Bloomberg News

TOP Oil Market News: Crude Pares Gains as Greek Talks Falter

November 21, 2012

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

Oil Pares Gain as Greek Talks Falter While U.S. Stockpiles Drop

Oil swung between gains and losses after European finance ministers failed to agree on a debt- reduction package for Greece. Prices rose earlier after a report showed crude stockpiles shrank in the U.S.

Clinton Shuttles in Mideast in Bid to Broker Gaza Cease-Fire

Secretary of State Hillary Clinton will shuttle today through Jerusalem, the West Bank and Cairo in a bid to salvage a proposed cease-fire intended to halt a weeklong torrent of Palestinian rockets and Israel air strikes.

Surging Gas to Boost Power From Eight-Year Lows: Energy Markets

The longest sequence of quarterly gains in U.S. natural gas prices since 2009 is threatening to drive up the cost of electricity next year even as the nation’s energy production breaks records.

European Naphtha Exports to Asia May Rise to Three-Year High

European suppliers may ship the highest volume of naphtha to Asia in almost three years this month, according to shipbroker data compiled by Bloomberg News.

Indonesia’s Pertamina Drops Bid to Buy Coastal Energy on Price

PT Pertamina dropped a bid to buy Coastal Energy Co., a Houston-based oil and gas explorer, according to Ali Mundakir, a spokesman at the Indonesian state- owned energy company.

China Crude Stockpiles Fall Most Since February; Gasoline Gains

China’s commercial oil inventories fell last month by the most since February as the nation’s refineries raised processed volumes to a record.

SocGen Raises 2013 Brent Oil Forecast to $110/B, WTI to $97/B

Societe Generale SA sees upside to WTI prices in coming months, according to e-mailed report

Japan’s LNG Imports Rise 8.3% in October; Crude Drops 25% (1)

Japan’s liquefied natural gas imports rose 8.3 percent in October from a year earlier while crude purchases dropped 25 percent, the finance ministry said.

Natural Gas Rises to One-Year High on Forecasts of December Cold

Natural gas futures climbed to the highest settlement price in more than a year on forecasts for a colder-than-normal December that would increase heating demand.

Gas Supplies Dropped Last Week on Heating Demand, Analysts Say

U.S. natural-gas stockpiles fell last week as cooler weather boosted demand for the heating fuel, according to analyst forecasts compiled by Bloomberg.

U.K. Energy Secretary to Publish Energy Reform Bill Next Week

U.K. Energy Secretary Ed Davey said he plans to publish legislation designed to reform the electricity market next week.

API Snapshot: U.S. Crude-Oil Inventories Fell 1.92 Mln Barrels

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

OPEC

Saudi Fuel Imports Rise to Preserve Crude Capacity, Sen Says

Saudi Arabia, the world’s largest crude exporter, doubled imports of fuel oil this year and is poised to maintain them at a high level to preserve its spare capacity for producing crude, Energy Aspects Ltd. said.

REFINERIES Map global refinery outages

PDVSA Says It Controlled Leak in Amuay Refinery Flexicoker

Petroleos de Venezuela SA, the state oil company, said it controlled a leak at a flexicoker in its Amuay refinery.

Los Angeles Diesel Drops as Phillips 66 Plant Said to Start Unit

Spot diesel in Los Angeles fell against futures as Phillips 66 was said to be starting a hydrocracker at its Los Angeles- area refinery after finishing planned maintenance.

Texas Oils Reach Record Lows as Borger Refinery Extends Work

Texas oils plummeted to record lows as Phillips 66 said repairs at its Borger, Texas, refinery would take longer than anticipated, decreasing demand for an increasing supply of crude produced in the state.

Phillips 66 Bayway Said to Start Producing Next Week at Earliest

Phillips 66’s Bayway plant in New Jersey, the largest single refinery on the U.S. East Coast, will start producing fuel next week at the earliest, a person with direct knowledge of operations there said.

Phillips 66 Los Angeles Plant Said to Be Starting Hydrocracker

Phillips 66, the largest U.S. independent refiner by market value, is starting the hydrocracker at its Los Angeles-area plant after finishing planned maintenance, a person familiar with the work said.

Flexicoker at Amuay Refinery Shut Down After Leak, Official Says

Petroleos de Venezuela SA, the country’s state oil company, shut down a flexicoker at its Amuay refinery in Falcon state after a leak, a company official briefed on the matter said by telephone today. The official isn’t an authorized spokesperson.

Phillips 66 Said to Extend Borger Turnaround at Least a Week

Phillips 66 has extended work at its Borger, Texas, refinery at least a week and as long as two weeks because repairs were more difficult to make than anticipated, a person with knowledge of the situation said.

Phillips 66 Extends Maintenance at Borger Oil Refinery in Texas

Phillips 66 has extended maintenance at the 146,000-barrel- a-day Borger oil refinery in Texas that began in late September.

Eagle Ford September Oil Production Doubled From Previous Year

EOG Resources Inc. and other producers more than doubled production in September from a year earlier in south Texas’s Eagle Ford shale formation.

Motiva Plans to Begin Start for Port Arthur Crude Unit (1)

Motiva Enterprises LLC plans to begin the start process for a 325,000-barrel-a-day crude unit at the Port Arthur, Texas, refinery later this month or in early December.

OTHER OIL MARKET NEWS

HPCL-Mittal Seeks to Buy Basrah Light Crude for January Loading

HPCL-Mittal Energy Ltd., which runs a refinery in northern India partly owned by billionaire Lakshmi Mittal, is seeking to buy Iraq’s Basrah Light crude, according to a tender document obtained by Bloomberg News.

Oil Product Shipping Costs to Japan Rise 2.0 %

The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan rose 2.0 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.

Tanker Glut Seen at 22-Week Low as Asian Crude Demand Gains (1)

A glut of the largest oil tankers in the Middle East is poised to fall to the lowest in 22 weeks as crude shipments to refineries across Asia increase because of colder weather.

TOP ENERGY STORIES

Gaza Truce Talks Prolonged as Israel Carries Out Strikes (1)

Talks to end fighting between Israel and Palestinian groups extended today as the Israeli army renewed its bombardment of Gaza and militants fired more rockets at the Jewish state.

Rifle-Toting Terrorists Called Threat to U.S. Power Grid (1)

An attack on the power grid by terrorists -- even ones armed with relatively simple weapons is among the greatest threats to the reliability of the nation’s power system, the chairman of the U.S. Federal Energy Regulatory Commission said.

Utility Puts Drop to One-Year Low on Dividend Tax Bets: Options

Bearish options on U.S. utilities fell to the cheapest level in 13 months, pushed down after the stocks hit a one-year low and traders speculated President Barack Obama and Congress will agree to limit dividend taxes.

Ex-Merrill Banker Starts Japan Hedge Fund Seeking 20% Return

Takashi Hayashida, a former commodities salesman at Bank of America Corp., started a hedge fund in Japan focused on energy, metals and grains futures and targeting a 20 percent annual return.

Petronas Said to Offer Progress Relisting to Win Canada Support

Petroliam Nasional Bhd., which is seeking approval of a $5.2 billion takeover of Progress Energy Resources Corp., has proposed a public offering of shares in the natural gas producer within five years as a concession to Canada’s government, a person with knowledge of the matter said.

China Grabs Share in Latin America Wind With Cheap Loans: Energy

Chinese wind-turbine makers have broken into the South American market, the world’s fastest- growing, by offering government-backed loans at interest rates as much as 50 percent lower than local offerings.

BNEF Lowers California Carbon Price Forecasts After First Sale

California carbon allowances will sell for $14.06 each next year, down 2.7 percent from previous forecasts, Bloomberg New Energy Finance said after permits cleared in an auction near the lowest allowable price.

ONGC Said to Plan Bond Sale to Fund Azeri Stake: Corporate India

Oil & Natural Gas Corp., India’s biggest energy explorer, is planning to sell dollar bonds to fund a $1 billion acquisition in Azerbaijan, according to a person with direct knowledge of the matter.

Japan’s LNG Imports Rise 8.3% in October; Crude Oil Drops 25%

Japan’s liquefied natural gas imports rose 8.3 percent in October to 6.67 million metric tons from a year earlier, the finance ministry said.

OTHER MARKETS

Euro Weakens, Asian Stocks Erase Gain as Greek Debt Talks Falter

The euro weakened and Asian stocks erased gains after European finance ministers failed to agree on a debt-reduction package for Greece. Treasuries and the dollar rose, while copper led industrial metals lower.

Pound Climbs on French Downgrade; Gilt Sold at Record-Low Yield

The pound strengthened after France lost its top credit rating from Moody’s Investors Service and the U.K. sold five- year gilts at a record-low yield as investors sought the relative safety of British assets.

Asian Stocks Outside Japan Fall as Greek Debt Talks Deadlocked

Asian stocks outside Japan fell, with a regional gauge heading for its first decline in three days, after policy makers meeting in Brussels failed to reach a decision on assisting debt-laden Greece.

Pakistan Stocks Beat World as Violence Ignored: Riskless Return

Pakistan is handing equity investors the world’s best risk- adjusted returns as terrorist attacks, power blackouts and a war with Taliban insurgents fail to curb gains in consumer spending that sent profits to a record high.

Drought No Obstacle to Record Income for U.S. Farms: Commodities

Even after the worst drought in a half century shriveled crops from Ohio to Nebraska, U.S. farmers are having their most- profitable year ever because of record- high prices and insurance claims.

Silver Trade Drops 30% on China Bourse as Industrial Demand Ebbs

Silver trading on the largest spot market in China, the second-largest consumer, tumbled this year as slowing growth cut industrial use, said an industry official.

Asian Economies Aim for Trade Deal as Sea Dispute Set Aside (1)

China, Japan and South Korea started talks on a free-trade agreement vital to an Asia-wide deal in a move to forge closer economic ties even as they spar over disputed islands.

Mumbai Gunman Hanged Before Four-Year Anniversary of Attack (2)

Pakistani militant Mohammed Ajmal Kasab, the only gunman caught alive during the 2008 guerrilla assault on Mumbai, was hanged early today in India, as the two nations rebuild peace talks shattered by the attacks.

SPORTS

Beckham Says He Has ‘Exciting Options’ for Last Soccer Challenge

David Beckham said he’ll weigh some “exciting options” for the final challenge of his soccer playing career once his six-year U.S. stint ends next month.

Australia’s Watson Fails to Prove Fitness for 2nd Cricket Test

Australia vice-captain Shane Watson won’t play in the second cricket Test against South Africa starting tomorrow in Adelaide because he hasn’t fully recovered from a calf injury.

UEFA Champions League Group Standings, Results, Schedule

The standings, results and schedule for the group stage of the European Champions League. Top two teams in each group advance to the round of 16, with the third- place team qualifying for the Europa League.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 86.86 +0.11 +0.1 Nymex Jan. Brent Crude ($/Bbl) 109.86 +0.03 +0.0 Ice undefined Gasoil ($/Ton) 946.00 -1.25 -0.1 Ice Jan. Gasoline (c/Gal) 272.35 +1.10 +0.4 Nymex Dec. Natural gas ($/MMBtu) 3.80 -0.03 -0.8 Nymex Dec. Dated Brent ($/Bbl) 110.43 -0.56 -0.5 OTC 21 Days Heating Oil 304.65 +0.73 +0.2 Nymex Dec.

Other markets:

Last %Chg

----- ----- Dollar Index 81.21 +0.3 Gold ($/Oz) 1,723.60 -0.6 MSCI World Index 1,280.70 --

Prices as of 6 a.m. GMT

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


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