TOP Oil Market News: WTI Drops as U.S. Comes Closer to Default

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

Crude Drops as Debt-Limit Deadlock Pushes U.S. Closer to Default

West Texas Intermediate crude dropped as the U.S. neared a breach of the debt ceiling and production from the Gulf of Mexico resumed after a tropical storm.

Gasoline Futures Rise as Obama Presses Boehner for Budget Vote

Gasoline futures rose as President Barack Obama called on House Republican leadership to allow a vote on a funding bill that has already won Senate approval.

Ethanol Falls Versus Gasoline as Harvest Signals Higher Output

Ethanol fell against gasoline on speculation the corn harvest that’s under way will help companies boost production of the biofuel.

San Francisco Diesel Gains as Tesoro Performs Hydrocracker Work

Diesel in San Francisco advanced to the highest level in two weeks as Tesoro Corp. performed repairs on the hydrocracker at its Golden Eagle refinery in Northern California.

U.S. Gulf Gasoline Falls on Limited Tropical Storm Karen Impact

U.S. Gulf Coast gasoline weakened for a second day after Tropical Storm Karen passed the region with limited impact on refinery operations.

Gulf Crudes Strengthen After Storm Shuts in Some Offshore Output

Light Louisiana Sweet crude strengthened to the highest level in a month after Tropical Storm Karen shut in more than 2.9 million barrels of Gulf of Mexico crude production over the past four days.

OPEC Sees U.S. Oil Shale Production Starting to Decline in 2018

U.S. is forecast to produce 4.7m b/d of tight oil by 2018, according to OPEC Secretary-General Abdalla El-Badri, speaking at the Kuwait Oil & Gas Show and Conference in Kuwait today.

OPEC’s El-Badri Says World Oil Market is Balanced; Enough Supply

Balanced oil market will continue for rest of 2013 and hopefully 2014 as well, OPEC Secretary General Abdalla El-Badri says in speech at the Kuwait Oil & Gas Show and Conference in Kuwait.

Obama Climate Change Adviser Zichal to Leave Administration

Heather Zichal, the top White House adviser on energy and climate change, is leaving the administration of President Barack Obama after five years.

Vitol to Match Glencore Debt Costs on $7 Billion of Credit Lines

Vitol SA, the world’s largest independent oil trader, will raise $7 billion of loans this week at the same interest rate as its largest competitor, Glencore Xstrata Plc, according to three people with knowledge of the transaction.

OPEC

North Africa Is World’s Next Big Shale Prospect, Repsol Says (1)

North Africa may be “the next big opportunity” after North America for oil and gas production from shale if drilling costs can be reduced, said Repsol SA Geological Studies Director Eduardo Negri.

REFINERIES Map global refinery outages

Crude Supplies Increase for Third Week in Survey: Energy Markets

U.S. crude supplies probably increased for a third week as refineries reduced operations, cutting demand for oil, a Bloomberg survey showed.

Phillips 66 Sweeny Reports Sulfur Recovery Unit Shut Down

Co. said sulfur recovery unit 28.2 at plant south of Houston shut down after the unit’s had a “total flame out,” according to a filing with the Texas Commission on Environmental Quality.

Shell Increasing Rates at Norco, Mobile Plants

Refining rates at Motiva Norco, La., Shell Mobile, Ala., plants were cut last week due to delays in oil shipments because of Tropical Storm Karen, Co.’s website shows.

Suncor Completes Fort McMurray Upgrader Maintenance

Co. completed planned maintenance on vacuum unit at one of its two upgraders in Alberta, according to statement on Co. website.

Phillips 66 Conducts Planned Maintenance at Wood River Refinery

Phillips 66 Wood River, Ill., refinery is carrying out planned maintenance, according to Rich Johnson, Co. spokesman

Petrobras Has Completed Maintenance at Regap Refinery: Cosenza

Co. will complete maintenance at Revap refinery in about 2 weeks, Jose Cosenza, the head of downstream, said in an interview.

MORE: Valero Expects No Production Impact at Port Arthur Plant

Co. said there is flaring related to a wet gas compressor outage, but no material impact to production is expected, according to Co. spokesman Bill Day.

Valero Port Arthur Reports Compressor Issues Yesterday

Flaring of wet gas reported due to surging issues with K-2300 wet gas compressor yesterday, according to emissions notice with Texas regulator.

Marathon Garyville Said to Start Crude, Coker Repairs Oct. 15

Marathon Petroleum Corp.’s Garyville refinery, the biggest in Louisiana, will shut a crude unit and coker for planned repairs around Oct. 15, a person familiar with the schedule said.

BP Restarting Oil and Gas Production at Gulf Platforms

Co. said it’s in the process of restarting oil and natural gas production at its four Co.- operated platforms in Gulf, according to statement on website

OTHER OIL MARKET NEWS

Fuel Oil Supply to Asia Rises to 3.7 Million Tons in November

Fuel oil supplies scheduled to arrive in Asia next month from Western countries rose 37 percent from last week, shipping data show.

Oil Product Shipping Costs to Japan Rise 2.2 %

The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan rose 2.2 percent to 9.71 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons.

Crude Drops as Debt-Limit Deadlock Pushes U.S. Closer to Default

West Texas Intermediate crude dropped as the U.S. neared a breach of the debt ceiling and production from the Gulf of Mexico resumed after a tropical storm.

TOP ENERGY STORIES

Gas Flows to Mexico Seen Doubling Overshadow LNG: Energy Markets

For all the investment in new projects to liquefy and ship U.S. natural gas overseas, the country is already benefiting from soaring exports of the fuel in its raw form via traditional pipelines to Mexico.

Solvay to Buy Chemlogics for $1.3 Billion for Oil Chemicals (2)

Solvay SA agreed to buy U.S. producer Chemlogics for $1.3 billion in cash to expand its offering of chemicals for the oil and gas industry.

WTI Crude Declines as Gulf of Mexico Output Resumes After Storm

West Texas Intermediate declined as oil production in the Gulf of Mexico resumed after Tropical Storm Karen weakened and the U.S. came closer to breaching its debt ceiling.

CLP Billionaire’s Wind Farms Plan Bond Debut: India Credit

India’s top wind utility is planning its debut debt sale, offering investors a chance to fund an industry that’s forecast to grow faster than the U.S. this year.

Abengoa Bioethanol Arm Raided in EU Manipulation Probe (2)

Abengoa SA, owner of continental Europe’s biggest bioethanol plant, said that it’s being investigated as part of the European Union’s antitrust probe into possible manipulation of oil and biofuel prices.

Carl Icahn Buys 5.97% of Talisman, May Seek Talks With Company

Activist investor Carl Icahn said he has taken a 5.97 percent stake in Talisman Energy Inc., the oil and natural gas producer focused on the Americas and Southeast Asia, and may seek talks with the company.

Ethane’s Tumble Seen Boosting Profits at Dow to Westlake: Energy

If you want to make a chemical company boss smile these days, here’s the word to use: ethane.

BP Oil Well Dumped 4.2 Million Barrels Into Gulf, U.S. Says (2)

BP Plc’s doomed Macondo well dumped 4.2 million barrels of oil into the Gulf of Mexico in 2010, a lawyer for the U.S. told a judge who is assessing the size of the spill and how well the company reacted to the disaster.

Natural Gas Rises Most Since July on Outlook for Warmer Weather

Natural gas futures capped the biggest daily gain in more than 11 weeks on forecasts for warmer weather that would stoke power demand, and as some Gulf of Mexico production remained shut after Tropical Storm Karen.

Gulf of Mexico Workers Return to Platforms After Karen Weakens

Gulf of Mexico oil producers including BP Plc and BHP Billiton Ltd. returned workers to offshore platforms after the passing of Tropical Storm Karen.

OTHER MARKETS

Dollar Holds Yen Drop as Australia Index Futures Fall; Gas Gains

The dollar traded near a two-month low versus the yen and Australian index futures fell as U.S. President Barack Obama reiterated that he won’t negotiate with Republicans over the debt limit and government shutdown. Futures on copper and natural gas rose as oil held declines.

Dollar Slides Versus Yen as U.S. Debt Limit Looms; Rupee Weakens

The dollar sank to its lowest level in eight weeks against the yen amid concern U.S. lawmakers will fail to reach an agreement to raise the federal debt ceiling and keep the nation from defaulting.

Reserve Managers Add Loonies to Aussies Amid Decline: Currencies

The biggest declines in the Canadian and Australian dollars since at least 2011 are only making the currencies more attractive to global reserve managers.

U.S. Stocks Drop on Default Concern Amid Debt-Limit Deadlock

U.S. stocks fell, with the Standard & Poor’s 500 Index dropping to the lowest level in a month, as lawmakers remained deadlocked over extending the nation’s debt limit to avoid a default.

Worst Stocks to Reverse With Commodity Profits Rising 18% (3)

Commodity stocks, lagging behind the Standard & Poor’s 500 Index by the most in 15 years, are poised to rally as analysts estimate profits will rise almost twice as fast as the rest of U.S. industry in 2014.

Gold Befuddles Bernanke as Central Banks’ Losses at $545 Billion

Ben S. Bernanke, the world’s most- powerful central banker, says he doesn’t understand gold prices. If his peers had paid attention, they might have stopped expanding reserves that lost $545 billion in value since bullion peaked in 2011.

Aluminum Costs Seen Dropping as LME Unclogs Depots: Commodities

The London Metal Exchange’s plan to ease congestion at warehouses storing near-record amounts of aluminum will accelerate deliveries and reduce premiums paid for supply, at a time when prices are already near a four-year low.

A U.S. Default Seen as Catastrophe Dwarfing Lehman’s Demise (2)

Anyone who remembers the collapse of Lehman Brothers Holdings Inc. little more than five years ago knows what a global financial disaster is. A U.S. government default, just weeks away if Congress fails to raise the debt ceiling as it now threatens to do, will be an economic calamity like none the world has ever seen.

Obama Says No Negotiations Until Debt Ceiling, Funding Settled

President Barack Obama challenged congressional Republicans to raise the U.S. debt limit by next week and said he’s willing to negotiate on fiscal terms once that is done and government funding is restored.

SPORTS

Manchester United May Offer Januzaj $80,000 a Week: Roundup

The following is a roundup of soccer stories from U.K. newspapers, with clickable Internet links.

Debt Dwarfing Manchester United Shows Soccer Rot: Turkey Credit

Turkish soccer champion Galatasaray’s $57 million of debt due in the next 12 months, racked up by hiring coach Roberto Mancini and players including former Chelsea star Didier Drogba, is drawing whistles from investors.

Tiger Woods Gets Winning Point as U.S. Defends Presidents Cup

Tiger Woods shook off a back injury to win the point that helped his U.S. team clinch a fifth straight victory in golf’s Presidents Cup.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 103.15 +0.12 +0.1 Nymex Nov. Brent Crude ($/Bbl) 109.68 +0.22 +0.2 Ice Nov. Gasoil ($/Ton) 926.00 +4.50 +0.5 Ice Nov. Gasoline (c/Gal) 263.04 +0.43 +0.2 Nymex Nov. Natural gas ($/MMBtu) 3.64 +0.01 +0.3 Nymex Nov. Dated Brent ($/Bbl) 109.83 +0.32 +0.3 OTC 21 Days Heating Oil 300.93 -- -- Nymex Nov. Other markets:

Last %Chg

----- ----- Dollar Index 79.94 -0.2 Gold ($/Oz) 1,325.10 +1.2 MSCI World Index 1,536.40 -0.7 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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