TOP Oil Market News: WTI Crude to Two-Year High on Syria Concern

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

WTI Crude Rises to Two-Year High on Syria; SocGen Sees $150 Risk

West Texas Intermediate crude surged to the highest price since May 2011 on concern that conflict in Syria may spread and threaten oil supplies from the Middle East.

Gas Price Jump Seen in Record Europe Stockpiling: Energy Markets

Europe’s utilities are replenishing natural gas reserves at the fastest pace on record, risking a surge in prices as the region’s winter heating season looms.

Brent Crude May Spike to $150 on Syria Spillover, SocGen Says

Brent crude may “spike briefly” to $150 a barrel if a U.S.-led attack on Syria sparks further conflict in the Middle East and leads to supply disruptions, Societe Generale SA said in a report e-mailed today.

Asia Fuel Oil Crack at Two-Year Low, Gasoil Rises: Oil Products

Asia fuel oil falls to largest discount to Dubai crude in more than two years, indicating wider losses from producing the residual product. Gasoil crack rises.

Oil Inventories Rose 2.47 Million Barrels Last Week, API Reports

Oil supplies rose 2.47 million barrels last week, the American Petroleum Institute said.

CNPC’s Jilin, Liaohe Oil Fields Halt on Worst Floods Since 1998

295 oil wells in Jilin field halt production as of Aug. 7 as floods hit northeast China, co. says in newsletter posted on website.

Petronas Said to Sell October Tapis at $7.50 to $7.80 Premium

Petroliam Nasional Bhd., the Malaysian state oil company known as Petronas, sold 300,000 barrels of Tapis crude for Oct. 10 to Oct. 20 loading at $7.50 to $7.80 a barrel above Dated Brent, said two people who participate in the market.

Engen Petroleum Said to Buy Reliance’s Gasoil at $5.30 Premium

South Africa’s Engen Petroleum Ltd. bought 35,000 metric tons of gasoil for September loading from Reliance Industries Ltd., owner of the world’s largest refining complex, said two traders who asked not to be identified because the information is confidential.

Petters, Detroit, Capmark, AMR, Lehman, Rotech: Bankruptcy (1)

General Electric Capital Corp. temporarily defeated eight of nine fraud claims in a $1 billion lawsuit brought by creditors of hedge funds swindled by the Thomas Petters, the architect of the third-largest Ponzi scheme in U.S. history.

REFINERIES Map global refinery outages

Syncrude Coker 8-1 Restarts After Planned Maintenance

Unit is back in operation, Co. said in statement distributed by Marketwired.

Crude Supply Rises First Week in Four in Survey: Energy Markets

U.S. crude supplies probably rose for the first time in four weeks after refineries reduced operating rates as the end of the peak-driving season approached, a Bloomberg survey showed.

Shell Scotford Refinery Conducting Planned Maintenance

No material impact to production from unspecified maintenance at the Shell Scotford refinery in Alberta, Co. says in community hotline message.

Delek Tyler Refinery Said to Shut Unit for October Maintenance

Delek US Holdings Inc. plans to shut an alkylation unit at the Tyler, Texas, refinery for maintenance in October, a person familiar with operations said.

N.Y. Gasoline Snaps Rally as Northeast Plant Restarts FCC Unit

New York Harbor gasoline fell from the strongest level in six months as a refinery in the U.S. Northeast restarted a unit following a shutdown.

Crude Supply Rises First Week in Four in Survey: Energy Markets

U.S. crude supplies probably rose for the first time in four weeks after refineries reduced operating rates as the end of the peak-driving season approached, a Bloomberg survey showed.

Tesoro Says Operations Normal at Golden Eagle After Planned Work

Co. said N. California refinery operating normally, according to spokeswoman Tina Barbee.

N.Y. Gasoline Snaps Rally as Northeast Plant Restarts FCC Unit

New York Harbor gasoline fell from the strongest level in six months as a refinery in the U.S. Northeast restarted a unit following a shutdown.

Motiva Says Convent Refinery Operating as Planned After Fire

Co. said refinery operating as planned after an Aug. 19 fire in one of the refinery’s process units.

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

European Jet Fuel Imports Rise to Three-Month High in August (1)

Jet fuel shipments to Europe from the Middle East and Asia are poised to rebound to a three-month high as buyers replenish inventories after stockpiles dropped to a five-year seasonal low.

TOP ENERGY STORIES

Stocks Fall as Oil Reaches 18-Month High on Syria, Gold Rallies

Stocks slid the most since June and oil surged to an 18-month high amid concern the U.S. will take military action against Syria. Treasuries, the yen and gold rose while Turkey’s lira and India’s rupee reached record lows.

U.S. Said to Weigh Legal Justification for Attack on Syria (1)

The Obama administration is constructing the legal and political justification for a limited military strike on Syria that would demonstrate international censure against chemical weapons, according to a U.S. official.

Entergy to Close Vermont’s Only Nuclear Plant on Low Prices (3)

Entergy Corp. will permanently shut its Vermont Yankee nuclear power plant in 2014 after battling for years with state officials to keep the 41-year-old reactor in service.

Fuel Fraud Costing Europe More Than $4 Billion in Lost Taxes (2)

The watchman at Germany’s largest oil refinery, the MiRO plant in Karlsruhe, would wait until a fellow security guard was out of sight before sending a text message that it was safe to drive a 10,000-liter tanker of stolen diesel out the gates.

Tepco ‘Whack-a-Mole’ Means Government Takeover in Fukushima (1)

Japan’s government will lead “emergency measures” to tackle radioactive water spills at the wrecked Fukushima nuclear plant, wresting control of the disaster recovery from the plant’s heavily criticized operator, Tokyo Electric Power Co.

U.S. Moving With Allies Closer to Military Strike on Syria (1)

The U.S., France and Britain are moving closer to retaliatory military action against Syria, laying out the justification, putting forces into place and rounding up allies in the region.

Syria Vows Defiance as U.K. Parliament Recalled Over Chemicals

Syria vowed defiance as Britain’s Parliament was recalled to discuss possible military action over an alleged chemical attack near Damascus and Defense Secretary Chuck Hagel said U.S. forces are “ready to go.”

China Widens Anti-Graft Drive as PetroChina Ousts Managers (2)

China widened its anti-corruption campaign to include the nation’s biggest company by market value, as PetroChina Co. said four senior managers had been removed amid an investigation by authorities.

Petrobras Downgrade to Junk Seen in Default Swaps: Brazil Credit

Petroleo Brasileiro SA is being treated like junk by derivatives traders as the most-leveraged major oil producer goes deeper into debt to finance its record $237 billion spending spree.

Tepco Must Plan for 132 Olympic Pools of Fukushima Water: Energy

Tokyo Electric Power Co. has accumulated the largest pool of radioactive water in the history of nuclear accidents. The utility must now decide what to do with it: dump in the ocean, evaporate into the air, or both.

OTHER MARKETS

Asian Stocks Drop While Crude Climbs on Syria as Rupee Slumps

Asian stocks dropped for a second day, credit risk climbed and oil rose on concern the U.S. will take military action against Syria. India’s rupee sank to a record and government bonds in Australia advanced.

Yen Holds Biggest Gains in 2 1/2 Months as Syria Tension Mounts

The yen held its biggest gains in 2 1/2 months against the dollar and euro as traders sought haven investments amid escalating tension in Syria.

Yen’s Rising Correlation With Stocks Undermines Abe: Currencies

The strongest link in four decades between Japan’s currency and stocks signals gains for the yen that threaten Prime Minister Shinzo Abe’s attempt to eliminate deflation.

Asian Stocks Head for Two-Month Low as Syria Tensions Escalate

Asian stocks slumped, with the regional benchmark index heading for the lowest close in two months, on concern the U.S. will take military action against Syria for using chemical weapons.

Hyundai to Hynix Top Asia Buying as HSBC Bullish: Korea Markets

South Korean stocks have gone from Asia’s most-hated equities to the favorites of international investors after valuations fell to a six-year low versus global shares and exports rebounded.

Potash King Becomes Hostage as Belarus Pokes Putin: Commodities

As Belarus television showed the Russian head of OAO Uralkali, the world’s biggest potash producer, being led around the courtyard of an undisclosed prison, Anatoly Lebedko knew exactly where it was: Amerikanka.

Silver Futures Climb Above $25 as Gold Gains on Syria Concerns

Silver for December delivery extends advance, climbing as much as 1.4% to $25.045/oz, highest for most-active contract since April 15.

Vietnam Rises as Middle Power at Defense Summit: Southeast Asia

U.S. Defense Secretary Chuck Hagel meets his Vietnamese counterpart Phung Quang Thanh in Brunei today, as the competition for oil, fish and influence puts Vietnam in focus as an emerging middle power in Southeast Asia.

Tomahawk Missile Launches Likely in a U.S.-Led Attack on Syria

Tomahawk cruise missiles are likely to be launched at night against hundreds of Syrian targets, including some of President Bashar al-Assad’s elite military units, if the U.S. and allies launch a military strike in retaliation for the use of chemical weapons.

SPORTS

Liverpool Survives in League Cup as Bristol City Upsets Palace

Liverpool and Hull needed extra time to defeat lower-division teams in the second round of the League Cup, while Fulham advanced in a penalty shootout and Crystal Palace was upset.

Arsenal Secures 16th Straight Champions League Group Stage Berth

Arsenal defeated Fenerbahce 2-0 to reach the group stage of soccer’s Champions League for the 16th consecutive season.

Arsenal Beats Fenerbahce to Reach Champions League Group Stage

Arsenal defeated Fenerbahce 2-0 to advance to the group stage of soccer’s Champions League.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 111.67 +2.66 +2.4 Nymex Oct. Brent Crude ($/Bbl) 116.75 +2.39 +2.1 Ice October Gasoil ($/Ton) 977.00 +14.00 +1.5 Ice Oct. Gasoline (c/Gal) 309.21 +5.80 +1.9 Nymex Sept. Natural gas ($/MMBtu) 3.58 +0.04 +1.2 Nymex Sept. Dated Brent ($/Bbl) 117.72 +1.45 +1.3 OTC 21 Days Heating Oil 320.54 +4.45 +1.4 Nymex Sept. Other markets:

Last %Chg

----- ----- Dollar Index 81.25 +0.1 Gold ($/Oz) 1,420.20 +1.9 MSCI World Index 1,480.44 -0.3

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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