TOP Oil Market News: WTI-Brent Spread Tightens as the U.S. Grows

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

WTI-Brent Spread Shrinks to Tightest in Two Weeks on U.S. Growth

West Texas Intermediate’s discount to Brent shrank to the narrowest level in two weeks as the U.S. economy improved more than forecast in the third quarter and supply slid amid rising demand.

Diesel Slips for Second Day on Supply Gain, Fed Taper Outlook

Ultra low sulfur diesel fell as supplies and output jumped and concern grew that the Federal Reserve will taper its program of fiscal stimulus amid signs of economic growth.

Ethanol Rule Pits Gephardt Against Lott in High-Octane Lobby (1)

While renewable fuels have so far failed to reach production levels envisioned by supporters, they’re an undisputed hit with one group: Washington lobbyists.

Ethanol Futures Narrow Discount to Gasoline on Stronger Exports

Ethanol climbed for a sixth day as demand from Asia to North America supported prices in the futures and cash markets.

Transcanada Keystone South Won’t Be in Service Before Mid-Jan.

Co. estimates that it will declare pipeline in-service and activate contracts in mid-to-late Jan., according to Co. bulletin to shippers.

Canada Crudes Weaken as Oil Pipeline Said to Apportion Shipments

Canadian crudes weakened on the spot market as Enbridge Inc. was said to have issued a mid-month apportionment notice for shipments on one of its crude oil export pipelines.

Enbridge Said to Issue Mid-Month Apportionment for Line 4 (1)

Enbridge Inc. issued a mid-month apportionment for December crude oil deliveries on Line 4, increasing its overbooked level to 17 percent, according to two people familiar with the matter.

Houston and Texas City Pilots Resume Boarding Vessels

At 335pm local time, both Texas ports resumed vessel boardings, notice from Vessel Traffic Service shows.

U.S. Energy Department Natural Gas Update for Nov. 27 (Text)

Following is the text of the weekly natural gas update as released by the U. S. Department of Energy in Washington, D.C.:

Mercuria Buys Forties at Lower Prices; Storm Cuts North Sea Oil

Mercuria Energy Trading SA bought two North Sea Forties crude cargoes at lower prices than yesterday. Eni SpA purchased Urals blend at bigger discounts to Dated Brent in northwest Europe than previous trade.

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

Eni’s Scaroni Meets Iran Minister in Vienna for Future Work (2)

Paulo Scaroni, chief executive of Italy’s biggest oil company Eni SpA, said he had a “fairly long and warm meeting” with Iran’s petroleum minister to discuss possible future energy projects and money owed to Eni.

OPEC to Boost Exports on Winter Fuel Demand, Oil Movements Says

The Organization of Petroleum Exporting Countries will increase crude shipments through late December as refiners boost purchases to meet winter heating demand, according to tanker tracker Oil Movements.

Eni’s Scaroni Meets Iran Minister in Vienna for Future Work (1)

Paulo Scaroni, chief executive of Italy’s biggest oil company Eni SpA, said he had a “fairly long and warm meeting” with Iran’s petroleum minister to discuss possible future energy projects and money owed to Eni.

Brent Seen Over $100 for Fourth Year as OPEC Bets on Demand (3)

Brent, used to price more than half the world’s oil, will probably exceed $100 a barrel for a fourth year in 2014 after OPEC bet that demand won’t weaken enough to warrant production cuts.

WTI-Brent Spread Shrinks to 10-Day Low as U.S. Supply Declines

The spread between West Texas Intermediate and Brent narrowed to the lowest intraday level in 10 days after crude inventories shrank for the first time in 11 weeks in the U.S., the world’s biggest oil consumer.

REFINERIES Map global refinery outages

MORE: Exxon Torrance Reports Power Back After Interruption

Power restored to Exxon Mobil Torrance, California, refinery, spokeswoman Gesuina Paras said in an e-mail.

Citgo Said to Plan Lemont Vacuum Unit Restart in Mid-January (1)

Citgo Petroleum Corp. will try to restart the vacuum section of a crude unit at its Lemont refinery in mid-January that was shut after an October fire, according to a person familiar with the progress of repairs.

Tesoro Says Golden Eagle Refinery Operating at Planned Rates

Power interruption on Dec. 4 that caused flaring didn’t have any impact on product supply commitments, according to e-mail statement today from Tina Barbee, co. spokeswoman.

Exxon Baytown Said to Plan Catalytic Cracker Work in September

Exxon Mobil Corp. plans to perform maintenance in September 2014 at the Baytown, Texas, refinery, said a person familiar with the schedule for the work.

Exxon Torrance Refinery to Flare Through Dec. 10

XOM’s Torrance, Calif., refinery will flare until Dec. 10 after a power interruption today, according to a filing with the South Coast Air Quality Management District. * Refinery was in the process of normalizing operations after a power interruption early today, said Gesuina Paras, a Co. spokeswoman * There were no injuries and there’s minimal impact to production: Paras * Refinery has capacity of 150,000 b/d

Citgo Said to Plan Lemont Vacuum Unit Restart in Mid-January

Citgo Petroleum Corp. will try to restart the vacuum section of a crude unit at its Lemont refinery in mid-January that was shut after an October fire, according to a person familiar with the progress of repairs.

Tesoro Golden Eagle Had Power Interruption Yesterday

TSO’s Golden Eagle, Northern Calif., refinery had flaring after a power interruption yesterday, according to a filing with Contra Costa Health Services

PetroEcuador Says Refinery Operating at Half Capacity After Fire

A PetroEcuador official not authorized to speak publicly comments on Nov. 28 fire at Esmeraldas refinery in interview today.

OTHER OIL MARKET NEWS

Oil Product Shipping Costs to Japan Rise 2.6 %

The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan rose 2.6 percent to 8.20 U.S. cents yesterday, according to data compiled by Bloomberg. The cost is based on a cargo of 55,000 metric tons.

Saudi Arabia to Japan Tanker Rates 63.60 Points

The cost of delivering Middle East crude to Asia, the world’s busiest route for supertankers, declined 0.3 percent to 63.60 Worldscale points, according to the Baltic Exchange in London.

ConocoPhillips, BP Relocate North Sea Oil Workers Amid Storm

ConocoPhillips and BP Plc are among companies that have relocated offshore oil workers to the mainland as production is crimped by a storm that is sweeping across the North Atlantic and North Sea.

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

High Winds Batter Scotland as Hamburg Braces for Storm Tides (2)

Winds exceeding 100 miles an hour and heavy rain battered Scotland and parts of England, killing a truck driver and disrupting rail services as storms sweep across the North Atlantic and the North Sea.

Banks Cut Raw-Materials Staff to Fewest Since ’09: Commodities

The biggest banks are employing the fewest commodity traders, salespeople and analysts in at least four years as tighter regulations and the second drop in prices since 2001 spur cutbacks.

Coal Rally in Bear Market Seen Ending Amid Glut: Energy Markets

The rally in coal that lifted prices from the lowest in almost four years is forecast to end as greater exports from Australia to Colombia expand a supply glut.

Glasenberg Raises Glencore’s Bet on Coal as BHP Pauses: Energy

Ivan Glasenberg, the billionaire running commodities supplier Glencore Xstrata Plc, is investing more in thermal coal than his three closest competitors combined even as investors warn the fuel’s outlook is deteriorating.

Getty Petroleum Sues Law Firm for $2.5 Million: Bankruptcy (2)

Law firms that successfully push companies through Chapter 11 aren’t immune from suits over pre- bankruptcy payments, as Greenberg Traurig LLP learned after serving as primary reorganization counsel for Getty Petroleum Marketing Inc.

Big Oil Prepares for 10-Fold Jump in Carbon Price Amid Crackdown

International oil producers are bracing for carbon emission costs to soar to almost 10 times current prices in Europe, the world’s largest greenhouse gas market, as governments around the world escalate efforts to curb climate change.

Shell Halts $20 Billion Gas-to-Liquids Project in Louisiana (1)

Royal Dutch Shell Plc, Europe’s biggest oil company, halted plans to build a $20 billion gas-to- liquids plant in Louisiana, citing the potential cost and uncertainty about future crude and natural gas prices.

Japan Without Nuclear Boosts Pollution, Costs: Carbon & Climate

Japan is finding the alternatives to nuclear power pollute more or come with higher fuel costs, limiting Prime Minister Shinzo Abe’s scope to reshape the energy industry almost three years after the meltdown in Fukushima.

Arctic Air Bringing Icy Conditions to Texas and Central U.S. (2)

A blast of arctic air has rolled into the central U.S., touching off an ice storm that has grounded hundreds of flights in Texas. Air travel in New York and Newark was also slowed by heavy fog.

Petrobras Suffers Collateral Damage in CPI Fight: Brazil Credit

Signs Brazil will keep using Petroleo Brasileiro SA to pay for fuel subsidies is deepening a rout that has made the state-owned oil producer the biggest loser among investment-grade rivals in the bond market.

OTHER MARKETS

Asian Index Futures Drop Before Payrolls After U.S. Stocks Slip

Index futures from Japan to Australia declined before the U.S. payrolls report after improving economic data fueled speculation over the timeline for cuts to Federal Reserve stimulus. Stocks in New York fell a fifth day while Treasuries extended declines and gold slid.

Euro Rises to 5-Week High as ECB Refrains From Further Stimulus

The euro rose to a five-week high against the dollar as European Central Bank President Mario Draghi refrained from introducing further monetary stimulus.

Euro Bears Arise as ECB Seen Bowing to Disinflation: Currencies

For the first time in four months, foreign-exchange traders are bearish on the euro on speculation slower inflation will pressure European Central Bank President Mario Draghi to signal plans for further easing in policy.

U.S. Stocks Drop a 5th Day as Economic Data Fuel Stimulus Bets

U.S. stocks declined a fifth day, sending the Standard & Poor’s 500 Index to a two-week low, after improving economic data boosted bets the Federal Reserve will curb its monthly bond purchases sooner than estimated.

European Stocks Drop, Posting Longest Losing Streak in 5 Months

European stocks slid, posting their longest losing streak in five months, as European Central Bank President Mario Draghi said that financial-market developments and low domestic demand may hurt the euro area’s economy.

Deutsche Bank to Cut 200 as Commodity Jobs Fall to 2009 Low (3)

Deutsche Bank AG is cutting about 200 commodities jobs, joining the world’s largest financial firms in reducing headcount for trading in everything from energy to metals to the lowest since at least 2009 as regulations tighten and revenue slides.

Indonesia to Ban Ore Exports in ’14 After Parliament Backing (1)

Indonesia’s government will proceed with a plan to ban all mineral-ore exports next year after it received backing from parliament, said Energy and Mineral Resources Minister Jero Wacik.

Budget Talks Narrow to One Year Deal as Lawmakers Protest (2)

U.S. budget negotiators plan to work this weekend from a shrinking menu of options to ease automatic spending cuts for as little as one year amid objections from some groups and lawmakers, said people familiar with the talks.

Yellen Confirmation Vote for Fed Chief Slot May Come Next Week

The U.S. Senate will vote as soon as next week and no later than this month to confirm Janet Yellen as chairman of the Federal Reserve, a Senate Democratic aide said today.

SPORTS

Lindsey Vonn to Begin World Cup Ski Season Tomorrow in Canada

Lindsey Vonn will start her World Cup ski schedule tomorrow in Canada, two weeks after re-injuring her surgically repaired right knee during a training run in Colorado.

Two Soccer Players Charged as Part of U.K. Match-Fixing Probe

U.K. police charged two lower-league soccer players in an investigation into match-fixing, Britain’s National Crime Agency said.

France May Avoid Soccer Powers in World Cup as FIFA Changes Draw

France, the 1998 World Cup champion, may avoid higher-ranked soccer teams at next year’s tournament in Brazil after the sport’s governing body changed the way it organized tomorrow’s draw, irking some European squads.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 97.37 -0.01 0.0 Nymex Jan. Brent Crude ($/Bbl) 110.98 -0.90 -0.8 Ice undefined Gasoil ($/Ton) 945.25 -3.50 -0.4 Ice Jan. Gasoline (c/Gal) 271.27 -0.65 -0.2 Nymex Jan. Natural gas ($/MMBtu) 4.14 +0.01 +0.3 Nymex Jan. Dated Brent ($/Bbl) 111.22 -0.41 -0.4 OTC 21 Days Heating Oil 305.02 +0.06 +0.0 Nymex Jan.

Other markets:

Last %Chg

----- ----- Dollar Index 80.27 -0.4 Gold ($/Oz) 1,231.90 -1.2 MSCI World Index 1,598.88 -0.4 Prices as of 11 p.m. GMT

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To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net

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