TOP Oil Market News: Fracking Pushes U.S. Output to 25-Year High

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

Crude Falls From Highest Level in Six Weeks as Fuel Supply Rises

West Texas Intermediate crude fell from a six-week high after gasoline and diesel inventories rose more than forecast last week as refineries boosted output.

Fracking Boom Pushes U.S. Oil Output to Highest in 25 Years (2)

U.S. crude production rose to the highest level in a quarter-century as a shale drilling boom in states such as Texas and North Dakota cut the need for foreign oil and pushed the country closer to energy independence.

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.

Deepwater Oil Drilling Accord in Western Gulf in Budget Deal (1)

Deepwater oil and gas exploration would be allowed to proceed in parts of the western Gulf of Mexico as part of a budget compromise announced yesterday.

Gasoline Sinks to 3-Week Low as Supply Rises Most in 11 Months

Gasoline futures slid to a three- week low as the Energy Information Administration reported that inventories of the motor fuel rose the most in 11 months.

Ethanol Futures Tumble as Stockpiles Climb to Seven-Week High

Ethanol tumbled after a government report indicated that higher production rates are refilling stockpiles of the biofuel.

WTI Options Volatility Rises as Futures Drop Most in Two Weeks

Crude oil options volatility climbed for the first time in eight sessions as West Texas Intermediate futures tumbled the most in two weeks.

Ex-Glencore Trader Fired for Drinking Loses ‘Ludicrous’ Suit (2)

An ex-Glencore Xstrata Plc trader who was fired for drinking too much lost a wrongful-termination lawsuit against the company, with a judge calling the case “ludicrous.”

U.S. DOE Weekly Petroleum Status Report for Dec. 6 (Text)

Following is the text of the weekly Petroleum Status Report from the U.S. Department of Energy:

Trafigura Seeks Forties; CPC Blend Jan. Exports to Fall by 2.4%

Trafigura Beheer BV sought to buy North Sea Forties crude at a lower premium than deals done yesterday. There were no bids or offers for Russian Urals crude for a second day.

OPEC

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.

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.

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.

REFINERIES Map global refinery outages

PBF Paulsboro Refinery Has Fuel Meter Malfunction at Gas Turbine

Co. filed report with N.J. regulators related to malfunction, Michael Karlovich, co. spokesman, said by e-mail.

Holly Cheyenne Refinery Flaring on Boiler Restart: Wyoming DEQ

HFC’s Cheyenne, Wyo., refinery is in the process of restarting two boilers that shut early today, according to Keith Guille, a spokesman with the Wyoming Department of Environmental Quality

Los Angeles Gasoline Gains as Output Drops Amid Refinery Upsets

Los Angeles gasoline strengthened against futures for the first time in three days after a government report showed production slid for a third week and as Tesoro Corp.’s Carson refinery flared gases.

Tesoro Carson Refinery Reports Equipment Malfunction

Tesoro’s Carson, Calif. refinery had an equipment malfunction that caused flaring today, spokeswoman Tina Barbee says in e-mail.

Trinidad’s Petrotrin Refinery Back to Full Operation: Official

Refinery had been shut Nov. 24 after electrical problems.

Motiva Convent Plant Said to Delay Crude Unit Work to February

Motiva Enterprises LLC’s Convent refinery in Louisiana has delayed repairs on a crude unit by a month to February, two people familiar with the work said.

Tesoro Carson Refinery Reports Unplanned Flaring in California

TSO’s Carson, Calif., refinery reports unplanned flaring from today through 1159pm tomorrow, according to a filing with the South Coast Air Quality Management District

Sabic to Halt U.K. Naphtha Cracker for 6-Week Maintenance in May

Sabic’s Wilton 6 unit in Teesside, U.K., will close ~6 wks from beginning of May for works that are done every 6 yrs, co. spokeswoman Danielle Willems says by phone.

Exxon Reports Incident at Southern California Oil Refinery Today

Co. reports Del Amo Blvd. closed due to tank venting a petroleum odor, according to filing with state regulators.

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 8.85 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 60.73 Points

The cost of delivering Middle East crude to Asia, the world’s busiest route for supertankers, declined 0.7 percent to 60.73 Worldscale points, according to the Baltic Exchange in London.

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.

TOP ENERGY 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.

Long Island Power Deal Offers First-of-Kind AAA’s: Muni Credit

A New York agency set up to retire debt of the Long Island Power Authority is poised to sell about $2.1 billion of bonds in the first deal of its kind for a U.S. municipal power, water or gas issuer.

Plant in Supreme Court Case to Comply With EPA Law It Fought (1)

As lawyers argued in the U.S. Supreme Court over forcing power companies to install pollution scrubbers on power plants, the facility at the center of the case was busy doing something else: installing scrubbers.

Natural Gas Jumps to 7-Month High on Outlook for Inventory Drop

Natural gas rose to a seven-month high in New York on speculation that frigid weather will lead to bigger-than-normal declines in stockpiles of the heating fuel.

Australia Rules Yanzhou Can Move to 100% Yancoal Ownership (2)

Australia ruled China’s state- controlled Yanzhou Coal Mining Co. doesn’t need to cut its stake in local unit Yancoal Australia Ltd. to below 70 percent and instead can move to 100 percent ownership.

Marathon Oil Seeks North Sea Buyer, Boosts Shale Spending (3)

Marathon Oil Corp., the U.S. energy explorer that spun off its refineries two years ago, is seeking a buyer for North Sea oilfields as it shrinks its asset base to focus on expanding onshore North American production.

Keystone Bigger for Suncor Than TransCanada: Corporate Canada

U.S. President Barack Obama’s ruling on Keystone XL is becoming more critical for oil-sands producers such as Canadian Natural Resources Ltd. than pipeline builder TransCanada Corp.

Nordic Power Falls to Record on Melting Snow and Low Demand

The power price in the Nordic region for next year fell to a record low as warm winter weather is forecast to cut heating demand and top up hydroelectric reservoirs with melting snow.

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.

Mexico Senate Approves Energy Bill Aimed at Production Boom (1)

Mexico’s Senate approved an energy bill that supporters say will make the country the world’s fifth-largest oil producer in about a decade, spurring growth in Latin America’s second-biggest economy.

OTHER MARKETS

Asian Index Futures Drop on Fed Outlook as U.S. Stocks, Oil Slip

Asian index futures fell as the yen extended its rebound amid concern the U.S. budget deal will give the Federal Reserve confidence to reduce stimulus. U.S. stocks slid the most in a month in New York as oil declined.

Yen Gains From 6-Month Low on Stock Decline; Kiwi Pares Losses

The yen strengthened from almost a six-month low against the dollar as a decline in global equities spurred demand for the currency as a haven amid speculation its recent drop 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.

S&P 500 Drops Most in a Month as Budget Deal Spurs Stimulus Bets

U.S. stocks fell a second day, giving the Standard & Poor’s 500 Index its biggest back-to-back drop in two months, as a congressional budget accord fueled speculation the Federal Reserve could trim stimulus next week.

Europe Hedging Costs Fall to Five-Year Low on Recovery: Options

Optimism over the European recovery sent the cost of bearish options on an exchange-traded fund that derives most of its value from the region’s equities to the lowest level in more than five years.

Milk Prices Rally to Highest Since 2007 as U.S. Exports Expand

Prices for nonfat-dry milk, the biggest U.S. dairy export, rose to a six-year high on surging overseas demand at a time when Congress’s failure to extend an expired farm law leaves the threat of surging consumer costs.

Gold Declines as U.S. Budget Accord Reduces Demand for Haven

Gold futures fell as congressional negotiators reached a U.S. budget agreement, curbing the appeal of the metal as a haven.

Republicans Back Budget Deal Easing U.S. Spending Cuts (2)

Congressional negotiators selling a budget accord won Republican endorsements for the plan to ease automatic U.S. spending cuts for two years, remove the risk of a government shutdown and cut the deficit by $23 billion.

Obamacare Sign-Ups Top 250,000 in November as Site Improves (1)

More than 250,000 Americans selected private health-insurance plans through Obamacare enrollment systems last month, twice as many as in October when the exchanges opened amid technology errors and outages.

SPORTS

Slim’s Billionaire Rivalry Playing Out on Mexico’s Soccer Fields

Mexican billionaires Carlos Slim and Emilio Azcarraga, who typically go head-to-head for phone customers and TV viewers, are taking their rivalry to the soccer field this week in their country’s championship game.

Sony Should Extend World Cup Sponsorship, Brazil Executive Says

Sony Corp. should extend its sponsorship with soccer’s governing body FIFA and the World Cup beyond next year’s tournament, according to the president of its Brazil operation.

South Africa’s City of Gold Stirred Mandela’s Political Drive

Nelson Mandela spent his last days in a double-story villa in Johannesburg’s plush Houghton suburb, an area where he would only have been able to live as a servant to wealthy whites during apartheid.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 97.57 +0.13 +0.1 Nymex Jan. Brent Crude ($/Bbl) 109.70 +0.32 +0.3 Ice undefined Gasoil ($/Ton) 932.50 +3.75 +0.4 Ice Jan. Gasoline (c/Gal) 266.01 -0.10 0.0 Nymex Jan. Natural gas ($/MMBtu) 4.34 +0.01 +0.2 Nymex Jan. Dated Brent ($/Bbl) 109.30 -- -- OTC 21 Days Heating Oil 302.12 -- -- Nymex Jan.

Other markets:

Last %Chg

----- ----- Dollar Index 79.89 -0.1 Gold ($/Oz) 1,257.20 -0.3 MSCI World Index 1,600.12 -0.9

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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