TOP Oil Market News: Crude Extends Biggest Slide in Three Months

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

WTI Drops a Second Day, Extending Biggest Slide in Three Months

West Texas Intermediate oil dropped for a second day, extending the biggest decline in three months. U.S. crude stockpiles gained for the sixth week in seven, according to the American Petroleum Institute.

China’s Crude, Gasoline, Diesel, Kerosene Inventory (Table)

The following table shows China’s commercial crude, gasoline, diesel and kerosene inventory levels in millions of metric tons, calculated by Bloomberg News from percentage-change data released by China Oil, Gas and Petrochemicals and the official Xinhua News Agency each month. China OGP stopped reporting volumes in July 2010.

China Oil Stockpiles Fall; Diesel Supply at Seven-Month High (1)

China’s commercial crude inventories at the end of January dropped to the lowest level in 10 months and diesel stockpiles climbed to the highest since June as the nation boosted oil processing to a record.

World Powers to Extend New Nuclear Offer to Iran, Diplomat Says

The five United Nations Security Council permanent members and Germany will make a new offer to Iran to resolve the dispute about its nuclear program in talks next week, a Western diplomat said.

Oil Inventories Rose Last Week as Gasoline Supply Fell, API Says

Oil supplies rose 2.96 million barrels to 372.5 million last week, the American Petroleum Institute said.

Ethanol Gains on Gasoline as Prices Tumble Most Since November

Ethanol gained for a second day against gasoline as prices for the motor fuel plunged the most since November and as biofuel producers tempered output.

Gasoline Futures Slide the Most in Three Months as Crude Drops

Gasoline futures fell the most in three months, deepening losses as crude tumbled on speculation that a large commodity hedge fund was forced to liquidate.

New York Gasoline Weakens on Cargoes Set to Add to Stockpiles

Gasoline weakened for the first time in four days in New York as tankers carrying fuel from Europe were set to arrive in the region, adding to supplies.

Natural Gas Supplies Declined Less Than Average, Forecasts Show

Natural gas inventories declined by less than average last week as mild weather reduced demand for the heating fuel, analyst forecasts compiled by Bloomberg show.

Natural Gas Gains for Second Day on Forecasts of Colder Weather

Natural gas futures climbed for a second day in New York on forecasts of below-normal temperatures that would boost demand for the heating fuel.

Natural Gas Futures Fluctuate Amid Forecasts of Colder Weather

Natural gas futures fluctuated in New York amid forecasts of below-normal temperatures that would boost demand for the heating fuel.

Natural Gas Futures Fluctuate Amid Forecasts of Colder Weather

Natural gas futures fluctuated in New York amid forecasts of below-normal temperatures that would boost demand for the heating fuel.

Natural Gas Advances for Second Day on Cold Weather Outlook

Natural gas futures climbed for a second day in New York on forecasts of below-normal temperatures that would boost demand for the heating fuel.

API Snapshot: U.S. Crude-Oil Inventories Rose 2.96 Mln Barrels

The following table is a summary of the latest Weekly Statistical Bulletin from the American Petroleum Institute. *T

OPEC

Highest OPEC Buffer Since 2011 No Brake on Price: Energy Markets

OPEC’s biggest cushion of unused production capacity in two years is doing little to restrain prices, as threats to supplies from Algeria to Iran undermine the confidence that surplus crude usually creates.

Highest OPEC Buffer Since 2011 No Brake on Price: Energy Markets

OPEC’s biggest cushion of unused production capacity in two years is doing little to restrain prices, as threats to supplies from Algeria to Iran undermine the confidence that surplus crude usually creates.

Tanker Rates Gain as Charters Seen Increasing While OPEC Cuts

Rates to charter the largest oil tankers on their busiest trade route gained the most this year as increased bookings curbed the glut of vessels.

REFINERIES Map global refinery outages

Exxon Joliet Plant Has Process Upset, Causing Flaring: Filing

Joliet, Illinois plant flares after process upset in flare stack, according to filing with the U.S. National Response Center.

Bangchak Sees Daily Output of About 105,000-110,000 Bbl in 2013

Co. expects avg. refining margin of $7 a barrel in 2013, it says in statement.

Exxon Plans Baton Rouge Plant Work to Take Higher-Sulfur Crudes

Exxon Mobil Corp. plans to modify sulfur recovery facilities next year at its Baton Rouge refinery in Louisiana to allow the plant to process higher-sulfur crude and gasoil, according to filings with state regulators.

California Gasoline Stocks Fall 2.5% Last Week, State Says

State-blend gasoline supplies dropped to 6.757m bbls in week ended Feb. 15.

HollyFrontier Navajo Refinery Unit Startup Said to Be Delayed

HollyFrontier Corp. has delayed the startup of a fluid catalytic cracker and alkylation unit at the Navajo oil refinery in New Mexico to perform additional repairs, a person familiar with the work said.

Motiva Port Arthur Conducting Planned Work on Catalytic Cracker

Motiva Enterprises LLC shut fluid catalytic cracker at Port Arthur, Texas, refinery for planned maintenance

Phillips 66 Reports Flaring at Wood River Refinery Feb. 19

Phillips 66 flared gases including sulfur dioxide at its Wood River oil refinery at 330 am local time yesterday after a compressor tripped, according to a filing with the Illinois Emergency Management Agency.

Bahrain Refinery Shuts for Planned Maintenance, Al-Watan Reports

The shutdown started on Feb. 14 and will take five weeks, Al-Watan newspaper said, citing a statement from Bahrain Petroleum Co., or Bapco.

BP Has Emissions at Prudhoe Bay Oilfield Plant: NRC Filing

BP has leak of natural gas liquids from a flange during maintenance at Prudhoe Bay Oilfield in Arkansas, according NRC filing.

Gulf Gasoline Extends Longest Winning Streak Since ’02 on Motiva

U.S. Gulf Coast gasoline strengthened for ninth consecutive day, extending its winning streak to the longest since 2002 as Motiva Enterprises LLC was said to shut a unit at its Port Arthur, Texas, plant.

OTHER OIL MARKET NEWS

California Diesel Jumps to Four-Month High as Supplies Decline

Spot diesel in California strengthened to the highest level against futures in more than four months after the state reported stockpiles of the fuel dropped to a six-month low.

Oil Product Shipping Costs to Japan Rise 2.6 %

The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan rose 2.6 percent to 8.85 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons.

New York Gasoline Weakens on Cargoes Set to Add to Stockpiles

Gasoline weakened for the first time in four days in New York as tankers carrying fuel from Europe were set to arrive in the region, adding to supplies.

TOP ENERGY STORIES

WTI Oil Falls Most in Three Months on Fund Selling Speculation

West Texas Intermediate tumbled the most in three months following declines in metals on speculation that a commodity fund is selling positions.

TXU Default Path Emerges in Gas Hedge Decline: Corporate Finance

Contracts tied to natural gas prices that protect KKR & Co.’s Energy Future Holdings Corp. from losses selling electricity are disappearing, paving the way for secured lenders to seize its assets in a potential bankruptcy.

Abe Will Ask Obama for Shale Exports as Japan’s Gas Bill Soars

Japanese Prime Minister Shinzo Abe will ask U.S. President Barack Obama to allow shale gas exports as the world’s third- largest economy grapples with soaring energy costs after 2011’s nuclear disaster closed reactors.

Oil Inventories Climb for Fifth Week in Survey: Energy Markets

U.S. oil supplies probably rose for a fifth week, the longest streak of advances since May, as output climbed to a 20- year high and limits to the Seaway pipeline curbed the flow out of a key storage hub, a Bloomberg survey showed.

Enron-Era Ruling May Yield $1.6 Billion Refund in California (2)

California energy regulators said that a preliminary ruling by a U.S. agency may bring as much as $1.6 billion in refunds for consumers harmed during the state’s electricity crisis more than a decade ago.

BP Witness May Help Halliburton Avoid Blame in Gulf Spill Trial

Halliburton Co. may escape paying billions of dollars in damages for its role in the biggest offshore oil spill in U.S. history thanks to statements by a witness for codefendant BP Plc.

BP Wins Approval to Cut Potential Spill Fine by $3.4 Billion

BP Plc won approval of an agreement for the U.S. government to not count 810,000 barrels of oil captured before they became part of the 2010 Gulf of Mexico spill, reducing the potential maximum fine under the Clean Water Act by $3.4 billion.

Lithium Air Battery Gives IBM Hope of Power Without Fire: Energy

Everyone who’s held a smartphone to the ear or watched a movie with a laptop balanced on their knees knows the devices get hot. Most are unaware the same battery technology is widely used in electric cars and has made few notable advances in a decade.

Woodside Talking With Companies in Canada on Gas Partnership (2)

Woodside Petroleum Ltd., Australia’s second-biggest oil producer, said it’s in talks with companies for a potential partnership to enter Canada’s natural gas industry to tap rising Asian demand.

Chesapeake Absolves CEO in Internal Probe of Gas-Well Loans (2)

Chesapeake Energy Corp. exonerated co-founder and outgoing Chief Executive Officer Aubrey McClendon for privately borrowing hundreds of millions of dollars from some of the company’s biggest financiers.

OTHER MARKETS

Asia Stocks Drop With Commodities on China Property, Fed Minutes

Asian stocks tumbled from an 18- month high and commodities fell as China called for property curbs and Federal Reserve minutes showed policy makers advocating more flexibility in economic stimulus. Gold declined to a seven-month low and South Korea’s won weakened.

Dollar Index Reaches 3-Month High on Recovery Signs; Pound Drops

The Dollar Index rose to a three- month high before the release of U.S. leading indicators and a regional manufacturing gauge that may add to evidence a recovery in the world’s largest economy is gathering pace.

No Panic in Volatility Options as Rhetoric Amplifies: Currencies

As New Zealand joins more than a dozen nations decrying the strength of their currencies, gauges of price swings show no panic in the more than $4 trillion-a-day foreign-exchange market.

Asian Stocks Tumble, Led by China, on Fed, China Tightening Woes

Asian stocks plunged, with a gauge of Chinese companies in Hong Kong erasing the year’s gains, amid concern the Federal Reserve may scale back U.S. economic stimulus and as China ordered increased property curbs.

S&P 500 Retreats Most Since November as Fed Minutes Show Debate

U.S. stocks fell from five-year highs, giving the Standard & Poor’s 500 Index its biggest decline since November, as minutes from the Federal Reserve’s last meeting showed a debate over further stimulus action.

Egypt Wheat Buyer Replaced as Nomani Heralded for Food Stability

Egypt’s ouster of Nomani Nomani as buyer of more than 5 million metric tons of wheat a year on world markets put a spotlight on a role that brought stability to the task of feeding the nation’s 80 million people.

Corn Below $6 Seen as Farmers Plant Most Since 1936: Commodities

From South Dakota to Ohio, farmers are preparing to plant the most corn in almost eight decades after drought ruined record U.S. harvests predicted by the government.

Obama Rated at 3-Year High in U.S. Poll as Republicans at Bottom

President Barack Obama enters the latest budget showdown with Congress with his highest job- approval rating in three years and public support for his economic message, while his Republican opponents’ popularity stands at a record low.

Florida Republican Scott Backs Obama Medicaid Growth in Reversal

Florida Governor Rick Scott supports expanding Medicaid in his state under President Barack Obama’s health-care law, at least while the federal government pays for it, a reversal of the Republican’s previous position.

SPORTS

Del Piero Commits to Second A-League Soccer Season With Sydney

Alessandro Del Piero will stay in Australian soccer’s A- League after the World Cup-winning Italian forward took up the option of a second season with Sydney FC.

AC Milan’s Defense Blunts Barcelona in 2-0 Champions League Win

AC Milan’s defensive effort carried the Italian team to a surprise 2-0 victory against Barcelona in their Champions League soccer round-of-16 opener.

Spain’s Retailers Reboot to Pull Tourists From Shore to Store

Tourists come to Spain for sun and sights. Retailers are working to also put shopping on the map.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 94.51 -0.71 -0.7 Nymex April Brent Crude ($/Bbl) 114.96 -0.64 -0.6 Ice April Gasoil ($/Ton) 984.50 -6.50 -0.7 Ice April Gasoline (c/Gal) 303.40 -2.55 -0.8 Nymex March Natural gas ($/MMBtu) 3.26 -0.02 -0.5 Nymex March Dated Brent ($/Bbl) 115.18 -0.26 -0.2 OTC 21 Days Heating Oil 314.60 -1.03 -0.3 Nymex March Other markets:

Last %Chg

----- ----- Dollar Index 81.15 +0.1 Gold ($/Oz) 1,578.00 -1.6 MSCI World Index 1,403.69 -0.4 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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