The following is a selection of the most important news affecting the oil market.
Oil Drops to Lowest in Four Months, Trades Below 200-Day Average
Oil slid for a second day in New York, trading at the lowest level in four months, on speculation a weakening global economy and Greece’s debt crisis will lead to lower fuel demand.
TOP MARKET NEWS
Funds Trim Bullish Commodity Bets as Global Growth May Decline
Funds reduced bullish bets on commodity prices for the first time in four weeks as Greece’s debt crisis spurred speculation that global growth will decline, curbing demand for raw materials.
Tropical Storm Beatriz Strengthens; May Form Hurricane, NHC Says
Tropical Storm Beatriz is “gradually strengthening” and may become an Eastern Pacific Ocean hurricane in the next 48 hours, the U.S. National Hurricane Center said.
Saudi Arabian Crude Inventories Decline 4.3 Percent in April
Oil inventories in Saudi Arabia, the world’s largest crude exporter, fell 4.3 percent in April from a month earlier, according to official data.
BP to Choose Winner of Oilfield Bid in Perenco, Premier Fight
BP Plc will decide this week on the winning bidder for a stake in the Wytch Farm oil and gas fields after Premier Oil Plc challenged Perenco SA’s offer, the Sunday Times reported, without saying where it got the information.
Caltex Australia Shares Fall in Sydney After First-Half Forecast
Caltex Australia Ltd. shares fell 6.4 percent in early Sydney trading after the company forecast replacement cost of sales operating profit of A$100 million to A$115 million.
Asia Fuel-Oil Losses at 3-Month Low; Gasoil Rises: Oil Products
Asia fuel oil’s discount to benchmark crude shrank to the least in three months on concern refinery maintenance in China will reduce supplies. Gasoil processing profits rose.
Oil Volatility Climbs as Futures Drop to Near Four-Month Low
Oil options volatility increased as July futures dropped to the lowest level in almost four months on doubts that the Greek debt crisis will be resolved.
OPEC
IEA Chief Tanaka Seeks Oil Help From Russia, OPEC, Observer Says
The International Energy Agency invited Russia together with OPEC to join its effort to “broker a peace” between buyers and sellers of crude oil amid rising prices, the Observer reported, citing the agency’s chief.
REFINERIES Map global refinery outages
BP to Start Cracking Unit at Texas City Refinery, Filing Shows
BP Plc will start the No. 1 fluid catalytic cracking unit at its Texas City refinery after maintenance, according to a filing with state regulators. The process will result in emissions lasting from June 20 through June 26, according to the filing.
Hedge Fund Heating Oil Bets at Seven-Month High: Energy Markets
Hedge funds raised bullish bets on heating oil to the highest level in seven months as refiners focused on making gasoline before the peak driving season and exports of diesel fuel rose, reducing supplies.
Caltex Australia Falls Most in Year on First-Half Forecast (1)
Caltex Australia Ltd., the nation’s biggest oil refiner, fell the most in more than a year after the company forecast a drop in first-half operating profit because of plant disruptions and higher crude prices.
Hedge Fund Heating Oil Bets at Seven-Month High: Energy Markets
Hedge funds raised bullish bets on heating oil to the highest level in seven months as refiners focused on making gasoline before the peak driving season and exports of diesel fuel rose, reducing supplies.
Citgo’s Lake Charles Refinery Reports Planned Maintenance
Citgo Petroleum Corp. has started planned maintenance at its Lake Charles refinery in Louisiana, the company said.
Valero Port Arthur Refinery Returning to ‘Planned Rates’ (1)
Valero Energy Corp. expects its refinery in Port Arthur, Texas, to return to “planned rates” this week after a coker is restarted this weekend, company spokesman Bill Day said in a phone interview.
PBF Energy Reports Emissions at Delaware City Refinery (1)
PBF Energy Partners LP reported a release of about 10 pounds of hydrogen cyanide from its Delaware City refinery in Delaware, according to a filing with the U.S. National Response Center.
Sulfur Dioxide Released at Valero Refinery in Norco, Louisiana
Valero Energy Corp.’s St. Charles refinery in Norco, Louisiana, had an equipment failure yesterday that resulted in the release of sulfur dioxide, according to a report made to the National Response Center.
OTHER OIL MARKET NEWS
Oil Product Shipping Costs to Japan Fall 2.1%
The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan fell 2.1 percent to 7.80 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons.
TOP ENERGY STORIES
Asian Stocks Erase Gain as Oil Slides; Japanese Utilities Rally
Asian stocks fell, extending a seventh straight weekly decline, as oil prices fell to a five- month low after European governments failed to agree a loan payout to spare Greece from default. Japanese nuclear-power generators advanced.
Nuclear Disaster Drives Utility Yields to Records: Japan Credit
Japan’s utilities are being penalized like never before in the bond market as the nation’s leaders call for a debate on the economy’s use of nuclear power.
Jordan to Offer Tenders for LNG Terminal, Nuclear Reactor
Jordan in November will offer a tender to build an offshore liquefied natural gas terminal and solicit bids next month for an operator/investor for its first nuclear reactor, Energy Minister Khalid Touqan said.
Woodside Decline May Rekindle BHP Interest, Credit Suisse Says
Woodside Petroleum Ltd. may become a more attractive target for BHP Billiton Ltd. if its shares remain “depressed” in Sydney after announcing a cost increase and delay at its Pluto gas venture, Credit Suisse Group AG said.
Shorts Exit ‘Solarcoaster’ as Chinese Glut Sinks Panel Prices
Short sellers are flocking to solar power, dumping record levels of stock in First Solar Inc. of the U.S. and competing equipment makers in a bet that profit will be hurt by a glut of Chinese panels and shrinking demand in Europe.
Reliance Set to Lose No. 1 Spot to Coal India: Chart of the Day
Billionaire Mukesh Ambani’s Reliance Industries Ltd. is poised to lose its position as India’s most- valuable company to Coal India Ltd., as natural gas output from the nation’s biggest deposit drops and profit growth slows.
BP Partner Fotowatio Expects More Australia Solar Projects (1)
Fotowatio Renewable Ventures, BP Plc’s partner in an Australian solar-power project that was awarded A$306.5 million ($324 million) in government funding, said it is considering additional ventures in the country.
Fukushima Failures Kept Behind Closed Doors at IAEA Meeting (1)
The United Nations nuclear agency’s decision to hold talks about the Fukushima disaster behind closed doors this week ignores the “blindingly obvious” need for greater transparency, said a former official in the U.K. atomic industry.
OTHER MARKETS
Euro, Asia Stocks Drop on Greek Debt Concerns; Oil, Copper Fall
The euro slid, starting a third week of losses, and Asian stocks fell for a fourth day after European governments failed to agree on a loan payment to avert Greek default. Oil and copper led commodities lower.
Euro Weakens on Delayed Agreement on Greek Loan; Kiwi Declines
The euro fell against the dollar for the first time in three days after European governments failed to agree on releasing a loan payment to spare Greece from default.
Yuan Options Most Bearish Since ‘09 on Slump: China Credit
Options traders are the most bearish on China’s yuan in almost two years, reflecting speculation higher interest rates and Europe’s debt crisis will slam the brakes on economic growth.
Hong Kong Property Stocks Decouple From Prices: Chart of the Day
Hong Kong developer shares have diverged from home values by the most since a real-estate bubble burst in 1997, as equity investors bet the government will take more steps to cool price increases.
Stocks Cheapest in 26 Years as S&P 500 Falls, Earnings Rise 18%
For the second time since the bull market began, profits are surging and stocks are falling.
Corn Stocks Plunging as China Adds Brazil-Sized Crop to Demand
Even a fifth consecutive year of record global corn harvests will fail to meet demand for food, fuel and livestock feed, reducing world stockpiles to the lowest in two generations.
Rubber Declines to Four-Week Low as Oil’s Drop Reduces Appeal
Rubber declined to a four-week low as crude oil slumped amid concerns that a slowing U.S. economy and Greece’s debt crisis will lead to lower demand, cutting the appeal of the commodity as an alternative to synthetic products.
Europe Fails to Agree on Greek Payment, Pressing Papandreou (1)
European governments failed to agree on releasing a loan payment to spare Greece from default, ramping up pressure on Prime Minister George Papandreou to first deliver budget cuts in the face of domestic opposition.
NATO Acknowledges Possible Civilian Casualties in Tripoli Strike
NATO warplanes didn’t all hit intended targets in Tripoli and may have killed civilians, the alliance said in an e-mailed statement after Libyan Foreign Minister Abdul Ati Al-Obeidi said yesterday that a private house in Tripoli had been hit, causing several deaths.
SPORTS
McIlroy Beats Tiger Woods With U.S. Open Victory at Age 22
Rory McIlroy became the youngest major champion since Tiger Woods in 1997 with an eight-stroke win at the U.S. Open, where he set 12 records, including the lowest score in the golf tournament’s 111-year history.
ENERGY PRICES
Last Chg %Chg Exch Contract
---- ---- ---- ---- -------- WTI Crude ($/Bbl) 91.64 -1.37 -1.5 Nymex July Brent Crude ($/Bbl) 112.01 -1.20 -1.1 Ice August Gasoil ($/Ton) 932.25 -8.00 -0.9 Ice July Gasoline (c/Gal) 291.60 -3.00 -1.0 Nymex July Natural gas ($/MMBtu) 4.31 -0.02 -0.4 Nymex July Dated Brent ($/Bbl) 112.28 -1.21 -1.1 OTC 21 Days Heating Oil 295.72 -2.61 -0.9 Nymex July
Other markets:
Last %Chg
----- ----- Dollar Index 75.34 +0.5 Gold ($/Oz) 1,539.10 +0.6 MSCI World Index 1,277.74 -0.2
Prices as of 6 a.m. GMT
To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net
