TOP Oil Market News: WTI Gains as Distillate Supplies Seen Down

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

WTI Crude Gains as Distillate Supplies Seen Declining on Weather

West Texas Intermediate crude rose for a second day on speculation a U.S. government report will show distillate inventories fell amid cold weather in the country, the world’s biggest oil consumer.

Vulnerable Democrats Urge Approval of Keystone as Election Looms

Four politically vulnerable Senate Democrats are urging U.S. President Barack Obama to approve the Keystone XL pipeline, spotlighting the implications of an election-year decision that may influence which party controls the chamber.

U.S. Crude Export Approvals Aren’t Policy Change: Morgan Stanley

U.S. approval of foreign-origin crude exports to Europe don’t signal policy change, Morgan Stanley analyst Adam Longson says in e-mailed report dated yesterday.

Kuwait Said to Offer Term Naphtha Supplies at $36.50/Mt Premium

Kuwait Petroleum lowered offers for a year’s supply of full-range naphtha starting April, say two people with knowledge of talks, asking not to be identified because the information is confidential.

Indian Oil Said to Sell Chennai Naphtha at $34-$35/Mt Premium

Indian Oil, known as IOC, sells 35,000 mt of naphtha for Feb. 16-18 loading from Chennai on country’s east coast at $34-$35/mt premium to Middle East benchmark prices, say two traders who ask not to be identified because information is confidential.

Second Storm Strikes Northeast Grounding Planes, Closing Schools

A second winter storm this week swept into the U.S. Northeast, grounding more than 1,700 planes, closing schools and threatening power lines. A third system is expected in about four days.

Lundin Petroleum 4Q Revenue $288.2 Mln; Analyst Est. $289 Mln

Agreement signed with Rosneft for sale of 51% interest in Lagansky Block, Russia.

New Zealand Oil & Gas Says Kan Tan Rig to Explore Tui Oil Field

Kan Tan IV semi-submersible rig handed over to Tui partners ahead of drilling on Pateke-4H development well.

Crude Supplies Rise for Third Week in Survey on Refinery Use (1)

U.S. inventories of crude oil rose last week for a third time as refineries reduced their processing, a Bloomberg survey showed.

REFINERIES Map global refinery outages

Phillips 66 Has Emissions at Alliance Refinery: NRC Filing

Equipment malfunction at Belle Chasse, Louisiana, refinery at 2:35 p.m. local time yesterday caused release of sulfur dioxide, according to filing with National Response Center.

Flint Hills North Pole Refinery Shutting Amid ‘Enormous’ Costs

Flint Hills Resources LLC will begin to permanently halt operations in May at the North Pole refinery, Alaska’s largest by capacity, citing poor economics and “enormous” costs for cleaning up soil and groundwater.

Tesoro Reports Major Unit Startup at Golden Eagle Refinery

Co. reports startup at Calif. plant today with no problems in filing with Contra Costa Health Services.

PBF Paulsboro Refinery in New Jersey Reports Emissions to State

PBF’s N.J. refinery reports non- emergent flaring or fuel burning, leading to the release of sulfur dioxide, according to the N.J. Department of Environmental Protection

Essar Says Stanlow Refinery Shut After Issue With Steam Supply

U.K. refinery shut at 2 p.m. local time today, spokesman Jonathan Miller, said in e-mail message.

Canadian Crude Weakens as Illinois Refinery Delays Unit Restart

Citgo’s Lemont refinery, which processes heavy Canadian crude, delayed restart of crude unit because of weather, Kim Biggs, spokeswoman for Illinois Environmental Protection Agency, said by e-mail

Midwest Gasoline Climbs to 4-Month High on Maintenance, Weather

U.S. Midcontinent gasoline climbed 1.87c/gal. to discount of 9.38c/gal. relative to New York Mercantile Exchange futures at 104pm

OTHER OIL MARKET NEWS

Oil Product Shipping Costs to Japan Rise 2.7 %

The cost of shipping a gallon of gasoline, jet fuel or other so-called clean petroleum products from the Middle East to Japan rose 2.7 percent to 7.49 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 13.9% to 47.17 Points

The cost of delivering Middle East crude to Asia, the world’s busiest route for supertankers, gained 13.9 percent to 47.17 Worldscale points, according to the Baltic Exchange in London.

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

S&P 500 Rebounds While Emerging Stocks Extend Worst Yearly Start

U.S. stocks rose, with the Standard & Poor’s 500 Index rebounding following the biggest drop since June, as Treasuries retreated and Turkey’s lira led gains among emerging-market currencies. A gauge of stocks in developing nations extended its worst-ever start to a year.

Babson Graduate Defies Angola Myth to Make Millions From Phones

Alex Thomson-Payan arrived in Angola in 2007 armed with a business degree from Babson College in Boston and $200,000 raised from Swiss and American friends.

Natural Gas Surges as Forecasts Show Arctic Cold Persisting

Natural gas futures jumped in New York, rising for the first time in four days, on forecasts for a polar blast that would deplete stockpiles of the heating fuel.

BP Fourth-Quarter Profit Drops as Disposals Hurt Oil Output (3)

BP Plc, Europe’s second-largest oil company, said fourth-quarter profit fell from a year earlier as output declined and refining margins weakened.

Venezuela Selloff Worsens as U.S. Oil Exports Sink: Andes Credit

Venezuela’s plummeting oil sales to the U.S., its biggest export market, are exacerbating a collapse in the nation’s debt securities.

Natural Gas Retreats After Gains; CME Raises Margins for Trading

Natural gas retreated after surging the most in almost a week. CME Group Inc. raised margin requirements for trading the futures in New York to the highest level in more than four years amid increased price volatility.

Blavatnik Sued for $2 Billion Over TNK Energy Venture’s Sale

Billionaires Leonard Blavatnik and Viktor Vekselberg were sued by a Russian businessman and lawmaker who claims he’s owed more than $2 billion from the sale of his country’s third-largest oil and gas producer.

Korea Midland Power Returns to Dollar Market After 6-Year Hiatus

Korea Midland Power Co. is offering dollar-denominated bonds after a six-year lull as benchmark Treasury yields near a three-month low and credit risk in the region falls.

AGL, Marubeni Said Among Final Bidders for Macquarie Plants (1)

AGL Energy Ltd., Marubeni Corp. and ERM Power Ltd. made final bids for two state-owned power plants being sold in Australia that may fetch more than A$1.5 billion ($1.3 billion), said three people with knowledge of the matter.

Korea Gas Receives Spot LNG Cargo From Nigeria at Pyeongtaek

Korea Gas Corp., the world’s largest commercial buyer of liquefied natural gas, has received a spot cargo from Nigeria, ship-tracking data show.

OTHER MARKETS

Asian Stocks Climb as Japan Rallies; Commodities Gain Second Day

Asian stocks rose from a five-month low, led by Japanese and Southeast Asian shares. Commodities climbed a second day as crude oil advanced and silver headed for its longest streak of gains since October.

Euro Declines Toward 10-Week Low Versus Yen Before Retail Sales

The euro declined toward a 10-week low against the yen before data today that may show retail sales fell in the region amid speculation the European Central Bank will reinforce its commitment to lower rates.

Euro Bears Seeking Redemption in Inflation Slowdown: Currencies

Long-suffering euro bears are gaining comfort from the lowest outlook for inflation since the depths of the financial crisis in 2008, putting pressure on policy makers to boost the supply of cheap money that would weaken the currency.

Asian Stocks Rebound After U.S. Rally as Earnings Boost Japan

Asian stocks rose, with the regional benchmark index rebounding from its biggest slump since June, after U.S. shares advanced and Japanese companies posted earnings that cheered investors.

Most Emerging Stocks Fall as Tech Shares Drop to Three-Month Low

Most emerging-market stocks fell as technology companies dropped to the lowest level in almost three months and Taiwanese shares slumped after a holiday. South Korea’s won strengthened.

Mitsui Mining Boosts Zinc Fee 70% as China Consumption Rises (2)

Mitsui Mining & Smelting Co., Japan’s biggest zinc producer, raised annual charges to overseas buyers by as much as 70 percent as consumption increases in China. Futures in London snapped a 10-day losing streak.

Sugar Prices Post Longest Rally in Four Months on Supply Concern

Sugar futures posted the longest rally in fourth months as drought threatened crop yields in Brazil, the world’s top producer and shipper, while India postponed a plan to boost exports.

Thai Crisis Splits Families as Years of Turmoil Stop Healing (1)

Cod Satrusayang’s family has found a way out of their Thai crisis. They’ve agreed to stop talking about politics.

Jakarta’s Jokowi Snares Tax Revenue in Poll Year: Southeast Asia

Jakarta Governor Joko Widodo, a potential candidate for Indonesian president, plans to boost the capital’s budget by about 75 percent for this year by moving tax collection online to tackle widespread evasion.

SPORTS

Birmingham International Chairman Yeung Resigns, Leaves Board

Birmingham International Holdings Ltd., owner of English soccer team Birmingham City, said that Carson Yeung, awaiting the result of a money laundering trial in Hong Kong, resigned as an executive director and chairman.

Swansea City Fires Coach Michael Laudrup as Team’s Form Dips

Premier League soccer club Swansea City fired coach Michael Laudrup after the team slipped to 12th in the 20-team standings.

Kevin Pietersen Ends England Cricket Career After Ashes Defeat

Batsman Kevin Pietersen said his England cricket career is over after he was left out of the national squad for a tour of the Caribbean and the World Twenty20 in Bangladesh.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 97.76 +0.57 +0.6 Nymex March Brent Crude ($/Bbl) 106.15 +0.37 +0.3 Ice March Gasoil ($/Ton) 900.75 -1.00 -0.1 Ice March Gasoline (c/Gal) 261.72 +1.41 +0.5 Nymex March Natural gas ($/MMBtu) 5.31 -0.06 -1.1 Nymex March Dated Brent ($/Bbl) 106.11 +0.10 +0.1 OTC 21 Days Heating Oil 299.75 +1.46 +0.5 Nymex March

Other markets:

Last %Chg

----- ----- Dollar Index 81.12 -- Gold ($/Oz) 1,251.20 -0.7 MSCI World Index 1,572.64 +0.2 Prices as of 6 a.m. GMT

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

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