TOP Oil Market News: WTI Drops After Biggest Rally in Six Months

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

WTI Drops to Pare Weekly Gain After Biggest Rally in Six Months

West Texas Intermediate crude fell, paring a weekly advance, as traders awaited U.S. jobs data that may signal the economic recovery is accelerating.

Northeast Gas Poised to Surge on Pipeline Limits: Energy Markets

Natural gas prices in the U.S. Northeast are poised to reach five-year seasonal highs this summer as increasing demand from power plants may outstrip the ability of pipelines to deliver enough fuel.

Crude May Fall Next Week on U.S. Inventory Gain, Survey Shows

West Texas Intermediate oil may decline next week after U.S. crude inventories reached an 82- year high amid signs of economic slowdown in the U.S. and China, a Bloomberg survey showed.

Naphtha East-West Gap Narrows; Gasoil Crack Widens: Oil Products

Naphtha’s East-West spread is at the narrowest in almost three weeks. Asia gasoil’s premium to Dubai crude rises to the widest in a week.

Pertamina Buys 1.2 Million Barrels of Saharan Blend Oil for July

PT Pertamina, Indonesia’s state-owned oil company, purchased two 600,000 barrel shipments of Saharan Blend crude for delivery in July to its Balikpapan and Cilacap refineries, according to a company official.

Methanex Gaining as Methanol Use in Fuel Grows: Corporate Canada

Methanex Corp., the world’s largest methanol supplier, is forecast by analysts to climb beyond last month’s record price as demand rises for the chemical as a fuel source in countries such as China.

Keystone Foes Plan Worst Insisting Obama Find a Pipeline Offset

President Barack Obama is being pressed by opponents of the Keystone XL pipeline to tie any approval to measures that would curb climate change, reflecting mounting pressure on the administration to mitigate the project’s impact if it goes forward.

Cnooc Raises $4 Billion in Biggest Asian Dollar Bond Since 2003

Cnooc Ltd., China’s largest offshore energy explorer, sold $4 billion of bonds in the biggest dollar- denominated offering from Asia outside of Japan in more than nine years.

Fusion Scientists Seeing Breakthrough Where Obama Shows No Arbor

Chris Bishop paces as he beams the world’s biggest laser at a peppercorn-sized fuel pellet, a crucial step toward fusing hydrogen atoms to replicate the explosive power of the sun, stars and thermonuclear weapons.

U.S. Energy Department Natural Gas Update for May 2 (Text)

Following is the text of the weekly natural gas update as released by the U. S. Department of Energy in Washington, D.C.:

Natural Gas Drops for Third Day on Forecasts for Mild Weather

Natural gas futures slipped for a third day in New York on forecasts for moderating temperatures that would reduce demand for the heating and power-plant fuel.

Natural Gas Climbs on Forecasts for Below-Average Supply Gain

Natural gas futures advanced in New York as analysts predicted government data would show a smaller- than-normal gain in stockpiles of the heating fuel, expanding a supply deficit.

Glencore Said to Hire Two Xstrata Executives as Managers Depart

Glencore Xstrata Plc hired two former Xstrata Plc executives as division heads amid the departure of a number of senior managers as it completed the takeover of the coal exporter, a person familiar with the matter said.

Gasoil Stockpiles Fall in Europe’s Oil-Trading Hub, PJK Says

Gasoil stockpiles in independent storage fell in Europe’s Amsterdam-Rotterdam-Antwerp oil-trading hub, according to PJK International BV.

OPEC

OPEC Exports Seen Stable Amid ‘Glum’ Demand, Oil Movements Says

The Organization of Petroleum Exporting Countries will keep shipments little changed this month as “glum” demand in the U.S. and Europe counters rising consumption in Asia, tanker tracker Oil Movements said.

REFINERIES Map global refinery outages

Edmonton Refinery Work Causing Western Canada Gasoline Pinch (1)

Suncor Energy Inc.’s unexpected shutdown of gasoline production units at the Edmonton, Alberta, refinery is causing a fuel shortage at some gas stations in Western Canada.

Los Angeles Gasoline Rises to 10-Week High on Planned Exxon Shut

Spot gasoline in Los Angeles surged to a 10-week high against futures as Exxon Mobil Corp.’s Torrance refinery prepared to shut units for maintenance and Valero Energy Corp.’s Wilmington plant had an upset at its fluid catalytic cracker.

Canadian Crudes Weaken as Output Rises After Spring Maintenance

Canadian crudes weakened on the spot market as Alberta output began to rise after seasonal maintenance that temporarily reduced production.

PBF to Export 20,000 to 25,000 Barrels a Day From East Coast

PBF Energy Inc. exported 1.8m bbls of middle distillate fuel in Q1, company said on earnings call with investors today.

Valero Benicia Rail Unloading Will Operate by End of 2013

Valero Energy Corp. will be able to unload crude delivered by trains at its Benicia refinery in Northern California by the end of 2013.

Valero Quebec Plant Will Have Rail Unloading Capability by July

Valero Energy Corp.’s Quebec City refinery will have the ability to unload 30,000 to 50,000 barrels of crude a day by rail in July, Bill Klesse, the company’s chief executive officer, said after the company’s annual meeting in San Antonio.

Valero’s Klesse Says Little Industry Interest in Freedom Line

Valero Energy CEO Bill Klesse said there is “not a lot of industry interest at the moment” for Kinder Morgan Energy Partners’ proposed Freedom crude pipeline.

Exxon Torrance Refinery to Shut Units Starting Tomorrow

Some units to shut for planned maintenance that’s expected to last “several weeks,” Gesuina Paras, Exxon Mobil Corp. spokeswoman, said by e-mail.

OTHER OIL MARKET NEWS

WTI-Brent 16-Month Low Pits Goldman Against BofA: Energy Markets

The collapse in the price difference between the world’s two most-traded crude oil grades is fulfilling a prediction Goldman Sachs Group Inc. has held for more than a year. Bank of America Corp. says it won’t last.

Oil-Tanker Rates Climb as Demand to Book Vessels Seen Gaining

Charter rates for the largest oil tankers hauling Middle East crude to Asia extended gains for a fourth session amid speculation that demand to book the vessels strengthened.

TOP ENERGY STORIES

Natural Gas Tumbles Most in Nine Months After Stockpile Increase

Natural gas futures dropped the most in nine months in New York after a government report showed that U.S. stockpiles expanded by more than forecast.

Buffett Disciple Donville Weighs Energy Stocks: Corporate Canada

Jason Donville, whose fund has outperformed Canadian stocks for five years using Warren Buffett’s value investing strategy, is eyeing Pulse Seismic Inc., Total Energy Services Inc. and other energy stocks after the recent resources rout.

Shell Earnings Beat Analyst Estimates as Voser to Stand Down (2)

Royal Dutch Shell Plc, Europe’s biggest oil company, reported a surprise increase in first- quarter profit and Chief Executive Officer Peter Voser said he will stand down next year.

Crude Gains Most in Six Months on Jobless Data as ECB Cuts Rate

West Texas Intermediate crude gained the most in almost six months as the number of Americans filing applications for unemployment benefits slipped and the European Central Bank reduced interest rates to a record low.

Keystone-Like Fight Looms in Enbridge’s Plan to Double Oil Flow

A new front may soon open in the battle over pipelines that transport Canadian oil to the U.S.

JPMorgan Energy Traders May Face FERC Case, New York Times Says

JPMorgan Chase & Co. was warned by U.S. energy-market authorities that they may take action against its employees as part of an inquiry into bidding practices, the New York Times said, citing a document it obtained.

PacificLight to Start LNG-Fueled Singapore Plant in November (1)

PacificLight Power Pte Ltd. said its 800 megawatt Jurong Island power plant, the first in Singapore to be completely fueled by liquefied natural gas, will be fully operational by November.

Geodynamics Seeks Partners After Origin Energy Exits Venture (1)

Geodynamics Ltd., an explorer seeking to produce power from hot underground rocks, is starting a search for new partners to develop its project in central Australia after Origin Energy Ltd. decided to pull out.

Energy Billionaire Kaiser Exploiting Charity Loophole With Boats

When Oklahoma energy billionaire George Kaiser opened the Northeast Gateway liquid natural gas terminal in 2008, the floating depot’s first delivery was shipped on the Excellence, a 909-foot supertanker that holds 138,000 cubic meters of LNG -- enough gas to meet more than 4 percent of daily U.S. demand.

Namibia Well May Revive Skeleton Coast Drilling After Failures

HRT Participacoes em Petroleo SA is expecting results this week from a well in offshore Namibia that may revive interest in oil exploration in the southwest African nation after two failures last year.

OTHER MARKETS

Metals Climb With Asian Stocks Before Jobs Data; Dollar Weakens

Copper led metals higher and Asian stocks gained for the first time in three days as investors awaited the release of U.S. jobs data and Macquarie Group Ltd.’s earnings beat estimates. The dollar weakened.

Dollar Snaps Biggest Advance in 2 Weeks Versus Euro Before Jobs

The dollar snapped its biggest advance against the euro in two weeks before the U.S. releases April jobs data after the previous report disappointed with employers adding the fewest positions in nine months.

Policy U-Turn Spurred by Worst Sol Decline Since ’09: Currencies

Policy makers in Peru, South America’s fastest-growing economy, are signaling an end to efforts to weaken the sol as falling commodities and speculation the government will seek more control over natural resources stoke the currency’s biggest rout since 2009.

Asian Stocks Rise on Bank Profit, Europe Rate Cut, U.S. Jobs

Asian stocks climbed as profit at Australian bank Macquarie Group Ltd. rose, U.S. jobless claims fell to the lowest in five years and the European Central Bank cut interest rates to a record low.

Australian Banks Beat Mining Stocks by Record: Chart of the Day

The combined value of Australia’s financial stocks surged to the highest on record relative to mining companies, leaving raw-material producers with the smallest proportion of the market’s capitalization in a decade.

Elliott Tells Clients Money-Losing Gold Still Best Value Store

Gold remains the best store of value in an uncertain global economy, Elliott Management Corp. told clients even as the $21.8 billion hedge-fund firm founded by Paul Singer lost money on its bullion position this year.

Gold Traders Most Bearish in Three Years After Drop: Commodities

Gold traders are the most bearish in three years after investors sold a record amount of metal held in exchange-traded products and prices tumbled in a bear market.

Obama Says Curbed Access Won’t Alter U.S.-Mexico Security Ties

President Barack Obama said the U.S. will keep up its close cooperation with Mexico in battling drug trafficking and organized crime even as Mexican President Enrique Pena Nieto limits access by U.S. security agencies.

Deng Xiaoping’s Duke Law Alumnus Grandson Named County Official

The grandson of late Chinese leader Deng Xiaoping, a Duke University law school graduate who later worked for U.S. law firm White & Case LLP, was named deputy head of a county in southern China, the People’s Daily website said.

SPORTS

Chelsea Beats Basel, Will Face Benfica in Europa League Final

Chelsea moved within a victory of a European trophy for the second straight year after it beat Basel 3-1 to reach to the Europa League soccer final against Benfica.

Chelsea Advances to Europa League Soccer Final Against Benfica

Chelsea and Benfica both won 3-1 at home to advance to the final of soccer’s Europa League.

Calls to Rename Rio’s Olympic Stadium Following Bribe Scandal

Protesters are pushing for a name change at the stadium hosting track and field events at the 2016 Olympics in Rio de Janeiro after soccer’s governing body said the man for whom the facility is named took bribes.

ENERGY PRICES

Energy Prices:

Last Chg %Chg Exch Contract

---- ---- ---- ---- --------

WTI Crude ($/Bbl) 93.69 -0.30 -0.3 Nymex June Brent Crude ($/Bbl) 102.61 -0.24 -0.2 Ice June Gasoil ($/Ton) 848.50 +9.75 +1.2 Ice June Gasoline (c/Gal) 277.34 -0.72 -0.3 Nymex June Natural gas ($/MMBtu) 4.02 -- 0.0 Nymex June Dated Brent ($/Bbl) 102.27 -0.23 -0.2 OTC 21 Days Heating Oil 285.00 -0.55 -0.2 Nymex June Other markets:

Last %Chg

----- ----- Dollar Index 82.19 -- Gold ($/Oz) 1,467.60 +1.5 MSCI World Index 1,469.67 -- 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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