TOP Oil Market News: WTI Crude Rises as Stockpiles Seen Dropping

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

Crude Supply Drops to Five-Month Low in Survey: Energy Markets

U.S. crude supplies probably fell to the lowest level in more than five months as gasoline demand rose in the peak season for driving, a Bloomberg survey showed.

Refiners and Ethanol Companies Spar Over U.S. Biofuels Mandate

The oil industry and ethanol companies are arguing about whether the U.S. should maintain consumption targets as lawmakers prepare to hold hearings on its impact on gasoline prices.

Ethanol Strengthens Against Gasoline as Supplies at Seasonal Low

Ethanol strengthened against gasoline as stockpiles of the biofuel were at a seasonal low and Renewable Identification Numbers, or RINs, rose to a record.

U.S. House Committee to Hold Hearing on Ethanol Law Next Week

The U.S. House of Representatives’ Energy and Commcerce Committee plans to hold hearings on the Renewable Fuels Standard, the law that calls for escalating amounts of ethanol in gasoline, on July 23 and July 24.

PBF Delaware Plant Crude Rail Plan Faces Environmental Challenge

PBF Energy Inc.’s growing rail operation at its Delaware City refinery will face a challenge from environmentalists at a state regulatory hearing tomorrow.

U.K. Regulator Weighs Criminal Probe Into Oil-Price Fixing (2)

A second U.K. agency said it’s considering a criminal probe into oil-price manipulation as European Union officials conduct a civil investigation into industry benchmarks.

Bakken Price Weakens After North Dakota Output Climbs to Record

Bakken crude on the spot market weakened against West Texas Intermediate as North Dakota production from the state’s portion of the field increased to a record in May.

Trafigura Seeks Forties; Vitol Sells Urals at Three-Year High

Trafigura Beheer BV failed to buy North Sea Forties crude at the highest price in more than five months. Vitol Group sold Russian Urals in northwest Europe at the biggest differential to Dated Brent in at least three years.

OPEC

Goldman Sees Risk of Oil Prices Gaining Amid OPEC Supply Losses

Goldman Sachs Group Inc. said price risks for Brent crude in the second half of the year have changed “to the upside” amid production losses in some OPEC nations and political threats to supply.

REFINERIES Map global refinery outages

Retail Gasoline in U.S. Rose Most in 5 Months After Crude Surge

The average price of gasoline at U.S. filling stations rose the most since February as the cost of crude surged above $100 a barrel for the first time since May 2012.

Western Canadian Select Weakens as Supply Issues Narrow Gap

Western Canadian Select heavy crude weakened on the spot market, narrowing the gap between the August and September contracts.

Gasoline Prices in U.S. Rose to $3.639/Gallon, EIA Reports

Average price rose 14.7 cents from July 8, according to U.S. Energy Information Administration’s weekly Gasoline and Diesel Fuel Update report.

Phillips 66 Borger Refinery Reports Process Upset

Borger refinery in Texas not performing planned maintenance, Rich Johnson, Co. spokesman, said by e-mail.

Los Angeles Gasoline Climbs as Valero Refinery Restarts Units

Spot gasoline in Los Angeles gained against futures for the first time in four days as Valero Energy Corp.’s Wilmington refinery recovered from a compressor trip and Chevron Corp.’s El Segundo plant reported flaring.

PDVSA Isla Refinery to Resume Operations Soon, Official Says

Isla Refinery Financial Coordinator for Major Projects Lucas Beaujon comments on PDVSA refinery in e-mailed response to questions today.

Gasoline Falls on Speculation Refineries Operated at 92% Rate

Gasoline fell for the first time in five days with supplies on the Gulf Coast at a record high for this time of year and on speculation that refineries operated at more than 90 percent of capacity for a fourth week.

OTHER OIL MARKET NEWS

Gasoline Tankers Beating Crude for First Time on Record: Freight

Tankers hauling gasoline and diesel are poised to earn more than crude carriers six times their size for the first time on record as the U.S. exports the most refined-oil products in at least two decades.

Fuel Oil Shipments to Asia Remain at 3.8 Million Tons in August

Fuel oil shipments scheduled from western countries to Asia in August were little changed from last week at 3.8 million metric tons, shipping data shows.

Oil Product Shipping Costs to Japan Fall 3.3 %

The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan fell 3.3 percent to 6.47 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

China Growth Slows to 7.5% as 2013 Target Under Threat: Economy

China’s economy slowed for a second quarter as growth in factory output and fixed-asset investment weakened, adding to risks that the government will miss its expansion target as Premier Li Keqiang reins in a credit boom.

Stocks Gain on Earnings Optimism; Treasuries Rise on Retail Data

U.S. stocks rose as better-than- forecast results at Citigroup Inc. fueled optimism in the earnings season. Ten-year Treasuries climbed for the fifth time in six sessions following slower-than-forecast growth in retail sales, while commodity indexes were little changed.

To Rebuild Nuclear Power Japan Must Raze ‘Nuclear Village’: View

The governing coalition led by Japan’s pro-nuclear Liberal Democratic Party is predicted to win a majority in the July 21 Upper House elections.

Sea Levels Increase Two Meters for Each Degree of Global Warming

Sea levels may rise by more than 2 meters (6.6 feet) for each degree Celsius of global warming the planet experiences over the next 2,000 years, according to a study by researchers in five nations.

Shale Skeptics Take On Pickens as Gas Fuels Policies: Energy

Where others see a U.S. energy revolution of cheap and abundant fuel, David Hughes sees a short-term bubble that will bring higher economic and environmental costs.

Forest Oil to Sell Texas Fields That May Fetch $1 Billion (1)

Forest Oil Corp. intends to sell oil and natural gas fields in the Texas Panhandle that may fetch as much as $1 billion, more than the company’s market value.

Argentina Offers Incentives for $1 Billion Energy Projects

Argentina will offer energy companies incentives if they invest $1 billion or more over a five-year period as the country struggles to lift output and pare fuel imports a year after seizing YPF SA.

Musk to Release ‘Hyperloop’ Tube Transport Plans Next Month (1)

Elon Musk, the billionaire chairman and chief executive officer of electric-vehicle maker Tesla Motors Inc., will release designs next month for a system he has said would be capable of whisking people from Los Angeles to San Francisco via a tube.

China Nuclear Protest and Retreat Shows Growing People Power (1)

Protests in a southern Chinese city last week that forced local authorities to abandon plans for a uranium-processing facility highlight the growing willingness of ordinary people to challenge the state on environmental issues.

OTHER MARKETS

Asian Equity Futures Climb After U.S. Gains as Yen Holds Decline

Asian equity futures rose, following U.S. stocks higher after Citigroup Inc.’s better-than-forecast results bolstered optimism for the earnings season. The yen held at a one-week low to the dollar, while crude oil rose a third day.

Yen Drops Versus Dollar on Central-Bank Divergence; Aussie Rises

The yen weakened for a second day against the dollar amid speculation the Federal Reserve will reduce monetary stimulus while the Bank of Japan maintains its bond-buying program, which tends to debase the currency.

Aussie’s Commodity Correlation Breakdown Flags Gains: Currencies

The link between Australia’s dollar and commodities is the weakest since 2008, a sign to bulls that the currency has room to catch up with recent gains in raw material prices after falling 12 percent since April.

U.S. Stocks Rise as Citigroup Earnings Overshadow Retail Sales

U.S. stocks rose, giving the Standard & Poor’s 500 Index its longest winning streak since January, as better-than-estimated earnings at Citigroup Inc. overshadowed a disappointing retail sales report.

Emerging-Market Stocks Advance to One-Month High on Chinese GDP

Emerging-market stocks rose to the highest level in almost a month as China’s economic growth met forecasts and the nation boosted foreign investor access to its markets. Turkey’s lira climbed as the central bank said it may raise interest rates this month to bolster the currency.

Hedge Funds Bought Gold in Biggest Rally Since 2011: Commodities

Hedge funds raised bets on higher gold prices for a second week as comments from Federal Reserve Chairman Ben S. Bernanke damped expectations for an imminent tapering of stimulus. Futures rose the most since 2011.

Copper Falls as Sagging Chinese Economy Fuels Demand Concern

Copper futures fell for the second straight session on concern that demand will ebb after economic growth slowed for the ninth time in 10 quarters in China, the world’s biggest user of industrial metals.

Egypt’s Brotherhood Holds Protests as U.S. Envoy Urges Talks (1)

Supporters of ousted Egyptian President Mohamed Mursi massed at new rallies demanding his reinstatement, ratcheting up the pressure on the military that overthrew him.

Rajoy Says Corruption Allegations Won’t Force Him Out of Office

Mariano Rajoy pledged to complete his term as Spain’s government leader hours after his party’s former treasurer testified that the premier accepted cash payments from 2008 to 2010.

SPORTS

Ex-Anschutz Boss Leiweke Maps Maple Leafs’ Victory Parade (1)

Tim Leiweke, the new chief of Maple Leaf Sports & Entertainment Ltd., is so confident the Toronto Maple Leafs will soon end a 46-year Stanley Cup drought that he’s mapped a victory-parade route for the hockey team.

Liverpool Aims to Convince Suarez to Stay as Arsenal Makes Offer

Liverpool striker Luis Suarez can expect to retain the support of the team’s fans even though he’s agitating for a move a way from the Premier League soccer club, Managing Director Ian Ayre said.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 106.41 +0.09 +0.1 Nymex Aug. Brent Crude ($/Bbl) 109.09 +0.28 +0.3 Ice Aug. Gasoil ($/Ton) 917.00 +0.25 +0.0 Ice Sept. Gasoline (c/Gal) 311.40 +1.11 +0.4 Nymex Aug. Natural gas ($/MMBtu) 3.68 +0.01 +0.2 Nymex Aug. Dated Brent ($/Bbl) 108.65 -0.09 -0.1 OTC 21 Days Heating Oil 303.15 +0.54 +0.2 Nymex Aug. Other markets:

Last %Chg

----- ----- Dollar Index 83.04 +0.1 Gold ($/Oz) 1,283.50 +0.5 MSCI World Index 1,500.94 +0.2 Prices as of 11 p.m. GMT

To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net

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