The following is a selection of the most important news affecting the oil market.
Oil Trades Near Four-Month High as Fed Maintains Asset Buying
Oil traded near the highest price in more than four months in New York as the Federal Reserve maintained an asset-purchase program to boost the economy of the world’s largest crude- consuming nation.
TOP OIL MARKET NEWS
EU, Singapore Trade Deal for Tax-Free Oil May Start in 2014 (1)
A free-trade agreement between the European Union and Singapore that removes taxes on jet fuel and diesel imports to the continent will come into force as early as 2014, potentially boosting petroleum shipments to the EU.
Asia to Reduce February West African Crude Imports as India Cuts
Refiners in Asia will trim imports of West African crude for loading next month to the least in three months after India reduced its purchases to the lowest since July. China and Taiwan also pared purchases.
Oil Options Lure Banks on Calmest WTI Since ’95: Energy Markets
The lowest oil volatility in 17 years is pushing down options costs, setting up trades that BNP Paribas SA and Commerzbank AG say will profit when Mideast supply disruptions send prices swinging again.
Europe Naphtha Cargoes to Asia Rise to Four for February Loading
European naphtha shipments loading in February for transport to Asia rose to four cargoes from one a week earlier, shipping data showed.
Dubai Timespreads Down 37%; West Africa Imports Drop: Asia Crude
Dubai crude’s backwardation, when near-term shipments are more expensive than future supplies, averaged 53 cents/bbl in the last five days of January, down 37 percent from 84 cents/bbl at the end of December.
Oman Crude Selling Price for March Rises 1.5% to $107.78/Barrel
The official selling price for Oman sold during March will be $107.78 a barrel, based on the average of daily futures settlement prices this month on the Dubai Mercantile Exchange. That sets the medium-sulfur crude 1.5 percent higher than February’s price of $106.16.
Asia Gasoil Crack Gains in January; Hin Leong Buys: Oil Products
Asian gasoil’s premium to Dubai caps biggest monthly gain since July. Hin Leong Trading buys fuel oil from Vitol in Singapore.
Ethanol Discount to Gasoline Gains a Seventh Day on Drawdown
Ethanol’s discount to gasoline widened for a seventh day after a government report showed record low production and rising stockpiles while inventories of the motor fuel dropped to a one-month low.
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 Jan. 25 and the data from the American Petroleum Institute, an industry-funded group.
REFINERIES Map global refinery outages
MORE: PBF’s Toledo Refinery Has Fire in Gasoline-Making Unit
Fluid catalytic cracking unit has capacity of 75,000 b/d, company spokeswoman Olivia Summons says in e-mailed statement.
PBF’s Toledo Refinery Has Fire in Fluid Catalytic Cracking Unit
Fire occurred in Oregon, Ohio, refinery gasoline-making unit at 11:50 p.m. local time Jan. 30, company spokeswoman Olivia Summons says in e-mailed statement
Exxon Torrance Refinery Output Unaffected by Mechanical Issue
Exxon Mobil Corp.’s Torrance refinery in California continued to operate normally after a mechanical issue in a unit at the plant, according to Gesuina Paras, a company spokeswoman.
Imperial Sarnia Refinery Working to Return to Normal Operations
Imperial Oil Ltd.’s Sarnia refinery in Ontario, Canada, “continuing to respond” to operational upset yesterday, Pius Rolheiser, Co. spokesman, said by e-mail.
Chevron Ignored Decade of Warnings Before Oil Refinery Fire (2)
Chevron Corp. ignored the advice of its own staff for 10 years and failed to replace an aging pipe at the Richmond refinery that ruptured Aug. 6, igniting one of California’s worst plant fires in 13 years, state records show.
OTHER OIL MARKET NEWS
STO Maldives Said to Buy Indian Oil’s Fuel Oil for $14 Discount
State Trading Organization Plc (Maldives) bought as much as 35,000 metric tons of fuel oil for loading in February from Indian Oil Corp., the nation’s largest refiner, said three traders who asked not to be identified because the information is confidential.
Singapore Middle-Distillate Fuel Supplies Rise to 15-Month High
Middle-distillate inventories in Singapore, Asia’s largest oil-trading and storage center, rose 1.5 percent to the highest in more than 15 months, according to a unit of the Ministry of Trade and Industry.
Vitol Said to Buy Bharat Petroleum’s Fuel Oil for $20 Discount
Vitol Group bought a total of 30,000 metric tons of fuel oil for loading in February from Bharat Petroleum Corp., India’s second-biggest state refiner, said two traders who asked not to be identified because the information is confidential.
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, Asia, Africa and the Americas. Figures represent outright prices in dollars a barrel, or premiums and discounts to regional benchmarks where plus and minus symbols appear.
Brunei Shell Lifts December Prices for Seria Light, Champion Oil
Brunei Shell Petroleum Co. increased its retroactive official selling prices for Seria Light and Champion crude purchased in December by $1.14 each to $114.35 and $114.20 a barrel, respectively, said two people familiar with the change. They asked not to be identified because they aren’t authorized to speak to the media.
TOP ENERGY STORIES
Shell Misses Profit Estimates, Says Investment Costs to Rise (1)
Royal Dutch Shell Plc, Europe’s biggest energy company, said investment will increase after fourth-quarter profit missed analyst estimates on weaker North American fuel prices.
Natural Gas Rises on Outlook for Above-Average Stockpile Drop
Natural gas futures climbed in New York for the first time in seven days before a government report tomorrow that may show this winter’s biggest stockpile drop.
Natural Gas Supply Drop Was Biggest in Two Years, Forecasts Show
Natural gas inventories fell last week by the most in two years as frigid weather swept across the Eastern U.S., analyst forecasts compiled by Bloomberg show.
Violent Winter Storm Kills One as It Moves to U.S. Northeast (3)
At least one person was killed and eight injured as a winter storm raked the eastern U.S., knocking out power, tying up air traffic from Atlanta to New York and sending temperatures soaring in much of the Northeast.
Saipem Plunges on Profit Outlook as Regulator Probes Trading (2)
Saipem SpA plunged a record 34 percent in Milan trading after Europe’s largest oil-service provider cut profit forecasts and an Italian regulator investigated a share sale made before yesterday’s statement.
CEO Leaves Chesapeake Cash-Starved After Icahn-Led Revolt (3)
Chesapeake Energy Corp.’s departing chief executive officer will leave to his successor a shrunken, cash-starved version of what was once the preeminent natural gas producer in the world’s biggest market for the fuel.
Occidental Ripe for Icahn-Like Treatment as Stock Slides: Energy
Activist investors from Carl Icahn to Daniel Loeb are amassing stakes in energy companies to replace directors and spin off assets dragging down valuations amid record oil prices.
Sinochem Will Buy Stake in Texas Oil Shale for $500 Million (1)
Sinochem Group, China’s biggest supplier of chemical products, agreed to buy a 40 percent stake in Texas oil-shale acreage from Pioneer Natural Resources Co. for $500 million.
Ambani Lowers Capital Cost With Reliance Perpetual: India Credit
Billionaire Mukesh Ambani’s Reliance Industries Ltd. is cutting its cost of capital after selling dollar-denominated bonds with no maturity, the second such issuance by an Indian non-bank entity.
Petronas Makes $2.8 Billion Buyout Offer for LNG Shipper MISC
Petroliam Nasional Bhd., Malaysia’s state-owned energy company, offered to buy out shipping unit MISC Bhd. in a deal worth 8.7 billion ringgit ($2.8 billion).
Hess CEO Wants to Keep Assets, Despite Shareholders’ Calls (2)
Hess Corp. Chairman and Chief Executive Officer John Hess said he wants to keep Bakken shale and offshore oil fields, despite calls from Paul Singer’s Elliott Management Corp. and Relational Investors LLC for the company to pursue asset sales.
Kinder Morgan Buys Copano for $3.2 Billion, Adds Shale (4)
Kinder Morgan Energy Partners LP, the biggest U.S. pipeline company, agreed to acquire Copano Energy LLC for about $3.2 billion in stock to capitalize on rising natural gas output from shale basins in Texas, Oklahoma and Wyoming.
European Stocks Decline as German Bonds Gain; Metals Advance
European stocks fell for a second day and bonds rose as companies from AstraZeneca Plc to Royal Dutch Shell Plc reported results that disappointed investors and German retail sales dropped more than estimated. Nickel led gains in industrial metals, climbing to a three-month high.
Euro Retreats From 13-Month High as German Retail Sales Slide
The euro dropped from a 13-month high versus the dollar as a report showed German retail sales fell more than economists predicted last month, damping demand for the 17-nation common currency.
Dollar Debasement Denied in Record Demand for Debt: Currencies
Even after the worst financial crisis since the Great Depression, 10 percent unemployment and the Federal Reserve’s flooding the world with an extra $3 trillion, the dollar is as strong now as five years ago.
Rubber Extending Bull Market With Record Car Sales: Commodities
Diminishing rubber supplies and record car sales are extending a five-month bull market that’s poised to raise costs for tiremakers.
Soybeans Drop as Brazil’s Harvest Seen Proceeding Amid Rainfall
Soybeans fell in Chicago, paring the first monthly gain since August, on speculation rain in leading global exporter Brazil will be too light to disrupt the harvest.
Iran Tells UN Monitors Uranium Enrichment Production Upgraded
Iran told United Nations monitors it’s installing new centrifuges at its Natanz facility that could enrich more uranium in less time, according to a restricted IAEA document circulated to members yesterday.
Israel Strike in Syria Said to Hit Hezbollah Missile Convoy (2)
Israeli jets hit Syrian trucks carrying anti-aircraft missiles for the Islamic militant group Hezbollah across the border into Lebanon, according to a Western official who asked not to be named citing regulations.
Harvard Business-Bound NFL Union President Uses Brain Over Brawn
Domonique Foxworth was sitting across the table from billionaire team owners during labor negotiations as president of the National Football League Players Association when he came to a stark realization.
Largent Says Government Shouldn’t Weigh In on NFL Head Injuries
Steve Largent, the Hall of Fame receiver and former congressman, said it isn’t the government’s place to get involved in the issue of repeated traumatic head impacts and their possible link to long-term brain injuries for National Football League players.
Anthony Has 30th Straight 20-Point Game in Knicks Win Over Magic
Tyson Chandler scored 21 points and Carmelo Anthony set a team record with his 30th straight game of at least 20 points as the New York Knicks handed the Orlando Magic their seventh consecutive loss.
Raptors Get Gay, Haddadi in Three-Team, Six-Player NBA Trade
The Toronto Raptors acquired forward Rudy Gay and center Hamed Haddadi from the Memphis Grizzlies in exchange for guard Jose Calderon, forward Ed Davis, a second- round draft choice in 2013 and cash.
Last Chg %Chg Exch Contract
---- ---- ---- ---- -------- WTI Crude ($/Bbl) 97.73 -0.21 -0.2 Nymex March Brent Crude ($/Bbl) 114.77 -0.13 -0.1 ICE March Gasoil ($/Ton) 980.25 -0.25 0.0 ICE March Gasoline (c/Gal) 303.11 -0.76 -0.3 Nymex Feb. Natural gas ($/MMBtu) 3.36 +0.02 +0.6 Nymex March Dated Brent ($/Bbl) 115.71 -0.23 -0.2 OTC 21 Days Heating Oil 311.25 -0.48 -0.2 Nymex Feb. Other markets:
----- ----- Dollar Index 79.33 +0.1 Gold ($/Oz) 1,681.60 +1.1 MSCI World Index 1,407.34 -0.2 Prices as of 12 p.m. London time
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