Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Oil trims third weekly gain amid return of Canadian supply

    Oil trims third weekly gain amid return of Canadian supply

    May 29, 2016
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Offshore oil platforms
    *Offshore oil platforms.

    *Suncor said planning to resume oil-sands operations next week
    *U.S. production drops 11th week to lowest since September 2014

    29 May 2016, New York — Oil trimmed its third weekly advance as Canadian energy producers moved to resume operations after wildfires eased.

    Futures slipped 0.3 percent in New York. Suncor Energy Inc. is seeking to return most of its workers by next week and begin startup of oil-sands facilities that were shut down by forest fires, according to people with knowledge of the matter. Prices climbed above $50 a barrel on Thursday as declining U.S. crude supplies eroded a global glut.

    “Finally supply and demand are coming into balance,” said Mark Watkins, the Park City, Utah-based regional investment manager for The Private Client Group of U.S. Bank, which oversees $128 billion of assets. “There are going to be headwinds as you near the $50-$60 range. Inventories are still high and we have to work them off.”

    Oil has surged more than 85 percent in New York since touching a 12-year low in February on signs the worldwide surplus will ease amid declining production in Nigeria, Libya, Canada and the U.S. The Organization of Petroleum Exporting Countries is unlikely to reach any agreement to limit output when it meets June 2, as the group sticks with Saudi Arabia’s strategy of squeezing out rivals, according to analysts surveyed by Bloomberg.
    To find out what to expect at the OPEC meeting next week, click here.

    West Texas Intermediate for July delivery dropped 15 cents to close at $49.33 a barrel on the New York Mercantile Exchange. Front-month WTI climbed 3.3 percent this week. Futures touched $50.21 Thursday, the highest since Oct. 9. Total volume traded was 43 percent below the 100-day average at 2:45 p.m.

    Lower Cost
    Brent for July settlement decreased 27 cents, or 0.5 percent, to $49.32 a barrel on the London-based ICE Futures Europe exchange. Futures rose 1.2 percent this week. The contract reached $50.51 during trading Thursday, the highest since Nov. 4. The global benchmark closed at a 1-cent discount to WTI.

    The dollar strengthened and commodities retreated after Federal Reserve Chair Janet Yellen said the improvement in the U.S. economy would warrant another interest rate increase “in the coming months,” stopping short of giving an explicit hint that the central bank would act in June.

    The Bloomberg Dollar Spot Index added 0.5 percent, after touching the highest level since March earlier this week. A stronger greenback reduces the appeal of dollar-denominated commodities as an investment.

    Coming Back
    “After reaching the important $50 level, the buying dried up,” said Gene McGillian, a senior analyst and broker at Tradition Energy in Stamford, Connecticut. “Suncor is sending people back and preparing to bring back production next week. The 1 million barrels a day of Canadian production that was lost due to the fires will be coming back soon.”
    Midwest and Rocky Mountain pipeline operators have cut the cost of transporting oil, as they vie for a shrunken supply of crude in the aftermath of Canada’s wildfires. The blaze that began in early May shut about 1.2 million barrels a day of production, according to company statements and data published in Alberta’s Spring Oil Sands Quarterly.

    Related News

    Nigeria’s Dangote refinery plans 1.6 mln barrels fuel storage tanks in Namibia, sources say

    Nigeria’s oil rig count hits 46 – NUPRC

    UAE says markets thirsty for oil despite boosts in OPEC+ output

    E-book
    Resilience Exhibition

    Latest News

    Nigeria’s Dangote refinery plans 1.6 mln barrels fuel storage tanks in Namibia, sources say

    July 9, 2025

    Nigeria’s oil rig count hits 46 – NUPRC

    July 9, 2025

    UAE says markets thirsty for oil despite boosts in OPEC+ output

    July 9, 2025

    Ghana warns of power cuts while Italy’s Eni works to boost gas supply

    July 9, 2025

    Battery electric cars produce 73% less emissions -research

    July 9, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.