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TOP Oil Market News: Crude Trades Near One-Week High in New York

By Alexander Kwiatkowski

November 15, 2012

Oil Trades Near One-Week High After Israeli Air Strikes on Gaza

Oil traded near the highest level in more than a week after Israel attacked the Gaza Strip, raising concern Middle East unrest will disrupt supplies. A report showed U.S. stockpiles rose to the most since July.

AAA Says 80-85 Percent of New York City Stations Selling Gas

Up from 75% to 80% yesterday, Michael Green, AAA spokesman, said by e-mail.

Asia Reforming Margin Falls From Three-Week High: Oil Products

Asia gasoline’s premium to naphtha, or the reforming margin, fell from the highest level in three weeks. Fuel oil refining losses widened.

South Korea Resumes Imports of Crude From Iran in October (1)

South Korea bought oil from Iran last month for the first time since July, when refiners lost insurance coverage on ships carrying the fuel because of international sanctions on the Persian Gulf nation.

Pertamina Seeks to Buy Low-Sulfur Crude for January Delivery

PT Pertamina, Indonesia’s state- owned oil company, issued a tender to buy 600,000 or 950,000 barrels of low-sulfur crude, a document obtained by Bloomberg News showed.

Shell Plans to Expand Petrochemical Capacity in Singapore (1)

Royal Dutch Shell Plc plans to add capacity at its Pulau Bukom ethylene plant in Singapore to tap growing petrochemical demand in Southeast Asia.

Korea Western Power Buys Fuel Oil From Mitsui, Hyundai (1)

Korea Western Power Co., one of the six generating units of Korea Electric Power Corp., bought high- sulfur fuel oil for December delivery from Mitsui & Co. and Hyundai Corp., according to an official at the utility.

Gas Supplies Fell Last Week Amid Cold Weather, Forecasts Show

U.S. natural-gas stockpiles had their earliest winter- season decline since 2007 as unusually cold weather spurred heating-fuel demand, according to analyst forecasts compiled by Bloomberg.

Natural Gas Futures Climb to One-Year High on Colder Weather

Natural gas futures climbed to a one-year high for a second day on forecasts of below-normal temperatures that would increase fuel demand.

Natural Gas Futures Rise as Colder Weather to Spur Fuel Demand

Natural gas futures rose in New York after settling at a one-year high yesterday, on forecasts of below-normal temperatures that would increase fuel demand.

Qatar Said to Support Glencore Offer, Xstrata Bonuses in Vote

Qatar Holding LLC, Xstrata’s second- largest shareholder, is poised to approve Glencore International Plc’s $31.2 billion bid for the company and bonuses for about 70 managers, according to three people with knowledge of the plan.

API Snapshot: U.S. Crude-Oil Inventories Rose 1.35 Mln Barrels

The following table is a summary of the latest Weekly Statistical Bulletin from the American Petroleum Institute. *T

OPEC

Oil Trades Near One-Week Low on U.S. Stockpiles, Demand Outlook

Oil traded near the lowest price in a week in New York before a report forecast to show U.S. stockpiles rose to the highest level since July and after the International Energy Agency cut its demand forecasts.

REFINERIES Map global refinery outages

Shell Has Equipment Failure at Deer Park Refinery, Filing Shows

Royal Dutch Shell Plc released 177 pounds of ethylene from a flare at its refinery in Deer Park, Texas, because of equipment failure, according to a filing with the National Response Center. The company shut down a system after the release at 5:45 p.m. local time yesterday, the filing showed, without giving more details.

Refiner Profit Falls From 4-Year High in Europe: Energy Markets

The wave of European refinery shutdowns that sent the profit from making gasoline and diesel to a four-year high is ending just as the faltering economy saps demand.

Irving Saint John Has 2 Days of Additional Maintenance Work (2)

Irving Oil Corp.’s Saint John refinery, the largest oil processing plant in Canada, plans to conduct additional maintenance work for the next two days.

Nigeria Faces Prolonged Fuel Shortages on Importers’ Poor Credit

Nigeria, Africa’s top crude producer, may face prolonged fuel shortages with importers hindered by a lack of credit and the state oil company unable to meet demand, a retailers’ association said.

Irving Refinery Had Minor Incident, Provincial Official Says (1)

Irving Oil Corp. had a “minor” incident at its Saint John refinery in New Brunswick, Stacey Cooling, operations manager with the province’s Emergency Management Organization, said in a telephone call, citing a fire official for the city.

Motiva Said to Shut Convent Oil Refinery After Power Failure (2)

Motiva Enterprises LLC’s refinery in Convent, Louisiana, was shut after a power failure yesterday, according to a person familiar with operations.

Vitol Buys Europe Naphtha; Jet Fuel Premium Falls: Oil Products

Naphtha rose in northwest Europe as Vitol Group purchased two cargoes.

Motiva Said to Shut Convent Oil Refinery After Power Failure (1)

Motiva Enterprises LLC’s refinery in Convent, Louisiana, is shut after a power failure, according to a person familiar with operations.

OTHER OIL MARKET NEWS

Oil Product Shipping Costs to Japan Fall 1.8 %

The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan fell 1.8 percent to 10.29 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons.

Overseas Shipholding Files Bankruptcy as Tanker Rates Fall (4)

Overseas Shipholding Group Inc., the largest U.S. tanker operator, filed for bankruptcy protection after global shipping rates fell and the company gave up trying to win a federal loan guarantee.

Oil-Tanker Returns Rise for Eighth Session on Stronger Demand

Returns for the biggest oil tankers hauling Middle East crude to Asia, the industry’s benchmark route, rose for an eighth session on stronger cargo demand.

Dow Sinks to Lowest Since June on Budget, Israel as Oil Rallies

U.S. stocks sank, sending the Dow Jones Industrial Average to the lowest level since June, as concern about the budget debate and conflict in Israel wiped out an early rally. Oil jumped and Treasuries were little changed.

Israel Hits Gaza Targets After Air Strike Kills Hamas Leader (2)

Israeli jets struck the Gaza Strip today, killing the leader of Hamas’s military wing as the army pledged the use of ground troops for the first time since 2009 if required to end attacks on its citizens.

Long Island Power COO Quits as Cuomo Orders Inquiry Into Storm

The chief operating officer of the Long Island Power Authority resigned after Governor Andrew Cuomo of New York, where 2 million homes and businesses lost electricity in superstorm Sandy, ordered an investigation into the performance of the state’s utility companies.

Thousands Seen Dying If Terrorists Attack U.S. Power Grid (1)

A terrorist attack on the U.S. power grid could be more destructive than superstorm Sandy, possibly costing hundreds of billions of dollars and leading to thousands of deaths, the National Academy of Sciences said.

Re-Elected Obama Has No Reason to Block Keystone Pipeline: View

Environmentalists who are against building the Keystone XL oil pipeline from Alberta, Canada, to the U.S. Gulf Coast, have called a march on Washington this weekend to demand that President Barack Obama again reject it.

Israeli Strike on Hamas Militia Leader Escalates Conflict (1)

Israeli jets struck the Gaza Strip, killing the leader of Hamas’s military wing and pushing the conflict to its harshest level since the military buildup that preceded Israel’s pre-New Year’s ground invasion of 2008.

JPMorgan Power Trading Authority Suspended by U.S. Regulator (1)

The U.S. Federal Energy Regulatory Commission suspended the electrical-trading authority of a JPMorgan Chase & Co. unit for six months, saying the company had filed false information to regulators.

Eletrobras Is Worst Power Bet as Rates Decline: Corporate Brazil

Brazil’s push to reduce electricity rates is making Centrais Eletricas Brasileiras SA the world’s worst-performing major power utility.

Nordic Power Trading Heads for 12-Year Low as Investors Retrench

Trading in Nordic power is poised to slide to its lowest level in 12 years this year as the euro region’s debt crisis reduces investors’ appetite for risk and hedge funds pull out of the market.

California Carbon Price Drop 2% as State Auctions First Permits

California carbon futures fell 2 percent yesterday as the state auctioned its first greenhouse- gas allowances, brushing aside a lawsuit challenging its authority to start the largest U.S. cap-and-trade program.

OTHER MARKETS

Yen Slumps to Six-Month Low as Asian Shares Drop Outside Japan

The yen tumbled to a six-month low and Japanese shares jumped on expectations elections next month will hand power to the opposition which favors unlimited easing. Asian equities outside Japan fell on concern the so-called U.S. fiscal cliff will curb growth in the world’s biggest economy.

Yen Falls to 6-Month Low as Abe Calls for Unlimited BOJ Easing

The yen sank to a six-month low on prospects Japanese elections next month will hand power to the opposition party that advocates more aggressive monetary easing.

Yuan Falls From 19-Year High on Fixing Before Leaders Announced

The yuan fell, retreating from a 19- year high, after the central bank cut its reference rate to a level that required the currency to weaken to remain within permitted trading limits.

Asia Stocks Outside Japan Drop; Japanese Shares Rise on Election

Asian stocks outside Japan slid toward a two-month low amid concern a budget standoff in the U.S. may curb global growth. Japanese shares gained on speculation a change of government may result in more action to stimulate the economy.

China’s Stocks Slump as New Leaders Announced; Banks Decline

China’s stocks fell with trading volumes on the benchmark index 32 percent below average after the ruling party announced the nation’s new leaders and banks’ bad loans increased.

Best Metals Forecaster Smirk Sees China Recovering: Commodities

Industrial metals will rally through the middle of next year as the economy strengthens in China, the biggest user of everything from aluminum to zinc, according to the most accurate price forecaster tracked by Bloomberg.

China Buys Total 100,000 Tons of Aluminum, Citic Sec. Says

China bought ingots at 15,730 to 15,750 yuan per ton in tender in Beijing today, says Huang Fulong, head of nonferrous metals research, Citic Securities Futures Co.

Xi Jinping Replaces Hu Jintao as China Communist Party Chief (2)

Xi Jinping replaced Hu Jintao as head of the Chinese Communist Party and the nation’s military, ushering in the fifth generation of leaders who are set to take control of the world’s second-biggest economy.

Who’s Who in China’s New Communist Party Leadership Lineup

China’s Communist Party announced the makeup of the new Politburo Standing Committee today. The panel, which was reduced to seven members from nine, is the most powerful decision-making body in China.

SPORTS

India Wins Toss, Bats First in Series-Opening Test Vs. England

India captain Mahendra Singh Dhoni won the toss and elected to bat first against England in their series-opening cricket Test in Ahmedabad.

Rugby Board to Review Disciplinary Process After Thomson’s Ban

The International Rugby Board will review the disciplinary process that led to New Zealand’s Adam Thomson receiving a one- week ban for stamping on the head of a Scottish opponent in a Test match four days ago.

Montenegro Beats San Marino to Lead World Cup Qualifying Group

Montenegro beat San Marino 3-0 to move above England at the top of their European qualifying group for soccer’s 2014 World Cup.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 86.31 -0.01 0.0 Nymex Dec. Brent Crude ($/Bbl) 109.77 +0.16 +0.1 Ice December Gasoil ($/Ton) 931.25 +3.00 +0.3 Ice Dec. Gasoline (c/Gal) 269.08 +1.18 +0.4 Nymex Dec. Natural gas ($/MMBtu) 3.77 +0.01 +0.3 Nymex Dec. Dated Brent ($/Bbl) 109.14 -- -- OTC 21 Days Heating Oil 299.36 +0.54 +0.2 Nymex Dec.

Other markets: