The following is a selection of the most important news affecting the oil market.
WTI Trades Near One-Week High as Stockpiles Decline, Fed Tapers
West Texas Intermediate oil traded near the highest price in a week after crude stockpiles declined in the U.S. and the Federal Reserve said it will reduce stimulus as the economic outlook improves.
TOP OIL MARKET NEWS
Gasoline Futures Rise as Supplies Decline Amid Stronger Demand
Gasoline rose for a third day as the Energy Information Administration reported that supplies along the U.S. East Coast fell last week amid lower imports and higher demand.
U.S. Pump Prices Seen Setting 2013 Low as Supply Swells: Energy
U.S. gasoline pump prices are poised to reach their lowest level this year as supply expands to a two-decade seasonal high and winter curbs demand.
MORE: Japan’s Fuel Import Costs to Fall in FY2014, IEEJ Says
Japan will pay 25.4 trillion yen for fossil-fuel imports in FY2014, down from 27.1 trillion yen in FY2013, Institute of Energy Economics, Japan, says in report today.
JX Energy Renews Annual Oil-Supply Contract With Iran for 2014
Contract starts in Jan., JX Chairman Yasushi Kimura tells reporters in Tokyo today, declining to comment on volumes.
MORE: Idemitsu to Process 1% Less Crude in Jan.-March Quarter
Idemitsu plans to process 7.5 mln kiloliters of crude for domestic market in the three months ending March 31, down 1% from yr earlier, co. says in statement.
MRPL Said to Sell Naphtha to Marubeni at Premium of $42/mt
Mangalore Refinery, known as MRPL, sells 35,000 mt of naphtha for Jan. 16-18 loading from New Mangalore to Marubeni at $42/mt premium to Middle East benchmark prices, according to two traders who asked not to be identified because the information isn’t public.
Crude Options Volatility Slips as Futures Advance on Fed’s Taper
Crude options volatility slipped when futures advanced after the Federal Reserve said it will pare its bond buying amid stronger economic signals.
U.S. DOE Weekly Petroleum Status Report for Dec. 13 (Text)
Following is the text of the weekly Petroleum Status Report from the U.S. Department of Energy:
Iraq Oil Exports Rose in October as Saudi Sales Eased, JODI Says
Iraq boosted crude oil exports in October by 8.8 percent as Saudi Arabia’s shipments fell during the month from a decade-high level in September, according to the Joint Organisations Data Initiative.
REFINERIES Map global refinery outages
California Gasoline Supplies Grew 2.9% Last Week, State Says
Stockpiles of state-blend gasoline, or Carbob, grew to 5.83m bbl in week ending Dec. 13, according to California Energy Commission data.
California Gasoline Advances on Stockpile Slide, Refinery Work
Los Angeles gasoline strengthened against futures after a report that regional stockpiles dropped for a second consecutive week and as refiners including Tesoro Corp. performed maintenance.
Tesoro Golden Eagle Refinery Operating Normally After Repairs
Tina Barbee, co. spokeswoman, comments on operations at refinery near Martinez in Northern California by e-mail.
Valero Ardmore Refinery Reported Emissions Yesterday
Co. reported emissions in filing to state Department of Environmental Quality.
Motiva Convent Said to Mothball Catalytic Cracker by 2016 (1)
Motiva Enterprises LLC plans to shut the fluid catalytic cracker at the Convent, Louisiana, refinery, by October 2016 because it’s unprofitable to operate, a person familiar with operations said.
MORE: Motiva Norco Chemicals Plant Conducting Maintenance
Destin Singleton, co. spokeswoman, comments on location of work in e-mailed statement.
PBF Paulsboro Refinery Reports Emissions, State Filing Shows
Release from N.J. refinery is under investigation, according to state Environmental Protection Department
Total Oil Refinery Workers in France Strike for Sixth Day (3)
Industrial action at three French refineries of Total SA, the nation’s biggest oil company, entered its sixth day while one union said its workers will strike at Donges if demand for better pay isn’t accepted.
Chevron Burnaby Refinery Delays Maintenance to February
Turnaround delay at refinery in British Columbia reflects “good condition of plant’s equipment,” will allow for additional planning, preparation for the work, Steve Parker, plant manager, said at Nov. 20 community meeting
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 9.28 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 Rises 0.4% to 63.14 Points
TOP ENERGY STORIES
Anadarko Gets $9 Billion Cheaper for Unfazed Bidders: Real M&A
Anadarko Petroleum Corp.’s legal troubles likely haven’t tarnished its allure for acquirers. Instead, it’s helped make the oil producer $9 billion cheaper.
Ukrainian Protesters Want Answers on $15 Billion Russian Aid (1)
Ukrainian anti-government protesters demanded to know what President Viktor Yanukovych had ceded to seal $15 billion of Russian financial aid and a one-third discount on energy imports.
Ex-BP Engineer Convicted of Destroying Gulf Spill Evidence (3)
A former BP Plc senior engineer was found guilty of destroying evidence sought by the U.S. in a probe of the 2010 Gulf of Mexico well explosion and oil spill.
BP Gulf of Mexico Find Caps Best Exploration Year in Decade (2)
BP Plc said the Gila prospect in the Gulf of Mexico produced a “significant” discovery, capping the most successful year for exploration since 2004 for Europe’s second-biggest oil company.
Energy Spectrum Said to Explore Sale of Texas Pipeline Operator
Buyout firm Energy Spectrum Capital LP is exploring a sale of Hoover Energy Partners LP, which gathers and processes oil and gas in Texas’s Permian basin, according to three people familiar with the matter.
Pacific Rubiales Seen Transformed Into Takeover Target: Real M&A
Pacific Rubiales Energy Corp. could go from one of Colombia’s hungriest acquirers to an enticing target for larger energy companies craving Latin American oil.
Russia’s 33%-Off Deal for Ukraine Has UBS Cutting Gazprom Call
OAO Gazprom is shaping up as one of the losers from Russia’s bailout of neighboring Ukraine.
ABB Basks in $1 Billion Bet on Solar That Saw Siemens Burned (1)
ABB Ltd., the world’s largest builder of power grids, said growth in the solar industry will become steadier as falling installation costs and the need to conserve oil help replace the fading subsidies that kick-started the market in Europe.
Emerging Currencies Drop as Fed Tapers; Asian Stocks Pare Gains
Emerging-market currencies fell, led by the won’s biggest drop in five months, after the Federal Reserve reduced stimulus while pledging to hold interest rates near zero. Asian stocks pared a third day of gains as China’s rate swaps touched a record, and silver led commodities lower.
Dollar Rises Against Peers After Fed Cuts Stimulus; Yen Rebounds
The dollar climbed against most of 16 major counterparts after the Federal Reserve decided to slow stimulus that’s seen to have debased the U.S. currency.
Hello Kitty Tempts Koreans as Won Leads Gains to Yen: Currencies
Less than three months after a visit to Tokyo, South Korean housewife Chang Sun Ja is already planning her next Japanese trip to take advantage of the won’s surge to a five-year high against the yen.
Asian Stocks Rise After Fed Begins Tapering; China Shares Slide
Asian stocks rose after the Federal Reserve expressed enough confidence in the U.S. labor market to taper asset purchases while promising to hold interest rates close to zero. Shares in China and Hong Kong fell on concern higher funding costs will hurt growth.
Pakistan Profits Outpace World’s Biggest Rally: Chart of the Day
Pakistan’s world-beating equity rally in the past three years has failed to keep pace with record corporate profits, meaning shares in the nation of almost 200 million people have gotten even cheaper.
Copper Falls Third Day as Dollar Rallies on Fed Stimulus Cuts
Copper declined for a third day as the dollar strengthened after the Federal Reserve decided to taper its monthly bond purchases, reducing the appeal of industrial metals as an alternative investment.
Brazil Crushing Sugar to Ethanol With Gasoline Caps: Commodities
Decasa Acucar & Alcool SA employed 1,200 workers last year at a mill in Maraba Paulista, Brazil, that crushed cane to make sugar and ethanol. Today, all that’s left are 22 employees, a security guard and his dog.
North Korea Purge Raises Risk of Kim Jong Un’s Show of Force (1)
North Korea’s execution of Kim Jong Un’s uncle and de facto deputy raises the risk the leader may take military action against the South to demonstrate his authority after the purge.
India Uproar Over Strip-Searched Diplomat Brings Call From Kerry
U.S. Secretary of State John Kerry expressed his regret to India over the arrest and strip-search of a consular official in New York, as the top American diplomat sought to calm a deepening row over the incident.
Yankees Parking Debt May Get Funds From Planned Soccer Arena (1)
Investors holding about $238 million of defaulted tax-exempt bonds used to construct parking garages at Yankee Stadium in New York are set to benefit from a planned land sale for a new soccer stadium at the site.
Real Madrid, Barcelona Face European Union State-Aid Probe (2)
Real Madrid and Barcelona, soccer’s richest clubs by sales, are among seven Spanish teams facing a formal probe by the European Union over possible illegal state aid, Spanish Foreign Minister Jose Manuel Garcia-Margallo said.
Last Chg %Chg Exch Contract ---- ---- ---- ---- -------- WTI Crude ($/Bbl) 97.73 -0.07 -0.1 Nymex Jan. Brent Crude ($/Bbl) 109.38 -0.25 -0.2 Ice February Gasoil ($/Ton) 929.25 +0.25 +0.0 Ice Jan. Gasoline (c/Gal) 269.67 -0.06 0.0 Nymex Jan. Natural gas ($/MMBtu) 4.32 +0.07 +1.6 Nymex Jan. Dated Brent ($/Bbl) 109.41 +0.15 +0.1 OTC 21 Days Heating Oil 300.80 -0.21 -0.1 Nymex Jan. Other markets: Last %Chg ----- ----- Dollar Index 80.53 +0.5 MSCI World Index 1,612.74 -0.1 Prices as of 6 a.m. GMT
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