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Oil Prices Rise Further On Large Crude Inventory Draw – OilPrice.com

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Oil Prices Rise Further On Large Crude Inventory Draw | OilPrice.com


Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

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Crude oil prices went up today on bullish news from the U.S. Energy Information Administration, which reported a 6.4-million-barrel draw in crude oil inventories and another draw in fuel inventories.

A week earlier, the EIA had estimated a modest 1.3-million-barrel decline in crude oil inventories but a sizeable draw in gasoline pushed prices higher, signaling that strong demand has not wavered amid the latest surge in Covid-19 infections.

For the week to September 10, the EIA reported another draw in gasoline inventories, at 1.9 million. This compared to a draw of 7.2 million barrels a week earlier.

Production of gasoline last week averaged 9.3 million bpd, which compared with 10.1 million bpd a week earlier.

Middle distillate inventories shed 1.7 million barrels in the week to September 10, which compared with a draw of 3.1 million barrels for the previous week.

Production of middle distillates averaged 4.2 million bpd last week, compared with 4.2 million bpd during the previous week.

A day before the EIA reported inventory moves, the American Petroleum Institute had estimated crude oil stocks had shed close to 4 million barrels, pushing prices higher. Since the start of the year, according to API numbers, U.S. crude oil stocks have declined by 70 million barrels.

Meanwhile, production is set to rise as the inventory of drilled but uncompleted wells in the U.S. shale patch declines. This, however, should not be a problem for prices since demand is strengthening, too.

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In its latest monthly oil report, the International Energy Agency forecast a 1.6-million-bpd rebound in global oil demand next month as the Delta variant of the coronavirus releases its grip on economies. It would then continue to grow through the rest of the year, the agency said, before beginning to slow down next year.

“The market should shift closer to balance starting from October if OPEC+ continues to unwind production cuts. Even so, it is only by early 2022 that supply will be high enough to allow oil stocks to be replenished,” the IEA said in its report.

This would provide stable support for prices over the next few months, and it is support that will be needed as U.S. shale drillers ramp up along with OPEC+ to offset depletion from legacy wells.

By Irina Slav for Oilprice.com

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All vaccinated Ontarians can now download enhanced, scannable certificates – Sudbury.com

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TORONTO — All Ontarians vaccinated against COVID-19 can now download their enhanced certificates, which include a QR code.

The provincial government has said the scannable documents will allow for faster entry into settings that require proof of vaccination. 

The enhanced system officially takes effect on Friday, but Ontarians can get their new vaccine certificates before then, and businesses can start using a new app to verify those codes.

Residents whose birthdays fall between January and April were able to download the enhanced vaccination certificate through the province’s COVID-19 website on Friday, and further cohorts got access over the weekend.

Under Ontario’s vaccine certificate program, only those who have been fully vaccinated against COVID-19 — or have a valid medical exemption from a doctor — can access certain settings. 

They include theatres, gyms, nightclubs and restaurant dining rooms.

This report by The Canadian Press was first published Oct. 18, 2021.

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Oil prices fall as weaker China growth, U.S. output stoke demand concerns

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Oil prices fell on Tuesday, with Brent down a second straight day, after Chinese data showed slowing economic growth and U.S. factory output dropped in September, raising fresh concerns about demand amid patchy recovery from the coronavirus pandemic.

Brent Crude was down by 43 cents, or 0.5%, at $83.90 a barrel by 0132 GMT after falling 0.6% on Monday. The contract is still up nearly 7% this month.

U.S. oil fell 33 cents, or 0.4%, to $82.11 a barrel, having risen 0.2% in the previous session and nearly 10% this month.

Factory output in the United States dropped the most in seven months last month as a global shortage of semiconductors slowed auto production, further evidence that supply constraints are a strain on economic growth.

In China, the world’s second-biggest economy, bottlenecks also contributed to a decline in the growth rate to a one-year low as energy shortages and sporadic outbreaks of coronavirus hit the country.

China’s daily crude oil processing rate fell again last month to the lowest level since May last year.

But with temperatures falling as the northern hemisphere winter approaches, prices of oil, coal and gas are likely to remain elevated, analysts said.

“A frigid winter has the potential to send energy prices even higher,” Citi Research commodities analysts said in a note, after upgrading their forecast for Brent oil for the rest of 2021 to $85 a barrel from $74 a barrel.

Colder weather has already started to grip China, with the temperature forecast to fall to near freezing point in areas of the north, according to AccuWeather.com.

Also helping keep a lid on prices, U.S. oil output is rising. Production in the largest shale formation in the U.S. is expected to gain further next month, according to an official report.

 

(Reporting by Aaron Sheldrick; Editing by Kenneth Maxwell)

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Ecuadorean indigenous communities sue to halt oil development

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Indigenous communities from Ecuador’s Amazon on Monday sued the government to halt plans by President Guillermo Lasso to increase oil development in the country, calling the expansion efforts a “policy of death.”

Lasso, a conservative ex-banker who took office in May, issued two decrees in the first days of his administration meant to facilitate the development of oil blocks in environmentally sensitive jungle areas and attract more foreign investment for mining projects.

Leaders of Amazonian  indigenous communities are asking the Constitutional Court, the country’s highest judicial body, to nullify the decrees.

“The Ecuadorean government sees in our territory only resource interests,” said Waorani leader Nemonte Nenquimo, in remarks outside the court, surrounded by dozens of supporters.

“Our territory is our decision and we’ll never allow oil or mining companies to enter and destroy our home and kill our culture.”

Lasso has said he will seek international investment to increase oil production to 1 million barrels per day by the end of his term in 2025.

He also wants to make mining one of the country’s top sources of income.

The indigenous communities plan to present a separate suit against the decree related to mining, they said in a statement.

Expanding oil extraction will put in danger some of the world’s most biodiverse jungle, home to dozens of indigenous communities, the indigenous leaders said.

The energy ministry did not immediately respond to a request for comment.

“They seek to continue this policy of death,” said Leonidas Iza, who heads the CONAIE indigenous organization. “This isn’t a problem of the indigenous, it’s one of civilization.”

Indigenous groups have said they could hold protests against Lasso’s social and economic policies.

 

(Reporting by Tito Correa; Writing by Alexandra Valencia and Julia Symmes Cobb; Editing by Sandra Maler)

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