TOP Oil Market News: Crude Drops From Highest in Three Months

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

Oil Drops From Highest in Three Months on Signs Gains Excessive

Crude slid for the first time in three days in New York on speculation that this week’s gains were unjustified as the U.S. budget deal is insufficient to ensure growth in the world’s biggest oil-consuming country.

TOP OIL MARKET NEWS

Oil Supplies Fall to Three-Month Low in Survey: Energy Markets

U.S. crude inventories probably declined to a three-month low as refineries bolstered fuel output to meet export demand and to build domestic heating-oil supplies, a Bloomberg survey showed.

Yemen Issues Tender to Sell Masila Crude for March Loading

Yemen issued a tender to sell 2.1 million barrels of Masila crude for loading in March, according to a document obtained by Bloomberg.

Asia Shuts Fewer Crackers in First Half 2013 as Supply Tightens

Asian ethylene producers will shut fewer crackers for maintenance in the first half of this year compared with the same period in 2012 to gain from a forecast decline in Middle East exports of the plastics feedstock.

Seaway Oil Pipeline to Start Service at Full Rates Next Week

Enterprise Products Partners LP and Enbridge Inc. plan to resume service on the 500-mile Seaway oil pipeline at full rates by the end of next week after finishing work that will more than double the line’s capacity.

WTI Crude to Re-Align With Global Markets in 2013: Credit Suisse

Bank’s commodity analysts recommend buying West Texas Intermediate crude contracts or buying time spreads between monthly WTI futures as the market is set to strengthen, e-mailed report says.

Credit Suisse Cuts WTI Oil 2013 Forecast to $102.75/B From $106

Bank issues commodity price forecast changes in e-mailed report.

Essar Said to Offer Vacuum Gasoil Cargo for Loading in January

Essar Oil Ltd., operator of India’s second-largest refinery, offered to sell 65,000 metric tons of vacuum gasoil for loading in January, said two traders who asked not to be identified because the information is confidential.

Natural Gas Drops Most in 5 Weeks on Forecasts of Warmer Weather

Natural gas futures in New York tumbled the most in five weeks on forecasts of moderating temperatures that may reduce demand for the power-plant fuel.

REFINERIES Map global refinery outages

Bharat Petroleum Restarts Kochi Refinery Crude Unit After Work

Bharat Petroleum Corp., India’s second-biggest state refiner, restarted a crude distillation unit at its Kochi plant late last month after completing planned maintenance work, according to two company officials.

Gulf Coast Gasoline Advances on Process Upsets, Alon Big Spring

Gasoline gained on the U.S. Gulf Coast after a process upset at Phillips 66’s Borger refinery and as a unit of Alon USA Energy Inc.’s Big Spring plant is shut for repair.

Motiva Said to Plan Restart of Port Arthur Crude Unit Tomorrow

Motiva Enterprises LLC once again will try to restart the 325,000-barrel-a-day crude unit at its Port Arthur, Texas, refinery tomorrow, a person familiar with operations said.

Exxon Mobil Reports Emissions From Baytown Facility in Texas

Exxon Mobil Corp. reported emissions after a flow loss of flexicoker fractionator bottoms at its Baytown facility in Texas, according to a filing with state regulators.

Alon USA Shuts Fluid Catalytic Unit at Big Springs Refinery

Alon USA Energy Inc. was shutting down a fluid catalytic cracker at its Big Spring, Texas, oil refinery to repair a leak at the unit, according to a filing with the Texas Commission on Environmental Quality.

Motiva’s Port Arthur, Texas, Refinery Has Emissions Release

Motiva Enterprises LLC’s Port Arthur, Texas, refinery released hydrogen sulfide, nitrogen oxides and sulfur dioxide when a wet-gas compressor on the delayed coking unit shut down unexpectedly.

Phillips 66 Releases Sulfur Dioxide Gas at Illinois Refinery

Phillips 66 released sulfur dioxide gas at an oil refinery, according to a filing with the Illinois Emergency Management Agency.

OTHER OIL MARKET NEWS

Ghana Adds One Jubilee Crude Cargo to January Loading Program

Ghana will ship one more cargo of Jubilee crude in January, bringing total exports for this month to four, according to a revised loading program obtained by Bloomberg News.

Singapore Residue Fuel Stockpiles Fall to Lowest in Three Months

Residual-fuel inventories in Singapore, Asia’s largest oil- trading and storage center, fell 3.3 percent to the lowest in three months, according to a unit of the Ministry of Trade and Industry.

Asia Naphtha Crack Rebounds; Vitol Sells Gasoline: Oil Products

Asia’s naphtha crack spread rose for the first time in four days, signaling increased profit for refiners. Vitol Group sold gasoline and fuel oil in Singapore, the region’s biggest oil- trading center.

U.S. West Coast Gasoline Weakens After Increase in Inventories

Spot gasoline on the U.S. West Coast weakened after supplies in the region increased.

Crude Official Selling Prices and Formulas by Country (Table)

The following table shows official prices, formulas and relative values for crudes from the Middle East, Africa and the Americas. Figures represent outright prices in dollars a barrel, or premiums and discounts to regional benchmarks where plus and minus symbols appear.

Indonesia Raises Minas December Crude Price to $109.01 a Barrel

Indonesia raised the official selling price of its Minas crude for December by 0.7 percent to $109.01, according to a document from the country’s Directorate General of Oil and Gas, at the Ministry of Energy and Mineral Resources, obtained by Bloomberg News.

TOP ENERGY STORIES

Buffett Utility Buys SunPower Projects in $2.5 Billion Bet (2)

Warren Buffett’s MidAmerican Energy Holdings Co. agreed to spend as much as $2.5 billion to build two solar projects in California that are set to be the world’s largest photovoltaic development.

How the Jones Act Blocks Natural Disaster Relief: View (Correct)

To get gasoline flowing in the New York area after Hurricane Sandy, President Barack Obama temporarily suspended the Jones Act, a statutory relic of the post-World War I era that bars foreign ships from carrying freight between U.S. ports.

KKR’s Energy Future Bolsters Unregulated Unit: Corporate Finance

Derivatives traders have cut the perceived default risk by almost half at Energy Future Holdings Corp.’s unregulated unit as the Texas electricity producer signals it may keep the division out of bankruptcy this year.

Coast Guard Effort to Save Shell Oil Rig Hampered by Weather (1)

The U.S. Coast Guard and Royal Dutch Shell Plc were fighting 70 mile-per-hour winds and 40-foot swells as they tried to assess damage to a floating oil drilling ship that ran aground on a remote Alaskan island.

Buffett Like Icahn Reaping Tank Car Boom From Shale Oil: Freight

Warren Buffett and Carl Icahn are reaping the benefits of surging demand for railroad tank cars to haul shale oil from beyond the reach of existing pipelines.

Chavez Cancer Imperils $7 Billion Caribbean Oil Funding: Energy

Venezuelan President Hugo Chavez’s battle with cancer threatens $7 billion of subsidized oil exports that help prop up Cuba’s economy and contain inflation in Caribbean nations from Jamaica to the Bahamas.

Bumi Resources Swings to $632M Loss on Derivative Trades (2)

PT Bumi Resources, the coal company at the heart of a dispute between Indonesia’s Bakrie Group and Nathaniel Rothschild, swung to a loss in the first nine months after a $422 million charge on derivatives transactions.

Tax Turmoil Sends H&R Block Swaps Off Cliff: Corporate Finance

The risk of owning H&R Block Inc. debt is the lowest in more than two years as the tax preparer gets ready to help customers navigate changes resulting from Congress’s effort to avert more than $600 billion in tax increases and spending cuts.

OTHER MARKETS

U.S. Stock-Index Futures Fall as Yen Gains; Natural Gas Drops

Futures on the Standard & Poor’s 500 Index fell after the gauge rallied the most in a year yesterday and stocks in the euro area retreated as speculation increased the U.S. budget deal won’t reduce the deficit fast enough. The yen strengthened and natural gas declined.

Dollar Advances to 3-Week High Versus Euro on Debt-Limit Concern

The dollar rose to its strongest level in almost three weeks against the euro on speculation U.S. policy makers will struggle to reach agreement on raising the nation’s debt limit, underpinning demand for the safest assets.

Koruna Tops Worst Lists as Intervention Threatened: Currencies

The Czech central bank’s threat to weaken the koruna by intervening in foreign-exchange markets for the first time since 2002 is increasingly being seen as credible by the world’s biggest currency trading firms.

Euro-Area Stocks Slip on U.S. Deficit Concern; Swiss Shares Jump

Euro-area stocks declined from a 17- month high amid concern a budget deal will fail to reduce the U.S. government’s fiscal deficit. Swiss shares rallied after the New Year holiday, U.S. index futures fell and Asian shares outside Japan advanced.

Europe Volatility Sinks Most Since 2009 as Stocks Rally: Options

The cost of options protecting against European stock losses slid the most since 2009 last year as the central bank’s commitment to stimulus helped drive the region’s equities to a 19-month high in December.

Dust Bowl Wilting U.S. Wheat as Funds Turn Bearish: Commodities

The worst U.S. drought since the 1930s Dust Bowl is damaging wheat crops across the world’s biggest supplier, at a time when hedge funds are the most bearish on prices in seven months.

Gold Declines on U.S. Budget-Deal ‘Hangover’ as Dollar Rallies

Gold fell in London with stocks and oil after reaching a two-week high yesterday and as a stronger dollar curbed demand for bullion as an alternative investment.

Chavez Foes Call for Ailing Venezuelan President to Cede Powers

Venezuela’s opposition said cancer- stricken President Hugo Chavez is unable to fulfill his duties and that the government should temporarily hand his full powers over to Vice President Nicolas Maduro.

SPORTS

Louisville Upsets Florida 33-23 in College Football’s Sugar Bowl

Teddy Bridgewater threw two touchdown passes as the University of Louisville upset the third-ranked University of Florida 33-23 in college football’s Sugar Bowl.

Nets Down Thunder for Third Win in Four Under Carlesimo in NBA

Joe Johnson scored 33 points to lead the Brooklyn Nets to a 110-93 victory over the Oklahoma City Thunder.

Lewis Says He’ll Retire at End of Baltimore Ravens’ Season (1)

Ray Lewis, the Baltimore Ravens’ seven-time National Football League All-Pro linebacker, announced that he will retire at the end of the postseason.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 92.53 -0.59 -0.6 Nymex Feb. Brent Crude ($/Bbl) 111.87 -0.60 -0.5 ICE Feb. Gasoil ($/Ton) 937.00 -6.50 -0.7 ICE Feb. Gasoline (c/Gal) 278.74 -0.77 -0.3 Nymex Feb. Natural gas ($/MMBtu) 3.22 -0.02 -0.5 Nymex Feb. Dated Brent ($/Bbl) 111.97 -0.35 -0.3 OTC 21 Days Heating Oil 302.25 -2.38 -0.8 Nymex Feb.

Other markets:

Last %Chg

----- ----- Dollar Index 80.10 +0.3 Gold ($/Oz) 1,688.80 +0.8 MSCI World Index 1,365.01 -0.2

Prices as of 12 p.m. London time

To contact the editor responsible for this story: Steve Voss in London at sev@bloomberg.net

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