TOP Oil Market News: IEA Boosts 2014 Demand Estimate on Recovery

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

WTI Trades Near Six-Week High; IEA Boosts 2014 Demand Estimate

West Texas Intermediate traded near the highest price since October on signs that strengthening demand is depleting inventories in the U.S., the world’s biggest oil consumer.

U.S. Sees Least Volatile Oil Prices in 17 Years: Energy Markets

Prices for West Texas Intermediate, the benchmark U.S. crude, are the least volatile in 17 years as surging domestic output expands inventories and provides a buffer against disruptions.

North Sea Crude Arbitrage Exports for Loading in December: Table

A very large crude carrier, the Wu Yi San, left the Forties-loading Hound Point terminal in Scotland this week as exports reached a record seven million barrels in November, data compiled by Bloomberg News show.

Buzzard Share of Forties Crude Drops to 46%, Lowest Since Nov. 3

Share of Buzzard crude in Forties declines by 2 percentage points in wk to Dec. 8, lowest since Nov. 3, data from BP website show.

OPEC Crude Production Drops for Fourth Month on Libya, IEA Says

Output falls to 29.73m b/d in Nov., down 160k b/d from 29.89m b/d in Oct., International Energy Agency says in monthly oil market report.

Caspian CPC Crude January Exports to Fall by 2.4%, Plan Shows

The Caspian Pipeline Consortium will reduce January crude shipments by 2.4 percent from December, a preliminary loading program obtained by Bloomberg News showed.

Libya Oil Ports to Open in Peace or by Force, PM Tells Euronews

Libya govt expects oil ports to open in “coming days,” Prime Minister Ali Zaidan tells Euronews TV channel in interview to be aired later today.

Prolonged Cold Spell to ‘Rapidly’ Deplete Heating Stocks: IEA

Total middle distillate inventories, which include heating oil and diesel, in developed economies “are in line with one yr ago but considerably lower than the five-yr avg,” IEA says in its monthly oil market report.

EIA Increases Forecast for U.S. Gasoline Consumption

The Energy Information Administration increased its forecast of U.S. gasoline demand this year by 0.5 percent to 8.77 million barrels a day from its November outlook.

OPEC

Iran Seen by IEA Unable to Sustain Increase in Crude Exports (1)

Iran, once OPEC’s second-largest oil producer, will be unable to sustain an increase in crude exports that support its economy when some measures to curb those shipments are eased, the International Energy Agency said.

WTI Trades Near Six-Week High; IEA Boosts 2014 Demand Estimate

West Texas Intermediate traded near the highest price since October on signs that strengthening demand is depleting inventories in the U.S., the world’s biggest oil consumer.

IEA Boosts 2014 Global Oil Demand Forecast on U.S. Recovery (1)

Global oil demand in 2014 will be higher than previously forecast, after consumption in the U.S. rebounded to its strongest level in five years, the International Energy Agency said.

WTI Oil Trades Near Six-Week High as U.S. Crude Supplies Decline

West Texas Intermediate traded near the highest price since October after industry data showed crude inventories declined for a second week in the U.S., the world’s biggest oil consumer.

IEA Boosts 2014 Global Oil Demand Estimate Amid U.S. Recovery

Global oil demand in 2014 will be higher than previously forecast, after consumption in the U.S. rebounded to its strongest level in five years, the International Energy Agency said.

Iran Seen by IEA Unable to Sustain Increase in Crude Oil Exports

Iran, once OPEC’s second-largest oil producer, will be unable to sustain an increase in crude exports that support its economy when some measures to curb those shipments are eased, the International Energy Agency said.

REFINERIES Map global refinery outages

Lotte Seeks Feb. Cargoes; LG Chem Plans Yeosu Work: Asia Naphtha

Lotte Chemical seeks to buy naphtha cargoes for 1H Feb. delivery, say two traders who participate in the market.

Jet Regrade at Three-Month High; Crack Narrows: Asia Distillates

Jet fuel’s premium to gasoil rises to highest in more than three months.

Western Supplies Rise; IOC, Formosa Offer Cargoes: Asia Fuel Oil

Fuel oil shipments scheduled to arrive in Asia during Jan. from Western countries rise 34% from last week to 3.54 mln mt, shipping data show.

Refinery Closures Inevitable as New Capacity Hurts Margins: IEA

Traditional crude refineries to meet 45% of 2014 demand growth, while capacity additions are set to be in line with expected consumption increase, IEA says in its monthly oil market report.

Motiva Norco Refinery Releases Hydrogen, Ethylene: NRC Filing

No reason provided for release of chemicals into atmosphere at 11:20 a.m. local time yesterday, according to filing with National Response Center.

Citgo Lemont, Illinois, Refinery Has Emissions Due to Upset: NRC

Refinery releases sulfur dioxide because of “upset,” according to filing with the National Response Center.

LG Chem to Shut Yeosu Plant for 30 Days in October 2014

LG Chem plans to shut naphtha cracker at Yeosu, South Korea, for about 30 days of scheduled maintenance in October next year, co. says in e-mailed reply to questions.

Shell Martinez Refinery Reports Dec. 6 Leak in Demersol Plant

Shell Martinez refinery’s dimersol unit reported a catalyst spill on Dec. 6, according to regulatory filing.

OTHER OIL MARKET NEWS

Fuel Oil Shipments to Asia Rise to 3.5 Million Tons in January

Fuel oil scheduled to arrive in Asia next month from Western countries rose 34 percent from a week earlier to 3.54 million metric tons, shipping data show.

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

OTHER STORIES

Volcker Rule Ushers in Era of Increased Oversight of Trades (3)

Wall Street faces more intensive government scrutiny of trading after U.S. regulators issued what they billed as a strict Volcker rule today, imposing new curbs designed to prevent financial blowups while leaving many details to be worked out later.

S&P 500 Falls From Record While Commodities Gain as Dollar Drops

U.S. stocks fell, pulling the Standard & Poor’s 500 Index down from a record, and the yen strengthened as concern American lawmakers will fail to reach a budget deal overshadowed better-than-estimated economic data. Oil, gold and coffee led commodity gains as the dollar weakened.

Flight-Grounding Snow Ends in New York as Airline Delays Linger

Snow is ending in New York after a quick-moving storm caused hundreds of flights to be canceled around the Northeast, left travelers delayed for hours and shut down government offices in Washington.

Obama Pollution Rule Revival Weighed by U.S. Supreme Court (3)

U.S. Supreme Court justices hinted they might revive one of President Barack Obama’s biggest air- quality efforts, a rule that would curb emissions from coal- fired power plants in 28 states.

Solar Boom Boosts South Africa Salaries With 25% Jobless: Energy

Ramone van Wyk’s wage more than quadrupled when he gave up working on sheep farms in South Africa’s arid Northern Cape province and got a job assembling a solar-thermal power plant for Abengoa SA.

EON Scaled Down Prop Trading as EU Rules Open Up ‘Can of Worms’

EON SE, Germany’s biggest utility, cut trading activities for its own account before new European Union rules that seek to increase transparency and lower the default risk in derivative trading come into force in February.

BHP Looks at Expansion in Trinidad, Tobago Amid Asset Sales (1)

BHP Billiton Ltd., Australia’s largest oil and gas producer, is studying expansion in Trinidad and Tobago, nominating the Caribbean nation as a potential third main production region along with the U.S. and Australia.

Keystone Foe Podesta Returns to White House as Decision Nears

John Podesta, a vocal opponent of the Keystone XL pipeline, is returning to the White House to shore up U.S. President Barack Obama just as the administration weighs whether to approve the project.

OTHER MARKETS

European Stocks Rise With Spanish Bonds as Yen Gains, Gold Falls

European stocks rose and Spain’s five-year yield dropped to the lowest since September 2005. The yen rebounded from near a six-month low while gold fell from a three-week high.

Yen Advances From Six-Month Low as Stocks Decline; Kiwi Slides

The yen strengthened from near a six-month low against the dollar as a decline in Asian stocks fueled demand for the currency as a haven, and amid speculation that its decline has been too rapid.

BlackRock Avoids Fed-Depressed Dollar in Carry Trade: Currencies

The dollar is becoming too expensive for investors in Asia to use as a source for funding carry trades in the region, a development that may help extend the currency’s best annual gain since 2008 into next year.

European Banks, Energy, Utilities May Have Upside in 2014: HSBC

“Significant amount of headroom” for earnings of banks, energy, materials, telecoms and utilities sectors in Europe in 2014, HSBC writes in note, saying they are overweight all five sectors.

Gold Retreats From Three-Week High as Investors Weigh Rally, Fed

Gold fell from an almost three-week high in London on speculation the biggest one-day rally since October may slow demand amid concern the Federal Reserve will reduce stimulus. Silver retreated.

Colombian Rebels Seen Blocking Farmland Overhaul: Commodities

A Colombian government plan to help investors from Cargill Inc. to airline magnate German Efromovich develop more land for crops was stopped in its tracks days ago.

Lawmakers Tout Deal Easing Spending Cuts Amid Republican Ire

Congressional negotiators are touting a U.S. budget accord that will ease the long-criticized automatic spending cuts for the next two years, remove the risk of a government shutdown and cut the deficit by $23 billion.

Ukraine Protesters Reclaim City Center After Nighttime Raid (1)

Ukrainian activists swarmed into central Kiev, reclaiming the center of anti-government protests after an overnight police raid that left dozens injured.

SPORTS

College Player Allowed to Keep $20,000 From NBA Half-Court Shot

The college basketball player who hit a half-court shot for $20,000 at an Oklahoma City Thunder game last month will be allowed to use the money toward his tuition without losing any athletic eligibility.

Boise State May Lose $40,000 From Nike Along With Football Coach

Chris Petersen’s departure for the University of Washington may cost Boise State University more than its football coach. It also has a $40,000-a-year payment from Nike Inc. on the line.

David Ortiz of Boston Red Sox Voted MLB’s Top Designated Hitter

David Ortiz of the Boston Red Sox was voted the best designated hitter in Major League Baseball for the seventh time in his 17-year career.

Diamondbacks Get Mark Trumbo From Angels in Three-Team MLB Trade

The Arizona Diamondbacks acquired Mark Trumbo, who hit 34 home runs this past season for the Los Angeles Angels, as part of a three-team Major League Baseball trade, the teams said in news releases.

ENERGY PRICES

Energy Prices:
                         Last   %Chg   Exch  Contract
                         ----   ----  ----   ----  --------
WTI Crude ($/Bbl)       98.37   -0.1  Nymex      Jan.
Brent Crude ($/Bbl)    108.87   -0.5    ICE undefined
Gasoil ($/Ton)         929.50    0.1    ICE      Jan.
Gasoline (c/Gal)       267.64   -0.2  Nymex      Jan.
Natural gas ($/MMBtu)    4.21   -0.7  Nymex      Jan.
Heating Oil            301.00   -0.1  Nymex      Jan.

Other markets:
                         Last  %Chg
                        ----- -----
Dollar Index            79.97   0.0
Gold ($/Oz)          1,261.19  -0.1
MSCI World Index       398.33  -0.1

To contact the editor responsible for this story: Steve Voss in London at sev@bloomberg.net

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