TOP Oil Market News: WTI Advances as U.S. Crude Stockpiles Drop

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

Crude Advances as U.S. Inventories Decline More Than Expected

West Texas Intermediate crude gained after a government report showed U.S. inventories decreased more than expected as refineries boosted fuel production.

U.S. Crude Output 1.2% Last Week to Highest Since December 1990

Output rose by 89,000 b/d in the seven days ended July 12, the Energy Information Administration said. * U.S. pumped 7.49m b/d last week NOTE: Fracking and horizontal drilling boosted output from shale formations including the Bakken in North Dakota and the Eagle Ford in Texas. The U.S. met 89% of its own energy needs in March, the highest monthly rate since April 1986.

Currency to Oil Rates Targeted for Tougher Rules After Libor (3)

Benchmarks underpinning markets from oil to currencies face tougher oversight under plans by global regulators to prevent any repeat of Libor-style fraud.

Gasoline Declines as U.S. Inventories Climb Amid Lower Demand

Gasoline retreated from a four-month high as U.S. inventories increased unexpectedly and demand for the motor fuel declined.

U.S. Refinery Demand Rises With Output at Highest Since 1990 (1)

U.S. refineries used the most crude in almost eight years last week, draining supplies for the third straight time, even as domestic production rose to the highest level since 1990 and imports increased.

U.S. Ethanol Stockpiles Increase Most This Year in EIA Report

Ethanol inventories in the U.S. increased the most since November, an Energy Information Administration report showed today.

Quebec Disaster Sparks Debate on Costly Rail Safety Measures

A runaway oil train that killed scores of people when it slammed into a Quebec town is bringing renewed calls on both sides of the U.S.-Canada border for tougher safety rules for railroads.

Vitol, Eni Sell CPC Blend; HPCL Buys Qua Iboe Crude From Vitol

No bids or offers were made for North Sea Forties and Russian Urals crudes. Vitol Group and Eni SpA sold CPC Blend at a smaller premium than yesterday’s bid.

Ethanol Slips Against Gasoline as Stockpiles Rise Most This Year

Ethanol tumbled against gasoline after a government report showed stockpiles of the biofuel climbed the most in eight months and demand dropped. Renewable Identification Numbers surged to a record.

U.S. DOE Weekly Petroleum Status Report for July 12 (Text)

Following is the text of the weekly Petroleum Status Report from the U.S. Department of Energy:

Gasoline Declines After Report Shows Inventories Rose Last Week

Gasoline slipped from a four-month high after an industry-funded report that U.S. supplies of the motor fuel increased last week.

OPEC

Citigroup Boost for Iraqi Bond Amplified by UN Vote: Arab Credit

Citigroup Inc.’s decision to open in Iraq and the easing of United Nations sanctions dating back to the Saddam Hussein era are driving yields on the OPEC oil producer’s bonds down from a four-year high.

Saudi Arabia Lifts May Crude Exports to 11-Month High, JODI Says

Saudi Arabia, world’s largest crude exporter, shipped 7.79 million barrels a day in May, the highest level since June last year when it sold 7.84 million barrels, according to the Joint Organizations Data Initiative.

REFINERIES Map global refinery outages

California-Blend Gasoline Supplies Dropped 7% Last Week

California-blend gasoline, or Carbob, inventories fell 7% to 5.11m bbls in week ended July 12, down from 5.5m bbls a week earlier, state Energy Commission said on website.

Syncrude Said to Cut July, August Output by 1.1 Million Barrels

The Syncrude oil-sands project in Alberta cut its production forecast for July and August by a total 1.1 million barrels, according to two people familiar with the matter.

Canadian Crudes Gain as U.S. Refinery Demand Hits 8-Year High

Canadian crudes strengthened on the spot market as U.S. refinery demand hit an eight-year high and supplies fell for the third straight week.

BP Buys Jet Cargoes; ICE Gasoil at 3-Month High: Oil Products

Vitol sells four jet fuel cargoes to BP. Gasoil futures rise to the highest level in more than 3 months on ICE.

Union Official Freites Says Cardon Lubricants Plant Restarted

PDVSA restarts operations at the Cardon refinery lubricants plant, union official Ivan Freites says in an interview.

Statoil Buys Gasoline; ICE Gasoil Crack Widens: Oil Products

European gasoline trades near the highest in more than 3 months as Statoil buys barges. Gasoil’s crack widens to the most in more than 4 months.

Total to Resume Feyzin Refinery’s Naphtha Cracker After Upset

Feyzin refinery in France had steam cracker disruption yesterday, co. official says by phone, declining to be identified, citing co. policy.

Indian Oil Shuts FCC at Gujarat Oil Refinery After July 16 Fire

Co. begins restart process at fluid catalytic cracker at plant in western India after temporary shutdown, spokeswoman Anjali Bhave says by phone today.

Flint Hills Starts Corpus Christi Recyle Compressor: NRC Filing

Co. flares from hydrocracker in Texas after loss of compressor, according to a filing with the U.S. National Response Center.

Los Angeles Gasoline Weakens as Valero Units Reach Full Rates

Spot gasoline in Los Angeles weakened against futures after Valero Energy Corp.’s Southern California refinery returned its fluid catalytic cracker and alkylation unit to full rates following a shutdown last weekend.

OTHER OIL MARKET NEWS

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

Saudi Arabia to Japan Tanker Rates 40.43 Points

The cost of delivering Middle East crude to Asia, the world’s busiest route for supertankers, declined 2.8 percent to 40.43 Worldscale points, according to the Baltic Exchange in London.

Vitol Said to Sell Nigerian Crude to HPCL at $2.50 to $3 Premium

Vitol Group sold 2 million barrels of Nigerian crude for September loading to Hindustan Petroleum Corp., India’s third-largest state refiner, said two traders who asked not to be identified because the information is confidential.

Crude Official Selling Prices and Formulas by Country (Table)

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

TOP ENERGY STORIES

Dollar Erases Gain as Treasuries, S&P 500 Futures Rise on Fed

The dollar erased early gains and Treasuries rose after Federal Reserve Chairman Ben S. Bernanke said there is no preset course for the central bank’s asset purchases, tempering speculation the Fed was planning to taper its stimulus. U.S. stock futures and European shares advanced.

Barclays, Traders Fined $487.9 Million by U.S. Energy Regulator

Barclays Plc and four of its former traders must pay a combined $487.9 million in fines and penalties, the U.S. Federal Energy Regulatory Commission said in a final order stemming from its investigation of alleged manipulation of energy markets.

Tornadoes Inflate Nebraska Nuke Plant’s Bond Risk: Muni Credit

The risk of floods and tornadoes is preventing investors in $1.8 billion of bonds of Nebraska’s biggest electricity provider from participating in the best year since 2008 for municipal debt of U.S. power companies.

Interior Chief Uses Industry Know-How to Defend Fracking Rules

U.S. Interior Secretary Sally Jewell drew on her experience as a former oil-industry engineer to defend proposed federal regulation of hydraulic fracturing for oil and gas on publicly owned land.

Chevron $1.24 Billion Deal Leads YPF Post-Repsol Shale Hunt (4)

Chevron Corp., the world’s second- biggest oil company, signed the first agreement with Argentina’s government since it nationalized YPF SA in 2012 to help develop shale oil and natural gas in Vaca Muerta.

U.S. Gulf Oil Profits Lure $16 Billion More Rigs by 2015: Energy

The deep-water Gulf of Mexico, shut down after BP Plc’s record oil spill in 2010, has rebounded to become the fastest growing offshore market in the world.

LNG Price-Swing Risk Seen as Threat to Futures: Energy Markets

Asia’s ambitions to start the world’s first liquefied natural gas futures markets are threatening to backfire amid concern that speculators will exacerbate the price swings that contracts are meant to prevent.

Temasek Racing Exxon to Build Biggest LNG Stash: Southeast Asia

A Temasek Holdings Pte unit is up against Exxon Mobil Corp. and Royal Dutch Shell Plc in a contest to fill storage that will hold three times as much liquefied natural gas as Singapore will consume this year.

OTHER MARKETS

Asian Stock Futures Rise on Bernanke Testimony as Copper Climbs

Asian stock futures rallied, signaling equities in the region will follow U.S. indexes higher after Federal Reserve Chairman Ben S. Bernanke allayed concern the U.S. is planning to curb stimulus. The dollar held gains against most major currencies and copper futures rose.

Emerging-Market Currencies Climb After Bernanke; Dollar Advances

Mexico’s peso and Brazil’s real led a rally in emerging-market assets against the dollar as Federal Reserve Chairman Ben S. Bernanke signaled the U.S. economy still needs stimulus, boosting demand for higher-yielding securities.

Fed’s Messages Raise Volatility in Threat to Profits: Currencies

The Federal Reserve’s mixed messages on monetary policy are stoking volatility in the $4 trillion-a- day currency market, raising the odds that companies will have a harder time setting up exchange-rate hedges designed to protect overseas earnings.

U.S. Stocks Rise as Bernanke Says Data Will Determine Stimulus

U.S. stocks rose, after the Standard & Poor’s 500 Index snapped an eight-day rally yesterday, as Federal Reserve Chairman Ben S. Bernanke said the central bank’s asset purchases are not on a preset course.

European Stocks Gain on Bernanke Testimony as BHP Billiton Rises

European stocks rose, rebounding from their biggest drop in more than a week, as Federal Reserve Chairman Ben S. Bernanke said that the pace of the recovery will determine when the central bank reduces its asset purchases.

Wells Fargo Overtakes JPMorgan as Financing Expands: Commodities

Wells Fargo & Co. overtook JPMorgan Chase & Co. as the biggest lender to commodities companies in the second quarter, as total financing rose to the highest level since 2011 after a record loan to Glencore Xstrata Plc.

Gold Drops Most in a Week as Dollar Rebounds on Bernanke Signals

Gold futures fell the most in more than a week after the dollar rebounded, curbing demand for the metal as an alternative investment.

Egypt Divisions Cemented as Mursi Opponents Target Islamists

To Mahmoud Sayed, Mohamed Mursi’s election as Egypt’s president a year ago was an opportunity he’d wanted for years: a chance to grow a beard as a sign of his faith. Islamists, he figured, wouldn’t be persecuted as they had under former president Hosni Mubarak.

Abe Set for Japan Election Win Faces LDP Dissent as Biggest Risk

Japanese Prime Minister Shinzo Abe is set to win control of both houses of parliament, giving his Liberal Democratic Party-led coalition the strongest grip on power since 2007. Winning the election will be the easy part.

SPORTS

Tiger Woods Signs Fourth Golf Endorsement Contract With Nike

Tiger Woods signed a new endorsement agreement with Nike Inc., his fourth with the world’s largest sporting-goods company.

Queensland Wins Eighth Straight State of Origin Rugby Series

Queensland beat New South Wales 12- 10 last night to win a record-extending eighth straight State of Origin rugby league series.

R&A to Examine All-Male Golf Clubs Following British Open

The Royal and Ancient Golf Club, which governs the sport outside the U.S. and Mexico, will study the issue of all-male clubs after questions about Muirfield hosting this year’s British Open.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 106.43 -0.05 0.0 Nymex Aug. Brent Crude ($/Bbl) 108.61 +0.47 +0.4 Ice Sept. Gasoil ($/Ton) 924.00 +4.25 +0.5 Ice Sept. Gasoline (c/Gal) 310.65 -0.36 -0.1 Nymex Aug. Natural gas ($/MMBtu) 3.62 -- -0.1 Nymex Aug. Dated Brent ($/Bbl) 109.31 +0.73 +0.7 OTC 21 Days Heating Oil 307.90 +0.78 +0.3 Nymex Aug. Other markets:

Last %Chg

----- ----- Dollar Index 82.71 +0.3 Gold ($/Oz) 1,278.80 -1.0 MSCI World Index 1,503.38 +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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