The following is a selection of the most important news affecting the oil market. OPEC Upstaged by Qaddafi in Most-Hostile Meeting Since Gulf War OPEC ministers meeting in Vienna this week may find themselves supporting opposing camps of a military conflict for the first time in 21 years, with hostilities in Libya complicating an agreement on oil quotas. TOP MARKET NEWS Oil, Gas Costs to Reach ‘New High’ in 2011, Petronas Chief Says Crude oil and natural gas exploration and production costs will reach “new high” this year, Petroliam Nasional Bhd. Chief Executive Officer Shamsul Azhar Abbas said at the Asia Oil and Gas Conference in Kuala Lumpur today. Total’s De Margerie Says Oil-Price Volatility Hurting Consumers Crude oil’s price volatility is hurting consumers and the swings in prices must be reduced, Total SA Chief Executive Officer Christophe de Margerie said after attending the Asia Oil and Gas Conference in Kuala Lumpur today. High Oil Prices Benefit Non-Refiners More: Chart of the Day Rising global oil prices can benefit smaller companies that specialize in exploration and production more than larger integrated oil and gas companies such as Exxon Mobil Corp. Deutsche Bank Said to Hire Yew From Barclays for Singapore Oil Kelvin Yew, an oil trader at Barclays Capital in Singapore, will return to the energy desk at Deutsche Bank AG, according to two people familiar with the move. TransCanada’s Keystone Crude Oil Pipeline Resumes Oil Supply (2) TransCanada Corp. started transporting crude oil through its 591,000 barrel-a-day Keystone pipeline after it was shut because of a leak, the second unplanned closure in a month. Asia Gasoil Crack Rises; Fuel Oil Discount Widens: Oil Products Asia’s gasoil crack spread, a measure of refinery profit, climbed to the highest in about five weeks. Fuel oil’s discount to crude widened. Malaysia Has Significant Untapped Resources, Petronas Chief Says Malaysia has a significant amount of resources that remain untapped, Petroliam Nasional Bhd. Chief Executive Officer Shamsul Azhar Abbas said at the Asia Oil and Gas Conference in Kuala Lumpur today. About 1.7 billion barrels of oil equivalent in the nation are yet to be produced, he said. Shamsul also said that more could be done to improve oilfield recovery. Bharat Petroleum Said to Buy 12,000 Tons of Gasoline From Vitol Bharat Petroleum Corp., India’s second-biggest state refiner, bought 12,000 metric tons of gasoline for delivery in June from Vitol Group, said two traders who participate in the market. They declined to be identified as they aren’t authorized to speak to reporters. OPEC Oil May Rise $3-$5 If OPEC Maintains Output Quotas, FACTS Says Crude oil prices may jump by $3 to $5 a barrel should the Organization of Petroleum Exporting Countries leave production targets unchanged at its June 8 meeting, Fereidun Fesharaki, chairman of Singapore-based consultant FACTS Global Energy, said in an interview in Kuala Lumpur today. Asia Stocks, Dollar Index Decline on U.S. Concerns; Metals Gain Asian stocks declined for a third day while the Dollar Index touched a one-month low as a slowdown in U.S. jobs growth fueled concern the recovery in the world’s largest economy is faltering. Metals rallied. Asia Stocks, Dollar Index Decline on U.S. Concerns; Metals Gain Asian stocks declined for a third day while the Dollar Index touched a one-month low as a slowdown in U.S. jobs growth fueled concern the recovery in the world’s largest economy is faltering. Metals rallied. REFINERIES Map global refinery outages Hedge Funds Lift Heating Oil Bets Most This Year: Energy Markets Hedge funds raised bullish bets on heating oil by the most in six months as U.S. inventories fell and China halted exports. Cosmo Oil Revises Work Schedule at Yokkaichi, Sakaide Refineries Cosmo Oil Co. revised its voluntary maintenance schedule at refineries in Yokkaichi and Sakaide, Yusuke Kaneda, a company spokesman, said in a phone interview from Tokyo today. PHMSA Approves TransCanada Plan to Restart Keystone Oil Line (1) TransCanada Corp. may restart its Keystone crude oil pipeline today after receiving clearance from the top U.S. regulator. PBF Delaware City Refinery Flares During Start-Up, Filing Shows PBF Energy Partners LP reported intermittent flaring during a start-up operation at its Delaware City refinery in Delaware, according to a June 3 emissions filing with state regulators. Propane, Butane Released at Marathon Gas Plant, NRC Filing Shows Marathon Petroleum Co. had a release of an unknown amount of propane and butane from a pipe at a gas plant in Garryville, Louisiana, according to a report filed with the National Response Center. Delek Refinery in Texas Flares Gases After Equipment Malfunction Delek US Holdings Inc. flared gases after an equipment malfunction at its Tyler, Texas, refinery, according to a filing with state regulators. Marathon Plant in Garyville, Louisiana, Has Gas Leak, NRC Says A gas plant at Marathon Oil Corp.’s Garyville refinery in Louisiana leaked an unknown amount of propane and butane from a pipe, according to a regulatory filing. PDVSA Extinguishes Fire at Amuay Refinery, Company Reports Firefighters extinguished a fire at the Amuay refinery of Petroleos de Venezuela SA in western Venezuela, the company said in a statement posted on its website. OTHER OIL MARKET NEWS Oil Product Shipping Costs to Japan Fall 1.9% The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan fell 1.9 percent to 8.80 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons. Saudi Aramco Cuts July Prices for Light Crudes to U.S., Asia (1) Saudi Aramco, the world’s largest oil exporter, cut official selling prices for light crude grades for July shipments to the U.S. and Asia. The company raised prices on the rest of its grades for July. Explosion at Fuel Tank in Basra in South Iraq, Iraqiya TV Says An explosion ripped through a fuel- storage tank in the al- Shaabiya region in Iraq’s southern province of Basra, the state- sponsored television Iraqiya reported today, without saying where it got the information. TOP ENERGY STORIES Yemenis Cheer Wounded President Saleh’s Flight to Saudi Arabia Hundreds of thousands of Yemenis cheered the departure of wounded President Ali Abdullah Saleh to Saudi Arabia even as government spokesmen said he would soon return after receiving medical treatment. Commodities to Extend Rally Even After Fed Exit: Chart of Day Commodities will resume a rally after their worst month in a year as the Federal Reserve keeps its benchmark interest rate at a record low following the end of a $600 billion asset- purchase program, said HSBC Holdings Plc. Tokyo Gas Plans Stake Purchase in Gas Projects to Ensure Supply Tokyo Gas Co., Japan’s biggest gas distributor, plans to buy stakes in natural-gas projects to ensure supplies, and import between 10 million and 11 million metric tons of the fuel this year, a company official said. Gas at $4 Strengthens Case for Mileage Rules Fought by Ford, GM Gasoline prices that have risen as much as 30 percent this year and are predicted to climb further in coming years are helping proponents of higher U.S. fuel- economy standards make their case. Euro Touches One-Month High on Optimism EU Will Support Greece The euro touched a month high versus the dollar on prospects officials from the European Union will reiterate their intention to prepare a new aid package for Greece, easing concern over the region’s debt crisis. Papandreou Faces Growing Backlash as Last EU Bailout Premier George Papandreou is the last man standing among the euro- area leaders who needed a handout after Jose Socrates’s defeat in Portuguese elections yesterday. Asian Stocks Fall After U.S. Jobs Growth Slows; Tepco Plunges Asian stocks declined, dragging the regional benchmark index to its lowest level in a week, as slowing jobs growth in the U.S. added to signs the global economic recovery is faltering. Palmer IPO Failures Show Hong Kong Prefers Profit to Promise (1) Australian billionaire Clive Palmer’s much-touted ties with China weren’t enough to convince Hong Kong investors to put up $3.6 billion for shares in his unprofitable iron ore and coal company Resourcehouse Ltd. Wheat Rallying 20% as Parched Fields Wilt From China to Kansas The worst droughts in decades are wilting wheat fields from China to the U.S. to the U.K., overwhelming Russia’s return to grain markets and driving prices to the highest levels since 2008. Gold Advances for Second Day After Data Fans Recovery Concerns Gold advanced for a second day on speculation that borrowing costs in the U.S. will remain low after economic data signaled that the recovery may be faltering, hurting the dollar and boosting the appeal of precious metals. Syrian, Israeli Forces Target Separate Protests in Middle East Israeli forces fired on a crowd marking the anniversary of the 1967 Middle East War by trying to cross the border from Syria, which Israelis said was an effort by Syria’s regime to divert attention from its internal woes. China’s Worried Neighbors Query South China Sea Peace Pledge (2) China’s pledge to keep peace in the South China Sea failed to assuage its neighbors, with defense ministers from Vietnam and Philippines saying harassment of oil, gas and fishing vessels raised questions about its intentions. SPORTS Stricker Wins Memorial to Become Top-Ranked American Golfer Steve Stricker held on for a one-shot win at Jack Nicklaus’s Memorial Tournament to become the top American in the Official World Golf Ranking. Stricker Wins Memorial by One Shot for 10th PGA Tour Golf Title Steve Stricker won the rain-delayed Memorial Tournament by one shot for his 10th title on golf’s U.S. PGA Tour. Peter Crouch Won’t Play for England Under Capello, Mail Reports Tottenham striker Peter Crouch won’t play for England again under coach Fabio Capello after he was left out of the matchday squad for yesterday’s Euro 2012 soccer qualifier with Switzerland, the Mail on Sunday reported. ENERGY PRICES Last Chg %Chg Exch Contract ---- ---- ---- ---- -------- WTI Crude ($/Bbl) 100.06 -0.16 -0.2 Nymex July Brent Crude ($/Bbl) 115.41 -0.43 -0.4 Ice July Gasoil ($/Ton) 960.25 +6.50 +0.7 Ice July Gasoline (c/Gal) 298.50 -0.81 -0.3 Nymex July Natural gas ($/MMBtu) 4.77 +0.07 +1.4 Nymex July Dated Brent ($/Bbl) 115.35 -0.55 -0.5 OTC 21 Days Heating Oil 305.13 -0.54 -0.2 Nymex July Other markets: Last %Chg ----- ----- Dollar Index 73.74 -0.1 Gold ($/Oz) 1,542.40 +0.6 MSCI World Index 1,320.68 -- Prices as of 6 a.m. GMT To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net

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