The following is a selection of the most important news affecting the oil market. WTI Fluctuates After Rising Most in a Week; Seaway Flow Climbs West Texas Intermediate crude fluctuated after rising the most in a week as Enterprise Products Partners LP said supplies through its Seaway pipeline will increase, helping reduce a glut in the U.S. Midwest. Oil Inventories Climb for Fifth Week in Survey: Energy Markets U.S. oil supplies probably rose for a fifth week, the longest streak of advances since May, as output climbed to a 20- year high and limits to the Seaway pipeline curbed the flow out of a key storage hub, a Bloomberg survey showed. Seaway Crude Oil Pipeline to Operate Below Planned Capacity (3) Enterprise Products Partners LP’s Seaway crude oil pipeline will operate below its stated capacity for the foreseeable future, denting hopes of clearing a glut of supply in the U.S. Midwest. BP Wins U.S. OK to Cut Potential Spill Fine by $3.4 Billion U.S. agrees captured oil won’t count for Clean Water Act fines; BP claimed 810k bbls captured before reaching water. European Naphtha Cargoes to Asia Rise to 14 for February Loading European naphtha shipments to Asia in February rose to 14 cargoes from 11 a week earlier, shipping data showed. Japan Imports Record LNG in January on Winter Heating Demand (1) Japan’s liquefied natural gas imports rose to a record 8.23 million metric tons in January, as most of the nation’s nuclear plants remained idled and below- average temperatures boosted energy demand for heating. Petronas Said to Sell April Labuan Crude at About $8.20 Premium Petroliam Nasional Bhd., the Malaysian state oil company known as Petronas, sold 300,000 barrels of its Labuan crude loading in April at a premium of about $8.20 a barrel to Dated Brent, said two people who participate in the market. They asked not to be identified because they aren’t authorized to speak to the media. Brent Oil May Drop in 2Q as Support Fades, Morgan Stanley Says Sees potential for “modest correction� in Brent prices in 2Q on seasonally weaker demand, returning supply and higher refinery runs today Leaking U.S. Radioactive Sludge Seen Threatening Columbia River News that a storage tank at a shuttered federal nuclear facility in Washington state is leaking radioactive sludge has raised fears that the toxic stew could reach the Columbia River as a U.S. cleanup effort drags on. Fisker Technology Shouldn’t Go to Chinese, Grassley Says (1) The technology of Fisker Automotive Inc., the U.S. plug-in hybrid carmaker that owes American taxpayers about $200 million, shouldn’t be sold to Chinese companies, U.S. Senator Charles Grassley said. Fisker Plug-In Technology Shouldn’t Go to Chinese, Grassley Says The technology of Fisker Automotive Inc., the U.S. plug-in hybrid carmaker that owes American taxpayers about $200 million, shouldn’t be sold to Chinese companies, U.S. Senator Charles Grassley said. Fisker Plug-In Technology Shouldn’t Go to Chinese, Grassley Says The technology of Fisker Automotive Inc., the U.S. plug-in hybrid carmaker that owes U.S. taxpayers about $200 million, shouldn’t be sold to Chinese companies, U.S. Senator Charles Grassley said. Natural Gas Gains as Colder U.S. Weather Spurs Heating Demand Natural gas futures rose in New York by the most in more than five weeks on speculation that colder weather across the U.S. in early March will spur fuel use. SK Innovation Said to Sell Naphtha Cargo to Glencore for March SK Innovation Co. sold a naphtha cargo for March loading to Glencore International Plc, according to two traders who participate in the market. No Women on Glencore’s Board Marks Mining Imbalance: Commodities Glencore International Plc’s $36 billion takeover of Xstrata Plc will unite about 130,000 employees that operate in more than 40 countries. The proposed board of directors doesn’t include a single woman. OPEC OPEC Seen Cutting by Morgan Stanley as Tanker Charters Slump (3) OPEC may be extending the longest stretch of production cuts since the 2009 global recession as fewer oil tankers are booked to ship Middle East crude to Asia, according to Morgan Stanley. Brent Crude Capped at $140 This Year, $175 in 2017, BofA Says The upper limit for Brent crude will rise from $140 a barrel this year to $175 in 2017 because of constraints on supply, Bank of America Corp. estimates. Oil-Tanker Charters Seen by Morgan Stanley as Sign of OPEC Cuts A slump in the number of oil tankers booked to ship Middle East crude eastbound may be a sign OPEC members are extending production cuts, Morgan Stanley analyst Fotis Giannakoulis said. REFINERIES Map global refinery outages BP Has Emissions at Prudhoe Bay Oilfield Plant: NRC Filing BP has leak of natural gas liquids from a flange during maintenance at Prudhoe Bay Oilfield in Arkansas, according NRC filing. Gulf Gasoline Extends Longest Winning Streak Since ’02 on Motiva U.S. Gulf Coast gasoline strengthened for ninth consecutive day, extending its winning streak to the longest since 2002 as Motiva Enterprises LLC was said to shut a unit at its Port Arthur, Texas, plant. Gasoline Pump Prices Soaring on Refinery Repairs, Oil Rally (1) U.S. consumers facing the highest gasoline pump prices ever for February may see further increases as global crude oil futures climb and breakdowns and seasonal maintenance at refineries reduce fuel supplies. Premium for Gasoline in San Francisco Strengthens a Third Day Spot gasoline in San Francisco gained against futures for a third day after a hydrocracker shutdown at Tesoro Corp.’s Golden Eagle refinery was seen cutting supplies in Northern California. Retail Gasoline in U.S. Rises to Four-Month High, EIA Says Average retail gasoline in U.S. rose to $3.747/gal., up 3.8% from week earlier and 4.3% from year earlier, Energy Information Administration said on website. BP Working to Minimize Impact of Union Strike at Grangemouth BP Plc has been notified that Co.’s tanker drivers at Grangemouth, Scotland, plan to walk out for three days beginning Feb. 22, Co. said in e-mailed statement. Phillips 66 Sweeny Refinery Reports Emissions on Pressure Drop Sweeny refinery in Texas reported emissions from coker flare, fluid catalytic cracker stack after a drop in pressure, Phillips 66 said in filing with state regulators. Regina Refinery Crude Unit 2 Will Reach Full Rates by Feb. 21 Consumers’ Co-Operative Refineries Ltd.’s Regina plant expects to increase rates at crude unit 2 to 34,000 b/d by Feb. 21 at the latest. • The unit, which returned to service Feb. 11 after fire, is currently processing about 31,000 b/d • Crude Unit 1 is shut for an “indeterminate� amount of time • SOURCE: Vic Huard, vice president, comments in e-mail • NOTE: Refinery has capacity of 130,000 b/d in Saskatchewan, Canada Motiva Port Arthur Said to Shut Catalytic Cracker for Repairs Motiva Enterprises LLC shut the fluid catalytic cracker at its Port Arthur, Texas, refinery for unplanned repairs, a person familiar with operations said. Europe Gasoline Drops; Diesel Climbs as Vitol Buys: Oil Products Gasoline in Europe drops from a four-month high. Naphtha gains as Statoil buys a cargo. OTHER OIL MARKET NEWS TOP Oil Market News: WTI Oil Advances on Seaway Pipeline Flows The following is a selection of the most important news affecting the oil market. Oil Product Shipping Costs to Japan Rise 8.0 % The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan rose 8.0 percent to 8.63 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons. Saudi Arabia to Japan Tanker Rates Rises 1.0% to 32.06 Points The cost of delivering Middle East crude to Asia, the world’s busiest route for supertankers, gained 1.0 percent to 32.06 Worldscale points, according to the Baltic Exchange in London. TOP ENERGY STORIES Tudor Alumnus McMillan Said to Hire Lee for Investment Firm (3) Andrew McMillan, who ran a commodity team at Tudor Investment Corp., hired Singapore lawyer Amy Lee to help run the investment firm he plans to start this year, according to two people with direct knowledge of the matter. BMW Taps Wind to Guard Profits in Merkel’s Nuclear Switch: Cars Bayerische Motoren Werke AG will harness winds whipping across eastern Germany to secure power -- and defend profits -- as costs rise due to Germany’s 550 billion-euro ($740 billion) shift away from nuclear energy. Dakota Oil Rush Fuels Chihuahua Bond Bidding War: Mexico Credit North Dakota’s oil rush is being felt in the Mexican desert, where a 72-year-old cement-making company has parlayed its link to the shale-fracking industry into a debut overseas bond sale that investors are bidding up. China’s Shale Gas No Revolution as Price Imperils Output: Energy China, consuming energy at the fastest pace among major economies, has set ambitious targets to exploit its reservoirs of shale gas, the same fuel the U.S. touts as the means to energy independence. It won’t meet them. Wind Blows German Power Swings to Five-Year High: Energy Markets Germany is getting more power than ever before from sources dependent on wind and sunshine, pushing short-term price swings to the biggest in five years and boosting volume as utilities increase trading. Harvesting Sewage Signaling Boon for Utilities to Skiers: Energy United Utilities Plc and Severn Trent Plc, Britain’s biggest publicly traded water companies, are increasingly feeding human waste into tanks of bacteria whose methane emissions generate electricity. BP Ready for Trial After Failing to Find ‘Reasonable’ Settlement BP Plc will defend itself against claims over 2010’s Gulf of Mexico oil spill at a trial next week after failing to reach a settlement with the U.S. and individual states. Enbridge Turns to Unused Pipe for Activist Remedy Amid Oil Boom Enbridge Inc. sees reversing and upgrading pipelines to transport growing volumes of North American crude as a way to address public opposition that is slowing new projects. Energy Future Utility Chief’s Pay Triple That of Parent CEO The chief executive officer of Energy Future Holdings Corp.’s Oncor utility received $20 million last year, nearly three times the compensation paid to parent company CEO John Young. North Sea Crude Benchmark Change Gains Momentum on Platts (2) Liquidity in North Sea benchmark Dated Brent crude is set to be boosted after Platts, a global pricing agency, announced changes in conjunction with an earlier modification by Royal Dutch Shell Plc. OTHER MARKETS Asia Stocks Rise 3rd Day With Won on Economic Data as Kiwi Drops Asian stocks rose for a third day, with the regional benchmark index poised for the highest close in more than 18 months, while copper and soybeans advanced. New Zealand’s dollar tumbled and the euro strengthened. Currency Intervention Heats Up as Wheeler Warns Traders on Kiwi New Zealand’s central bank governor said he’s ready to intervene in foreign-exchange markets, the latest in a string of countries from South Korea to Brazil warning their currencies are too strong even as Group of 20 nations pledge to refrain from competitive devaluation. Japan Sends Money Abroad as Weaker Yen Spurs Growth: Currencies Japan’s residents are pouring money into investment trusts at the fastest pace in almost two years, supporting the nation’s assertion to Group of 20 peers that policies weakening the yen will boost global growth. Asian Stocks Extend 18-Month High on Global Outlook; BHP Falls Asian stocks rose for a third day, with the regional benchmark index extending an 18-month high, amid signs the global economy is recovering. Thai Stocks to Extend Rally to Record on Spending, Top Fund Says Thailand’s best-performing fund this year is forecasting the benchmark stock index will rally a further 17 percent to a record in 2013 as government infrastructure spending boosts earnings. Palm Oil Imports by China Climbing as Quarantine Concern Eases Palm oil imports by China, the biggest cooking oil consumer, may jump 14 percent in February on optimism stricter quarantine inspections won’t hurt trade. Gold Snaps Five-Day Losing Streak Amid Fed Stimulus Speculation Gold advanced, snapping a five-day losing run, on speculation that the U.S. central bank may prolong stimulus in the world’s largest economy amid a weaker- than-expected recovery. Obama Pressures Congress for Deal to Avert Automatic Cuts (2) President Barack Obama stepped up pressure on Congress to avert a “brutal� automatic $1.2 trillion in budget cuts set to kick in March 1, saying it would harm the economy and curtail vital services. Tunisia Premier Jbeli Quits After Failing to Form New Government Tunisian Prime Minister Hamadi Jbeli announced his resignation last night after failing to form a technocratic government to ease political tensions after the assassination of an opposition leader. SPORTS Real’s Di Maria Offered to Manchester Utd., PSG: Soccer Roundup The following is a roundup of soccer stories from U.K. newspapers with clickable Internet links. Bayern Munich Beats Arsenal in Champions League as Porto Wins Bayern Munich won 3-1 at Arsenal in their Champions League round of 16 soccer opener as Porto defeated Malaga 1-0. Bayern Munich Beats Arsenal 3-1 in Champions League; Porto Wins Bayern Munich beat Arsenal 3-1 in their Champions League round of 16 soccer opener, as Porto defeated Malaga 1-0. ENERGY PRICES Last Chg %Chg Exch Contract ---- ---- ---- ---- -------- WTI Crude ($/Bbl) 96.82 +0.16 +0.2 Nymex March Brent Crude ($/Bbl) 117.42 -0.10 -0.1 Ice April Gasoil ($/Ton) 999.75 +4.75 +0.5 Ice April Gasoline (c/Gal) 311.91 -0.21 -0.1 Nymex March Natural gas ($/MMBtu) 3.28 +0.01 +0.3 Nymex March Dated Brent ($/Bbl) 118.43 +0.18 +0.2 OTC 21 Days Heating Oil 318.90 +0.84 +0.3 Nymex March Other markets: Last %Chg ----- ----- Dollar Index 80.32 -0.2 Gold ($/Oz) 1,604.20 -0.3 MSCI World Index 1,423.01 +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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