Bloomberg News

TOP Oil Market News: Crude Near Three-Day High on U.S. Supplies

November 22, 2012

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

Oil Trades Near Three-Day High on Supplies, China Manufacturing

Oil traded near the highest level in three days in New York on signs that China’s manufacturing will expand and as stockpiles unexpectedly fell in the U.S., the world’s biggest crude user.

Gaza Cease-Fire Success Hinges on Further Israel-Hamas Efforts

Israel and Hamas, which halted eight days of aerial assaults that ravaged the Gaza Strip and made Tel Aviv a missile target, will try to solidify their cease-fire with further Egyptian and U.S. help.

Heating Oil and Gasoline Rise as U.S. Supplies Slid Last Week

Heating oil and gasoline rose as the Energy Department reported that U.S. product inventories decreased last week.

TCW Spinout EIG Said to Seek $4.25 Billion for Next Energy Fund

EIG Global Energy Partners LLC, the asset manager spun out from TCW Group Inc. in January 2011, plans to seek $4.25 billion for its next energy fund, according to two people with knowledge of the matter.

LNG Gap Signals No End to Japan’s Buying Spree: Energy Markets

An unprecedented shortfall in Japan’s liquefied natural gas supplies through 2017 is poised to push cargo prices toward a two-year high, benefiting suppliers from BG Group Plc to Royal Dutch Shell Plc.

Natural Gas Rigs Gain by Most in a Year, Baker Hughes Says (2)

U.S. natural gas rigs rose by the most in more than a year, rebounding from a 13-year low, as prices doubled.

Cielo Tops Record Profit as Phones Pay Credit: Corporate Brazil

Credit-card payment processor Cielo SA, Brazil’s most profitable company, expects its mobile-payment services venture with Oi SA to generate even higher returns.

Brazil Said to Consider Fuel Price Increase Early in 2013

Brazil plans to allow Petroleo Brasileiro SA to raise fuel prices early next year to ensure the state-controlled oil company carries out its investments, a government official with knowledge of the decision said.

Natural Gas Power-Plant Share Rose in September, EIA Says (1)

U.S. electricity generators burned 17 percent more natural gas in September and cut coal use versus a year ago, the Energy Department said today.

Ethanol Production in U.S. Fell 1.6% Last Week, DOE Says (1)

Ethanol production in the U.S. fell 1.6 percent to 811,000 barrels a day last week, the lowest level since Oct. 19.

Ethanol Production in U.S. Fell 1.6% Last Week, DOE Says

Ethanol production in the U.S. fell 1.6 percent to 811,000 barrels a day last week, an Energy Department report showed today.

U.S. DOE Weekly Petroleum Status Report for Nov. 16 (Text)

Following is the text of the weekly Petroleum Status Report from the U.S. Department of Energy:

Gasoline and Heating Oil Gain on Report Supply Dropped Last Week

Gasoline and heating oil rose after the industry-funded American Petroleum Institute reported U.S. product inventories fell last week and as crude gained after the conflict between Israel and Hamas militants continued.

U.S. Oil Supply: Comparison of Weekly API, DOE Figures (Table)

The following table provides a comparison between the U.S. Department of Energy’s crude-oil statistics for the week ended Nov. 16 and the data from the American Petroleum Institute, an industry-funded group.

OPEC

Kuwait’s Mina Al Ahmadi Work Will Cut Refinery Capacity by 43%

Kuwait National Petroleum Co. will conduct maintenance work at the Mina Al-Ahmadi refinery in April that will cut capacity at the country’s largest fuel-processing plant by 43 percent.

REFINERIES Map global refinery outages

Vitol Buys European Naphtha; Pembroke Units Start: Oil Products

Vitol Group bought four cargoes of naphtha in northwest Europe, adding to its purchase of at least 10 lots last week. BP Plc bought two consignments of ultra-low- sulfur diesel.

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.

OTHER OIL MARKET NEWS

Oil Product Shipping Costs to Japan Rise 3.8 %

The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan rose 3.8 percent to 10.68 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons.

Morgan Stanley Cuts Forties Offer; Force Majeure on Qua Iboe Oil

Morgan Stanley failed to sell a cargo of North Sea Forties crude even after lowering its offer. No bids or offers were made for Russian Urals blend in Europe for a third day.

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.

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.

Nigeria Raises December Bonny, Qua Price to Six-Month High (1)

Nigeria raised its December official selling price for benchmark Bonny Light and Qua Iboe crudes to the highest level in six months, the Nigerian National Petroleum Corp. said in an e-mailed statement.

TOP ENERGY STORIES

Clinton Seeks Truce as Blast Injures Tel Aviv Bus Passengers (1)

U.S. Secretary of State Hillary Clinton held talks with Israeli and Palestinian leaders in a bid to end to their weeklong conflict, as a blast hit a bus in Tel Aviv and air strikes on Gaza continued.

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.

Crude Oil Rises on Gaza Conflict Amid Declining U.S. Stockpiles

Oil rose after a blast on a bus in Tel Aviv injured at least 10 people, boosting speculation that the conflict between Israel and the Palestinians of Gaza may disrupt crude supply from the Middle East.

Egyptian Minister Says Cease-Fire to Start 9 P.M. in Cairo Today

Eygpt’s foreign minister speaks in news conference with U.S. Secretary of State Hillary Clinton in Cairo.

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.

Natural Gas Rises to 1-Year High as Supply Drop Exceeds Forecast

Natural gas futures advanced to the highest price in more than a year after a government report showed a bigger-than- forecast inventory decline.

China $290 Billion Renewable Plan Mires Industry in Debt: Energy

In its 12th Five-Year Plan, finalized in August, China committed about $290 billion to clean-energy investments. The goal: to produce 20 percent of the nation’s energy from renewable sources by 2015.

Rio Tinto Taps Feng Shui for Good Fortune in China: Commodities

After weathering the collapse of a $19.5 billion deal in 2009 and the arrest of four executives, Rio Tinto Group did what you do in China to court better fortune: It bought a jade horse.

U.S. Cites Safety Lapses After Black Elk Gulf Rig Fire (1)

Federal regulators ordered Black Elk Energy Offshore Operations LLC to improve its safety procedures after a fatal Nov. 16 explosion and fire on an oil platform in the Gulf of Mexico.

Gas-Oil Price Link in Focus as Exporters Meet in Malabo (2)

Representatives of the world’s biggest gas-exporting countries defended a 40-year-old system that links the price of the fuel to oil amid mounting calls by users to scrap the practice at a meeting in Equatorial Guinea.

OTHER MARKETS

Asian Stocks Climb to Two-Week High; Euro Advances With Copper

Asian stocks rose to a two-week high on signs China’s manufacturing is rebounding and as European Union leaders prepared to hold budget talks. The euro strengthened, while copper paced gains in industrial metals.

Euro Rises Versus Most Peers Before Leaders Meet on Greece

The euro rose versus most of its 16 major counterparts before finance ministers from the 17-nation currency bloc resume talks on aid for Greece next week.

Rand Drops to Three-Year Low on Greece Woes, Rising Inflation

The rand weakened, trading above 9 per dollar for the first time in three years after debt-cutting efforts for Greece stumbled, damping demand for risky assets, and as South Africa inflation unexpectedly quickened.

Asian Stocks Hit Two-Week High on China Manufacturing, U.S. Jobs

Asian stocks gained, with the regional benchmark index headed for its highest close in two weeks, on signs of a U.S. jobs markets is stabilizing and Chinese manufacturing is recovering.

S&P 500 Advances Fourth Day After Cease-Fire Reached in Gaza

U.S. stocks rose, sending the Standard & Poor’s 500 Index higher a fourth day, as U.S. Secretary of State Hillary Clinton and Egyptian Foreign Minister Mohamed Amr announced a cease-fire between Israel and Hamas.

Gold Advances as Central Banks Join Investors Adding to Holdings

Gold rose as central banks joined investors in adding to holdings and the euro strengthened against the dollar before regional leaders meet today. Silver traded near a one-month high.

Japan Aluminum Buyers Said to Get First Fee Cut in a Year (1)

Aluminum buyers in Japan, Asia’s largest importer, are set to secure the first fee reduction in a year from suppliers as the economy sinks into a recession, according to three executives involved in the negotiations.

Mursi Pressed by Public Anger on Economy Brokers Cease-Fire (1)

When Israel launched air strikes on the Gaza Strip last week, Egypt’s Muslim Brotherhood said the “Zionist entity” had committed a “criminal aggression.” President Mohamed Mursi, drawn from the same movement, said only that it was unacceptable “under any circumstance.”

Rice Rejects Criticism of Her Remarks on Fatal Benghazi Attack

Susan Rice, the U.S. ambassador to the United Nations, rejected criticism of her remarks about the deadly attack on an American diplomatic mission in Libya, saying they were based on initial intelligence community assessments.

SPORTS

Warner Hits 67 as Australia Reaches 102-3 in Second Cricket Test

David Warner hit an unbeaten 67 to lift Australia to 102-3 at lunch on day one of the second cricket Test against South Africa in Adelaide.

QPR Chairman Tony Fernandes Says ‘Confident’ Can Sort Problems

Tony Fernandes, chairman of Queens Park Rangers Football Club, said he was “confident” he can turn things around at the English soccer club which has failed to win a league game this season.

Manchester City Fails Again in Champions League as Real Advances

Manchester City failed to get out of the group stage of soccer’s Champions League for the second straight season, while Real Madrid and Arsenal were among six teams securing spots in the round of 16.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 87.50 +0.12 +0.1 Nymex Jan. Brent Crude ($/Bbl) 110.70 -0.16 -0.1 Ice undefined Gasoil ($/Ton) 953.50 -0.25 0.0 Ice Jan. Gasoline (c/Gal) 275.01 +0.06 +0.0 Nymex Dec. Natural gas ($/MMBtu) 3.90 -0.01 -0.2 Nymex Dec. Dated Brent ($/Bbl) 111.26 -0.61 -0.6 OTC 21 Days Heating Oil 306.57 -0.65 -0.2 Nymex Dec.

Other markets:

Last %Chg

----- ----- Dollar Index 80.84 -0.1 Gold ($/Oz) 1,728.20 +0.3 MSCI World Index 1,287.14 +0.2

Prices as of 6 a.m. GMT

Copy and paste this link for Table: NI $789 FJM

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


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