TOP Oil Market News: Crude Drops From Highest Price in a Week

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

Oil Drops From One-Week High Amid Disagreement on U.S. Budget

Oil slid from the highest level in a week as U.S. lawmakers disagreed on measures to avert automatic spending cuts and tax increases known as the fiscal cliff that threaten to curb economic growth and fuel demand.

Oil at $60 or $120 Doesn’t Prevent U.S. Supplanting Saudi Arabia

The U.S. is almost free of depending on imported energy and positioned to supplant Saudi Arabia as the world’s No. 1 producer of oil, whether crude costs $60 a barrel or twice that amount.

Natural Gas $4 Cap Seen in 2013 as Supply Swells: Energy Markets

U.S. natural gas’s rebound from four years of declines is likely to peter out in 2013 as power-plant demand drops and supplies rise to a record.

SK Innovation Said to Buy Sokol Crude for February Loading (1)

SK Innovation Co. bought 95,000 metric tons of Russian Sokol crude for loading from Feb. 9 to Feb. 18 from OAO Rosneft, said two traders who asked not to be identified because they aren’t authorized to speak to the media.

China Oil Refining to Rise 4.1% in Dec. From Nov., C1 Says

China is expected to process as much as 42.2 million metric tons of oil this month, 4.1 percent higher than November, C1 Energy said on its website today

Goldman Energy Research Head Greely Leaves for Bridgewater (1)

David Greely, Goldman Sachs Group Inc.’s head of energy research, is joining Bridgewater Associates LP, according a spokeswoman for Bridgewater.

YPF Said to Be Potential Bidder for Petrobras Argentine Assets

YPF SA, Argentina’s largest energy company, will bid for any assets that Petroleo Brasileiro SA wants to sell in Argentina, a YPF official said today.

Asia’s Fuel Oil Crack Widens; Gasoil Swaps Advance: Oil Products

Asia’s fuel oil crack spread widened for a third day this week, signaling increased losses for refiners turning crude into residual products. Gasoil swaps rose to a one-week high.

Gas Inventory Drop Was 97% Below Historical Norm, Forecasts Show

Last week’s withdrawal from U.S. natural gas inventories was down 97 percent from the historical norm for that period as above-normal temperatures cut heating- fuel demand, analyst forecasts compiled by Bloomberg show.

Natural Gas Falls to 10-Week Low on Outlook for Inventory Drop

Natural gas futures dropped to the lowest price in more than 10 weeks amid forecasts of a smaller- than-normal inventory decline.

U.S. to Award $169 Million to Seven Offshore Wind Projects

The U.S. Department of Energy will award as much as $169 million to seven proposed offshore wind projects in six states.

Natural Gas Fluctuates Near 6-Week Low on Stockpile Outlook

Natural gas futures fluctuated near a six-week low in New York amid forecasts of a smaller-than- normal inventory decline last week.

U.S. Oil Supply: Comparison of Weekly API, DOE Figures (Table)

The following table provides a comparison between the U.S. Department of Energy’s crude-oil statistics for the week ended Dec. 7 and the data from the American Petroleum Institute, an industry-funded group.

U.S. and Partners Agree to Offer Revised Nuclear Deal to Iran

The U.S. and its partners have hammered out a revised deal to offer Iran, aimed at persuading the Islamic Republic to curtail nuclear activities that might be used to produce an atomic bomb.

U.S. Stocks Gain While Dollar Weakens as Fed Announces Bond Buys

U.S. stocks rose for a sixth day, the longest rally since August, while the dollar weakened after the Federal Reserve announced plans to buy more Treasuries to boost growth. Oil climbed on forecasts for stronger demand.

REFINERIES Map global refinery outages

Motiva Port Arthur Refinery Shuts New Crude Unit After Fire (1)

Motiva Enterprises LLC has shut the new 325,000-barrel-a- day crude unit at its Port Arthur, Texas, refinery, the largest in the U.S., after a fire.

Cenovus Energy Forecasts Decline in 2013 Cash Flow on Prices (2)

Cenovus Energy Inc., the Canadian oil producer planning to more than triple output in the next decade, said cash flow will probably fall in 2013 because of lower crude prices.

Tesoro Eyes Rail to Ship Bakken, Canadian Crudes to California

Tesoro Corp. is exploring rail and tanker projects to move more oil to its California refineries from Canada and the Bakken shale play in North Dakota.

Motiva Port Arthur Oil Refinery Shuts New Crude Unit After Fire

Motiva Enterprises LLC has shut the new 325,000-barrel-a- day crude unit at its Port Arthur, Texas, refinery, the largest in the U.S., after a fire.

Cenovus Energy Forecasts Decline in 2013 Cash Flow on Prices (1)

Cenovus Energy Inc., the Canadian oil producer planning to more than triple output in the next decade, said cash flow will probably fall in 2013 because of lower crude prices.

Motiva Port Arthur Said to Shut New Crude Unit After Fire (1)

Motiva Enterprises LLC has shut the new 325,000-barrel-a- day crude unit at its Port Arthur, Texas, refinery after a fire, a person with knowledge of the situation said.

Asia Naphtha Crack Drops; Hin Leong Sells Gasoil: Oil Products

Asia’s naphtha crack spread shrank, signaling eroding profit for refiners. Hin Leong Trading Pte sold gasoil and jet fuel cargoes in Singapore, the region’s largest oil-trading center.

Exxon Mobil Has Emissions at Baton Rouge Plant, NRC Filing Shows

Exxon Mobil Corp. released gases from its Baton Rouge, Louisiana, oil refinery and chemical plant, including 100 pounds of hydrogen sulfide and 500 pounds of sulfur dioxide, according to a filing with the U.S. National Response Center. The release occurred at a flare after a planned shutdown “to support mechanical activities at the SACC unit”, according to the notice.

SK Innovation Plans Maintenance at Ulsan Crude Units Next Year

SK Innovation Co., owner of South Korea’s biggest oil refinery, plans to shut two crude-processing units at its Ulsan facility for maintenance in March and in May, according to a company official.

OTHER OIL MARKET NEWS

TOP Oil Market News: Crude Rises; IEA Raises Oil Demand Forecast

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

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 11.47 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons.

Oil-Tanker Rates Slide for Fourth Day as Ship Surplus Increases

Returns for the biggest oil tankers hauling Middle East crude to Asia, the industry’s benchmark route, declined for a fourth session as a surplus of available ships increased.

TOP ENERGY STORIES

Barge Captain Dodges Rocks as Drought Shrinks Mississippi (1)

Sandbars no one can remember seeing above water are visible from the wheelhouse of the Capt. Bill Stewart as it churns past Hanging Dog Bluff on the Mississippi River south of St. Louis, a warning of more treacherous conditions ahead.

OPEC Keeps Output Quota Stable as Prices Sufficiently High (2)

OPEC kept its production target unchanged for a second time this year as the group’s members judged prices are sufficiently high amid forecasts that supply will outpace demand for their crude in 2013.

Crude Rises as IEA Boosts Demand Forecast; OPEC Maintains Quota

Brent crude rose to a five-day high after the International Energy Agency increased its oil demand forecast for 2013 and as OPEC ministers completed their meeting in Vienna to discuss production limits.

Petrobras Austerity Seen in 23-Cent Lupatech Debt: Brazil Credit

Lupatech SA bonds have become the most distressed in Brazil as the company’s reliance on Petroleo Brasilero SA backfires amid the state-controlled oil producer’s move to wring concessions from its suppliers.

World’s Largest Profit at Gazprom Pays for Putin’s Pipes: Energy

The world’s most profitable energy company is being punished by investors who are concerned it’s also the biggest spendthrift.

U.K. Said to Lift Fracking Ban in Effort to Boost Gas Production

U.K. Energy Secretary Ed Davey will rescind a ban on shale-gas exploration, opening the door for Cuadrilla Resources Ltd. to resume its activities, according to a person familiar with the decision.

Williams Bets $2.4 Billion on Pipe Venture Chesapeake Quit (2

Williams Cos., the third-largest U.S. pipeline company, is betting as much as $2.4 billion it can profit from a shale- pipeline partnership that Chesapeake Energy Corp. exited earlier this year.

Faroe Petroleum Seeks Iceland Oil by Tapping Norway for Data (1)

Faroe Petroleum Plc, the North Atlantic energy explorer hoping to produce Iceland’s first oil, expects Norway to release confidential files on potential crude deposits off the island nation, accelerating its work.

Batista Said to Pledge Extra EBX Stake to Back Mubadala Deal (3)

Eike Batista, the Brazilian billionaire who sold a $2 billion interest in his commodities empire to Abu Dhabi’s Mubadala Development Co., pledged an additional stake that shields the fund from the selloff in his publicly traded companies, according to a person familiar with the transaction.

Deutsche Bank’s Fitschen Subject of Criminal CO2 Tax Probe (1)

Deutsche Bank AG co-Chief Executive Officer Juergen Fitschen and Stefan Krause, the firm’s chief financial officer, are subjects of a tax probe involving the sale of carbon- emission certificates that led to five arrests and police raids on the lender’s Frankfurt offices.

OTHER MARKETS

Asian Stocks Gain an 11th Day as Yen Weakens After Fed Stimulus

Asian stocks climbed for an 11th day, led by Japanese shares as the yen’s drop to a more than eight-month low helped the nation’s exporters. South Korea’s won strengthened after the Federal Reserve announced further monetary stimulus. Commodities declined.

Yen Touches 9-Month Low Before Tankan Data Amid Easing Prospects

The yen fell to the weakest level in almost nine months against the dollar before the Bank of Japan’s Tankan survey tomorrow, which economists say will show big manufacturers in the nation grew more pessimistic.

Korean Won Rises to 15-Month High on Fed Stimulus; Bonds Decline

South Korea’s won strengthened to a 15-month high after the Federal Reserve said it will expand asset purchases that boost the supply of dollars. Government bonds fell.

Asian Stocks Advance, Led by Japanese Exporters, as Yen Weakens

Asian stocks rose, with the regional benchmark index extending its longest rally in more than three years, as Japanese exporters advanced after the yen touched an almost nine-month low versus the dollar.

Emerging-Market Stocks Rise for Seventh Day on Monetary Stimulus

Emerging-market stocks rose for a seventh day, led by technology companies, and currencies strengthened after the U.S. Federal Reserve expanded its bond- buying program and the outlook for display makers improved.

Oil-to-Metals Bank Staff Retreating for Second Year: Commodities

Investment banks are cutting commodity staff for a second year and pay will probably drop for a third time as revenue declines, bonuses shrink and new regulations limit how much money traders can risk.

GrainCorp Rejects Higher A$2.8 Billion ADM Offer as Too Low (2)

GrainCorp Ltd., the largest grain handler in eastern Australia, rejected Archer-Daniels-Midland Co.’s higher A$2.8 billion ($3 billion) bid as too low.

Lawmakers Warn Deadlocked Budget Talks May Extend Past Holiday

White House and congressional officials warned their staffs that they may be spending the holidays at their desks in Washington, as both sides publicly refused to budge from their positions on taxes and spending.

N. Korea Rocket Tests Incoming Leaders From Tokyo to Beijing (1)

North Korea’s improving missile capability cast a shadow on political campaigns in two of its neighbors, heightening focus on a potential threat that may prompt Japan to stiffen its defense posture and provide a bump to South Korea’s conservative candidate.

SPORTS

Arsenal CEO Apologizes to Fans, Mirror Says: Soccer Roundup

The following is a roundup of soccer stories from U.K. newspapers, with clickable Internet links.

Ex-Banker Aims to Help Soccer Scouts Hunting for Another Messi

Soccer teams are using video more than ever to find new players, although scouts say there’s no substitute for the naked eye.

Swansea Beats Middlesbrough to Reach First League Cup Semifinal

Swansea City beat Middlesbrough 1-0 to advance to the semifinals of English soccer’s League Cup for the first time.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 86.57 -0.20 -0.2 Nymex Jan. Brent Crude ($/Bbl) 109.24 -0.26 -0.2 Ice undefined Gasoil ($/Ton) 920.50 -2.50 -0.3 Ice Jan. Gasoline (c/Gal) 264.20 -0.45 -0.2 Nymex Jan. Natural gas ($/MMBtu) 3.37 -0.01 -0.3 Nymex Jan. Dated Brent ($/Bbl) 108.80 -0.11 -0.1 OTC 21 Days Heating Oil 296.67 -0.01 -- Nymex Jan.

Other markets:

Last %Chg

----- ----- Dollar Index 79.83 -- Gold ($/Oz) 1,717.90 +0.5 MSCI World Index 1,333.75 +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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.