United States Oil Fund

Update: WTI Oi Closes Higher But Gives Up Early Gains Following Reports Iran and the U.S. To Extend Ceasefire

West Texas Intermediate (WTI) crude oil closed with a small gain on Thursday but fell off early highs following reports s the United States and Iran agreed to extend their ceasefire even as they earlier traded strikesWTI crude oil for July delivery up US$0.22 to settle at US$US$88.90 per barrel after earlier touching US$92.52. July Brent oil was last seen down US$0.64 to US$93.65.The drop off session highs came after Axios reported the two countries will extend their ceasefire agreement. The potential deal comes despite earlier reports U.S. forces attacked a drone-control base in Iran and shot down Iranian drones, while Kuwait intercepted an Iranian missile and Iran attacked commercial shipping in the Persian GulfOil prices have climbed by half since Iran closed the Strait of Homuz on the Feb. 28 start to the war, blocking much of the 20% of daily oil demand supplied by Persian Gulf nations.In its weekly survey the Energy Information Administration reported U.S. commercial oil inventories fell by 3.3-million barrels last week, while the consensus estimate among analysts polled by Reuters expected a 4.1-million barrel drop.

July WTI Crude Oil Contract Closes up US$0.22; Settles at US$88.90 per Barrel

Market Chatter: Alberta Oil Pipeline to Cost Sector More Than C$100 Billion, Imperial Says

Alberta's proposed million-barrel-a-day pipeline to the British Columbia coast will require Canada's oil industry to invest more than C$100 billion ($72.5 billion), the chief executive officer of Imperial Oil Ltd. says, Bloomberg is reporting Thursday.Industry will need to invest capital in growing production to fill the new line, make shipping commitments, as well as invest in a carbon capture project mandated by the federal government, John Whelan said at the Energy Roundtable conference in Calgary. The total cost is "north of a hundred billion dollars that we will need to attract to this industry," he said. "Now I think we can do that, but that's kind of scale of what we're talking about."Thursday's report noted Alberta Premier Danielle Smith proposed a new pipeline to the west coast as part of her goal to eventually double oil production in the province. Canadian Prime Minister Mark Carney has pledged to back the new pipeline in exchange for a series of measures including a higher industrial carbon tax and the deployment of a long-planned carbon capture project in the oil sands, called Pathways, to reduce emissions, it also noted.Alberta plans to roll out details of the new pipeline, including the planned route to the coast, by July for federal approval by October, the report says. But Alberta's preferred northwest route faces stiff pushback from Indigenous groups in BC as well as the province's Premier David Eby. The project may also require a lifting of a moratorium on oil tankers if the pipeline goes to the northern BC coast, which Smith wants, it adds.Construction could start late next year, the government has said.(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Sector Update: Energy Stocks Advance Premarket Thursday

Energy stocks were advancing premarket Thursday, with the State Street Energy Select Sector SPDR ETF (XLE) 0.9% higher.The United States Oil Fund (USO) was up 1.7% and The United States Natural Gas Fund (UNG) was 0.4% higher.Front-month US West Texas Intermediate crude oil was 2.1% higher at $90.56 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil rose 1.6% to $95.84 per barrel, and natural gas futures were up 5% at $3.04 per 1 million British Thermal Units.TotalEnergies (TTE) and Stellantis (STLA) have renewed and expanded their partnership in Europe to develop and deliver engine oils and lubricants, the companies said. Shares of TotalEnergies were up 2% pre-bell.Baker Hughes (BKR) has secured multiyear contract extensions with Equinor (EQNR) for drilling, well services and wireline intervention in the North Sea. Equinor stock was up more than 1% premarket.Borr Drilling (BORR) stock was up more than 4% after the company priced an upsized $2.04 billion senior secured notes offering and simultaneously expanded a tender offer for its outstanding 10.375% senior secured notes due 2030.

Exchange-Traded Funds, Equity Futures Lower Pre-Bell Thursday Amid New US Attacks on Iran

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.04% and the actively traded Invesco QQQ Trust (QQQ) was 0.1% lower in Thursday's premarket activity as new US attacks on Iran led to rising oil prices.US stock futures were also lower, with S&P 500 Index futures down 0.2%, Dow Jones Industrial Average futures slipping 0.2%, and Nasdaq futures retreating 0.4% before the start of regular trading.US initial jobless claims rose to a level of 215,000 in the week ended May 23 from an upwardly revised 210,000 level in the previous week, compared with expectations for a level of 211,000 in survey of analysts compiled by Bloomberg.New orders for US durable goods rose by 7.9% in April following a smaller increase of 1.3% in March, well above the expectations for a 4.0% increase in a survey compiled by Bloomberg.The new-home sales data for April will be released at 10 am ET, followed by the weekly natural gas stocks at 10:30 am ET.The weekly petroleum stocks data posts at 12 pm ET.New York Federal Reserve President John Williams and St. Louis Fed President Alberto Musalem are slated to speak on Thursday.In premarket activity, bitcoin was down by 2.2%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 2.1% lower, Ether ETF (EETH) retreated by 3.5%, and Bitcoin & Ether Market Cap Weight ETF (BETH) declined by 1.1%.Power Play:TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) retreated 0.5%, and the iShares US Technology ETF (IYW) was 0.4% lower, while the iShares Expanded Tech Sector ETF (IGM) was down 0.7%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) declined by 0.9%, while the iShares Semiconductor ETF (SOXX) lost 1%.Snowflake (SNOW) shares were up more than 38% in Thursday's premarket activity after the company lifted its full-year product revenue outlook and agreed to a $6 billion infrastructure spending deal with Amazon's (AMZN) Amazon Web Services.Winners and Losers:EnergyThe iShares US Energy ETF (IYE) gained 0.3%, while the State Street Energy Select Sector SPDR ETF (XLE) was up by 1%.Borr Drilling (BORR) stock was up more than 5% before the opening bell after the company priced an upsized $2.04 billion senior secured notes offering and simultaneously expanded a tender offer for its outstanding 10.375% senior secured notes due 2030.ConsumerThe State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 0.3%, and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) gained 0.1%. The iShares US Consumer Staples ETF (IYK) was 0.8% lower. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.5%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) was 0.8% higher.Burlington Stores (BURL) shares were down more than 2% pre-bell even after the company posted higher fiscal Q1 adjusted earnings and revenue.IndustrialThe State Street Industrial Select Sector SPDR ETF (XLI) retreated 0.5%, while the Vanguard Industrials Index Fund (VIS) was flat and the iShares US Industrials ETF (IYJ) was inactive.American Superconductor (AMSC) stock was down more than 2% before the opening bell after the company provided lower-than-expected fiscal Q1 guidance.Health CareThe State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.3%, the Vanguard Health Care Index Fund (VHT) was 1.1% higher, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was 0.2% higher.Sanofi (SNY) stock was down more than 1% premarket. The company said it has been granted a US Food and Drug Administration priority review for a new drug application for venglustat for the treatment of type 3 Gaucher disease, a rare disorder.FinancialThe State Street Financial Select Sector SPDR ETF (XLF) declined by 0.1%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.4%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.2% higher.Bank of Montreal (BMO) shares were up more than 1% pre-bell after the company reported higher fiscal Q2 adjusted earnings and revenue.CommoditiesFront-month US West Texas Intermediate crude oil advanced by 2.9% to $91.23 per barrel on the New York Mercantile Exchange. Natural gas was up 0.5% at $3.11 per 1 million British Thermal Units. The United States Oil Fund (USO) rose by 1.5%, while the United States Natural Gas Fund (UNG) was 0.2% lower.Gold futures for July retreated by 1.5% to $4,414.10 an ounce on the Comex. Silver futures declined by 2.5% to $73.04 an ounce. SPDR Gold Shares (GLD) was down by 1.1%, and the iShares Silver Trust (SLV) fell by 1.7%.

Oil Rebounds From a Month Low as Iran and the U.S. Trade Strikes, Raising Doubts a Peace Deal is Near

Oil rose off a month low early on Thursday as the United States and Iran traded strikes, a threat to peace talks to end a war that is entering its fourth month and produced the largest-every energy supply shock.West Texas Intermediate crude oil for July delivery was last seen up US$2.78 to US$91.46 per barrel, rising off the lowest since April 20. July Brent oil was up US$2.85 to US$91.46.The rise comes on fresh hostilities in the Persian Gulf. The Wall Street Journal reported U.S. forces attacked a drone-control base in Iran and shot down Iranian drones, while Kuwait intercepted an Iranian missile and Iran attacked commercial shipping in the Persian Gulf.Despite the fighting, the Journal said U.S. officials expect a strained ceasefire between the two countries to stay in place while peace talks in Qatar continue.Oil prices have climbed by half since Iran blockaded the Strait of Homuz on the Feb. 28 start to the war, blocking much of the 20% of daily oil demand supplied by Persian Gulf nations."Brent crude spiked ... after renewed US attacks near the Strait of Hormuz and retaliatory IRGC strikes targeting US bases, underscoring the limited prospect for a near-term peace deal as the US and Iran remained far apart on steps needed to reopen the vital waterway," Saxo Bank noted.Falling U.S. oil inventories are also offering support to oil prices. In its weekly survey, the American Petroleum Institute reported U.S. oil stocks fell by 2.8-million barrels last week, the sixth-straight weekly draw. The Energy Information Administration will release official inventory data later on Thursday.

Crude Oil Prices Jump as Iran Strikes in Retaliation to U.S. Attack

Crude oil prices rose on Thursday following strikes by Iran in retaliation to an earlier U.S. attack, taking focus away from ongoing peace talks.Brent crude at last look gained 1.9% to near US$96.10/barrel and West Texas Intermediate crude was up 2.1% to above $90.50/barrel. This comes after Iran's Revolutionary Guard said they targeted a U.S. airbase in response to the U.S. military's drone operation in the port city of Bandar Abbas, Reuters said in a Thursday report.Both benchmarks previously hit their lowest levels in a month on the possibility of a deal between the U.S. and Iran to end the war and reopen the Strait of Hormuz, the report said."While any faith remains that a deal will be struck, prices will drift until some such time as the depletion in global oil inventories starts to finally bite and once again reminds us of how over a billion barrels of oil is stuck behind the pinch of Hormuz," Reuters quoted PVM Oil Association analyst John Evans saying.

Brent Crude Up Near 2% at About US$96.10

Update: WTI Oil Plunges to a Month Low on Expectations the War on Iran is Nearing an End

West Texas Intermediate (WTI) crude oil plunged 5.6% on Wednesday on expectations the United States and Iran are nearing a deal to reopen the Strait of Hormuz and end the largest-ever energy supply shock.WTI crude oil for July delivery closed down US$5.21 to settle at US$88.68 per barrel, the lowest since April 20, while July Brent oil was last seen down US$5.30 to US$94.28.The drop comes as United States and Iran continue negotiations to end their war and reopen the crucial waterway that is the chokepoint for the 20% of daily oil supply from Persian Gulf nations that has been closed since the Feb. 28 start to the war.Talks between the two countries are continuing in Qatar and U.S. President Trump has repeatedly said a deal is near. Reuters reported Iranian State TV is saying it has seen a draft of "an initial, unofficial framework" for a peace agreement that sees the withdrawal of U.S. forces in the region while Iran and Oman will jointly managing shipping through the Strait.Though oil prices have retreated from April highs above US$110 per barrel, there is little expectations prices will quickly return to pre-war levels as importers look to rebuild inventories."Even if a deal is reached, market normalization is likely to take months, with ongoing demand for replacement barrels and depleted inventories potentially leading to a higher price floor than the one seen before the war," Saxo Bank noted.

July WTI Crude Oil Contract Closes Down US$5.21; Settles at US$88.68 per Barrel

Exchange-Traded Funds, Equity Futures Higher Pre-Bell Amid S&P 500, Nasdaq Rally, Middle East Peace Optimism

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.7%, and the actively traded Invesco QQQ Trust (QQQ) was 1.7% higher in Wednesday's premarket activity amid all-time highs achieved by the S&P 500 and the Nasdaq along with continued optimism for an end to the Middle East conflict.US stock futures were higher, with S&P 500 Index futures up 0.3%, Dow Jones Industrial Average futures advancing 0.3%, and Nasdaq futures gaining 0.7% before the start of regular trading.The Richmond Federal Reserve's manufacturing and business conditions readings for May are due to be released at 10 am ET, followed by the Dallas Fed's non-manufacturing survey for May at 10:30 am ET.Mortgage applications fell by 8.5% in the week ended May 22 as a sharp increase in mortgage rates pushed down refinancing activity and new home applications, according to Mortgage Bankers Association data released Wednesday.In premarket activity, bitcoin was down by 0.1%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.2% higher, Ether ETF (EETH) advanced 2.8%, and Bitcoin & Ether Market Cap Weight ETF (BETH) increased by 0.2%.Power Play:IndustrialThe State Street Industrial Select Sector SPDR ETF (XLI) advanced 1.5%, while the Vanguard Industrials Index Fund (VIS) gained 1.7%, and the iShares US Industrials ETF (IYJ) rose 1.3%.Dycom Industries (DY) stock was up more than 23% before the opening bell after the company reported higher fiscal Q1 adjusted net income and contract revenue.Winners and Losers:FinancialThe State Street Financial Select Sector SPDR ETF (XLF) dropped 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.3%, while Direxion Daily Financial Bear 3X Shares (FAZ), was 0.2% higher.Qfin (QFIN) stock was up more than 7% even after the company posted lower Q1 non-GAAP net income and net revenue.ConsumerThe State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 1.4% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) dropped by 1.4%. The iShares US Consumer Staples ETF (IYK) retreated by 1.6%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) increased by 0.2%. The VanEck Retail ETF (RTH) was 1.2% lower, while the State Street SPDR S&P Retail ETF (XRT) was 0.5% higher.PDD Holdings (PDD) shares were down more than 7% after the company posted Q1 non-GAAP earnings and revenue that missed analysts' estimates, with non-GAAP EPS declining year over year.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) increased by 2.6%, and the iShares US Technology ETF (IYW) was 2.3% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 2.4%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) gained by 4.7%, while the iShares Semiconductor ETF (SOXX) rose by 6.1%.Micron Technology (MU) shares were up more than 7%, extending gains after the company's market capitalization eclipsed $1 trillion for the first time on Tuesday.EnergyThe iShares US Energy ETF (IYE) was 2.5% lower, while the State Street Energy Select Sector SPDR ETF (XLE) was down by 2.7%.TotalEnergies (TTE) is facing a dispute with Mozambique over about $2 billion in costs tied to delays at its liquefied natural gas project in the country, Bloomberg reported, citing an unnamed person familiar with the matter. Shares of TotalEnergies were down more than 2% pre-bell.Health CareThe State Street Health Care Select Sector SPDR ETF (XLV) advanced 0.9%, the Vanguard Health Care Index Fund (VHT) was up 0.7%, while the iShares US Healthcare ETF (IYH) lost by 0.7%. The iShares Biotechnology ETF (IBB) was 0.4% higher.Guardant Health (GH) shares were up more than 5% after the company said its Shield blood test has been included in the American Cancer Society's updated Colorectal Cancer Screening guidelines.CommoditiesFront-month US West Texas Intermediate crude oil fell by 5.6% to $88.54 per barrel on the New York Mercantile Exchange. Natural gas was up 1.8% at $2.95 per 1 million British Thermal Units. The United States Oil Fund (USO) retreated by 2.7%, while the United States Natural Gas Fund (UNG) was 0.3% lower.Gold futures for August retreated by 1.6% to $4,461.50 an ounce on the Comex. Silver futures fell by 2.9% to $74.35 an ounce. SPDR Gold Shares (GLD) was up by 0.04%, and the iShares Silver Trust (SLV) rose by 2%.

Sector Update: Energy Stocks Decline Premarket Wednesday

Energy stocks were declining premarket Wednesday, with the State Street Energy Select Sector SPDR ETF (XLE) 1.6% lower.The United States Oil Fund (USO) was down 4.4% and the United States Natural Gas Fund (UNG) was 1.7% higher.Front-month US West Texas Intermediate crude oil was 5.1% lower at $89.13 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil fell 4.2% to $95.41 per barrel, and natural gas futures were up 1.2% at $2.93 per 1 million British Thermal Units.TotalEnergies (TTE) is facing a dispute with Mozambique over about $2 billion in costs tied to delays at its liquefied natural gas project in the country, Bloomberg reported, citing an unnamed person familiar with the matter. Shares of TotalEnergies were down more than 2% pre-bell.BP (BP) removed Chairman Albert Manifold, citing governance and oversight concerns, though Manifold rejected the company's account and said his dismissal came without explanation, Bloomberg reported, citing unnamed people familiar with the matter. BP stock was down more than 2% premarket.Gran Tierra Energy (GTE) said it has finalized all conditions tied to its previously announced agreement with Ecopetrol (EC) to acquire a 49% working interest in Colombia's Tisquirama block, expanding its footprint in the Middle Magdalena Valley Basin. Ecopetrol shares were nearly 2% lower pre-bell.

Oil Trading at a Month Low on Expectations the War on Iran is Nearing an End

Oil traded lower for a second session early on Wednesday on expectations the United States and Iran will reach a deal to reopen the Strait of Hormuz and end the largest-ever energy supply shock.West Texas Intermediate crude oil for July delivery was last seen down US$3.29 to US$90.60 per barrel, the lowest since April 20, while July Brent oil was down US$2.66 to US$96.92.The drop comes as United States and Iran continue negotiations to end their war and reopen the crucial waterway that is the chokepoint for the 20% of daily oil supply from Persian Gulf nations that has been closed since the Feb. 28 start to the war.Talks between the two countries are continuing in Qatar. While U.S. President Trump has repeatedly said a deal is near, The Guardian reported Iran is unwilling to agree to a deal that does not meet all its conditions. The paper said Iran has also launched talks with Oman on future regulations for ships transiting the Strait, which had been an international waterway prior to Iran's blockade.Though oil prices have retreated from April highs above US$110 per barrel, there is little expectations prices will quickly return to pre-war levels as importers look to rebuild inventories."Even if a deal is reached, market normalization is likely to take months, with ongoing demand for replacement barrels and depleted inventories potentially leading to a higher price floor than the one seen before the war," Saxo Bank noted.

U.S. Crude Oil Stocks Likely Fell 1.4 Million Barrels in Week Ended May 22, Macquarie Says

U.S. crude oil inventories are forecast to have declined 1.4 million barrels in the week ended May 22, following a draw of 7.9 MM BBL in the prior week, with the crude balance again realizing tighter than its expectations, Macquarie said in a Tuesday note.Beyond normal variability in flow items, Macquarie once again noted that persistently high crude exports and strategic petroleum releases could inject considerable volatility into weekly figures. Macquarie said it remains focused on refined product inputs and emerging signs of demand destruction following three straight weeks of soft implied distillate demand and two weeks of weak gasoline prints.From refineries, Macquarie expects crude runs to have risen 0.3 million barrels per day. Net imports are expected to have modestly increased, with exports down 0.3 MBD and imports up 0.1 MBD on a nominal basis.Implied domestic supply is forecast to have risen 1.0 MBD following a weak print in the previous week. Strategic petroleum reserves are projected to have dropped 9.1 MM BBL, Macquarie added.Among products, gasoline stocks are forecast to have fallen 2.5 MM BBL. Meanwhile, distillate stocks and jet fuel inventories are projected to have gained 0.3 MM BBL and 1.2 MM BBL, respectively, Macquarie said. Implied demand for these three products are forecast at 14.6 MBD, it added.

Crude Oil Prices Fall as Market Hopes for Progress in U.S.-Iran Peace Talks

Crude oil prices dropped on Wednesday as the market focuses on potential progress made in peace talks between the U.S. and Iran despite renewed hostilities.Brent crude at last look had lost 3.3% to US$96.28/barrel and West Texas Intermediate crude had fallen 4.1% to $90.02/barrel. Both sides had indicated developments in talks to reopen the crucial Strait of Hormuz, but strikes on both sides are threatening negotiations, Reuters said in a Wednesday report.The U.S. military carried out new strikes in Iran, which said on Tuesday that the U.S. had violated a ceasefire near the contested Strait of Hormuz. The U.S. said its strikes were defensive in nature, the report said. Israel also ramped up bombing in Lebanon.However, some liquefied natural gas tankers have reportedly transited through the strait in recent days, sparking expectations that the waterway could reopen soon, Reuters reported.

Market Chatter: Canada To Sign Deal With Germany's SEFE For Ksi Lisims LNG, Reuters source says

Canada will sign a large-scale LNG agreement with Germany's SEFE for liquefied natural gas from the Ksi Lisims planned export facility on the coast of British Columbia, according to an industry source, Reuters is reporting Tuesday.The agreement, to be announced Wednesday in Vancouver by Natural Resources Minister Tim Hodgson, comes as Ksi Lisims' backers have been working to finalize contracts with purchasers before making an expected final investment decision this year, the report noted.Ksi Lisims, SEFE and Canada's natural resources ministry declined to comment.Bloomberg first reported the plans, while Shell and TotalEnergies have already signed 20-year LNG purchase agreements with Ksi Lisims, the report noted.(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Update: WTI Oil Falls as U.S. Strikes on Iran Cloud Hopes for Successful Peace Talks

West Texas Intermediate (WTI) crude oil closed lower on Tuesday even after the United States carried out strikes on Iran, threatening to derail peace talks between the two countries.WTI crude oil for July delivery closed down US$2.71 to settle at US$93.89 per barrel, while July Brent oil was last seen up US$3.40 to US$99.54While peace talks between Iran and the United States are underway, the United States on Monday launched attacks on what it said were missile-launching sites in Iran.The strikes come as the two countries continue talks to end the three-month war and reopen the Strait, which was the chokepoint for 20% of daily oil demand from Persian Gulf countries. Iran's blockade of the Strait following the Feb. 28 start to the war began the largest-ever oil supply shock and pushed up oil prices by more than half. The U.S. action threatens to prolong the market disruption."Fresh US military strikes in Iran clouded the outlook for an interim agreement between the US and Iran that could help reopen the Strait of Hormuz, a key waterway through which around one-fifth of global oil and LNG flows under normal conditions, and which has remained largely closed since early March. While differences between the parties have narrowed, any eventual peace deal would likely lead only to a gradual reopening, meaning the current tight supply outlook could take months to normalize," Saxo Bank wrote.The Wall Street Journal reported talks between the two countries are continuing in Qatar despite the U.S. action, with Iranian government spokeswoman Fatemeh Mohajerani saying on Tuesday that the indirect talks are likely to continue.

July WTI Crude Oil Contract Closes Down US$2.71; Settles at US$93.89 per Barrel

Market Chatter: MP Steven Guilbeault Could Quit Caucus As Soon As This Week Amid Concerns Over Govt Rollback of Climate Policies

Former environment and climate change minister Steven Guilbeault is considering resigning from the Liberal Party caucus due to his concern over the federal government's rollback of Trudeau-era climate policies and the most recent iteration of the MOU with Alberta aimed at building a new pipeline, four sources in the federal government tell CTV News.The sources say Guilbeault is considering remaining as an MP, but sitting as an Independent, and likely would not run in the next election.CTV News has reached out to Guilbeault's office but has not received a response by the time of publication. Sources close to the former minister who spoke to him Monday say he wasn't 100% decided yet.On his way into a cabinet meeting Tuesday morning, Prime Minister Mark Carney was asked by the Globe and Mail's Marieke Walsh if he expected Guilbeault to resign. He didn't reply.According to Tuesday's report, Guilbeault is not alone in his concern about climate policy rollbacks. More than a dozen Liberal MPs wrote recently to the prime minister to express worry over changes to methane and clean electricity regulations in Alberta moving the $130 per-tonne effective price on carbon target beyond 2030, as well as any possible public money going toward a new pipeline.Sources close to Guilbeault say he was disheartened that the MOU and corresponding rollback of the oil and gas emissions cap, and aforementioned regulations meant even Canada's 2050 net-zero was out of reach, according to analysis from the Canadian Climate Institute.Speculation over Guilbeault's political future ramped up after Carney and Alberta Premier Danielle Smith agreed earlier this month to elements of an energy deal that could see construction of an oil pipeline begin as early as the fall 2027 if specific conditions are met.Back in November, Guilbeault resigned from Carney's cabinet where he served as Minister of Canadian Identity and Culture -- just hours after Carney and Smith signed the initial memorandum of understanding (MOU) on energy.(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Sector Update: Energy Stocks Decline Premarket Tuesday

Energy stocks were declining premarket Tuesday, with the State Street Energy Select Sector SPDR ETF (XLE) 1.1% lower.The United States Oil Fund (USO) was down 3.5% and The United States Natural Gas Fund (UNG) was 1.5% higher.Front-month US West Texas Intermediate crude oil was 3.9% lower at $92.80 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil rose 3% to $99.04 per barrel, and natural gas futures were up 2% at $2.97 per 1 million British Thermal Units.BP (BP) stock was down more than 4% after the company said its board unanimously decided to remove Albert Manifold as chair and director.Baker Hughes (BKR) said it has extended its contract with Petrobras (PBR) to provide integrated well construction services in Brazil's Santos Basin. Petrobras shares were down more than 2% premarket.Northern Oil and Gas (NOG) said it is acquiring a 25% stake in Canadian oil-producing assets for about 350 million Canadian dollars ($254 million). Northern Oil and Gas stock was down more than 1% pre-bell.