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Surprise Draw In Fuel Inventories Boosts Oil Prices – OilPrice.com

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Surprise Draw In Fuel Inventories Boosts Oil Prices | OilPrice.com

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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    Oil prices recovered a bit on Wednesday morning after the Energy Information Administration reported an inventory build of 1.2 million barrels for the week to June 12. Fuel inventories, however, fell.

    This compared with a 5.7-million-barrel build for the week before that. Analysts had expected the EIA to report a modest build of half a million barrels for the week to June 12. A day earlier, the American Petroleum Institute reported an inventory increase of 3.86 million barrels.

    Oil prices have been on the decline over the past couple of days, swung around by fears of a second wave of Covid-19 on the one hand, and expectations that the world’s crude oil oversupply may be starting to inch down. For now, the bearish factors seem to have the upper hand.

    The EIA’s report may, however, change the sentiment: the authority also reported a gasoline decline of 1.7 million barrels for the week to June 12, after it estimated a weekly build of 900,000 barrels for the previous week. Gasoline production increased last week, at 8.4 million bpd. This compared with 8.1 million bpd a week earlier.

    In distillate fuels, the EIA estimated a 1.4-million-barrel draw in inventories for last week, after a 1.6-million-barrel build the previous week. Distillate fuel production averaged 4.5 million bpd, down on a week earlier.

    Distillate fuel stockpiles have been rising steadily and strongly over the past few weeks in the U.S. as demand for different oil products recovered unevenly after lockdowns began to be lifted.

    Reuters’ John Kemp wrote in a weekly column that the surplus came from the discrepancy between gasoline demand, which was recovering quickly, and jet fuel demand, which was lagging far behind. As a result, Kemp explained, middle distillates that would have normally been used to make jet fuel were used to make diesel fuel instead. Diesel demand has also been slow to recover.

    Refinery runs last week averaged 13.6 million bpd, up slightly on the previous week.

    By Irina Slav for Oilprice.com

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      ‘Victory for environmental justice’: Activists rejoice after $8bn Atlantic Coast Pipeline NIXED amid long-running legal battle – RT

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      Two energy companies behind the controversial 600-mile Atlantic Coast Pipeline slated to run from West Virginia to North Carolina, said they are scrapping the project after it has been on hold for years due to legal challenges.

      In a joint statement on Sunday, Dominion Energy and Duke Energy announced that they pull the plug on the project, which was first announced in 2014 and has faced fierce opposition from landowners and environmental activists, arguing that the 600-mile (970km) pipeline would cause irreparable damage to the land and wildlife.

      The developers, who argued that the pipeline is a better option environment-wise, since it was set to replace retiring coal-fired power plants with “environmentally superior, lower cost natural gas-fired generation,” have been embroiled in a long-running legal war with those who did not want to settle for second best.




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      The US has a lot of natural gas that may have to stay in the ground due to never-ending legal battles to get pipelines built



      Activists pointed out that the laying of the pipeline would involve mass removal of trees and damage to mountain slopes in its path, potentially increasing risks of landslides.

      In addition to that, opponents of the development cast doubt on the notion that there is a sufficient demand for gas the pipeline was set to transport. 

      The developers said that the last straw that forced them to abandon the project was a recent decision of a district court in Montana “overturning long-standing federal permit authority for waterbody and wetland crossings.” The move was backed by an appellate court’s ruling in late May, “indicating an appeal is not likely to be successful.”

      The companies said that they believe the Montana court decision is bound to serve as a precedent, prompting more legal woes for the developers.

      This new information and litigation risk, among other continuing execution risks, make the project too uncertain to justify investing more shareholder capital

      Constant legal wranglings have almost doubled the cost of the mega-project from the original estimate of $4.5 billion – $5 billion to $8 billion. It was already lagging some three and a half years behind the schedule when it was ultimately cancelled on Sunday.

      The announcement of the project’s demise has sparked celebrations among its opponents.




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      “If anyone still had questions about whether or not the era of fracked gas was over, this should answer them,” Sierra Club Executive Director Michael Brune said.

      Today is a historic victory for clean water, the climate, public health, and our communities

      In a joint statement with Reverend William Barber II, Former Vice President Al Gore, who has also been an outspoken opponent of the pipeline, denounced the now-defunct project as an embodiment of “the injustice of race, the injustice of ecological devastation, the injustice of poverty.”

      “Today we see a victory for environmental justice,” he said.

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      Alberta to give out second round of 20 million masks through fast food restaurants – Edmonton Journal

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      Alberta will distribute another 20 million non-medical masks, mostly through drive-thru restaurants, beginning July 13.

      As with the first round distributed in June, Albertans can pick up the masks at McDonald’s, A&W and Tim Hortons.

      The province recommends the wearing of a mask to help prevent the spread of COVID-19 when two metres of physical distancing is not possible.

      “The first phase of free mask distribution in Alberta was a huge success and the response was an incredible show of community support,” Health Minister Tyler Shandro said in a Sunday news release.

      Masks will also be distributed to municipalities without easy access to a restaurant, First Nations and Metis settlements, long-term care and senior’s centres, women’s shelters, homeless shelters and addiction treatment facilities.

      Convenience-store chain 7-Eleven will assist with the distribution of masks to transit services throughout Alberta.

      Last month, four free masks could be picked up at one of 600 drive-thrus, using the honour system. Shandro said 95 per cent of people in the province live within 10 kilometers of one of these restaurants.

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      Calgarians are making Stampede show go on

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      BMO Kids’ Day Pancake Drive-thru

      July 8 at Stampede Park, from 9 a.m. to 4 p.m.
      Complimentary breakfast, provided by BMO
      Advance registration at CalgaryStampede.com required.

      Community Pancake Drive-thru

      July 11 at Southcentre Mall from 9 a.m. to noon
      Advance registration at CalgaryStampede.com required.

      Stampede Food Truck Rally

      A taste of the midway, from corn dogs to cotton candy.

      July 6, Max Bell Centre, 2 to 8 p.m.
      July 7, Max Bell Centre, 2 to 8 p.m.
      July 8, Grey Eagle Casino, 2 to 8 p.m.
      July 9, Shane Homes YMCA at Rocky Ridge, 2 to 8 p.m.
      July 10, Spruce Meadows, 2 to 8 p.m.
      July 11, Vivo, 2 to 8 p.m.
      July 12, Grey Eagle Casino, 2 to 8 p.m.

      Source: Calgary Stampede

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