GLOBAL MARKETS


Live World Indices are powered by Investing.com

Friday, 8 April 2016

Today's ENERGY News - April 8, 2016



Top Stories 


Airline hedges fuel rally in later dated oil prices


Big airlines are making waves in the oil market for the first time since prices went into a tailspin nearly two years ago, betting this may be their best chance to lock in cheap jet fuel for years to come, industry and market sources say. A number of airlines moved last week to place significant oil price hedges for 2017, 2018 and even 2019, according to three trading sources familiar with money flows. They declined to specify companies, but said it was the largest flurry of such activity in more than a year. A fourth trading source indicated that bigger trades occurred in the over the counter market last week. While still small relative to previous years, when some carriers hedged as much as 40 percent of their fuel costs, the recent […]


U.S. gasoline demand still strong despite poor weather in January: Kemp

Unexpectedly weak gasoline consumption in the United States reported for the month of January has been blamed by some market participants for the continued slide in oil prices on Tuesday. Gasoline consumption fell almost 0.6 percent in January compared with the same month a year earlier, according to the U.S. Energy Information Administration (“Petroleum Supply Monthly”, EIA, April 4). The EIA’s monthly estimate for gasoline consumption contrasted with more recent weekly data showing strong year-on-year growth in gasoline demand. The monthly estimate has been seized on by bearish traders and analysts as evidence crude and gasoline prices have risen too far too fast over the last two months. But on closer inspection there is nothing surprising about the monthly reading for January, which […]


TransCanada to curtail shipments on Keystone crude pipeline by 35 percent in April

TransCanada Corp will curtail shipments on its 590,000-barrel-per-day Keystone crude pipeline by 35 percent for the remainder of April, according to a shipper notice dated Wednesday. The move comes after TransCanada told customers that the earliest restart date for the pipeline, which was shut over the weekend, is early next week, a company spokesman said in an e-mail. The pipeline delivers crude from Hardisty, Alberta, to Cushing, Oklahoma, and to Illinois. (Reporting By Catherine Ngai; Editing by Meredith Mazzilli)



Gas Drillers Go Rigless as Price Collapse Heralds Austerity Era

Natural gas producers are finally realizing that the age-old adage is true: If you find yourself in a hole, stop digging. Explorers have idled drilling equipment at historic rates — a drop in prices has resulted in the fewest rigs in at least three decades searching for new output. Southwestern Energy Co., the third-largest U.S. gas producer, has stopped drilling altogether, while Chesapeake Energy Corp. has no rigs in the gas-rich U.S. East, down from an average of about 13 in 2014. It’s part of a broader cost-cutting effort as companies aim to weather the downswing, betting that a price recovery will begin this year. While some unfinished wells can be used to keep up output, the industry is facing a sharp drop in future production without new drilling investment. The lack of exploration is particularly troublesome given that output from gas wells tends to decline sharply from initial […]



World Bank: Russia returns to growth next year


Russia’s economy will continue facing pressure from lower crude oil prices and sanctions, though growth returns by next year, the World Bank said Wednesday. The World Bank said a recession in Russia is expected to eat away at progress meant to equalize the distribution of wealth in the country, with the poverty rate expected to increase nearly a full percentage point to 14.2 percent this year. If its forecast is accurate, the World Bank said that would erase nearly 10 years of progress. Andras Horvai, the World Bank’s director for Russia, said long-term growth depends on how well the Kremlin can bolster investor confidence with appropriate reforms. “Administrative barriers to doing business, […]




Twitter

Twitter
Follow Here

Search This Blog

Blog Archive