TOP Oil Market News: Crude Rises on Stronger China Manufacturing

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

Oil Advances to Two-Week High as China Manufacturing Strengthens

Oil rose to the highest price in almost two weeks in New York as the strongest Chinese- manufacturing reading in seven months signaled an economic recovery in the world’s second- biggest crude consumer.

Oil Bulls Boost Bets as U.S. Economy Strengthens: Energy Markets

Hedge funds raised bullish oil bets for a second week as U.S. stockpiles fell to the lowest level in a month and the country’s economy showed signs of strengthening.

TonenGeneral Said to Shut Kawasaki Oil Refinery Crude Unit

Co. shut one of three crude distillation units at its 335,000 barrel-a-day Kawasaki refinery on Nov. 29 after a malfunction in a fluid catalytic cracker, according to two people with knowledge of operations who asked not to be identified because they aren’t authorized to speak to the media.

Husky Energy Reaches Tentative Deal With Lima Refinery Union (3)

Husky Energy Inc. reached a tentative contract agreement with workers that would end six months of labor strife at its Lima, Ohio, oil refinery.

China October Refinery Output Grew For 4th Month, Xinhua Says

Oct. refinery throughput grew 6.7% y- o-y to 39.9 million tons, Xinhua reports citing National Development and Reform Commission data.

South Korea’s November Crude Oil Imports Rise as Prices Increase

South Korea, the world’s fifth- largest oil importer, purchased 11 percent more crude in November compared with a year ago as prices increased.

Formosa Petrochemical Plans Mailiao CDU, Cracker Maintenance

Co. tentatively plans to halt No. 1 CDU, No. 2 RDS, No. 2 RFCC in March for regular maintenance, president Tsao Mihn says by phone

Chevron Says Brazil Ban Lifted, Is Working to Resume Output

Chevron Corp., the second-biggest U.S. oil company, said it’s working to resume oil production at a project off the coast of Brazil after a court dismissed a ban on operations.

REFINERIES Map global refinery outages

Con Edison Shuts Gas Pipe at Scarsdale Plant: NRC Filing

Consolidate Edison Inc. shut down a natural gas transmission mainline in Scarsdale, New York, citing the potential for a leak, according to a filing with the National Response Center.

CVR Energy Has Emissions at Coffeyville Refinery, Filing Shows

CVR Energy Inc. released sulfur dioxide at its refinery in Coffeyville, Kansas, during maintenance, according to a filing with the National Response Center. The release at 6:13 p.m. local time yesterday wasn’t secured and is being investigated, the filing showed.

Citgo Has Emissions at Lemont Plant in Illinois: NRC Filing

Citgo discharged sulfur dioxide from its flare stack because of an upset at a unit in Lemont, Illinois, according to a filing with the National Response Center.

Western Refining at Five-Year High on Oil Discount: Dallas Mover

Western Refining Inc., the owner of refineries in Texas and New Mexico, rose to the highest in five years as oil produced in Midland, Texas, continued to sell at a record discount to the U.S. benchmark.

Texas Oils Weaken as Phillips 66 Works to Start Borger Refinery

Texas oils declined as Phillips 66’s refinery at Borger, Texas, remained shut for maintenance longer than expected, cutting demand for crude.

Phillips 66 Borger Said to Be Starting Units After Maintenance

Phillips 66’s Borger refinery in Texas is restarting process units after finishing maintenance and should be producing fuel at full capacity in about a week, a person familiar with operations said.

Western Refining at Five-Year High on Oil Discount: Dallas Mover

Western Refining Inc., the owner of refineries in Texas and New Mexico, rose to the highest point in nearly five years as oil produced in Midland, Texas continued to sell at a record discount to the U.S. benchmark.

Motiva Port Arthur Crude Unit Said to Receive Oil in 10 Days

Motiva Enterprises LLC may put oil into the 325,000-barrel- a-day crude unit at its Port Arthur, Texas, refinery in the next 10 days after finishing integrity testing, a person familiar with operations at the refinery said.

Az-Zawiya Refinery Resumes Operations Today, Libya Radio Says

Az-Zawiya oil refinery resumed operations after a two-day halt when protesters prevented fuel trucks from leaving the site near Tripoli, a state-run radio station reported.

Shell Restarting Unit at Alberta Scotford Oil Upgrader Facility

Royal Dutch Shell Plc. restarted a unit at its Scotford oil upgrader facility in Alberta, the company said in a message left on a community hotline.

OTHER OIL MARKET NEWS

Oil Product Shipping Costs to Japan Rise 1.8 %

The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan rose 1.8 percent to 11.28 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

N. Korea Proceeds With Rocket Plans as Japan Warns Against Test

North Korea is proceeding with plans to test a long-range rocket this month in defiance of international condemnation that included Japanese warnings to shoot it down if necessary.

Analyzing Crude Futures as Brent Trading Overtakes WTI

Brent crude may overtake West Texas Intermediate oil as the most-traded commodity because of its benchmark status for global energy prices, Bloomberg News reported. Bloomberg tools show how the number of traded contracts for North Sea oil has jumped while its U.S. counterpart has declined.

U.S. Stocks Erase Drop Before Index Changes as Commodities Gain

U.S. stocks erased losses in the final 15 minutes as investors bought shares before changes to MSCI Inc. indexes and weighed developments in budget negotiations. Commodities rose. Treasuries were little changed.

Fossil-Fuel Subsidies of Rich Nations Are Five Times Climate Aid

Rich countries spend five times more on fossil-fuel subsidies than on aid to help developing nations cut their emissions and protect against the effects of climate change, the campaign group Oil Change International said today.

Oil Caps First Monthly Gain Since August on Economic Optimism

Oil capped its first monthly increase since August on signals that economic expansion in the U.S. is accelerating.

Woodside to Pay $696 Million for 30% Stake in Leviathan (1)

Woodside Petroleum Ltd., Australia’s second-largest gas producer, agreed to pay an initial $696 million to secure a stake in Israel’s largest natural gas field from partners including Noble Energy Inc.

Macquarie Said to Pull Out of Bidding for Total’s TIGF Network

A group led by Macquarie Group Ltd. has pulled out of bidding for Total SA’s French gas network, a person with knowledge of the matter said.

China Plans to Import More Than 35% of Natural Gas Needs by 2015

China may rely on imports for more than 35 percent of its natural gas supplies by 2015, up from 15 percent in 2010, according to estimates by the National Energy Administration from the nation’s five-year plan.

China Power-Station Coal Falls for Second Week as Supply Rises

China’s benchmark price for thermal coal fell for a second week to the lowest since the end of September as inventories at the port of Qinhuangdao increased.

Diamonds Dug in Gusty Arctic Too Remote for Diesel Fuel: Energy

The four windmills dug into northern Canada’s tundra that power Rio Tinto Group’s $5.2 billion Diavik diamond mine are the world’s first designed to work in gusts as cold as 40 degrees below zero.

OTHER MARKETS

Commodities Gain With Asia Stocks on China Data; Dollar Weakens

Commodities rose to a six-week high and Asian stocks gained after manufacturing data added to signs China’s economy is recovering. The dollar slid to a six-week low versus the euro as U.S. debt talks remained deadlocked.

Dollar Touches 6-Week Low Versus Euro on Fiscal Cliff Concerns

The dollar fell to a six-week low against the euro as concern U.S. lawmakers won’t be able to avoid the so-called fiscal cliff damped demand for the currency.

Yen Rally Signaled as Shorts Overshoot on Abe: Chart of the Day

Bets the Japanese yen will fall have climbed to record levels that have historically been followed by rallies in the currency, according to JPMorgan Chase & Co.

Asian Stocks Swing From Gains, Losses on China Data, U.S. Budget

Asian stocks swung between gains and losses as Chinese manufacturing data added to signs of recovery while U.S. lawmakers continue to debate over a budget compromise to avert a so-called fiscal cliff.

All Markets Gain for Second Time This Year on Recovery Signs (1)

For the second time this year, stocks, bonds, commodities and the dollar posted monthly gains amid optimism central bank stimulus programs are bolstering growth in the world’s biggest economies.

Hedge Funds Increase Bullish Bets Most Since August: Commodities

Hedge funds increased bullish bets on commodities by the most since August as evidence that China is accelerating outweighed concern that U.S. lawmakers have yet to resolve an impasse over automatic spending cuts and tax rises.

Gold Climbs as ETP Holdings Extend Gain to Record; Silver Rises

Gold rallied from its biggest weekly drop in more than five months as investor holdings in exchange- traded products advanced to a record and a decline in the dollar boosted demand. Silver gained.

Vietnam Says China Must Avoid Trade Weapon in Maritime Spat (1)

Vietnam said China should avoid using trade as a weapon in maritime disagreements after diplomatic tensions led to a slump in exports from Japan when Chinese consumers boycotted the goods of its Asian neighbor.

Geithner Fight on Fiscal Cliff Invokes Pragmatism of Dodd-Frank

When U.S. senators were picking apart the Obama administration’s plan for a stand-alone consumer- protection bureau during negotiations on the financial-rules overhaul, Treasury Secretary Timothy F. Geithner agreed to put it under the Federal Reserve to ensure that Republican lawmakers wouldn’t kill it.

SPORTS

Accordia Golf Said to Approach Goldman Sachs to Counter PGM Bid

Accordia Golf Co., a Japanese golf course operator, approached companies including Goldman Sachs Group Inc. as potential investors to counter an uninvited takeover bid, three people with knowledge of the matter said.

McDowell Wins Tiger Woods’s World Challenge for Second Time

Graeme McDowell of Northern Ireland won golf’s World Challenge, an event hosted by Tiger Woods, for the second time in three years.

Napoli, Inter Win to Keep Pressure on Juventus; Real Betis Wins

Napoli and Inter Milan won yesterday in Italian soccer’s Serie A to maintain the pressure on leader Juventus, while Real Betis climbed to fourth in Spain’s La Liga.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 88.89 -0.02 0.0 Nymex Jan. Brent Crude ($/Bbl) 111.37 +0.14 +0.1 Ice undefined Gasoil ($/Ton) 954.25 +1.25 +0.1 Ice Jan. Gasoline (c/Gal) 273.74 +0.71 +0.3 Nymex Jan. Natural gas ($/MMBtu) 3.61 +0.05 +1.3 Nymex Jan. Dated Brent ($/Bbl) 111.14 -0.87 -0.8 OTC 21 Days Heating Oil 306.72 +0.65 +0.2 Nymex Jan.

Other markets:

Last %Chg

----- ----- Dollar Index 80.02 -0.2 Gold ($/Oz) 1,712.70 -1.0 MSCI World Index 1,316.25 +0.1

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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