TOP Oil Market News: WTI Crude Rises as U.S. Stockpiles Decline

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

WTI Gains for Second Day as U.S. Stockpiles Shrink; Brent Steady

West Texas Intermediate rose for a second day after an industry report showed crude inventories declined in the U.S., the world’s biggest oil consumer. Brent was steady in London.

U.S. Light-Distillate Shipments to Asia Rise for a Second Month

U.S. shipments of light distillates to Asia increased for a second month, according to IHS Fairplay, shipping reports and fixtures on Bloomberg.

Fuel Oil Shipments to Asia Increase to 3.3M Mt for June Arrival

Fuel oil supplies scheduled to arrive this month in Asia from Western countries rise to ~3.3m mt, shipping data show.

Adnoc’s Murban Crude Price at $109.15/Bbl for May, Up 1.1% M/M

U.A.E. state oil co. sets govt. selling price for Lower Zakum crude at $108.80/bbl, according to e-mailed statement today.

CPC Seeks LPG Supplies for July Delivery to Kaohsiung, Shen-Ao

Taiwanese refiner seeks to buy 22kt each of propane and butane for July 6-15 delivery to Kaohsiung or Shen-Ao, according to a notice on co.’s website.

Vietnam Local Fishery Group to Sue China Oil Co., Tuoi Tre Says

An Hai fishery group of Ly Son district, Quang Ngai province, will sue China National Offshore Oil Corp. for indirectly causing economic damages and threatening lives of Vietnamese fishermen, newspaper reports, citing Nguyen Quoc Chinh, chairman of the group.

REFINERIES Map global refinery outages

Shell Moerdijk Chemical Plant Fire Extinguished After Blast (3)

A fire at Royal Dutch Shell Plc’s chemical plant in Moerdijk, south of Rotterdam in the Netherlands, has been extinguished after an explosion yesterday.

Colonial Line 2 Fuel Shipments to Atlanta to Resume Later Today

Deliveries on Line 2 to Atlanta Junction in Georgia expected to resume later today, co. says in e-mailed notice to shippers.

Northwest Gasoline Hits 3-Week High as Tanker Seen Exporting

Spot conventional gasoline in Portland, Ore., strengthens 3c/gal. to 20c over Nymex futures as oil-products tanker is chartered to export fuel from Anacortes, Wash.

EUROPE OIL PRODUCTS: Jet Fuel Gains; German Refinery to Restart

European jet fuel rises as Total, Shell buy barges.

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 9.31 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 1.2% to 32.67 Points

The cost of delivering Middle East crude to Asia, the world’s busiest route for supertankers, gained 1.2 percent to 32.67 Worldscale points, according to the Baltic Exchange in London.

TOP ENERGY STORIES

Ukraine Moves Weapons to Russian Border as Death Toll Rises (2)

Ukraine said it’s deploying heavy weaponry and armored vehicles to strengthen its border with Russia and halt an influx of fighters after skirmishes with separatists claimed another dozen lives.

Germany Said to Consider Alstom Stake Via KfW to Back Siemens

The German government is considering using its state-owned development bank to buy a stake in Alstom SA if Siemens AG’s proposal to create two European champions in rail and energy succeeds, people familiar with the plans said.

Texas Faces Steep Cut Kentucky Avoids in Obama Climate Plan

Texas Governor Rick Perry and Kentucky Senator Mitch McConnell were among the strongest critics of the Obama administration’s plan to address climate change yesterday, defending their states fossil-fuel producers.

PPL Said in Talks to Sell Power Unit Stake to Riverstone

PPL Corp. is in talks to sell a stake in its electric power subsidiary to Riverstone Holdings LLC as part of a tax-free spinoff of the unit, people familiar with the matter said.

Coal to Survive Obama ‘War’ as Efficient Plants Boost Demand

President Barack Obama’s plan to reduce greenhouse-gas emissions left coal with a future even as the industry accuses him of trying to make the fuel obsolete.

Buffett’s $26 Billion Power Bet in West Seen Paying Off: Energy

Warren Buffett’s $26 billion bet on western U.S. power plants, transmission lines and wind farms is poised to pay off.

Pacific Tropical Storm Boris Forms, Threatening Floods in Mexico

Tropical Storm Boris will go ashore on Mexico’s Pacific coast today, threatening the southern part of the country with heavy rain and floods, according to the U.S. National Hurricane Center.

InterOil Approached for Stakes in PNG Gas Exploration Licenses

InterOil Corp., Total SA’s partner in a natural gas project in Papua New Guinea, said it’s been approached by companies interested in acquiring a stake in four nearby exploration licenses.

Newcastle Coal Won’t Fall Below $70 a Ton, Indonesian Miners Say

Thermal coal at Newcastle port in Australia, an Asian benchmark price, won’t fall below $70 a metric ton, a level already close to the cost of producing and transporting coal, traders said yesterday at a Bali conference.

Oil Market Seen by JPMorgan at ‘Precarious Balance’

Reduced oil price volatility may be caused by supply outages countered against adequate OPEC spare capacity, helped by U.S. shale, Fred Lucas, an analyst at JPMorgan Cazenove, says in report dated today.

OTHER MARKETS

Asia Stocks Drop as Dollar Gains Before Data; Aussie Bonds Slide

Asian stocks fell, with a regional benchmark index retreating from a seven-month high, the dollar strengthened against most peers and industrial metals declined before U.S. jobs data and trade reports. Australian bonds fell as the country’s economic growth quickened.

Dollar Reaches One-Month High Versus Yen Before Jobs; Kiwi Falls

The dollar strengthened to a one- month high against the yen before U.S. reports this week that economists said will show the job market improved last month.

Euro Gets Carry Vote as Easing Bets Boost Profits: Currencies

Mario Draghi’s willingness to lower interest rates is turning the euro into the darling of investors seeking to exploit differences in global borrowing costs, aiding his efforts to weaken the currency.

Asian Stocks Retreat From 7-Month High Before U.S. Jobs, ECB

Asian stocks fell, with regional benchmark index retreating from a seven-month high, as investors await a report on U.S. jobs and a decision from the European Central Bank on monetary policy.

U.S. Stocks Little Changed Before ECB Meeting, Employment Report

U.S. stocks were little changed, following all-time highs for benchmark indexes yesterday, as investors awaited a European Central Bank decision on stimulus measures and a report on American employment in May.

China Mulls Offshore Yuan Gold Trade in Shanghai Trade Zone (1)

China, the world’s largest bullion consumer and producer, is considering allowing the use of offshore yuan in gold trading in the Shanghai free-trade zone.

Iron Ore Trade at Record as Pilbara Mines ‘Export Socks Off’ (2)

Iron ore shipments from Australia’s Port Hedland expanded to a record in May as mining companies boosted output, helping to push benchmark prices to the lowest level since 2012 and contributing to a rising global surplus.

Obama Vows to Boost European Security to Counter Russia’s Moves

President Barack Obama arrived in Poland yesterday with a promise to meet Russia’s aggression with U.S. military muscle while cracking the door open to a rapprochment with Russian leader Vladimir Putin.

Asia Territory Spats Pose Danger to Trade, Singapore Warns (1)

The risk of territorial disputes damaging trade in Asia is “very real” and the region must focus on shoring up economic links as well as security ties, according to Singapore Defence Minister Ng Eng Hen.

SPORTS

Mickelson’s 22 Years Building Goodwill at Risk in Trading Probe

Phil Mickelson’s 22 years of building trust among corporate sponsors and golf fans on the U.S. PGA Tour is at risk.

World Cup Dopers May Play as Samples Go to Europe for Tests (1)

Brazil’s failure to have an accredited laboratory ready in time for soccer’s World Cup means a player suspected of doping may be able to continue competing because testing won’t be done before his next game, according to the head of FIFA’s medical committee.

Qatar Losing World Cup Good Bet at Gambling Site as Markets Drop

A U.K. bookmaker suspended betting on Qatar losing the right to host the 2022 soccer World Cup because of new allegations about the bidding process.

ENERGY PRICES

Last Chg %Chg Exch Contract

---- ---- ---- ---- -------- WTI Crude ($/Bbl) 102.85 +0.19 +0.2 Nymex July Brent Crude ($/Bbl) 108.96 +0.14 +0.1 Ice July Gasoil ($/Ton) 888.25 +2.00 +0.2 Ice July Gasoline (c/Gal) 294.86 -0.01 -- Nymex July Natural gas ($/MMBtu) 4.63 -- -- Nymex July Dated Brent ($/Bbl) 109.23 +0.03 +0.0 OTC 21 Days Heating Oil 286.84 +0.26 +0.1 Nymex July

Other markets:

Last %Chg

----- ----- Dollar Index 80.64 +0.1 Gold ($/Oz) 1,244.50 -- MSCI World Index 1,715.20 --

Prices as of 6 a.m. GMT

To contact the reporter on this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net

To contact the editors responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net Mike Anderson

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