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TOP Oil Market News: WTI Crude Declines for a Third Day

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

WTI Drops for Third Day as Obama Seeks Approval on Syria Strike

West Texas Intermediate crude fell for a third day after President Barack Obama said he’ll seek authorization from Congress before ordering military action against Syria, easing concern that an imminent strike would disrupt Middle East oil exports.

Obama Seeks Congress Approval Before Syria Military Strike (3)

President Barack Obama slowed his march toward war, saying he’ll seek authorization from Congress before ordering a military strike against Syria for using chemical weapons.

Hedge Funds Add Bullish Oil Bets on Syria Threat: Energy Markets

Hedge funds raised bullish oil bets for the first time in five weeks on speculation the U.S. will attack Syria after saying the Middle East country’s use of chemical weapons killed more than 1,400 people.

Asia Gasoil Premium Rises, Naphtha Crack Narrows: Oil Products

Asia gasoil’s premium to Dubai crude rises to highest in more than a week, indicating increased profit from producing diesel. Naphtha crack narrows.

ONGC, MRPL Said to Sell September Naphtha at $20 to $22 Premium

Oil & Natural Gas Corp. and one its units, Mangalore Refinery & Petrochemicals Ltd., sold naphtha cargoes for September loading at $20 to $22 a metric ton more than Middle East benchmark prices, said two traders who asked not to be identified because the information is confidential.

Petronas Sets Aug. Tapis Crude Official Price at $116.95/bbl

Malaysian state oil co. raises light sweet grade by $3.50, or 3.1%, to six-month high, according to prices in e-mailed statement today.

India’s MRPL Offers Oil Products for Loading From New Mangalore

Mangalore Refinery & Petrochemicals Ltd. is offering to sell oil products including naphtha, jet fuel and fuel oil for loading from New Mangalore, according to tender information obtained by Bloomberg.

Pacific Tropical Storm Kiko Weakening to Depression, Center Says

Kiko continues to weaken near Mexico’s Baja California, according to U.S. National Hurricane Center advisory at about 8 p.m. Pacific time yesterday.

REFINERIES Map global refinery outages

Chennai Petroleum to Shut Crude Unit for Maintenance End-Sept.

56,000 b/d crude distillation unit to be closed for about a month, Managing Director A.S. Basu says in phone interview today.

CVR Partners Has Emissions at Coffeyville Plant: NRC Filing

Amonia was released from flare at facility in Coffeyville, Kansas, after a malfunction, according to a filing with the National Response Center.

Phillips 66 Wood River Refinery Released Gas From Water Tower

Phillips 66 released gas, including benzene, from a water tower at its Wood River refinery in Illinois on Aug. 29.

Dow Chemical Reports Possible Flaring at Fort Saskatchewan Plant

Dow Chemical Co. reported planned maintenance may have caused “low-level flaring” yesterday and Aug. 30 until work is complete at its Fort Saskatchewan plant in Alberta, Canada, according to a message left on a community hot line.

Iran Abadan Oil Refinery Runs Normally After Petchems Fire: Fars

Iran fighting fire at Abadan petrochemical plant, state-run Fars news agency reports, without giving details on impact on plant’s operations or possible casualties.

Chicago Gasoline Premium Swells to 11-Week High on Shutdown Unit

The premium for Chicago gasoline rose to the highest level in more than 11 weeks after the second-largest refinery in the U.S. Midwest shut a unit.

Flint Hills Corpus Christi West Shuts Gasoil Hydrotreater

Flint Hills Corpus Christi West refinery had vapor leak on heat exchanger in the gasoil hydrotreater, according to filing with Texas Environmental Quality

Vitol Sells Jet Fuel; Shell Starts Work at Pernis: Oil Products

Vitol sells two jet fuel cargoes in Europe for total of six lots this week. Diesel cargoes trade in northwest Europe and Mediterranean.

Italy’s Milazzo Oil Refinery Halted Compressor for Maintenance

Refinery in Sicily halted compressor after a problem caused flaring on Aug. 28, says joint venture co. official who declined to be identified citing policy.

Shell Starts Maintenance at Pernis, Europe’s Biggest Refinery

Royal Dutch Shell Plc started maintenance works at its Pernis refinery in Rotterdam, the largest in Europe, the company said on its website.

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.

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 U.S. dollars a barrel, or premiums and discounts to regional benchmarks where plus and minus symbols appear.

TOP ENERGY STORIES

Asian Stocks Climb With Copper on China Data as Syria Sinks Oil

Asian stocks rose for a third day, copper gained and the Australian dollar strengthened as Chinese manufacturing expanded. U.S. stock-index futures advanced and crude fell as prospects of an imminent strike on Syria faded.

Gold Bulls Increase Wagers to Highest Since January: Commodities

Hedge funds and other speculators are making the biggest bet on a gold rally since January as mounting signs that the U.S. will lead a military strike against Syria drove prices to a three-month high.

Rupee Derailing $1.6 Billion Wind Farm Revival: Corporate India

The rupee’s biggest plunge in 20 years is endangering the recovery of India’s $1.6 billion wind power industry as higher finance and import costs negate benefits from a government subsidy restored last month.

INDIA DAYBOOK: Manufacturing PMI, Reliance, Wind Power, Gasoline

India HSBC-Markit manufacturing PMI for August scheduled to be released today.

Egypt’s State Oil Companies Seeking to Restructure Foreign Debts

Egyptian state-owned energy companies are negotiating new terms and repayment schedules for debts owed to foreign partners, Oil Minister Sherif Ismail said, as the country tries to boost output amid political turmoil.

China Solar Makers See Return of Profits as Margins, Demand Rise

China’s top solar-panel makers are returning to profitability following two years of losses, after surging Asian demand drove up margins in the second quarter.

Sinopec to Acquire $3.1 Billion Stake in Apache Egypt Assets (4)

China Petrochemical Corp., Asia’s largest refiner, agreed to pay $3.1 billion for a 33 percent stake in Apache Corp.’s Egyptian oil and gas business, marking the state-owned company’s biggest purchase in the Middle East.

Egypt’s State Oil Cos Seek to Restructure Foreign Debts: Ismail

Egyptian state-owned oil cos discussing new schedule, terms for repayments of unspecified debts to foreign partners, Oil Ministry says in e-mailed statement citing Minister Sherif Ismail.

Kansai Electric to Shut Ohi No. 3 Reactor Today as Planned

Co. will start shutting down 1,180- megawatt No. 3 reactor at Ohi nuclear plant before 5 p.m. today as planned for regular maintenance, spokesman Yoshihiro Yamamoto says by phone.

Rosneft to Lose About $20m in Event of Oil Supply Cut to Belarus

Rosneft will “suffer the most” if oil-pipeline monopoly Transneft cuts supplies to Belarus refineries, Igor Sechin, chairman of Rosneft, tells reporters in Vladivostok, far east Russia.

OTHER MARKETS

Asian Stocks Climb With Copper on China Data as Syria Sinks Oil

Asian stocks rose for a third day, copper gained and the Australian dollar strengthened as Chinese manufacturing expanded. U.S. stock-index futures advanced and crude fell as prospects of an imminent strike on Syria faded.

Yen Weakens Versus Peers as Abe Gets Tax Backing; Aussie Climbs

The yen fell against all of its major peers after speculators added to bearish bets on the currency and on signs Japan’s prime minister is making progress on policies that have helped weaken the currency.

BlackRock Says BOK to Fed Working Against Bonds: Korea Markets

BlackRock Inc. is standing aside while global funds load up on South Korean bonds, concerned over a central bank battle to curb household debt and a reduction in U.S. monetary stimulus.

Asian Stocks Rise Third Day on China Manufacturing Expansion

Asian stocks gained for a third day after a gauge of China’s manufacturing rose to a 16-month high, boosting investor confidence in the global economic recovery.

Sun Hung Kai Properties Bearish Bets Highest Since 2009: Options

The cost of bearish options on Sun Hung Kai Properties Ltd. rose to the highest in 4 1/2 years on concern that surging interest rates and government measures to curb house prices will hurt Hong Kong’s real estate market.

Gold Drops as Syrian Tension Eases; Silver Climbs on China Data

Gold fell as prospects for an attack against Syria receded, and on bets the U.S. Federal Reserve will start to pare stimulus as the economy improves. Silver halted a three-day drop as manufacturing in China sustained an expansion.

Copper Leads Gains in Base Metals as China’s PMI Beats Estimates

Copper led gains in industrial metals after a manufacturing gauge in China, the biggest consumer of commodities, rose to a 16-month high.

Obama’s Decision Reverberates as Global Critics Sense Weakness

President Barack Obama’s decision to seek congressional authority to attack Syria for alleged chemical weapons use has dismayed friends, delighted foes and prompted criticism that he’s undermined U.S. credibility.

Rudd Relies on Queensland Roots as Defeat for Labor Looms (1)

Prime Minister Kevin Rudd’s prospects at this week’s election hinge on his home state of Queensland, a region 2 1/2 times the size of Texas that’s given federal Labor a majority of votes just once in 20 years.

SPORTS

Real Madrid Dodges Fair Play Ban With Purchase of Gareth Bale

Real Madrid is fueling European soccer’s $2.2 billion transfer market with its purchase of Gareth Bale, upsetting authorities who want to rein in spending.

Real Madrid Beats Bilbao as Messi Scores Three; Inter, Roma Win

Real Madrid beat Athletic Bilbao 3-1 in Spanish soccer’s La Liga before signing Gareth Bale from Tottenham Hotspur on a six-year contract. Lionel Messi scored a hat trick as Barcelona defeated Valencia 3-2.

Sergio Garcia Leads PGA Tour’s Second Playoff Event by Two Shots

Sergio Garcia takes a two-stroke lead into the final round of the U.S. PGA Tour’s second playoff event after tying the lowest 54-hole score in the history of the Deutsche Bank Championship.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 106.10 -1.55 -1.4 Nymex Oct. Brent Crude ($/Bbl) 112.89 -1.12 -1.0 Ice October Gasoil ($/Ton) 953.25 -16.00 -1.7 Ice Oct. Gasoline (c/Gal) 285.27 -3.74 -1.3 Nymex Oct. Natural gas ($/MMBtu) 3.64 +0.06 +1.7 Nymex Oct. Dated Brent ($/Bbl) 112.86 -3.31 -2.9 OTC 21 Days Heating Oil 310.55 -3.11 -1.0 Nymex Oct. Other markets:

Last %Chg

----- ----- Dollar Index 82.09 -- Gold ($/Oz) 1,396.10 -1.2 MSCI World Index 1,475.92 +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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