Bloomberg News

TOP Oil Market News: Crude Falls; Hedge Funds Cut Bullish Bets

November 12, 2012

The following is a selection of the most important news affecting the oil market.

Oil Falls as Euro-Area Finance Ministers Meet on Greek Aid

Oil in New York dropped for the first time in three days as European policy makers met to discuss aid for Greece and Japan’s economy shrank.

TOP OIL MARKET NEWS

Hedge Funds Cut Bullish Oil Bets to Two-Year Low: Energy Markets

Hedge funds trimmed bullish bets on crude to the lowest in more than two years as demand fell in the wake of Hurricane Sandy, production increased to the highest since 1994 and U.S. President Barack Obama won re-election.

AAA Says 75-80 Percent of New York City Stations Selling Gas

Up from 65% to 70% on Nov. 9, Michael Green, Co. spokesman, said by e-mail.

Gasoline Declines on Europe Debt Crisis and U.S. Budget Talks

Gasoline slid, reversing an earlier gain, on concern the European debt crisis will linger and U.S. lawmakers won’t reach consensus on how to avoid a looming so- called fiscal cliff, curbing growth and fuel demand.

Forties Crude Cargo F1011 Said to Be Deferred for Fifth Time

One North Sea Forties crude cargo which was originally planned for loading in October was deferred for a fifth time, according to two people with knowledge of the loading program.

Shell Sells Forties at Lower Price; Buzzard Said to Halt Output

Royal Dutch Shell Plc sold North Sea Forties crude at a lower price than a previous transaction. Petraco Oil Co. sought to buy Russian Urals blend in northwest Europe without success.

North Sea Buzzard Oil Field Said to Halt Output on Weekend (1)

The Buzzard oil field in the North Sea ceased production during the Nov. 10 to Nov. 11 weekend and output was still halted earlier today, according to three traders with knowledge of the matter, who declined to be identified as the information is confidential.

ICE Gasoil November Deliveries Fall to 210,000 Metric Tons (1)

The amount of 0.1 percent sulfur gasoil to be delivered through the ICE Futures Europe exchange in November fell on the month, according to data on Intercontinental Exchange Inc.’s website.

U.K. to Spend 39 Million Pounds on Energy Efficiency Centers

The U.K. government will spend 39 million pounds creating five centers around the country to help businesses and households examine their own energy efficiency, part of a broader program to reduce fossil fuel use.

OPEC

OPEC Likely to Keep Oil Quota Unchanged, Samba Financial Says

The Organization of Petroleum Exporting Countries is likely to keep its group production quota unchanged when OPEC oil ministers meet next month, Samba Financial Group said in an e- mailed report.

U.S. Oil Output to Overtake Saudi Arabia’s by 2020, IEA Says (5)

U.S. oil output is poised to surpass Saudi Arabia’s in the next decade, making the world’s biggest fuel consumer almost self-reliant and putting it on track to become a net exporter, the International Energy Agency said.

Abu Dhabi Seen Softening Stance Toward BP on New Oil Rights (2)

Abu Dhabi National Oil Co. may be softening its position toward BP Plc, a stakeholder in the emirate’s onshore fields, after initially indicating it may not invite the company to renew a concession agreement.

REFINERIES Map global refinery outages

Exxon Torrance Oil Refinery Said to Plan Unit Shutdowns in March

Exxon Mobil Corp.’s Torrance refinery in Southern California will take several process units out of service for planned repairs in early March, a person with knowledge of the schedule said.

Ethanol Falls Most in More Than Week as Production Costs Ease

Ethanol futures fell the most in more than a week as production costs for the biofuel eased.

New Jersey Fuel Trucks Face Delays as Terminals Remain Idle (2)

Trucks that deliver fuel to retail stations in New Jersey are facing waits more than twice as long as normal as some regional loading terminals remain offline following superstorm Sandy that struck Oct. 29.

Tesoro’s Martinez, California, Refinery Shuts Unit on Leak (1)

Tesoro Corp. shut a unit at its Martinez, California, refinery Nov. 8 after a small vapor leak, according to a filing with county regulators.

France Says Libya Fund Expresses Interest in French Oil Refinery

Libya’s sovereign wealth fund is in preliminary talks with France as a potential co-investor in an insolvent oil refinery in Normandy, French Industry Minister Arnaud Montebourg said.

New Jersey Fuel Trucks Face Delays as Terminals Remain Idle (1)

Trucks that deliver fuel to retail stations in New Jersey are facing waits more than twice as long as normal as some regional loading terminals remain offline following superstorm Sandy that struck Oct. 29.

Tesoro Martinez, California, Refinery Shut Unit After Leak

Tesoro Corp. shut a unit at its Martinez, California, refinery Nov. 8 after a small vapor leak, according to a filing with county regulators.

Exxon Had Flaring Late Yesterday at Baton Rouge Refinery

Exxon Mobil Corp. had two to three hours of flaring at its Baton Rouge refinery late yesterday, according to a recorded message left on community hot line. The flaring was part of “routine operations,” according to the message.

Iraq Cuts Basrah Light Crude Premium to Asia: Persian Gulf Oil

Iraq and Kuwait cut the premiums they will charge for their main export crude grades for buyers in Asia in December.

OTHER OIL MARKET NEWS

Oil Product Shipping Costs to Japan Fall 3.7 %

The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan fell 3.7 percent to 10.48 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons.

Saudi Arabia to Japan Tanker Rates Rises 1.5% to 40.92 Points

The cost of delivering Middle East crude to Asia, the world’s busiest route for supertankers, gained 1.5 percent to 40.92 Worldscale points, according to the Baltic Exchange in London.

West Africa Oil Field Outages, Maintenance for 2012 (Table)

Following are details of maintenance at West African oil fields, pipelines and terminals and unplanned closures for 2012. Information is added as it becomes available.

Abu Dhabi Seen Softening Stance Toward BP on New Oil Rights (1)

Abu Dhabi National Oil Co. may be softening its position toward BP Plc, a stakeholder in the emirate’s onshore fields, after initially indicating it may not invite the company to renew a concession agreement.

Crude Official Selling Prices and Formulas by Country (Table)

The following table shows official prices, formulas and relative values for crudes from the Middle East, Africa and the Americas. Figures represent outright prices in U.S. dollars a barrel, or premiums and discounts to regional benchmarks where plus and minus symbols appear.

TOP ENERGY STORIES

Hu Targets Beautiful China as Energy Use Jumps: Chart of the Day

It’s time for “beautiful China.” That’s the task President Hu Jintao has handed his successors after a decade in power in which his nation became the world’s biggest energy consumer and largest emitter of carbon dioxide.

Long Island Lawmakers, Customers Angry as Blackouts Linger (1)

Frustrated residents joined lawmakers in calling for a shakeup of the Long Island Power Authority as 76,160 of its customers remain blacked out two weeks after Hurricane Sandy.

Petronas Offers Board Changes in Progress Energy Rebid, FT Says

Petroliam Nasional Bhd. offered to appoint more independent directors to Progress Energy Resources Corp.’s board to help win Canadian approval for its takeover, the Financial Times said, citing an interview with Chief Executive Officer Shamsul Azhar Abbas.

Exxon Says Cost of PNG LNG Project Surges 21% to $19 Billion (3)

Exxon Mobil Corp., the world’s third-biggest company, said the cost of its natural gas project in Papua New Guinea jumped 21 percent to $19 billion because of a stronger Australian dollar and construction delays.

U.K. Probes Allegation Natural Gas Market Fixed by Utilities (1)

The U.K. government is “extremely concerned” about allegations that the wholesale natural gas market has been manipulated by some of the nation’s biggest power companies, Energy Secretary Ed Davey said.

China Solar Lifelines Defy Speculation of Forced Mergers: Energy

China’s $20 billion solar industry is avoiding loan defaults and mergers by taking aid from local governments, preserving jobs at money-losing companies such as LDK Solar Co., the world’s second-biggest maker of solar cells.

Long Island Lawmakers, Customers Angry as Blackouts Linger (2)

Frustrated residents joined lawmakers in calling for a shakeup of the Long Island Power Authority as about 56,000 of its customers remain blacked out two weeks after Hurricane Sandy.

Natural Gas to Be Most-Used Fuel in U.S. by 2030, IEA Says (1)

Natural gas will overtake oil as the most-used fuel in the U.S. by 2030 as the country’s supplies balloon, the International Energy Agency said.

OTHER MARKETS

Most U.S. Stocks Fall as Europe Ministers Meet While Metals Gain

Most U.S. stocks fell, following the worst weekly drop since June, as investors awaited budget talks in Washington and results of a European meeting on Greek aid. Industrial metals rallied as China’s exports topped forecasts.

Euro Close to 2-Month Low on Greek Aid Needs; Kiwi Strengthens

The euro traded close to a two-month low against the dollar as a draft policy makers’ report said Greece may require an extra $15 billion during the next two years and there are “very large risks.”

Euro Finance Chiefs to Meet November 20 on Greece, Juncker Says

Euro-area finance ministers will meet again Nov. 20 to discuss Greece, Luxembourg’s Prime Minister Jean- Claude Juncker, who heads the group of euro-area finance ministers, told reporters in Brussels.

U.S. Stocks Erase Gains as Finance Chiefs Meet on Greece Aid

U.S. stocks erased gains, failing to rebound after the Standard & Poor’s 500 Index’s biggest weekly retreat since June, as investors awaited budget talks in Washington and European finance chiefs met to discuss Greek aid.

NYSE Computer Issue Means No Closing Auction in 216 Securities

The New York Stock Exchange canceled trading and closing auctions in 216 securities after an outage in a computer that matches orders and processes transactions.

Bulls Cut Wagers as Prices Rally Most in Two Months: Commodities

Speculators cut bullish commodity wagers by the most in five months as prices had their biggest gain in eight weeks on mounting speculation that stimulus measures will bolster economic growth.

Copper Rises on Stronger-Than-Estimated Growth in China Exports

Copper rebounded from a fifth straight weekly decline after a jump in exports by China, the world’s biggest user of the metal, bolstered the outlook for demand.

Wukan Woes Show Land-Reform Delay Risks as Hu Leaves Task to Xi

Lin Zuluan, head of the council in the village of Wukan, has the same dinner interruption almost every evening. Unhappy residents come with complaints, almost always bringing up one topic: getting back their land.

South Koreans Fret World-Beating Chaebol Destroy Small Business

Lee Bok Sun is ready to shut her 28- year-old fruit store in Seoul, after her customers switched to a new hypermarket owned by one of South Korea’s chaebol, the family-controlled business groups that dominate the economy.

SPORTS

Arsenal’s Wenger to Strengthen Squad in January: Soccer Roundup

The following is a roundup of soccer stories from U.K. newspapers, with clickable Internet links.

Cowan, Clark Hit 100s as Australia Reaches 306-4 in First Test

Ed Cowan and Michael Clarke hit centuries as Australia reached 306-4 in reply to South Africa’s first-innings 450 in their opening cricket Test in Brisbane.

Messi Beats Pele Scoring Mark in Barcelona Victory; Inter Loses

Lionel Messi scored twice as Barcelona beat Real Mallorca 4-2 to extend its unbeaten start in Spanish soccer’s La Liga. Inter Milan lost ground on Italian Serie A leader Juventus with a 3-2 loss at Atalanta.

To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net


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