of distillates daily.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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      WCS  / WTI

   Price Spread -$11.65         February 26, 2021

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