TOP Oil Market News: Crude Rises; Libyan Tankers Off U.S. Coast
The following is a selection of the most important news affecting the oil market.
Oil Rises to 29-Month High, Gasoline Surges on Libyan Concern
Crude oil climbed to a 29-month high and gasoline surged on concern that the unrest curbing exports from Libya will spread to other countries in the region.
TOP MARKET NEWS
Libya Crisis Ignites African, Caspian Oil Prices: Energy Markets
West African and Caspian Sea crudes surged to the highest in more than two years as European refiners find their grades more suitable for replacing disrupted Libyan exports than offers from Saudi Arabia.
Tankers From Libya Anchored off Gulf Coast, Vessel Data Show (1)
Two oil tankers bound from Libya are anchored off the U.S. Gulf Coast near Port Arthur, Texas, according to Bloomberg vessel tracking data, five days after the U.S. imposed sanctions on the North African country.
European Gasoline at 30-Month High; Diesel Gains: Oil Products
European gasoline rose to the highest in more than two years after U.S. Energy Department data showed a larger-than- expected decline in stockpiles of the fuel.
Shell Fails to Sell North Sea Forties; Gunvor Cuts Urals Offer
Royal Dutch Shell Plc sought to sell North Sea Forties crude without success. Gunvor International BV failed to find any buyers for Urals in northwest Europe even after lowering its offer.
Syncrude Premium to WTI Remains at Highest Since at Least 2006
The premium for April delivery Syncrude, a light, low- sulfur synthetic oil derived from the tar sands in Alberta, remained at the highest level since at least March 2006.
Mercuria to Spend $600 Million on Energy Assets, Dunand Says (1)
Mercuria Energy Trading SA aims to spend as much as $600 million this year buying oil and natural- gas deposits and coal mines as the company looks to expand production in Asia, co- founder Marco Dunand said.
Debt, Foreign Oil Imports Biggest U.S. Threats, Conrad Says (1)
Dependence on foreign oil and the federal deficit are the two biggest threats to the U.S., said Kent Conrad, chairman of the Senate Budget Committee.
Ethanol Output in U.S. Declines 0.7%, Energy Department Says
U.S. ethanol production fell 0.7 percent to 882,000 barrels a day last week, the lowest level since November, according to the Energy Department.
Coda Reaffirms Goal of Selling Electric Cars From Second Half
Coda Automotive Inc., the electric carmaker backed by billionaire Philip Falcone, reaffirmed its on schedule to starting sales of its electric car in the second half of this year in California.
Libya Disruption Won’t Prompt U.S. Reserve Draw, Chu Says (1)
The turmoil in Libya is causing a “very small” disruption in world oil markets and isn’t enough to cause the U.S. to dip into the Strategic Petroleum Reserve, Energy Secretary Steven Chu said.
Gunvor Shuts European Power Desk; Three Traders to Leave (1)
Gunvor International BV, the closely held energy trader, will close its European power desk and the three traders in the team will leave or have already left, Stuart Leasor, a company spokesman, said by telephone.
OPEC
Saudi Arabia Said to Offer Europe Refiners Extra Oil This Month
Saudi Arabia offered two European refiners additional cargoes of Arab Light crude for loading in March to make up for the loss of Libyan oil, two officials involved in the negotiations said.
Debt-Free Saudi Arabia Default Swaps Worst Performing in 2011
Credit-default swaps on Saudi Arabia are the worst performing sovereign contracts this year, even though the kingdom has no debt to insure, as investors hedge the risk of political turmoil in the world’s biggest oil supplier.
IEA Says 1 Million Barrels a Day of Libya Oil Output Is Shut (1)
Libya shut as much as 1 million barrels a day, or two- thirds, of its oil production amid civil unrest in North Africa’s third-largest crude producer, the International Energy Agency said.
REFINERIES Map global refinery outages
PDVSA to Restart Cardon Refinery After “Small” Fire (1)
Petroleos de Venezuela SA halted operations at its 310,000- barrel-a-day Cardon refinery in Falcon state after containing a “small” fire in a processing unit.
Husky Says Will Finish Lloydminster Upgrader Repair Late March
Husky Energy Inc. expects to finish repairs on its Lloydminster oil-sands upgrader in Saskatchewan later in March, after cold weather delayed the work, Graham White, a company spokesman, said in an e-mail.
Exxon Beaumont Refinery Reports Crack in Process Equipment
Exxon Mobil Corp. reported a small crack yesterday in process equipment at its Beaumont refinery in Texas, according to a filing with state regulators.
Flint Hills Starts Work on Olefins Unit at Port Arthur Plant (1)
Flint Hills Resources LLC started maintenance to replace a de-ethanizer reboiler associated with a light olefins unit at its chemical plant in Port Arthur, Texas, according to a filing with state regulators.
BP Texas City, Texas, Refinery Reports Flaring From Ultracracker
BP Plc reported emissions from an ultracracker at its Texas City refinery in Texas, according to a filing with state regulators.
NIS Refinery Posted 2010 Profit After Loss on Output Gain (1)
Naftna Industrija Srbije AD, the Serbian refiner majority owned by OAO Gazprom Neft, said it posted a profit last year on increased production and improved efficiency.
Syncrude Said to Cut 200,000 Barrels From March Output Forecast
Syncrude Canada Ltd. cut 200,000 barrels from its estimated March production forecast, according to a person with knowledge of the situation.
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 7.64 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons.
Shale Gas Output in China, India, Europe May Surge, WoodMac Says
China, India and Europe may produce as much as 290 billion cubic meters of natural gas a year from so-called unconventional sources by 2030, according to Wood Mackenzie Consultants Ltd.
Algeria’s Sonatrach Pulls Workers From Libya, Yosberides Says
Sonatrach, Algeria’s state-run energy company, has evacuated its staff from neighboring Libya because of the turmoil there, Yosberides newspaper reported, citing a Sonatrach official it didn’t identify.
Poland Wants EU-Level Talks If Oil Remains Above $100 a Barrel
Poland, which will assume the rotating presidency of the European Union in July, wants to hold EU-level talks on the oil price if it remains above $100 a barrel for more than a month, Economy Minister Waldemar Pawlak told reporters in Warsaw today.
Middle East Oils Fall as Abu Dhabi to Raise Supply to Refiners
Middle East crude oils for sale to Asia fell against their benchmarks on signs that producers are increasing their production.
TOP ENERGY STORIES
Qaddafi Counterattacks in Rebel-Held East After UN Rebuke (2)
Libyan forces loyal to Muammar Qaddafi counterattacked against rebels on the east coast where much of the country’s crude is refined or shipped abroad, and the leader said his control of oil reserves is secure.
Asian Stocks Decline for First Time in Four Days as Oil Surges
Asian stocks dropped for the first time in four days as spreading tensions in the Middle East drove oil above $100 a barrel, reigniting concern that higher energy costs will hamper the global economic recovery.
PPL Buys E.ON’s U.K. Power Network for $5.6 Billion in Cash (3)
PPL Corp., owner of Pennsylvania’s second-largest utility, agreed to buy E.ON AG’s power grid in central England for 3.5 billion pounds ($5.6 billion) in cash to triple its customers in the U.K.
Oil Surges, Stocks Drop on Mideast Unrest; Gold Rises to Record
Oil surged to a 29-month high amid speculation unrest in the Middle East and northern Africa will disrupt supplies. U.S. stocks sank on concern rising energy costs will threaten the economic recovery, while Treasuries reversed losses and gold advanced to an all-time high.
PPL Shares Rise as U.K. Grid Buy Moves It Toward Steadier Profit
PPL Corp., owner of Pennsylvania’s second-largest utility, rose the most in almost two years after agreeing to a $5.6 billion U.K. power-grid purchase that will move it away from riskier wholesale electricity markets and toward more predictable revenue.
Cheung Kong Infrastructure Pursues Assets as U.K. Earnings Surge
Cheung Kong Infrastructure Holdings Ltd., controlled by Hong Kong billionaire Li Ka-shing, will “vigorously” pursue global opportunities after earnings from the U.K. rose to account for almost a quarter of profit.
Guy Hands May Invest $692 Million in Clean Energy in 2011 (2)
Guy Hands’s Terra Firma Capital Partners Ltd. may invest as much as 500 million euros ($692 million) in clean energy this year as low interest rates and rising oil prices make the industry more attractive.
Weatherford Falls Most Since 2008 After Accounting Error (2)
Weatherford International Ltd., the Geneva-based oilfield services company, fell the most in more than two years after reporting that it expects to reduce past earnings by $500 million because of accounting errors from 2007 to 2010.
U.K. Ready to Pay Power Users to Switch Off for ‘Negawatts’ (3)
The U.K. is ready to step up payments for factories, offices and supermarkets that switch off electricity as rising demand drives up prices and the nation turns to cleaner but less-reliable power.
OTHER MARKETS
Dollar Touches Three-Month Low Against Euro as Crude Oil Climbs
The dollar fell against most of its major counterparts, reaching the weakest level versus the euro since November, as oil rose above $100 a barrel for a second day amid unrest in North Africa and the Middle East.
Bank of America Raises Euro Forecasts Amid Oil Surge, U.S. Debt
Bank of America Corp. raised its first-quarter and long- term forecasts for the euro versus the dollar, saying the revisions reflect gains in the shared currency and concern the U.S. will have difficulty dealing with its budget deficit.
U.S. Stocks Advance on Signs of Strengthening Labor Market
U.S. stocks rose, rebounding from yesterday’s tumble, as signs of a strengthening job market bolstered optimism the economy can withstand a surge in oil.
Topix May Surge 19% by April on Foreign Inflows: Chart of Day
The longest streak of net foreign inflows to Japan’s stock market since 2005 may boost the Topix index 19 percent by the end of April, if history is a guide, according to Monex Group Inc.
Gold Rises to Record for Second Day on Inflation, Libya Concern
Gold rose to a record for the second straight day on mounting demand for an investment haven amid surging commodity prices and turmoil in Libya. Silver climbed to the highest since 1980.
JPMorgan Takes Delivery of Almost 1 Million Tons of Sugar (3)
A JPMorgan Chase & Co. unit took delivery of almost 1 million metric tons of raw sugar, the most for the commodity since 2009, to settle the expiring March futures contract in New York.
Congress Approves Temporary Budget Bill, Avoids Shutdown (2)
The U.S. Congress approved a budget bill that will prevent a government shutdown for now while lawmakers negotiate over Republican demands to further cut federal spending this year.
China Signals Potential Opposition to No-Fly Zone Over Libya
China joined Russia today in signaling potential opposition to imposing a no-fly zone over Libya if fighting continues between protesters and forces loyal to leader Muammar Qaddafi.
SPORTS
O’Brien Ton Helps Ireland Stun England at Cricket World Cup (1)
Kevin O’Brien scored the fastest Cricket World Cup century to lead Ireland to a three-wicket win over England in one of the biggest upsets in the tournament’s 35-year history.
2011 Cricket World Cup Results, Standings, Schedule
O’Brien’s 100 Helps Ireland Stun England in Cricket World Cup
Ireland’s Kevin O’Brien scored the fastest century in the history of cricket’s World Cup to lead a three-wicket victory over England in one of the biggest upsets in the tournament’s 35-year history.
ENERGY PRICES
Last Chg %Chg Exch Contract
---- ---- ---- ---- --------
WTI Crude ($/Bbl) 102.44 +0.21 +0.2 Nymex April
Brent Crude ($/Bbl) 116.48 +1.06 +0.9 Ice March
Gasoil ($/Ton) 968.00 +23.75 +2.5 Ice April
Gasoline (c/Gal) 302.69 -0.26 -0.1 Nymex April
Natural gas ($/MMBtu) 3.81 -- -0.1 Nymex April
Dated Brent ($/Bbl) 115.96 -0.06 -0.1 OTC 21 Days
Heating Oil 305.77 +3.42 +1.1 Nymex April
Other markets:
Last %Chg
----- -----
Dollar Index 76.66 -0.4
Gold ($/Oz) 1,437.70 +0.5
MSCI World Index 1,337.94 -0.2
Prices as of 11 p.m. GMT
To contact the reporter on this story: Clyde Russell in Beijing at crussell7@bloomberg.net
To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net
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