TOP Oil Market News: WTI Gains as U.S. Manufacturing Strengthens

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

WTI Crude Gains a Second Day as U.S. Manufacturing Strengthens

West Texas Intermediate crude rose for a second day and is poised for a weekly advance after manufacturing accelerated last month in the U.S., signaling increased demand in the world’s biggest oil consumer.

Crude Premium Rises to 2013 High in Asia on Iraq: Energy Markets

Traders in Asia are paying the biggest premium for the earliest deliveries of Middle East crude this year amid speculation Iraq’s plan to curb exports of its flagship oil grade will squeeze supplies.

Libya’s Head of Oil Security Resigns, Deputy Minister Says

Colonel Ali Ahrash, the head of security for oil and gas infrastructure, has resigned, Deputy Oil Minister Omar Shakmak said today in Washington.

Ethanol’s Discount to Gasoline Widens on Cheaper Output Costs

Ethanol’s discount to gasoline widened as cheaper corn reduced production costs.

Crude May Gain on Signs of Accelerating Economy, Survey Shows

West Texas Intermediate crude will probably advance next week on signs that economic growth will accelerate, bolstering fuel demand, a Bloomberg survey showed.

Gulf Coast Gasoline Rises to 3-Week High on Galveston Bay Upset

U.S. Gulf Coast gasoline strengthened to the narrowest discount to futures in three weeks after Marathon Petroleum Corp. reported a unit upset at its Galveston Bay refinery in Texas.

Asia’s Naphtha Crack Set to Widen Most in 11 Weeks: Oil Products

Asia naphtha’s discount to Brent crude is poised to widen by the most in 11 weeks. Fuel oil’s viscosity spread is set to increase for second week.

Shell Shuts Sections of Ho-Ho Pipeline to Finish Reversal

Shell said it shut Ho-Ho pipeline from segments for complete Phase 2 of reversal project, according to a statement from the co.

Plutonium Purged at the World’s Most Dangerous Workplace: Energy

Before entering the shuttered plutonium finishing plant at the Hanford site, Jerry Long hangs his identification badge on a board outside the entrance, so rescue crews can easily figure out who’s inside, should it come to that.

U.S. Awards $22.5 Million to Groups Developing Algae Biofuels

The U.S. Energy Department awarded about $22.5 million in grants to companies and researchers seeking to produce fuel from algae and other types of biomass.

Natural Gas Drops to Five-Month Low as Outlook for Supply Gain

Natural gas futures fell for the third time this week before government data that may show a larger-than-usual increase in U.S. stockpiles.

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 to Cut Exports by Most in Seven Months, Oil Movements Says

The Organization of Petroleum Exporting Countries will curb shipments by the most in seven months as refiners begin seasonal maintenance while summer demand for driving fuel ebbs, tanker-tracker Oil Movements said.

REFINERIES Map global refinery outages

TOP Oil Market: WTI Trades Near 2-Week High as Economy Improves

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

Los Angeles Diesel Gains to Three-Week High After Supplies Slide

Spot diesel in Los Angeles advanced to the highest level against futures in more than three weeks after stockpiles of the fuel tumbled to the lowest level for this time of year since 2006.

Valero Says Vote on Benicia Rail Project May Affect Schedule

Project still “a good, important project, and it’s worth taking the time to do it well,” Bill Day, Co. spokesman, said by e-mail today.

Valero Benicia Rail Project Vote Delayed to at Least September

Planning commission for city of Benicia, California, cancels Aug. 8 meeting, according to e- mailed notice from city.

Alaska Oil Production in July Averaged 497,342 Barrels a Day

July crude output in Alaska North Slope was down 239 b/d from a month earlier, Alaska Department of Revenue website shows.

Marathon Galveston Bay Refinery Reports No. 1 FCC Ammonia Leak

Refinery reported emissions at No. 1 fluid catalytic cracker due to loss of ammonia, Co. says in notice to state regulators.

Magellan Says on Earnings Call It Has No Exposure to 2013 RINs

Magellan purchased 2013 renewable identification numbers (RINs) in 2012 and early 2013, Co. executives said during earnings call with investors

Marathon Galveston Bay Refinery Reports FCC Upset

Marathon’s Galveston Bay refinery reported that fluid catalytic cracker No. 3 experienced a unit upset due to a blower trip, according to a filing with the Texas Commission on Environmental Quality.

CNPC to Take 30% Interest in Ecuador Refinery, PDVSA Says

Chinese co. to take minority interest in 300,000 barrel/day refinery and pay at least 30% of total investments, PDVSA President and Venezuelan Oil Minister Rafael Ramirez said late yday.

CVR ‘Significantly Impacted’ by RFS as Merchant Refiner

Co. expects to spend at least $200 million in 2013 on Renewable Identification Numbers, or RINs, used to meet federal Renewable Fuel Standard, Jack Lipinski, Co.’s president, CEO, says in conference call with analysts.

OTHER OIL MARKET NEWS

Oil Product Shipping Costs to Japan Fall 36.2 %

The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan fell 36.2 percent to 6.69 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons.

Trafigura Buys Forties Crude; BP Bids Azeri at Three-Year High

Trafigura Beheer BV bought North Sea Forties crude at the highest differential in almost seven months. No bids or offers were made for Russian Urals. BP Plc sought without success to buy Azeri Light blend at the biggest premium to Dated Brent in at least three years.

Saudi Arabia to Japan Tanker Rates 34.07 Points

The cost of delivering Middle East crude to Asia, the world’s busiest route for supertankers, declined 0.3 percent to 34.07 Worldscale points, according to the Baltic Exchange in London.

Indonesia Raises Minas Crude Price to $104.44 a Barrel for July

Indonesia raised the official selling price of its Minas crude for July to $104.44 a barrel, according to a notice from SKKMigas, the country’s oil and gas regulator, obtained by Bloomberg News.

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

Stocks Beat Bonds by Most Since January as Crude Oil Climbs (3)

Global stocks rose in July, beating bonds and the dollar by the most since at least January, while commodities had the best returns in 11 months as corporate profits topped analysts’ estimates and investors reversed bets on when the Federal Reserve will reduce stimulus.

Exxon Misses Estimates by Most Since 2002 as Refining Sinks (2)

Exxon Mobil Corp., the world’s biggest energy company by market value, trailed analysts’ profit estimates by the most in more than a decade as returns from its fuel-making business plunged.

Europe’s Hot Spell to Persist in August After July Heatwave (2)

Europe is facing warmer-than-usual weather for a second month after temperatures soared in a July heatwave, boosting power prices in the region’s biggest market.

TransCanada to Proceed With $12 Billion Pipe to East Coast (3)

TransCanada Corp., the country’s second-biggest pipeline operator, plans to go ahead with a C$12 billion ($11.6 billion) pipeline that will ship oil from Western Canada to the East Coast.

Shell Profit Misses Estimates by Most Since ’08 on Nigeria, U.S.

Royal Dutch Shell Plc missed earnings estimates by the most since 2008 after oil theft in Nigeria and writedowns in North America led to a 20 percent slump in results. The shares fell the most in two years.

Duke Energy Halts Plan for Florida Reactors in Settlement (1)

Duke Energy Corp. will halt plans to build a new nuclear plant in Florida and seek to recover as much as $1.47 billion in costs associated with a shuttered reactor in the state under a settlement with regulatory staff.

Conoco Increases Output Forecast as Profit Beats Estimates (3)

ConocoPhillips, the largest independent U.S. oil and natural gas producer, raised its full- year production forecast as it reported second-quarter profit that surpassed analysts’ estimates.

Chesapeake Quarterly Profit Beats Estimates on Production (3)

Chesapeake Energy Corp., the U.S. natural gas producer that hired a new chief executive officer in June, reported quarterly profit that beat analysts’ estimates as production exceeded expectations.

OTHER MARKETS

Asian Stocks Advance With Oil on Global Outlook as Gold Sinks

Asian stocks rose, paring the first weekly loss since June, and oil climbed to a two-week high on signs of improvement in the global economy. Malaysia’s ringgit led regional currencies lower, while gold fell for a sixth day.

Dollar Set for Weekly Gain on Fed Taper Prospects; Aussie Slides

The dollar headed for weekly gains against all its major peers as improvements in the U.S. economy added to the case for the Federal Reserve to slow the pace of bond purchases which tend to debase the currency.

Yuan Weakness Seen in Shunned All-or-Nothing Notes: Currencies

Investors turning bearish on China are fleeing structured notes tied to the yuan, showing waning confidence that the world’s second-largest economy will reverse a slowdown anytime soon.

Asian Stocks Rise on Global Economic Outlook, Stimulus Pledges

Asian stocks rose, paring the regional benchmark index’s first weekly drop since June, as global manufacturing reports beat forecasts and central banks vowed to maintain stimulus.

Wall Street Firms Back Removing Exchanges’ Legal Protections (1)

The government should strip U.S. stock exchanges of the legal status that protects them from most lawsuits, a trade group for brokers said.

Baguette Hopes Fade for Some French Farmers on Low-Protein Wheat

Sylvain Bardin, steering his red harvester across a ripe grain field in central France, says the wheat he’s gathered won’t make it into baguettes.

Gold Bears Dominant Again as U.S. Growth Quickens: Commodities

Gold traders are bearish for the first time in six weeks as accelerating U.S. economic growth and weaker sales of physical bullion curbed demand for the metal.

Snowden’s Asylum in Moscow Puts Obama-Putin Summit in Question

Edward Snowden received a year’s asylum in Russia that ended his 39-day stay in a Moscow airport, prompting U.S. President Barack Obama to weigh cancellation of a planned summit next month with Russian President Vladimir Putin.

Kerry Sees an End to U.S. Drone Strikes During Visit to Pakistan

Secretary of State John Kerry said in Pakistan that President Barack Obama intends to put an end soon to drone strikes aimed at suspected terrorists, a covert program that has fueled hostility toward the U.S.

SPORTS

Callaway Golf at Bargain Seen Driving Takeover Appeal: Real M&A

Callaway Golf Co. is offering suitors a bargain deal for the designer of golf clubs that helped Phil Mickelson win this year’s British Open.

Inbee Park Trails by Three in Women’s British Open Slam Bid (1)

Inbee Park is three shots behind co- leaders Morgan Pressel of the U.S. and Camilla Lennarth of Sweden at the Women’s British Open, where the South Korean is trying to become the only golfer to win four major professional championships in the same calendar year.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 108.29 +0.40 +0.4 Nymex Sept. Brent Crude ($/Bbl) 109.88 +0.34 +0.3 Ice September Gasoil ($/Ton) 934.75 +6.00 +0.6 Ice Sept. Gasoline (c/Gal) 302.59 -0.25 -0.1 Nymex Sept. Natural gas ($/MMBtu) 3.37 -0.02 -0.6 Nymex Sept. Dated Brent ($/Bbl) 109.72 +0.39 +0.4 OTC 21 Days Heating Oil 310.36 +0.70 +0.2 Nymex Sept. Other markets:

Last %Chg

----- ----- Dollar Index 82.36 -- Gold ($/Oz) 1,311.20 -0.1 MSCI World Index 1,527.60 +0.2

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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