Oil climbs for 7th-straight session
Bloomberg
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Offshore drilling rigs in the North Sea.Simon Dawson/Bloomberg
Oil continued its advance for the seventh straight session on expectations of a strong rebound in demand and as as the dollar weakened.
Futures in New York climbed to above $58 a barrel, the highest since January 2020 after a choppy trading session Tuesday. The nearest Brent contract sharply widened its premium to the following month, pointing to supply tightness, with inventories shrinking globally and amid expectations of further supply declines in the U.S. A weaker U.S. dollar is boosting the appeal of commodities priced in the greenback.
Biden to bar Keystone pipeline within hours of taking office
Jennifer A. Dlouhy and Ari Natter, Bloomberg
Jan. 20, 2021
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Canadian pipeline operator TC Energy is moving forward with plans to build the controversial Keystone XL Pipeline, a project to move heavy crude oil from the tar sands region of Canada to Nebraska where it will then move on to refineries in Illinois and along the Gulf Coast. TC Energy
Joe Biden will cancel the Keystone XL oil pipeline hours after becoming president on Wednesday, killing once again a cross-border project that had won a four-year reprieve under his Republican predecessor, Donald Trump.
Oil slumps along with consumer sentiment
Andres Guerra Luz, Bloomberg
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FILE - In this April 24, 2015, file photo, pumpjacks work in a field near Lovington, N.M.Charlie Riedel/Associated Press
Oil slid by the most in three weeks as a stronger dollar and weak U.S. economic data stoked concerns over an economic rebound.
Futures in New York tumbled 2.3 percent on Friday after a rally in oil earlier in the week pushed the benchmark into overbought territory. The U.S. dollar strengthened, reducing the appeal of commodities priced in the currency. U.S. consumer sentiment cooled more than forecast in January and other economic data such as sluggish retail sales and producer prices also portray the obstacles still facing the country as it emerges from the pandemic.
Oil driller Ovintiv faces proxy battle threat from Kimmeridge
Scott Deveau, Bloomberg
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Ovintiv used cube development at its RAB Davidson lease in the Permian Basin.Courtesy Ovintiv
Kimmeridge Energy Management Co. said it’s prepared to nominate directors to the board of Ovintiv Inc. if the oil and gas producer fails to take the necessary steps to improve its performance and restore investor confidence.
The private equity firm, which said it owns a 2.4% stake in Ovintiv, argues in a new 18-page presentation that the company is falling behind its peers as a result of its misguided spending, expensive acquisitions, poor governance and inadequate environmental stewardship. Kimmeridge also outlines a strategy to address investor concerns by better aligning executive compensation with performance, selling non-core assets and shifting spending to the Permian Basin, among other measures.
Oil extends gains on expectations for shrinking U.S. supplies
Andres Guerra Luz, Bloomberg
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In this Thursday evening, April 2, 2020 photo, traffic passes over the Midland-Odessa county line in front of an oil rig storage yard. (Odessa American/Eli Hartman)Eli Hartman/Associated Press
Oil advanced after settling at a fresh 10-month high, with an industry report showing U.S. crude inventories fell by more than expected.
Futures rose further above $53 a barrel after the American Petroleum Institute was said to report that domestic crude stockpiles fell by 5.82 million barrels last week. Inventories are expected to decline by 3 million barrels, according to the median estimate of a Bloomberg survey for Wednesday’s U.S. government storage report.