TOP Oil Market News: Crude Drops as Iran Offers Nuclear Talks

The following is a selection of the most important news affecting the oil market.

Oil Drops a Second Day as Iran Offers Uranium-Enrichment Deal

Oil fell for a second day in New York after Iran reiterated an offer to suspend domestic production of medium-enriched uranium before European officials meet to discuss tighter sanctions on the Persian Gulf country.

Hedge Fund Bulls Lift Gas Bets to Two-Month High: Energy Markets

Hedge funds raised bullish bets on natural gas to the highest level since August as a shrinking U.S. supply glut, slowing production growth and increasing power-plant demand pushed futures to a 10-month high.

Libya’s National Congress Elects Ali Zaidan as Prime Minister

Libya’s National Congress elected former congressman Ali Zaidan as the country’s new prime minister, and gave him two weeks to form a government.

U.S. Plunge in Gas Drilling Means $1 Billion Lost Profit: Energy

The U.S. shale boom is turning into a bust for companies that provide drilling services as the number of rigs seeking natural gas has fallen faster than any time in the last 24 years.

Japan LNG Use Rises 3.2% Last Month; Imports Little Changed (1)

Japan’s 10 regional power utilities consumed 4.5 million metric tons of liquefied natural gas in September, up 3.2 percent from 4.36 million a year earlier, according to the Federation of Electric Power Cos.

European Naphtha Cargoes Shipped to Asia Set to Rise in October

European naphtha exports may increase in October from the 500,000 metric tons transported in September, according to shipping data compiled by Bloomberg.

Petrobras Still Considering Selling Nishihara Crude Refinery

Petroleo Brasileiro SA, the only foreign company that wholly owns a refinery in Japan, is still considering selling its Nishihara oil plant in Okinawa, Chief Financial Officer Almir Barbassa told reporters today in Tokyo.

South Korea Imports No Crude Supplies From Iran in September (1)

South Korea stopped buying crude oil from Iran in September for a second straight month after its refiners lost insurance coverage on ships carrying supplies from the Persian Gulf nation.

Formosa Said to Sell Fuel Oil for Late-October to Gunvor (1)

Taiwan’s Formosa Petrochemical Corp. sold fuel oil to Gunvor Group Ltd. for loading from Oct. 23 to Oct. 25, according to three people with knowledge of the transaction.

OPEC

Bullish Wagers Drop to Eight-Week Low Before Rally: Commodities

Hedge funds cut bullish commodity wagers to the lowest since the middle of August before signs the U.S. economy is improving and declining grain stockpiles drove prices to a three-week high.

TOP Oil Market News: Crude Falls After Iran Offers Nuclear Talks

The following is a selection of the most important news affecting the oil market.

REFINERIES Map global refinery outages

Dung Quat Crude Refinery Running at 100%, Company Official Says

Binh Son Refining & Petrochemical Co. said its Dung Quat plant, Vietnam’s only oil refinery, yesterday resumed running at 100 percent capacity after a malfunction at a gasoline-making unit last week.

Iraq Raises Premium to Asia; Oman Sells Cargo: Persian Gulf Oil

Iraq, Iran and Kuwait raised price differentials for November sales of their main crude grades to customers in Asia, a week after Saudi Arabia boosted light oil premiums.

Valero Reports Three McKee Refinery Units Shut for Maintenance

Valero Energy Corp. shut three units at the McKee refinery in Sunray, Texas, for planned maintenance, according to a filing with the Texas Commission on Environmental Quality.

Flint Hills Texas Refinery Reports Unplanned Unit Shutdown

Flint Hills Resources LLC shut a fluidized catalytic cracker process unit at its Corpus Christi West refinery in Texas after a main air blower may have malfunctioned, according to a filing with the Texas Commission on Environmental Quality.

Shell Reports Unit Restart at Scotford Refinery in Alberta

Co. reported there may be intermittent flaring activity at the plant over a 12-hour period, according to a message on the community hotline at 7:30 a.m. local time. *Co. said there is no material impact to production from this activity. * Total refinery capacity is 97,870 b/d

Shell Reports Unit Restart at Scotford Refinery in Alberta

Co. reported there may be intermittent flaring activity at the plant over a 12-hour period, according to a message on the community hotline at 7:30 a.m. local time. *Co. said there is no material impact to production from this activity. * Total refinery capacity is 97,870 b/d

Lyondell Houston Refinery Release Hydrogen Sulfide, Filing Shows

LyondellBasell Industries NV’s Houston refinery released hydrogen sulphide and sulfur dioxide into the atmosphere for as- yet-undetermined reasons, according to a filing to the National Response Center.

PDVSA’s Bajo Grande Storage Tank Fire Controlled, Panorama Says

Petroleos de Venezuela SA, the state oil company, had a storage tank fire this morning at its Bajo Grande refinery, Panorama reported.

California Spot Gasoline Prices Fall as Valero Resume Rack Sales

Spot gasoline prices fell in Southern California as Valero Energy Corp. and Tesoro Corp. resumed rack sales to unbranded customers.

Canadian Oils Weaken as BP’s Whiting Refinery Shutdown Nears

Canadian oils weakened before a planned shutdown at BP Plc’s Whiting refinery in Indiana.

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 8.70 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

Oil Falls After IEA Cuts Global Demand Forecast for 2012, 2013

Oil fell after the International Energy Agency reduced its forecast for global demand, saying slower economic growth may limit fuel consumption.

SOUTH KOREA DAYBOOK: World Bank Chief Visits; LNG, Crude Imports

September LNG and Iranian crude imports data will be released at 9 a.m. and World Bank President Jim Yong Kim will meet South Korean Finance Minister Bahk at 7 a.m. and hold a press conference at 5:30 p.m.

Gulf Keystone Sued by Ex-Soldier Over Iraqi Oil Field Rights

Rex Wempen says he introduced Gulf Keystone Petroleum Ltd. Chairman Todd Kozel to opportunities in Iraq’s Kurdistan region in 2005, and used his contacts to help win oil exploration rights from the government. Now the company owes him for his effort, he claims in a trial starting today.

WTI Crude Oil Drops as Much as 38 Cts to $91.48 a Barrel

Falls as much as 0.4% in electronic trading on the New York Mercantile Exchange.

Titanic Tycoon Plans Stake Sale Talks for $8 Billion Gas Project

Australian mining magnate Clive Palmer, who’s planning to build a modern replica of the Titanic, aims to start talks next year to sell stakes in a potential $8 billion natural gas project in Papua New Guinea.

U.K. Offshore Drilling to Expand on Tax Breaks, Deloitte Says

U.K. North Sea drilling for oil and gas this year is forecast to exceed last year’s results after the introduction of field-tax allowances, Deloitte LLP said.

Chrysler Opens Dealer Orders for Natural Gas Ram Pickup Sales

Chrysler Group LLC, the automaker controlled by Fiat SpA, is making its natural gas-powered Ram pickup available for sale to retail buyers, according to the head of the company’s dealership network.

Iran’s Khatibi Denies Fall in Crude Oil Exports, Donya Says

Iran’s crude oil exports have remained steady in recent months, Donya-e-Eqtesad reported, citing Mohammad Ali Khatibi, the nation’s governor to the Organization of Petroleum Exporting Countries.

China Coal Price Rises for Second Week Amid Railway Maintenance

China’s benchmark power-station coal price rose for a second week, the first consecutive gain in six months, as maintenance on the nation’s biggest railway for transporting the fuel curbed stockpiles.

OTHER MARKETS

Euro, Commodities Fall on Global Economy Concern; Dollar Gains

The euro weakened against most of its peers and commodities fell as concern that the global economy is weakening offset China reporting better-than-expected export data. Asian stocks swung between gains and losses.

Euro Falls Versus Peers on Growth Outlook, Spain Aid Uncertainty

The euro weakened as concern that growth and sentiment in the 17-nation region is faltering overshadowed prospects a leaders’ meeting this week will lead to solutions to the debt crisis.

EU Girds for Summit as Nobel’s Glow Fades on Crisis Response (1)

European leaders, basking in praise for their rediscovered crisis-fighting skills and the award of a Nobel Peace Prize, meet this week as Greece seeks to justify renewed aid and Spain holds out on tapping a bailout.

Asian Stocks Swing Between Gain, Loss on Global Slowdown, China

Asian stocks swung between gains and losses as concern that a global economic slowdown is weighing on earnings was offset by China reporting better-than-expected exports and the slowest inflation rate in two years.

China A-H Share Gap at Narrowest in 8 Months: Chart of the Day

Chinese companies traded on the mainland are priced at the smallest premium to Hong Kong-listed counterparts in eight months, a sign that local investors are becoming more bearish than foreigners on the nation’s equities.

Malaysia Can Store 5.2 Million Tons of Palm Oil, Minister Says

Malaysia, the world’s second-largest palm-oil producer, can store 5.2 million metric tons of the edible oil, according to Plantation Industries and Commodities Minister Bernard Dompok. That’s more than twice the record reserves that were being held last month as prices tumbled.

Gold Drops to Two-Week Low on Signs China’s Economy Stabilizing

Gold declined to the lowest level in more than two weeks on speculation that China may not need additional stimulus after exports grew more than estimated in September. Silver fell to a one-month low.

Philippine Attacks Show Risks Ahead of Peace Accord Signing (1)

Philippine President Benigno Aquino will sign a peace deal today with Muslim guerrillas after deadly attacks underscored the obstacles to ending a 40-year insurgency that has blocked investment in the country’s mineral-rich south.

Former Cambodia King Norodom Sihanouk Dies in Beijing at 89 (1)

Norodom Sihanouk, the former king of Cambodia who survived half a century of political maneuvering that saw his country get sucked into the Vietnam War and endure the murderous regime of Pol Pot, has died. He was 89.

SPORTS

Toulouse Beats Leicester in Heineken Cup; Northampton, Sale Win

Toulouse, the record four-time winner of rugby’s Heineken Cup, beat two-time champion Leicester 23-9 in the opening round of group matches. Northampton, Sale and Toulon also won.

Ambassador Death in Libya No Political Football, Father Says (3)

The father of Christopher Stevens, the U.S. ambassador to Libya who was killed in the attack in Benghazi last month, said his son’s death shouldn’t be politicized in the presidential campaign.

Lowry Wins Golf’s Portugal Masters for First Win in Three Years

Ireland’s Shane Lowry had a five- under-par final round at golf’s Portugal Masters today to beat England’s Ross Fisher by one shot and secure his first European Tour victory since 2009.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 91.18 -0.68 -0.7 Nymex Nov. Brent Crude ($/Bbl) 113.96 -0.66 -0.6 Ice November Gasoil ($/Ton) 986.25 -1.75 -0.2 Ice Dec. Gasoline (c/Gal) 287.67 -1.61 -0.6 Nymex Nov. Natural gas ($/MMBtu) 3.57 -0.04 -1.1 Nymex Nov. Dated Brent ($/Bbl) 113.72 -0.49 -0.4 OTC 21 Days Heating Oil 320.54 -1.85 -0.6 Nymex Nov.

Other markets:

Last %Chg

----- ----- Dollar Index 79.89 +0.3 Gold ($/Oz) 1,759.70 -0.6 MSCI World Index 1,305.07 -0.1

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