TOP Oil Market News: U.S. Crude Stockpiles Forecast to Decline

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

WTI Oil Fluctuates as U.S. Crude, Fuel Stockpiles Seen Declining

West Texas Intermediate swung between gains and losses after data showed crude and fuel stockpiles shrank in the U.S., the world’s largest oil consumer, and China’s manufacturing slowed in July.

Glencore Fuel Spree With BP Ends Amid Contango: Energy Markets

Traders in Asia are getting the biggest discount this year for the earliest deliveries of fuel oil following the end of an unprecedented buying spree by Glencore Xstrata Plc, BP Plc and PetroChina Co.

Crude Supplies Dropped 1.44 Million Barrels Last Week, API Says

U.S. crude supplies dropped 1.44 million barrels last week, the American Petroleum Institute reported.

Saudi Aramco Oil Push Seen Raising Rig Count to Record This Year

Saudi Arabian Oil Co., the world’s largest crude exporter, is set to add more drilling rigs than expected this year and hire more in 2014 as new fields are drilled to counter dwindling output from aging deposits.

Total Nears Sri Lanka Study Contract for Deepwater Oilfields

Total SA, Europe’s third-largest oil company, may win a contract from the Sri Lankan government in a month to study the prospect of oil and natural gas deposits deep off the island’s fabled white-sand beaches.

Ethanol Drops Against Gasoline as Margins May Boost Production

Ethanol’s discount to gasoline reached the widest level in three months on speculation higher profit margins to make the fuel will boost production.

PV Oil Offers Bunga Orkid, Kekwa Crude Cargoes for September

PV Oil Co., Vietnam’s state-owned oil-marketing company, is offering to sell 300,000 barrels each of Bunga Orkid and Bunga Kekwa crude for September loading, according to a tender document obtained by Bloomberg News.

Asia Gasoil Backwardation Steepest in Three Weeks: Oil Products

Asia gasoil’s front-month backwardation, or premium to second-month prices, is the steepest in almost three weeks. Naphtha’s discount to Brent crude falls from the widest level in two weeks.

OPEC

Iraq Oil Exports Fall for Second Month on Attacks, Weather (1)

Iraq’s crude exports and oil revenue declined in June for the second month because of bad weather at the country’s ports and attacks on northern pipelines, the oil ministry said.

REFINERIES Map global refinery outages

Cosmo Oil Restarts No. 2 Crude Unit at Chiba Refinery in Japan

Co. restarts No. 2 crude distillation unit at Chiba refinery today, Kana Sakata, Cosmo spokeswoman, says by phone.

Irving-Bound Tanker Carrying WTI Returned to Texas, Records Show

A tanker scheduled to ship West Texas Intermediate oil to Canada for Irving Oil Corp. returned to Texas last week, according to a bill of lading.

Valero Says No Units Shut at Houston Refinery

Refinery in Texas has no maintenance planned or under way, Bill Day, Co. spokesman, said by e-mail.

Tesoro Gains Port Approval for Vancouver Oil-by-Rail Project (1)

Tesoro Corp.’s proposal to build a 120,000-barrel-a-day crude-by-rail complex at the Port of Vancouver in Washington received approval from the port’s board of commissioners today.

Crude Supplies Drop to Six-Month Low in Survey: Energy Markets

U.S. crude supplies probably fell to a six-month low as refiners used more oil to meet demand for gasoline, a Bloomberg survey showed.

Los Angeles Gasoline Strengthens Amid Flaring as Contract Rolls

California-blend gasoline on the spot market in Los Angeles strengthened against futures as a Southern California refinery planned to flare gases and the fuel began trading against the less-expensive September contract.

Valero Houston Refinery Reports Flaring on Community Hotline

A situation at the Valero Houston refinery has made flaring necessary, according to a message left on a community hotline

Crude Supplies Drop to Six-Month Low in Survey: Energy Markets

U.S. crude supplies probably fell to a six-month low as refiners used more oil to meet demand for gasoline, a Bloomberg survey showed.

OTHER OIL MARKET NEWS

Asia to Cut West African Crude Imports to 13-Month Low in August

Asian refiners will reduce imports of West African crude for loading in August to the lowest in 13 months because of a wider spread between benchmarks Brent and Dubai grades amid refinery maintenance.

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

Morgan Stanley Oil Tankers Raise Market Power Concern at Hearing

Morgan Stanley’s involvement in an oil tanker business, petroleum transportation service and crude markets raised concerns at a Senate hearing today that the owner of the world’s largest brokerage wields too much market power.

TOP ENERGY STORIES

Foster’s Solar-Skinned Buildings Signal Market Tripling: Energy

From stadiums in Brazil to a bank headquarters in Britain, architects led by Norman Foster are integrating solar cells into the skin of buildings, helping the market for the technology triple within two years.

Crude Rises on China Pledge to Maintain Growth as Dollar Weakens

West Texas Intermediate crude rose as China’s premier pledged to defend the country’s growth rate and as the dollar weakened against the euro.

Suncor Rebounds as Alberta Heavy Oil Doubles: Corporate Canada

Suncor Energy Inc. and other Canadian oil stocks have risen almost twice as much as global competitors after the country’s crude rose to a one-year high on optimism that pipeline bottlenecks are easing.

U.K. Stocks Retreat for Third Day as Tullow Oil, EasyJet Decline

U.K. stocks fell for a third day as declines in Tullow Oil Plc and EasyJet Plc outweighed comments by China’s Premier Li Keqiang that the world’s second-largest economy will grow by at least 7 percent.

Peabody Jumps on Surprise Profit, Lower Mining Cost Forecast (1)

Peabody Energy Corp., the largest U.S. coal producer, rose the most in more than a week after reporting a surprise profit and forecasting lower mining costs.

Industrial Alliance Targets C$500 Million Deal: Corporate Canada

Industrial Alliance Insurance and Financial Services Inc., the best-performing Canadian insurer in the past year, plans to acquire a money manager in what would be the company’s biggest takeover.

Sweden Caves to European Power Market Rout as Asset Sales Loom

Sweden signaled it may be readying the non-Nordic units of Vattenfall AB for divestment as the utility writes down $4.6 billion after its expansion into Germany and the Netherlands backfired.

Canadian Natural to Buy Barrick Energy Assets for $217 Million

Canadian Natural Resources Ltd., the nation’s third largest oil and gas producer by market value, will buy energy assets from Barrick Gold Corp. for about C$223 million ($217 million) to acquire production in Alberta.

China Coal-Fired Economy Dying of Thirst as Mines Lack Water (1)

At first glance, Daliuta in northern China appears to have a river running through it. A closer look reveals the stretch of water in the center is a pond, dammed at both ends. Beyond the barriers, the Wulanmulun’s bed is dry.

OTHER MARKETS

Asian Stocks Fall With Aussie After China PMI Data; Copper Drops

Asian stocks fell for the first time in three days, while Australia’s dollar and copper slid, as a contraction in Chinese manufacturing worsened. Indian stocks declined and swap rates surged after the central bank tightened access to cash.

Dollar Near One-Month Low Versus Euro; Aussie, Yen Drop on China

The dollar traded 0.3 percent from a one-month low versus the euro as weaker U.S. economic indicators bolstered the argument for the Federal Reserve to delay a reduction to its bond-buying program.

Humans Beating Robots Most Since ’08 as Trends Shift: Currencies

Humans are proving more adept than computers in reacting to the Federal Reserve’s mixed messages on when policy makers will reduce their unprecedented stimulus.

Asian Stocks Decline as Preliminary China PMI Misses Estimates

Asian stocks fell, with the regional benchmark index retreating from a two-month high, after a private survey showed China’s manufacturing contracting at a faster-than-estimated pace.

S&P 500 Declines as Investors Weigh Earnings, Fed Stimulus Pace

The Standard & Poor’s 500 Index fell, halting a streak of four straight gains, as investors weighed corporate earnings amid speculation on when the Federal Reserve may scale back its asset purchases.

Fed Draws Fire for Oversight of Bank-Owned Commodity Operations

The Federal Reserve faces new pressure to explain why it lets banks trade raw materials and control supplies after congressional witnesses said regulators can’t really grasp what lenders are doing in industrial businesses.

Gold Swings Near 1-Month High as Investors Assess Fed Stimulus

Gold fluctuated after advancing to the highest level in a month as investors weighed the U.S. Federal Reserve’s next move on monetary stimulus against the prospects for demand amid higher prices.

China Bans New Government Buildings in Five-Year Crackdown (1)

China banned government departments, Communist Party agencies and state-owned companies from constructing new office buildings for five years as the country seeks to cut wasteful spending.

Delhi Assaults on Women Rise as Verdict Due in Fatal Rape Case

The gang rape and subsequent death of a young medical student seven months ago united India in outrage and brought promises from the country’s leaders to curb attacks on women. That hasn’t made New Delhi any safer.

SPORTS

Mom of Golf Prodigy Pummeled in a Hazing Death Defied by FratPAC

Harrison Kowiak was 19 years old when he died after schoolmates pummeled him on a pitch-black field in Hickory, North Carolina. It was part of a fraternity hazing.

Juventus Out-Earns Winner Bayern in Soccer’s Champions League

Juventus out-earned European Cup winner Bayern Munich in last season’s Champions League because of the Italian soccer team’s income from broadcasters.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 107.10 -0.13 -0.1 Nymex Sept. Brent Crude ($/Bbl) 108.20 -0.22 -0.2 Ice September Gasoil ($/Ton) 919.75 -1.25 -0.1 Ice Sept. Gasoline (c/Gal) 307.50 +1.59 +0.5 Nymex Aug. Natural gas ($/MMBtu) 3.74 -- -0.1 Nymex Aug. Dated Brent ($/Bbl) 109.48 -0.23 -0.2 OTC 21 Days Heating Oil 306.61 -0.32 -0.1 Nymex Aug. Other markets:

Last %Chg

----- ----- Dollar Index 82.16 +0.3 Gold ($/Oz) 1,335.20 -0.2 MSCI World Index 1,519.14 -- 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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