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IEA's Birol: Surprised if Iranian Oil Exports Rebounded Soon

International Energy Agency chief economist Fatih Birol said Monday that he would be surprised if Iranian oil exports returned to pre-crisis levels soon, following the political accord Sunday on Iran’s nuclear program. “We may see currently some downwards pressure on the prices, but we’re still not there to comment on a structural impact on the markets, because the agreement is not yet clear about the future of Iranian oil production,” Mr. Birol told The Wall Street Journal on the sidelines of an Oslo oil conference hosted by Statoil ASA (STO). Crude-oil futures were lower Monday on expectations that more oil supply could soon be available to the global oil market. Mr. Birol said he would be surprised to see Iranian oil exports reach pre-crisis levels anytime soon. “It was about 2.2 million barrels per day, and I would be surprised to see that it would […]

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IEA’s Birol: Surprised if Iranian Oil Exports Rebounded Soon

International Energy Agency chief economist Fatih Birol said Monday that he would be surprised if Iranian oil exports returned to pre-crisis levels soon, following the political accord Sunday on Iran’s nuclear program. “We may see currently some downwards pressure on the prices, but we’re still not there to comment on a structural impact on the markets, because the agreement is not yet clear about the future of Iranian oil production,” Mr. Birol told The Wall Street Journal on the sidelines of an Oslo oil conference hosted by Statoil ASA (STO). Crude-oil futures were lower Monday on expectations that more oil supply could soon be available to the global oil market. Mr. Birol said he would be surprised to see Iranian oil exports reach pre-crisis levels anytime soon. “It was about 2.2 million barrels per day, and I would be surprised to see that it would […]

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Longer-Term Deal With Iran Faces Major Challenges

LONDON — The Obama administration’s successful push for an accord that would temporarily freeze much of Iran’s nuclear program has cast a spotlight on the more formidable challenge it now confronts in trying to roll the program back. For all of the drama of late-night make-or-break talks in Geneva, the deal that Secretary of State John Kerry and his negotiating partners announced early on Sunday was largely a holding action, meant to keep the Iranian nuclear program in check for six months while negotiators pursue a far tougher and more lasting agreement. By itself, the interim pact does not foreclose either side’s main options or require many irreversible actions — which was why the two sides were able to come to terms on it. That was also a reason for the sharp negative reaction the deal elicited on Sunday from Israel, an American ally that is deeply suspicious of […]

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Praise in Iran All the Way to the Top, Where Efforts Reportedly Preceded a President

TEHRAN — The smiling started early in Tehran on Sunday, when President Hassan Rouhani kissed a young schoolgirl in an Islamic head scarf before dozens of cameras, signaling that Iran’s future had taken a new turn. After years of seemingly endless bad tidings of more international sanctions, more inflation and more saber rattling, many in this capital received the news of the first nuclear agreement between Iran and world powers in more than a decade like an awakening from a bad dream, and they shared their emotions on social media. “When I checked my Instagram when I woke up, someone had posted a picture of an Iranian and American flag,” said Asal Khalilpour, 29. “After I read the comments saying a deal was made, tears started rolling down my cheeks of happiness. I couldn’t believe it.” People from across the Iranian political spectrum, including many hard-line commanders and clerics […]

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Easing of Iran sanctions to have no impact on crude tankers: sources

The partial and temporary easing of sanctions against Iran in return for a freeze of its nuclear programme is expected to have no impact on the crude oil tanker market as the deal agreed Sunday does not allow buyers to boost their import volumes from Tehran, market sources said Monday. “If no extra crude is being allowed for export, then what impact could it have on the tanker market,” an Iranian shipping source said, adding that most of the current exports are anyway being moved on National Iranian Tanker Company ships. A VLCC shipowner said there could be more cargoes for the VLCC sector, but only if the Iranians are allowed to export crude at “normal volumes.” India, China and South Korea have all been importing their crude on NITC tankers after the EU in July last year banned the provision of EU-linked […]

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Iraqi floods provide Internet fodder for frustrated residents

Flooding across Iraq that has left at least 13 people dead and caused widespread structural damage has also provided rich fodder for sarcastic Iraqis bemoaning their decrepit public services. The floodwaters, which have cut off entire areas of Baghdad and several other cities to most vehicles, were caused by several days of heavy rainfall that overwhelmed the crumbling drainage system. Video footage posted on Facebook depicted residents of the Iraqi capital negotiating water-logged streets in life rafts or on planks of wood, armed with makeshift oars. Edited pictures proliferated on social networks, jokingly placing crocodiles in the Baghdad floodwaters. Another superimposed Leonardo DiCaprio and Kate Winslet’s characters from 1998 blockbuster film Titanic on a bus making its way through the capital’s flooded streets. Another depicted a bikini-clad Western woman in the waters with the accompanying comment: “We have turned our neighbourhood into a tourist resort.” Others still […]

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Sunnis close Iraqi capital mosques in protest

Iraqi Sunni religious leaders said Saturday they closed the sect’s mosques in Baghdad indefinitely to protest attacks targeting clerics and worshippers, highlighting the country’s deepening sectarian rift. The closures came as violence across the country killed 12 people Saturday. Sheik Mustafa al-Bayati, a member of a council of senior Sunni scholars that issue religious edicts, said the decision taken Thursday came into effect Saturday. He said mosques would reopen Sunday. Many mosques appeared to comply. In Baghdad’s Sunni northern district of Azamiya, a banner at the closed gate of the hallowed Abu Hanifa mosque read: “The mosque is closed until further notice because of the targeting of imams, preachers and worshippers.” The mosque closures were “prompted by the systematic targeting of and injustice against Sunni clerics, mosques and worshippers,” al-Bayati told The Associated Press. “Today, it is not forbidden […]

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Egypt's interim president issues law restricting protests

Egypt’s interim president on Sunday banned public gatherings of more than 10 people without prior government approval, imposing hefty fines and prison terms for violators in a bid to stifle the near-constant protests roiling the country. The new law is more restrictive than regulations used under the rule of former dictator Hosni Mubarak, overthrown in Egypt’s 2011 uprising that marked the start of unrest in the country. Rights groups and activists immediately denounced the ban, saying it aims to stifle opposition, allows repressive police practices and keeps security officials largely unaccountable for possible abuses. “The law is giving a cover to justify repression by all means,” said Bahy Eddin Hassan, head of the Cairo Institute for Human Rights Studies, one of the local groups that had campaigned against the law. The military-backed government first floated the law in October. Interim President Adly Mansour approved a slightly amended version Sunday, […]

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Egypt’s interim president issues law restricting protests

Egypt’s interim president on Sunday banned public gatherings of more than 10 people without prior government approval, imposing hefty fines and prison terms for violators in a bid to stifle the near-constant protests roiling the country. The new law is more restrictive than regulations used under the rule of former dictator Hosni Mubarak, overthrown in Egypt’s 2011 uprising that marked the start of unrest in the country. Rights groups and activists immediately denounced the ban, saying it aims to stifle opposition, allows repressive police practices and keeps security officials largely unaccountable for possible abuses. “The law is giving a cover to justify repression by all means,” said Bahy Eddin Hassan, head of the Cairo Institute for Human Rights Studies, one of the local groups that had campaigned against the law. The military-backed government first floated the law in October. Interim President Adly Mansour approved a slightly amended version Sunday, […]

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Bomb attacks in Iraq kill 5 troops near Baghdad

Iraqi officials say a suicide car bomb and another bombing near Baghdad have killed five members of the country’s security forces. Police officials say the suicide bomber rammed his explosive-laden car against a police checkpoint in southern Baghdad on Monday, killing three policemen and wounding four others. Earlier in the day, a roadside bomb struck the car with two anti-al-Qaida Sunni militiamen in Baghdad’s northeastern suburb of Husseiniyah, killing them both. The militia, known as Sahwa, joined forces with U.S. troops at the height of the Iraq war to fight al-Qaida. Iraqi troops and Sahwa fighters have been a favorite target for Sunni insurgents, who consider them to be traitors. Medical officials confirmed the causalities. All officials spoke on condition of anonymity because they’re not authorized to talk to media. © 2013 The Associated Press . All rights reserved. This material may not be […]

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Libyan army clashes with Islamist militants, three killed

Clashes between Libyan troops and militants in the eastern city of Benghazi on Monday killed at least three people and wounded a dozen more during a military operation, security and medical officials said. Still in training, Libya’s new military is struggling to curb Islamist militants and militias who fought in the uprising against Muammar Gaddafi but refuse to disarm and control parts of the country. Gunfire and explosions could be heard in Benghazi and thick smoke rose from the Ras Obeida area. The army ordered residents to stay off the city streets, witnesses said. Fighting broke out when an army special forces unit pursued a suspect into an area where Islamist militant group Ansar al-Sharia operates its own checkpoints, Benghazi city security officials said. Ansar al-Sharia was blamed for the attack on the U.S. consulate in Benghazi a year ago when the U.S. ambassador and […]

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Libyan officials: Clashes in Benghazi kill 5

Clashes between armed residents and members of a militant Islamic group in Libya’s eastern city of Benghazi killed five people and wounded nearly 40 early on Monday, officials said. The fighting started before dawn between armed citizens and members of the officially dissolved militant Ansar al-Shariah group, and later prompted the army’s special forces to step in to quell the violence, said security officials. They spoke on condition of anonymity in line with regulations. Sounds of explosions and gunfire echoed across much of the city, but mainly in the Raas Obeida district and surrounding areas. Clouds of black smoke hung over Benghazi as ambulances rushed the wounded to hospital. The city’s al-Jalaa hospital received the bodies of four soldiers and one civilian, according to the hospital spokeswoman, Fadya al-Barghathi. Classes were suspended at the city’s schools and local university, and most Benghazi residents […]

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Pakistan sees hope for Iranian gas pipeline

A Pakistani government official said a breakthrough nuclear deal with Tehran may breathe new life into a natural gas pipeline planned from Iran. “We hope the agreement between Iran and the world powers would revive confidence of countries like China and Russia to finance the Iran-Pakistan gas pipeline project,” the official told The Express Tribune, a Pakistani newspaper, Monday. Iran and delegates from the so-called P5-plus-1 nations — the United States, Britain, France, Russia, China, and Germany — in concert with the European Union, reached a landmark nuclear deal in Geneva, Switzerland, last weekend. Under the terms of the agreement, Iran agreed to suspend certain parts of its nuclear program in exchange for relief from some economic sanctions. “We are hopeful that those [foreign finance] institutions would have some confidence and they would sponsor the [pipeline] project after Iran and Western nations inked the […]

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Somaliland to Sign Accord With Fourth Company on Oil Exploration

Somaliland expects to sign an agreement with a fourth international energy company this week to begin exploring for oil in the semi-autonomous region, Energy Minister Hussein Abdi Dualeh said. An accord with the Middle East-based company, which Dualeh declined to identify, has been completed, he said in a phone interview on Nov. 21 from Somaliland. The other three companies already operating in the country are London-based Genel Energy Plc (GENL) , RAK Gas LLC, owned by the government of Ras al-Khaimah in the United Arab Emirates, and Oslo-based DNO International ASA. (DNO) “All talks are concluded” with the fourth company, Dualeh said. “It’s just a matter of inking the deal, which hopefully is going to be this month.” Somaliland, situated on the tip of the Horn of Africa , declared independence from Somalia in 1991, though no country has officially recognized it as a sovereign state. Somaliland and the […]

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Indian Refiners Say Iran Nuclear Deal Eases Crude Import Process

The lifting of a European Union ban on insuring tankers carrying Iranian crude as part of a nuclear deal reached in Geneva today will ease the process of importing the Persian Gulf state’s oil, according to Indian refiners. While officials from Indian Oil Corp. (IOCL) , Hindustan Petroleum Corp. and Mangalore Refinery & Petrochemicals Ltd. (MRPL) said the removal of restrictions on shipping cover will enable them to purchase contracted volumes more easily, they said they don’t intend to buy more than previously planned. “We can go ahead and import the contracted volume for this year,” said Rajkumar Ghosh, the director of refineries at Indian Oil, the country’s largest processor. The company has a deal to buy 1.2 million metric tons of Iranian oil in the year ending March 31, of which 0.5 to 0.6 million tons have been imported since April, he said. Middle East suppliers sell the […]

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Pollution Pact From China to India Shows Rift: Carbon & Climate

China and India’s success in weakening the latest global warming agreement created friction with other developing nations that are seeking to step up the fight against climate change. The two countries insisted on single-word changes for a deal at a United Nations conference involving 190 nations on Nov. 23. Instead of making “commitments” to roll back fossil fuel emissions, they signed up for “contributions,” a formulation that allows more flexibility in their action. Those last-minute revisions at a meeting that ran overtime by almost 30 hours underscored the reluctance of China and India to join in the sort of emissions cuts that the European Union is making. It puts the two largest developing nations at odds with their smaller brethren, especially island states and Bangladesh that are the most threatened by rising temperatures. “There’s all sorts of divisions emerging that weren’t there before,” Alden Meyer , who has been […]

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Pollution Pact From China to India Shows Rift: Carbon & Climate

China and India’s success in weakening the latest global warming agreement created friction with other developing nations that are seeking to step up the fight against climate change. The two countries insisted on single-word changes for a deal at a United Nations conference involving 190 nations on Nov. 23. Instead of making “commitments” to roll back fossil fuel emissions, they signed up for “contributions,” a formulation that allows more flexibility in their action. Those last-minute revisions at a meeting that ran overtime by almost 30 hours underscored the reluctance of China and India to join in the sort of emissions cuts that the European Union is making. It puts the two largest developing nations at odds with their smaller brethren, especially island states and Bangladesh that are the most threatened by rising temperatures. “There’s all sorts of divisions emerging that weren’t there before,” Alden Meyer , who has been […]

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As Marcellus Shale loses momentum, a reassessment

But local civic and business leaders insist the shale-gas industry has not gone bust. They say that it has merely taken a breather, and that all signs point to a long-term boost for this region. “We’ve said all along there’s going to be ebbs and flows to this,” said Williamsport Mayor Gabriel J. Campana, an unabashed gas-industry booster. “There’s a real optimism here.” “I think the hype is what changed,” said Davie Jane Gilmour, president of the Pennsylvania College of Technology. The school has trained 3,400 students as welders, rig hands, commercial truck drivers, […]

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US shale boom causing slowdown in LNG industry

Asian buyers’ reluctance to sign the long-term contracts that have traditionally underpinned big liquefied natural gas projects is causing a sharp slowdown in the LNG industry worldwide. A key reason for the standstill is the North American shale gas boom , which promises a cheaper alternative to existing supplies. Amid the uncertainty, LNG developments from east Africa to Canada are being held up, raising fears of a future shortage that could push up global gas prices. Philippe Sauquet, director of gas and power at Total , says buyers and sellers cannot agree on price. “A lot of projects today are still on the shelf because they have not succeeded in interesting long-term buyers,” he told the Financial Times. “Clearly there is a risk [they] won’t get built.” Asian buyers are showing a keen interest in potential exports of US shale gas, because it is indexed to Henry Hub, the […]

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Analysis: U.S. air pollution authority faces Supreme Court tests

WASHINGTON (Reuters) – The U.S. government’s authority to regulate air pollution nationwide, often against the wishes of Republican-leaning states, could face new curbs when the Supreme Court takes on two high-stakes cases in coming months. The cases focus on the broad-ranging power wielded by the Environmental Protection Agency (EPA) under the landmark Clean Air Act, first enacted in 1970. The law was envisioned as a cooperative effort between the federal government and states in which the EPA sets standards but states have to set plans to comply. That flexibility has allowed states which favor looser regulations, like Texas and Kansas, to resist – with the support of industry groups like the U.S. Chamber of Commerce and the National Association of Manufacturers – when the agency wants to impose more stringent standards. In both cases before the conservative-leaning Supreme Court, mainly Republican-led states and industry groups have challenged different EPA […]

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Putin Bets on Gazprom Purge as Slowdown Threatens Legacy

Vladimir Putin wasn’t having a great day. The Russian president had spent the August morning in a helicopter over Khabarovsk, near the Chinese border, surveying flood damage that had left tens of thousands of people homeless. Then he met with senior advisers who were on the trip, for a briefing on economic issues. They drew parallels to another brewing storm: The energy-export model Putin had relied on to restore Russia’s economic strength had run its course, he was told, said two officials on the trip. The state-dominated economy needed a shock, and, to prevent stagnation as growth slowed, a reset. Something had to be done. The solution Putin chose will ripple through the entire Russian economy starting next year: He elected to freeze prices at such powerful state companies as OAO Gazprom (GAZP) and OAO Russian Railways. The plan is to set off a chain reaction that will lead […]

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No one wants Russia to implode but optimists have their work cut out

No one wants Russia to implode but optimists have their work cut out For the state of Russia’s economy is parlous. A couple of weeks ago, the Russian ministry of economy slashed its forecast for average annual growth between now and 2030 from 4pc to 2.5pc. In fact, Russia’s economy has recently been extremely weak. It fell into technical recession in the first half of the year and it looks likely to post growth of only about 1pc this year, down from an average over the past decade of just under 5pc. Russia’s previously strong growth earned her inclusion in the group of countries known as the BRICs. In fact, this gave a misleading impression of Russia’s underlying dynamism. Russia’s strong past growth reflected a series of one-off factors which cannot be repeated. Most importantly, over the past 10 years, higher oil prices have increased Russia’s export earnings, and […]

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U.S. Oil Futures End Lower on Supply Concerns

NEW YORK — U.S. crude oil futures prices fell modestly Friday, while Brent crude oil futures climbed to a six-week high on concerns over continued disruptions to Libyan oil exports. Analysts said an extended cold snap across the Midwest and eastern U.S. provided support to diesel/heating oil futures which climbed for a third day, pushing prices to the highest level since Oct. 10. ICE Brent crude oil for January delivery settled up 97 cents, at $111.05 a barrel, the highest level since Oct. 11, as labor unrest in Libya keeps crude oil output only about one third of typical levels of 1.6 million barrels a day. Brent prices also were supported by indications that ongoing talks between major world powers and Iran won’t soon result in a lifting an embargo that has cut the country’s output by about 1 million barrels a day. After prices settled Friday, U.S. officials […]

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Brent Premium to WTI Reaches Widest Point in Eight Months

West Texas Intermediate’s discount to Brent reached an eight-month high as rising inventories weighed on U.S. futures and limited progress in Iran nuclear negotiations supported the European benchmark. The spread widened to $16.21 from $14.64 yesterday. WTI declined as rising domestic output added to inventories at record highs for this time of year. Brent reached a six-week high as envoys haggled over language in their efforts to ease the standoff over the atomic ambitions of Iran, whose oil exports have been reduced by sanctions. “We have increasing crude oil supplies here in the U.S.,” said John Kilduff , a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “WTI is under pressure. The market is very skeptical that a deal is going to be achievable. That’s helping Brent disproportionately.” WTI for January delivery slid 60 cents, or 0.6 percent, to $94.84 a barrel on […]

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Brent Crude Oil Futures Gain as Libya, Iran Issues Persist

–North Sea Brent crude oil futures prices gained Friday amid continuing worries over reduced Libyan supplies and signs that the embargo on Iran’s oil exports won’t be lifted soon. ICE Brent crude oil for January delivery topped $111 a barrel, a level it hasn’t settled above since mid-October as labor unrest in Libya keeps crude oil output at only about one-third of typical levels of 1.6 million barrels a day. Analysts said Brent prices also were supported by indications that ongoing talks between major world powers and Iran won’t soon result in a lifting an embargo that has cut the country’s output by about one million barrels a day. Iran’s Foreign Minister Mohammad Javad Zarif was quoted citing unspecified progress in the […]

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Natural Gas Futures Rally For Third Straight Day on Cold Weather Outlook

Natural gas futures climbed Friday, rising for the third straight session, as forecasts for a widespread cold snap suggested above normal demand for the heating fuel, on the heels of the first storage withdrawal of the winter season. Natural gas for December delivery rose 6.4 cents, or 1.7%, to $3.766 a million British thermal units on the New York Mercantile Exchange, earlier reaching their highest level since Oct. 21. Prices have gained nearly 6% over the past three trading days as weather forecasts have turned increasingly bullish for the fuel used by roughly half of U.S. all households as their primary heating source. “Temperatures are still looking cold and are now expected to stay that way through the first week […]

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Critical worldwide shortages could lead to water wars

Get ready for the water wars. Most of the world’s population takes water for granted, just like air — two life-sustaining substances. After all, the human body is nearly two-thirds water. But a Hindustan Times blogger said that in India right now, as in many other places around the globe, drinkable water has become such a “precious commodity” that it’s dragging the world into “water wars.” Climate change is drying up lakes and rivers almost everywhere. In Australia, an unprecedented heat wave brought on massive wildfires and critical water shortages. As water grows scarce, more countries are building dams on rivers to hog most of the water for themselves, depriving the nations downstream. Already, Egypt has threatened to bomb the Grand Renaissance Dam upstream on the Nile River in Ethiopia. And as the Earth’s population crossed the 7 billion mark last year, more […]

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Compromise Seen on Tehran's Right to Enrich; Kerry, Other Foreign Ministers Fly to Geneva Talks to Try to Conclude Pact

GENEVA—Iran and world powers neared a crucial compromise Friday on a late roadblock to a deal to curb Tehran’s nuclear program, according to Western and Iranian diplomats taking part in the negotiations. A compromise on that issue—Iran’s demand that it be explicitly allowed to keep some domestic uranium enrichment capacity—could lend momentum to the push for an agreement and at least a temporary reprieve from a decadelong standoff over Tehran’s program and elevated fears of war over it, according to these officials. French Foreign Minister Laurent Fabius arrived in Geneva Saturday morning to join the Iranian nuclear talks, saying he wanted to see a “solid” deal reached. Mr. Fabius played a key role in the last round of Iranian negotiations two weeks ago, saying publicly the draft agreement under discussion was not tough enough on several key points. Iranian officials have since blamed France for scuppering a deal. Speaking […]

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Compromise Seen on Tehran’s Right to Enrich; Kerry, Other Foreign Ministers Fly to Geneva Talks to Try to Conclude Pact

GENEVA—Iran and world powers neared a crucial compromise Friday on a late roadblock to a deal to curb Tehran’s nuclear program, according to Western and Iranian diplomats taking part in the negotiations. A compromise on that issue—Iran’s demand that it be explicitly allowed to keep some domestic uranium enrichment capacity—could lend momentum to the push for an agreement and at least a temporary reprieve from a decadelong standoff over Tehran’s program and elevated fears of war over it, according to these officials. French Foreign Minister Laurent Fabius arrived in Geneva Saturday morning to join the Iranian nuclear talks, saying he wanted to see a “solid” deal reached. Mr. Fabius played a key role in the last round of Iranian negotiations two weeks ago, saying publicly the draft agreement under discussion was not tough enough on several key points. Iranian officials have since blamed France for scuppering a deal. Speaking […]

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Foreign ministers in Geneva for talks on Iran nuclear deal

World powers and Iran held a fresh round of talks on the Islamic republic’s nuclear programme, a month after launching ice-breaking negotiations that may yield a historic deal on easing sanctions against Tehran in exchange for concessions ©Getty EU foreign policy chief Lady Ashton and Iranian foreign minister Mohammad Javad Zarif arrive for talks in Geneva on Wednesday John Kerry, US secretary of state, has held talks with Lady Ashton, the EU foreign policy chief and the French foreign minister Laurent Fabius after flying to Geneva for the second time in two weeks for what is hoped will be a last diplomatic push to reach an interim agreement on curbing Iran’s nuclear programme in exchange for an easing of international sanctions. A State Department […]

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Iran Would Eliminate Stock of Some of Its Enriched Uranium Under Deal

WASHINGTON — Under the proposed six-month deal that six major powers are negotiating with Iran in Geneva, Iran would eliminate its current stock of uranium enriched to 20 percent by diluting it or turning it into fuel rods or oxide powder, forms that are unusable for weapons, senior Western officials said Friday. Iran would be allowed to continue to enrich uranium at much lower levels, to 3.5 percent, the officials said, but would also agree to cap its current stockpile of such uranium, by eliminating, diluting or transforming into fuel as much 3.5 percent uranium as it produces over the six months. The officials spoke about the deal on the condition of anonymity because the negotiations had not been completed. The rationale for such a deal, the officials said, is to satisfy Iran’s refusal to suspend all enrichment — a concession that its negotiators could not sell domestically, even […]

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Costa Rica to build 3 geothermal electricity plants with Japanese funding

The Tico Times has a report on plans to expand geothermal power in Costa Rica – Costa Rica to build 3 geothermal electricity plants with Japanese funding . Costa Rica hopes that the additional electricity generated by steam from the volcanic area will help the country reach its goal of generating 95 percent of its electricity with renewable resources by 2014. … The first of the proposed plants, Pailas II, will have an electrical generation capacity of 55 megawatts and will cost more than $333 million to build, according to a statement from Casa Presidencial. The costa Rican Electricity Institute, or ICE, will construct two other 50-MW power plants, Borinquen I and II, 40 kilometers away from the Pailas geothermal plants. “This is 165 MW of reliable [electricity generation]; that is to say, they will operate 24 hours a day, 365 days a year. This is clean, renewable and […]

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Qingdao oil flow halted as explosion toll hits 47

Crude pipelines have been shut-off in the eastern Chinese oil hub of Qingdao pending safety checks a day after a leak triggered a huge explosion that killed 47 people, a refinery official and state media said on Saturday. Qingdao is one of China’s largest crude oil import terminals, supplying at least two major Sinopec Corp refineries – the Qingdao plant and Sinopec Qilu Petrochemical Corp – as well as many small, independent refineries. An official at the Qilu refinery said the city government had halted the flow of oil in all of the city’s pipelines for safety inspections, which meant crude deliveries to all refineries in the city were temporarily cut off. Qilu has not stopped refining nor reduced production but it was now drawing down its crude inventories, which will last about four to five days, the official said by telephone from Shandong province. Qilu […]

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Urbanites Flee China’s Smog for Blue Skies

DALI, China — A typical morning for Lin Liya, a native of Shanghai transplanted to this ancient town in southwest China, goes like this: See her 3-year-old son off to school near the mountains; go for a half-hour run on the shores of Erhai Lake; and browse the local market for fresh vegetables and meat. She finished her run one morning beneath cloudless blue skies and sat down with a visitor from Beijing in the lakeside boutique hotel started by her and her husband. “I think luxury is sunshine, good air and good water,” she said. “But in the big city, you can’t get those things.” More than two years ago, Ms. Lin, 34, and her husband gave up comfortable careers in the booming southern city of Guangzhou — she at a Norwegian risk management company , he at an advertising firm that he had founded — to join […]

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Wood Mackenzie: China Winter Gas Shortages to Last through 2020

China is likely to see natural gas shortages every winter until the end of the decade as domestic production fails to keep up with demand, a factor likely to drive global liquefied natural gas prices higher, energy consultancy Wood Mackenzie said in a report released on Friday. Increased gas demand from China for heating has already helped lift spot liquefied natural gas (LNG) prices by over 20 percent since mid-September and will aggravate an already tight market for spot LNG cargoes. “Winter gas shortages will be exacerbated through to 2020 as seasonal demand growth in northern China increases at an annualised rate of approximately 16 percent per annum,” Gavin Thompson, Wood Mackenzie’s head analyst for Asia Pacific gas and power, said in the report. “(China’s increased LNG demand) will increase competition among Asian spot LNG buyers during peak demand periods and allow […]

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China Announces That It Is Going To Stop Stockpiling U.S. Dollars

China just dropped an absolute bombshell, but it was almost entirely ignored by the mainstream media in the United States.  The central bank of China has decided that it is “no longer in China’s favor to accumulate foreign-exchange reserves”.  During the third quarter of 2013, China’s foreign-exchange reserves were valued at approximately $3.66 trillion .  And of course the biggest chunk of that was made up of U.S. dollars.  For years, China has been accumulating dollars and working hard to keep the value of the dollar up and the value of the yuan down.  One of the goals has been to make Chinese products less expensive in the international marketplace.  But now China has announced that the time has come for it to stop stockpiling U.S. dollars.  And if that does indeed turn out to be the case, than many U.S. analysts are […]

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US Eyes Increase In Arctic Operations

The U.S. military is looking for ways to expand operations in the vast waters of the Arctic as melting ice caps open sea lanes and other nations such as Russia compete for the lucrative oil and gas deposits. But the effort will take money and resources to fill the broad gaps in satellite and communications coverage, add deep-water ports and buy more ships that can withstand the frigid waters or break through the ice. There are no cost or budget estimates yet. But by the end of this year, the Navy will complete plans that lay out what the U.S. needs to do to increase communications, harden ships and negotiate international agreements so that nations will be able to track traffic in the Arctic and conduct search-and-rescue missions when needed. En route to a security conference here […]

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US pipeline conversions, gas flow reversals raise safety concerns

In the rush to accommodate shifting US natural gas supply patterns, there are worries that pipeline safety could get short shrift in companies’ plans to reverse flows or switch to oil and liquids transportation, particularly as federal standards do not specifically address such changes, observers say. “We’re in the era of multi-billion-dollar projects,” Richard Kuprewicz, president of pipeline safety consultant Accufacts, told this week’s Pipeline Safety Trust annual meeting in New Orleans. And that can lead to what he calls the “Space Shuttle syndrome,” in which the “pressure to launch can overcome safety considerations.” “Pipelines are undergoing a fundamental rebalancing” in North America as large volumes of shale gas come online, he said. And converting an older gas pipeline to a new purpose, such as carrying natural gas liquids from the Marcellus Shale south to the Gulf Coast or reversing the flow […]

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Crude spread volatilities could mean US nearing refining capacity limits: Citi

Platts New York (Platts)–22Nov2013/418 pm EST/2118 GMT The current volatility of crude oil spreads like Brent/WTI and Brent/LLS are a sign that, when it comes to light, sweet crude in the US, refining capacity limits are being reached, Ed Morse, head of commodities research at Citigroup, said Friday. At a press event for the release of Citi’s annual market review, Morse was asked whether the US will soon run out of refining capacity as US production of crude oil continues at a high pace. “Broadly, we think there is growing investment in capacity to move beyond what we currently identify,” he said. Morse said his research group had identified 700,000 b/d of clear capacity to refine more light crude than is currently being done. “The 700,000 b/d is less than the 1.1 million b/d of growth in the system as a whole,” he said. “But there is about 300,000 […]

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House energy bills called irresponsible by NRDC official

WASHINGTON, Nov. 22 (UPI) — U.S. House oil and natural gas bills are irresponsible and will dismantle environmental safety measures, the Natural Resources Defense Council director said. David Goldston, in a statement Thursday, said the bills, which House members say remove redundant federal regulations on hydraulic fracturing, known also as fracking, and make the approval process for new natural gas pipelines quicker, should die in the Senate. “These irresponsible measures are part of a continuing campaign by House Republicans to systematically dismantle longtime, sensible safety protections the American people depend on, and to deliberately let the oil and gas industry write its own rules,” Goldston said. Republican leaders in the House say President Obama ‘s energy policies are stifling the domestic oil and natural gas sector. Rep. Bill Flores, R-Texas, the former chief executive of oil and gas company Phoenix Exploration Co. who introduced a bill on fracking this […]

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U.S. Energy Rigs Down One to 1,761, Baker Hughes Says

Rigs targeting oil and natural gas in the U.S. dropped by one this week to 1,761, according to Baker Hughes Inc. (BHI) Oil rigs increased two to 1,387, data posted on the company’s website show. The gas count dropped one to 369, the Houston-based field services company said. Miscellaneous rigs were down two to five. The volume of crude and gas extracted per rig has jumped to records in shale plays across the U.S. as companies adopt more efficient drilling and completion techniques, boosting the yield from wells and helping increase domestic oil production to the highest level in two decades. The advances have weakened companies’ appetite for more rigs, driving the U.S. rig count down by 56 in the past year. U.S. oil output slipped 7,000 barrels a day to 7.97 million in the seven days ended Nov. 15 from the highest level since January 1989 in the […]

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Norway to Join Chinese Firm in Iceland Oil Exploration

Norway said it would team up with a Chinese firm to explore for oil offshore Iceland, in a rare cooperation for the two countries since a diplomatic row over the award of the 2010 Nobel Peace Prize to Chinese dissident Liu Xiaobo. Norway has the right to join an exploration licence with Chinese oil firm CNOOC in the waters between Iceland and Norway’s Jan Mayen island, and Norway’s government decided it should participate. “Icelandic authorities are now planning to allocate an additional licence as part of the second licensing round, and Norway should participate,” the oil ministry said in a statement on Friday. Diplomatic ties between Beijing and Oslo have been virtually frozen since the 2010 Peace Prize, and collaboration in Iceland may be a sign that relations could be improving. Under a 1981 […]

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Brent Hits One-Month High; Iran in Focus

Crude-oil futures were lower in Asian trading hours Friday, as investors weighed recent positive U.S. economic data, the possibility of early tapering by the Federal Reserve and ongoing talks over Tehran’s nuclear program. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $95.17 a barrel at 0439 GMT, down $0.27 in the Globex electronic session. January Brent crude on London’s ICE Futures exchange fell $0.22 to $109.86 a barrel. Both oil benchmarks had surged in overnight floor trade. Nymex West Texas Intermediate has settled higher for two of the past three sessions. “WTI is much more sensitive to data emerging from the U.S. than Brent. Although WTI has dropped significantly due to rising production and inventory levels in the U.S., it touched its highest level in three weeks on unemployment data in the U.S.,” Vyanne Lai, analyst at National Australia Bank Ltd. […]

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WTI Crude Surges Most in Seven Weeks on Jobless Claims

West Texas Intermediate crude surged the most in seven weeks after fewer Americans than forecast filed claims for unemployment benefits , bolstering optimism that U.S. economic growth will accelerate. Futures advanced 1.7 percent after the Labor Department said jobless claims fell by 21,000 to 323,000 last week, the fewest since Sept. 28. The median forecast of 47 economists surveyed by Bloomberg called for 335,000. U.S. fuel demand averaged over four weeks reached a five-year high of 20.3 million barrels a day last week, Energy Information Administration data showed yesterday. “Any improvement in the jobs picture is good for demand,” said Michael Wittner , head of oil market research at Societe Generale SA in New York. “Yesterday’s report showed that product consumption is rocking and rolling. This will improve refinery margins, which will increase crude demand.” WTI for January delivery climbed $1.59 to $95.44 a barrel on the New York […]

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Natural Gas Ends at 4-Week High After Large Drop in Inventories

-Natural-gas futures settled at a four week high Thursday after government data showed strong residential heating demand pulled down gas inventories by more than expected last week. Continued expectations of strong near-term demand from a widespread cold snap pushed prices above $3.70 per million British thermal units, but the rally again stalled in that area, as some market players question how much prices can continue to climb in the near term. “Some people appear to be taking profit at around $3.70, despite strong signals out of the inventory data and the weather forecasts,” said Matt Smith, analyst at Schneider Electric in Lexington, Ky. Analysts said the market appears to have largely priced in a broad swath of […]

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U.S. and China Find Convergence on Climate Issue

WARSAW — Discord and rivalry between Beijing and Washington have factored in international discussions of global warming since the United Nations climate treaty was established in 1992, contributing to the foundering of the 2009 talks in Copenhagen and much rough sailing since. But with China having recently surpassed the United States as the world’s largest emitter of greenhouse gases, the countries are finding that their interests increasingly overlap, climate experts and government officials say. The more productive relationship is raising hopes that the friction of recent years may be easing, paving the way for a new global climate change treaty in 2015. International delegates have been meeting in Warsaw to negotiate the provisions of that treaty. The conference is scheduled to end Friday. Zhang Haibin, a professor of international relations at Peking University who has served as an adviser to China’s Ministry of Commerce, said that while climate cooperation […]

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Iran Talks ‘Substantial,’ but Yield No Accord

GENEVA — The foreign policy chief of the European Union spent much of Thursday in detailed negotiations with Iranian officials over an agreement to temporarily freeze Tehran’s nuclear program. But the day ended without reports of a breakthrough and with a warning by a leading American lawmaker that he was prepared to introduce legislation next month that would impose new economic sanctions on Iran. The talks on Thursday between Catherine Ashton, the European Union’s top foreign policy official, and Mohammad Javad Zarif, Iran’s foreign minister, were described by a spokesman for Ms. Ashton as “intense” and “substantial.” Their negotiations were to continue Friday morning. Reports in the Iranian news media suggested that the talks might continue into the weekend and could end with the arrival of Secretary of State John Kerry and the foreign ministers of other world powers if a deal appeared close. But whether the remaining issues […]

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Iran Deal Falters as Negotiators Cite Little Progress

Negotiators weren’t able to reach agreement on a first-step accord to resolve a decade-old dispute over Iran’s nuclear program , reducing the likelihood that foreign ministers will arrive to strike a deal after two days of negotiations in Geneva. Talks between Iranian Foreign Minister Mohammad Javad Zarif and Catherine Ashton , the European Union foreign policy chief representing world powers at the talks, broke up late yesterday after more than six hours of intense consultations, the EU said in a statement. The sides will reconvene today. “We have made no progress” toward resolving certain disagreements in the text, Iranian Deputy Foreign Minister Abbas Araghchi told reporters in Geneva. He said foreign ministers won’t come unless there’s “success in negotiations.” EU spokesman Michael Mann cast the talks in a more positive light, calling them “intense, substantial and detailed” […]

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Iran Expects Crude Exports to China to Stabilize

SHANGHAI—Iran expects its crude-oil exports to China will stabilize despite political pressure from the U.S. and a drop in shipments so far this year, an executive at Iran’s state oil company said. China’s October crude imports from Iran fell 42% to 1.06 million metric tons, or about 250,000 barrels a day, from the same period a year earlier, Chinese customs data showed Thursday. The steep drop in October brings China’s Iranian crude imports to 17.1 million tons in the January to October period, down 3% from the same period last year. The drop makes it increasingly likely that Washington and Beijing will avoid a clash over imports from Iran. However, the decline may be only temporary, said Maziar Hojjati, managing director of the China office of National Iranian Oil Co. He expects imports will recover in December and end the year almost unchanged compared with last year. “There were […]

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South Korea's Oct crude imports from Iran slump 47% on year to 98,097 b/d

South Korea’s imports of Iranian crude oil in October slumped 47.4% to 3.04 million barrels, or 98,097 b/d, compared with 5.78 million barrels a year earlier, data released Friday by state-run Korea National Oil Corp. showed. Compared with September’s imports of 4.12 million barrels, South Korea’s imports in October were 26.2% lower. In the first ten months, the country imported 40.33 million barrels of Iranian crude oil, down 9.5% from 44.55 million barrels in the same period last year. The country did not import any crude oil from Iran in August and September last year in line with US-led sanctions on Iran, but imported 1.97 million in August and 4.12 million barrels in September this year. South Korea was granted an exemption from US financial sanctions since last year allowing it to keep buying Iranian crude oil as long as it showed an […]

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