The following is a selection of the most important news affecting the oil market.
Oil Gains as OPEC Fails to Agree Quotas; U.S. Supplies Decline
Oil rose for a third day in New York after OPEC failed to reach an agreement on production targets for the first time in at least 20 years and U.S. crude inventories fell more than analysts forecast.
TOP MARKET NEWS
Vitol Buys Jet Fuel Cargo; European Gasoil Gains: Oil Products
Vitol Group and Morgan Stanley bought jet fuel in northwest Europe. Mercuria Energy Trading SA purchased cargoes of ultra- low-sulfur diesel.
Shell Buys More Forties Crude; Ekofisk July Exports to Fall 3.7%
Royal Dutch Shell Plc bought North Sea Forties crude at a lower price than in the previous session. BP Plc failed to sell Russian Urals in northwest Europe for a second day.
Exxon Finds Biggest Oil Field in Gulf of Mexico Since 1999 (2)
Exxon Mobil Corp. announced it found the equivalent of 700 million barrels of oil beneath the Gulf of Mexico, the biggest discovery in the region in 12 years.
Obama Said to Extend Gulf of Mexico Leases Expiring by 2015 (1)
The Obama administration will extend all non-producing deep-water Gulf of Mexico leases expiring by the end of 2015 to compensate oil producers for delays caused by last year’s moratorium, a government official said.
World Oil Reserves Advanced in 2010, Buoyed by India, Brazil
Global proved oil reserves rose by 0.5 percent in 2010, boosted by increases in India, Brazil and Russia, according to BP Plc.
U.S. Gulf Crude Premiums Weaken as Brent-WTI Gap Narrows
U.S. Gulf low-sulfur oil grades weakened as the spread between the U.S. benchmark West Texas Intermediate and Brent narrowed.
Gasoline Futures Decline as U.S. Stockpiles Rise, Demand Drops
Gasoline fell after the Energy Department reported that U.S. inventories rose a fifth straight week and demand declined.
Nuclear Industry Will Conduct Post-Fukushima U.S. Safety Review
Three U.S. power-industry groups will set up a panel to run their own nuclear-nuclear-safety review as federal regulators probe Japan’s reactor crisis.
NRC Watchdog Report Backs Handling of Yucca Project, Jaczko Says
The Nuclear Regulatory Commission’s inspector general found the agency’s handling of the Yucca Mountain waste project was “consistent with established law,” Chairman Gregory Jaczko said.
NRC Chairman Jaczko Says Watchdog Report Backs Yucca Handling
Nuclear Regulatory Commission Chairman Gregory Jaczko said its inspector general found the agency’s handling of the Yucca Mountain project was “consistent with established law.”
Obama Lacked Scientific Evidence on Yucca, Republicans Say (2)
President Barack Obama’s rejection of funding for a proposed nuclear waste dump at Yucca Mountain in Nevada wasn’t based on a “scientific or technical evaluation,” according to a report by U.S. House Republicans.
U.S. Natural Gas Stockpiles Probably Rose 3.7%, Analysts Say (1)
U.S. natural-gas supplies probably rose by less than the seasonal average last week as hot weather in the East spurred air-conditioner use, according to analyst estimates compiled by Bloomberg.
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 June 3 and the data from the American Petroleum Institute, an industry-funded group.
OPEC
OPEC’s ‘Worst Meeting’ Ends Without Agreement, Boosting Prices
OPEC failed to agree on crude production for the first time in at least 20 years, with six members opposing a Saudi Arabian push to increase output, sending oil prices above $101 a barrel.
Oil Price May Reach $125, Frost & Sullivan’s Krishnaswamy Says
Oil prices may reach $125 a barrel, said Ravi Krishnaswamy, the Singapore-based head of consultant Frost and Sullivan’s energy and power division.
Indian State Refiners Fall as Oil Rises After OPEC Holds Quotas
Indian Oil Corp., the nation’s biggest refiner, and state- run rivals declined in Mumbai trading as crude oil prices increased after OPEC kept output quotas unchanged.
Brent Oil May Rise to $130 a Barrel in 2011, Astmax’s Emori Says
Tetsu Emori, a commodity fund manager at Astmax Co. in Tokyo, says Brent crude may rise to as high as $130 a barrel by the end of the year. The Organization of Petroleum Exporting Countries was unable to reach a consensus on raising production quotas at a meeting in Vienna yesterday.
Euro, Kiwi Gain as Asia Stocks Fall on Rate Outlook; Oil Rises
The euro and New Zealand’s dollar led gains in higher- yielding currencies and Asian stocks fell on concern central banks will raise interest rates even as the global recovery slows. Oil climbed for a third day in New York after OPEC kept output targets unchanged.
REFINERIES Map global refinery outages
Gazprom Neft to Cut Moscow Refinery Output 16% After Accident
OAO Gazprom Neft, the oil arm of Russia’s natural-gas exporter, said it will cut output at its Moscow refinery by 16 percent this month after an accident.
ConocoPhillips Has Unit Upset at Louisiana Refinery, NRC Says
ConocoPhillips had an upset at a refinery unit at its ConocoPhillips Alliance plant in Lousiana, according to a filing with the National Response Center.
Thailand Stocks: Rayong Purifier, Sri Trang Agro, Thai Airways
Shares of the following companies had unusual moves in Thailand trading. Stock symbols are in parentheses and prices are as of 10:53 a.m. in Bangkok.
Rayong Purifier Extends Drop After Announcing Plant Shutdown
Rayong Purifier Pcl, a Thai company that distills condensate residue into fuels, extended its decline in Bangkok trading after announcing a plan to shut a refinery for 18 days.
Qaddafi Gasoline Squeeze as Ships Supply Rebels: Energy Markets
Gasoline tankers are shunning ports controlled by Libyan leader Muammar Qaddafi and instead shipping cargoes to rebel- held areas, squeezing fuel supplies to what was once Africa’s third-largest oil producer.
Alon Begins Restart of Krotz Springs Refinery as Flood Recedes
Alon USA Energy Inc. has begun restarting its Krotz Springs, Louisiana, refinery and expects to be at full operation “in the next couple of weeks,” Chief Executive Officer Paul Eisman said in a statement today. The refinery was closed because of flooding on the Atchafalaya River caused by the diversion of flow from the Mississippi River.
Dow Freeport Reports Partial Power Loss From Lightning Strike
Dow Texas Operations Freeport reported upset flaring and a partial loss of power from a lightning strike in a filing with the Texas Commissions on Environmental Quality. Product availability wasn’t affected, the filing showed.
ConocoPhillips Reports Scheduled Flaring at Rodeo Refinery
ConocoPhillips reported a release during an ongoing scheduled flaring incident at its Rodeo refinery in California, according to a filing with regulators.
N.Y. Spot Gasoline Falls as Area Supply Rises to 2-Month High
New York Harbor spot gasoline weakened as the government reported a third week of rising inventories of the fuel in the region.
Exxon Mobil Reports Emissions from Beaumont Tank Fire Yesterday
Exxon Mobil Corp. reported emissions from a tank fire yesterday at its Beaumont, Texas, refinery in a filing with the Texas Commission on Environmental Quality.
OTHER OIL MARKET NEWS
Oil Product Shipping Costs to Japan Are Unchanged
The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan was unchanged at 8.63 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons.
Mexico Official Crude Oil Export Prices for July (Table)
The following table shows the official export prices of Mexican crude oil to the United States, Europe and Asia for July and June. All prices are quoted in dollars per barrel, free on board. Free on board is without charge to the buyer for delivery to the vessel.
Libya Satisfied With Current Oil Price, OPEC Delegate Says
Libya is satisfied with crude prices at current levels and supports keeping OPEC’s existing oil production target, Omran Abu Kraa, the representative of Libyan leader Muammar Qaddafi, said.
OPEC Failure to Agree Shows Limited Spare Capacity: JPMorgan
OPEC’s failure to agree to raise production quotas at a meeting in Vienna today shows that some of the group’s members have limited spare capacity that would allow them to boost output, JPMorgan Chase & Co. said.
TOP ENERGY STORIES
Crude Oil Advances as OPEC Keeps Quotas; Stocks Fall, Yen Gains
Oil surged after OPEC kept production quotas unchanged. Stocks slumped, giving the Standard & Poor’s 500 Index its longest losing streak since 2009, and the yen strengthened against all 16 major peers as an unexpected slowdown in German industrial production reinforced concern that the global economy is slowing.
Burbank Contrarian Saudi Bets Show Why Oil Helps Return 23.6%
As a hedge-fund manager who thrives on turbulence in the commodities markets, John Burbank couldn’t have done better than the first week of May.
Exxon Finds Biggest Oil Field in Gulf of Mexico Since 1999 (3)
Exxon Mobil Corp. announced it found the equivalent of 700 million barrels of oil beneath the Gulf of Mexico, the biggest discovery in the region in 12 years.
Heat Wave Spreads to New York, Boosting Power Usage, Risks (1)
Heat will spread from the Midwest to New York and the East Coast today, boosting demand for electricity to run air conditioners and creating health risks.
New York, Northeast Will Bake One More Day Before Cool Moves In
High temperatures in New York and the Northeast that have sent electricity demand to near record levels and boosted health risks will last one more day before a cold front sweeps them away, according to forecasters.
Global Energy Use Advances at Fastest Pace Since 1973, BP Says
Energy consumption worldwide advanced at the fastest pace since 1973, driving greenhouse-gas emissions to a record and increasing the threat of climate change, BP Plc said in an annual report.
GAIL India Plans to Spend $2 Billion on Acquisitions, U.S. Shale
GAIL India Ltd., the nation’s biggest natural gas distributor, may spend as much as $2 billion on acquisitions, including shale gas assets in the U.S. and Australia, to meet fuel demand in India.
Arizona Wildfire Threatens 40% of El Paso’s Power Supply (2)
El Paso Electric Co., supplier of power to an oil refinery and the U.S. Army’s Fort Bliss, said it’s seeking alternative power supplies should an Arizona wildfire cut electrical lines from Palo Verde, the nation’s largest nuclear generating plant.
PSI Is Target for Electric Equipment Makers on Smart Grid Boom
PSI AG of Germany has become a potential takeover target for electrical equipment makers because of booming demand for software to control energy flows, Chief Executive Officer Harald Schrimpf said.
GM CEO Prefers $1 Gas-Tax Increase to Higher MPG Rule: BGOV Q&A
General Motors Co. Chief Executive Officer Dan Akerson told reporters Tuesday he would prefer the government raise the federal gasoline tax rather than fuel- efficiency standards. In an interview with the Detroit News published Tuesday, Akerson said a tax increase of even 50 cents to $1 per gallon was preferable. Bloomberg Government transportation analyst Matthew Zisman examines the impact of the idea.
OTHER MARKETS
Crude Oil Advances as OPEC Keeps Quotas; Stocks Fall, Yen Gains
Oil surged and energy stocks rose after OPEC ministers kept production quotas unchanged. European equities slumped and the yen strengthened against all 16 major peers as an unexpected slowdown in German industrial production reinforced concern that the global economic recovery is slowing.
Euro Climbs Toward One-Month High on Bets ECB Will Raise Rates
The euro climbed toward a one-month high versus the dollar on speculation European Central Bank President Jean-Claude Trichet will today signal policy makers are likely to raise interest rates next month.
Lagging Lira Seen Rallying on Turkish Post-Election Rate Rise
The lira, the worst-performing emerging-market currency the past six months, may lead gains as Turkey’s biggest inflation surge in a decade forces policy makers to increase rates from record lows after this weekend’s election, according to analysts surveyed by Bloomberg.
Asian Stocks Drop on Signs Global Economic Recovery Is Slowing
Asian stocks fell, dragging the regional benchmark index to its lowest level in two weeks, after the Federal Reserve said the U.S. economy is slowing in some regions, adding to signs the global recovery is weakening.
Zynga Is Said to Favor Following LinkedIn With ‘Low-Float’ IPO
Zynga Inc. plans to sell a small number of shares in its initial public offering, adopting a strategy used by LinkedIn Corp. to maintain control of the company while raising money to expand, according to a person with direct knowledge of the matter.
Copper Rebounds in London as U.S. Economic Outlook Hurts Dollar
Copper in London rebounded as concern about the U.S. economy hurt the dollar amid expectations supplies will lag behind demand this year.
Palm Oil Advances as Crude Oil’s Gains Lift Appeal of Biofuels
Palm oil gained as crude oil’s advance boosted the appeal of the vegetable oil as a biofuel and a three-day decline in prices to the lowest level in three weeks spurred some investors to buy the tropical commodity.
Obama Advisers Said to Discuss Seeking Employer Payroll Tax Cut
President Barack Obama’s advisers have discussed seeking a temporary cut in the payroll taxes businesses pay on wages as they debate ways to spur hiring amid signs that the recovery is slowing, according to people familiar with the matter.
U.S. Senate Rejects Amendment to Delay Debit Swipe Fee Rule (3)
The U.S. Senate rejected a plan backed by large banks for a six-month delay in a Federal Reserve rule to cap the debit-card swipe fees set by Visa Inc. and MasterCard Inc.
SPORTS
FIFA Corruption Probe May End Tax Privileges in Switzerland
Soccer’s governing body is in danger of losing its tax benefits in Switzerland because of accusations that officials bought and sold votes, a blow that would cut into FIFA’s $1.3 billion in annual revenue.
England’s Prior Reprimanded After Breaking Window at Test Match
England’s Matt Prior was reprimanded by the International Cricket Council after accidentally smashing a dressing-room window yesterday during the second Test against Sri Lanka.
Manchester Utd. Poised to Sign $26 Million Phil Jones: Roundup
The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web.
ENERGY PRICES
Last Chg %Chg Exch Contra
---- ---- ---- ---- ------ WTI Crude ($/Bbl) 101.30 +0.56 +0.6 Nymex Ju Brent Crude ($/Bbl) 118.08 +0.23 +0.2 Ice Ju Gasoil ($/Ton) 976.00 +1.25 +0.1 Ice Ju Gasoline (c/Gal) 299.24 +1.37 +0.5 Nymex Ju Natural gas ($/MMBtu) 4.84 -0.01 -0.2 Nymex Ju Dated Brent ($/Bbl) 117.97 +0.54 +0.5 OTC 21 Da Heating Oil 309.46 +0.09 +0.0 Nymex Ju
Other markets:
Last %Chg
----- ----- Dollar Index 73.83 -0.1 Gold ($/Oz) 1,538.70 -0.3 MSCI World Index 1,301.45 --
Prices as of 6 a.m. GMT
To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net
