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Quebec plans oil exploration program

Quebec plans to partner with private sector interests in an oil exploration program on Anticosti Island in the Canadian province. "These agreements with private sector partners will create sustainable wealth and quality jobs if the presence of oil is confirmed," Premier Pauline Marois stated in a news release Thursday announcing two agreements. The first is a $100 million drilling program with Petrolia Inc., based in Quebec, and Nova Scotia ‘s Corridor Resources, as well as France’s Maurel & Prom, in which the province, through its government agency Resources Quebec, would invest $70 million in return for a 35 percent stake. Under the second preliminary agreement, with Junex, based in Quebec, the province "and an operator yet to be determined" would fund an exploration program of $90 million, with the province getting at least 40 percent of the joint venture. Each of the two […]

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Eurozone economic recovery gains traction on back of improved GDP

The eurozone’s recovery gained a little traction in the final quarter of 2013, with the currency bloc’s economy expanding by 0.3 per cent on the back of stronger-than-expected growth in the region’s two largest economies. Eurostat, the commission’s statistics bureau, on Friday published figures showing growth had edged up from 0.1 per cent in the third quarter by slightly more than the 0.2 per cent expected by economists. The figures will boost hopes that economic conditions in the bloc are steadily improving after the region became engulfed by a sovereign debt and banking crisis. The Eurostat figures were published hours after it emerged that Germany, the bloc’s economic powerhouse, had expanded 0.4 per cent, beating forecasts of 0.3 per cent growth. The German data, published by the Federal Statistics Office, were up from 0.3 per cent in the previous quarter and ahead of its preliminary estimate published last month […]

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Fusion shows progress

Fusion energy experiments at Lawrence Livermore Labs have finally produced more energy than they consumed, a huge step forward in turning fusion into a viable source of energy. The researchers, led by physicist Omar Hurricane, described the achievement as important but said much more work is needed before fusion can become a viable energy source. Hurricane said that the reaction did not produce self-heating nuclear fusion, known as ignition, that would be needed for any fusion power plant. Researchers have faced daunting scientific and engineering challenges in trying to develop nuclear fusion – the process that powers stars including our sun – for use by humankind. “Really for the first time anywhere, we’ve gotten more energy out of this fuel than was put into the fuel. And that’s quite unique. And that’s kind of a major turning point, in a lot of our minds,” Hurricane told reporters. “I think a lot […]

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Oil Futures Lower in London as Investors Weigh Mixed Cues

Crude-oil futures were slightly lower in London trade Friday as investors weighed mixed market cues and oil-demand projections by energy agencies. Brent crude for April delivery on London’s ICE futures exchange traded down 19 cents, or 0.18%, at $108.33 a barrel. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded down 46 cents, or 0.46%, at $99.89 a barrel. Paris-based energy watchdog, the International Energy Agency, said in its monthly report that oil-demand growth in developed countries more than compensated for weaker-than-expected demand from emerging-market economies. Global oil inventories were tight in the fourth quarter, with commercial oil stocks in developed countries plummeting 135 million barrels, the steepest quarterly decline since 1999. As a result, stocks hit their lowest level since 2008 by end-December. "While there are good reasons to expect the market to rebalance in the […]

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WTI Slips a Second Day on Speculation of Higher Supply

West Texas Intermediate slipped for a second day on speculation that crude inventories will accumulate once demand for winter heating fuel tails off. Futures declined as much as 0.6 percent in New York. Twenty-one of 34 analysts and traders, or 62 percent, in a Bloomberg News survey estimated WTI will decline through Feb. 21 as U.S. crude stockpiles expand and freezing temperatures recover. Crude supplies rose by 3.27 million barrels last week, according to the Energy Information Administration. “Crude is overbought,” said Andrey Kryuchenkov , an analyst at VTB Capital in London . “Refinery rates will be shrinking as we finally enter the seasonal maintenance period and the weather in the U.S. Northeast improves.” WTI for March delivery dropped as much as 57 cents to $99.78 a barrel in electronic trading on the New York Mercantile Exchange and was at $99.92 as of 10:54 a.m. London time. The volume […]

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Oil dips; natural gas soars on supply report

The price of oil barely budged Thursday. But natural gas futures soared and U.S. drivers again saw higher numbers at the gas pump. Benchmark U.S. crude for March delivery slipped 2 cents to $100.37 a barrel on the New York Mercantile Exchange. U.S. economic indicators were mostly downbeat on Thursday, suggesting weak demand. A report from the International Energy Agency gave oil some support. The agency raised slightly its 2014 forecast for global demand to 92.6 million barrels a day, 125,000 barrels a day above its previous expectations from a month ago. Natural gas futures jumped 40 cents, or 8 percent, to $5.22 per 1,000 cubic feet. The Energy Department said supplies fell by 237 billion cubic feet last week, more than the 230 billion cubic feet decline predicted by analysts. Meanwhile, U.S. drivers are paying 6 cents more per gallon on average than a week ago. The nationwide […]

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Natural Gas Soars as Stockpiles Drop

NEW YORK—Natural-gas prices surged Thursday as government data showed that supplies in storage facilities, already relatively limited, shrank more than expected last week. High demand for the heating fuel, the result of unusually cold weather, has boosted prices 23% this year and reduced natural-gas stockpiles, prompting fears that supplies could stay exceptionally low even after winter ends. At 1.686 trillion cubic feet, natural-gas supplies are at their lowest for this time of year in a decade, analysts said. About 237 billion cubic feet of gas was pulled from storage in the week ended Feb. 7, the U.S. Energy Information Administration said Thursday. That was 8 bcf more than a Wall Street Journal survey indicated analysts had expected. Futures prices shot above $5 a million British thermal units after the report’s release and settled up 8.3% at $5.223 per mmBtu. "What a very explosive reaction," said Teri Viswanath, director of […]

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Spot LNG Prices Hit Record in Asia

Energy prices aren’t just soaring in the U.S. as a cold winter sets in. In Asia, liquefied natural gas has surged to a record as demand for the clean fuel rises and supply constraints hobble the market. LNG is increasingly the fuel of choice in Asia, with large users such as power producers in many cases under pressure from their governments to limit the environmental impact of rising fossil-fuel consumption, but record prices could force some to rethink their fuel choices. Japan, for example, has boosted its LNG imports since the Fukushima Daiichi crisis that led to the idling of all its nuclear-power plants, helping to push its trade deficit to a record last year and reigniting a debate on whether to restart reactors . For more price-sensitive consumers in India and Southeast Asia, higher LNG prices are prompting power generators to rely more heavily on alternatives like coal. […]

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Non-OPEC production lauded by IEA

– Production outside the Organization of Petroleum Exporting Countries helped with the increase in oil output since last year, the IEA said Thursday from Paris. The International Energy Agency said in its monthly market report oil supplies since last January are up because of "steep growth" from non-OPEC members. The IEA, however, said global oil supplies in January declined by 290,000 barrels per day to 92.1 million bpd because of lower non-OPEC output. OPEC in its monthly market report, published Wednesday, said oil production from the Americas meant demand for OPEC crude from those markets was down. In terms of production, it said winter operations in the Bakken oil reserve area in North Dakota, the second-largest oil producing state in the United States, decreased because colder temperatures "freezes" the more viscous type of oil found there. For OPEC members, IEA said oil supply increased marginally […]

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International Energy Agency urges Opec to sustain oil production

Opec will need to sustain production at its current level of almost 30m barrels a day if badly depleted oil inventories in the developed world are to be rebuilt, according to the International Energy Agency. In its widely followed monthly report, the west’s energy watchdog said stronger than expected demand in the US and other industrialised nations had drained oil stocks to the lowest level in five years, tightening the market and supporting prices. Oil inventories in the OECD group of countries dropped by 1.5m barrels a day in the last three months of 2013, the steepest quarterly decline since 1999. “Far from drowning in oil, markets have had to dig deeply into inventories to meet unexpectedly strong demand,” the report said. Rising oil production from North America has led many forecasters to predict a supply glut and a decline […]

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EIA: Short-term global oil supplies face uncertainties

Global consumption of petroleum and other liquids will rise an average of 1.3 million b/d in 2014 and 1.4 million b/d in 2015, exceeding 93 billion b/d by second-half 2015, according to the most recent Short-Term Energy Outlook released by the US Energy Information Administration. EIA said global consumption of petroleum and other liquids rose by 1.2 million b/d in 2013, exceeding 91 million b/d by the year’s second half. Major uncertainties surround its 2014-15 global oil supply outlook, however. These include lingering unplanned global supply disruptions and unknown US oil production growth, which is attributable to upward US onshore supply risk due to drilling technological innovations and downward production risk in the federal Gulf of Mexico because of potential project delays and hurricane or maintenance outages. Kazakhstan’s Kashagan oil field and North Sea maintenance will also contribute to short-term global supply fluctuations. EIA estimates US total crude oil […]

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Yemen: 7 killed in attack on prison, 29 escape

Heavily armed militants attacked Yemen’s main prison in central Sanaa on Thursday, killing seven people and helping 29 inmates escape, many of them convicts in terrorism-related charges, the country’s state news agency reported. The attack started with a car bomb explosion, then militants exchanged heavy gunfire with the guards at the Sanaa Central Prison, and a number of prisoners fled amid the chaos, according to SABA. A security official said authorities suspect it was an inside job. Among the 29 who fled, 19 are convicted al-Qiada prisoners including those plotting the assassinations of Yemeni President Abed Rabbo Mansour Hadi and western diplomats, the official said. He said those killed in the exchange of gunfire were mostly security forces. Witnesses said earlier that explosions rocked the capital and smoke billowed into the sky. Security forces and army troops have been deployed to the site […]

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Minister claims Lebanon faces 'conspiracy' over gas fields

As Lebanon’s political leaders and sectarian chieftains squabble over who will control the Energy Ministry and the oil and gas bonanza in the eastern Mediterranean, Energy Minister Gebran Bassil accuses rivals of "conspiring against our oil." And just to underline the extent of the prize that’s at stake, one of Lebanon’s major banking houses, Bank Audi, reported that on the basis of the 96 trillion cubic feet of gas and 865 million barrels of oil the ministry estimates lies offshore, Lebanon’s energy wealth could exceed $600 billion. The bank said in the report published Thursday it was optimistic about the prospects for the nascent energy industry, even though Lebanon’s been without a functioning government since March 2013, has a $63 billion national debt, and is hovering on the brink of another bout of sectarian bloodletting linked to the civil war in neighboring Syria. […]

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Minister claims Lebanon faces ‘conspiracy’ over gas fields

As Lebanon’s political leaders and sectarian chieftains squabble over who will control the Energy Ministry and the oil and gas bonanza in the eastern Mediterranean, Energy Minister Gebran Bassil accuses rivals of "conspiring against our oil." And just to underline the extent of the prize that’s at stake, one of Lebanon’s major banking houses, Bank Audi, reported that on the basis of the 96 trillion cubic feet of gas and 865 million barrels of oil the ministry estimates lies offshore, Lebanon’s energy wealth could exceed $600 billion. The bank said in the report published Thursday it was optimistic about the prospects for the nascent energy industry, even though Lebanon’s been without a functioning government since March 2013, has a $63 billion national debt, and is hovering on the brink of another bout of sectarian bloodletting linked to the civil war in neighboring Syria. […]

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Turkey stays on sidelines of Iran's energy sector

Turkish Energy Minister Taner Yildiz said he’s ready to listen if Iran comes forward with new energy investment proposals, but nothing is in the works. Turkey and Iran signed preliminary arrangements in 2007 and 2008 for development of Iran’s giant offshore South Pars natural gas field. Yildiz said Wednesday state-owned Turkey Petroleum Corp., known by its Turkish initials TPAO, was staying on the sidelines for now. "If Iran wants to make a new proposal with new conditions we will look at it," he was quoted by the Platts energy news website as saying. "But as it stands at the moment there has been no decision for TPAO to invest in Iran." Both sides in the past had considered building a 1,100-mile pipeline that would carry South Pars natural gas through Turkey to European consumers, a long-time ambition for Iran. Yildiz was quoted by […]

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Turkey stays on sidelines of Iran’s energy sector

Turkish Energy Minister Taner Yildiz said he’s ready to listen if Iran comes forward with new energy investment proposals, but nothing is in the works. Turkey and Iran signed preliminary arrangements in 2007 and 2008 for development of Iran’s giant offshore South Pars natural gas field. Yildiz said Wednesday state-owned Turkey Petroleum Corp., known by its Turkish initials TPAO, was staying on the sidelines for now. "If Iran wants to make a new proposal with new conditions we will look at it," he was quoted by the Platts energy news website as saying. "But as it stands at the moment there has been no decision for TPAO to invest in Iran." Both sides in the past had considered building a 1,100-mile pipeline that would carry South Pars natural gas through Turkey to European consumers, a long-time ambition for Iran. Yildiz was quoted by […]

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Eni Sees Kashagan Output Recovering to Expected Level From 2015

Eni SpA, Italy’s biggest energy company by market value, Thursday said it expected the giant Kashagan field in Kazakhstan to recover production to the original expected level from 2015. The field’s contribution to Eni’s production for 2014 has been assumed to be marginal, the company said in a statement accompanying fourth-quarter results. Recovery activities are ongoing at Kashagan, it added. Output at Kashagan, which is one of the biggest oil finds in decades, was suspended in October at about 65,000 barrels of oil a day, only a few weeks after starting, after a series of natural gas leaks. No timing of its recommencement has been given. The consortium developing Kashagan, which includes Eni, Total SA, Royal Dutch Shell PLC and Exxon Mobil Corp., had said it planned to increase production to 370,000 barrels of oil a day in 2015. Write to Liam Moloney at [email protected]

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Apache, YPF deal in Argentina a win-win

U.S. energy company Apache Corp. said it was selling off its operations in Argentina to better focus on drilling operations in North America. Apache and its subsidiaries agreed to sell all operations in the country to YPF Sociedad Anonima for $800 million cash plus the assumption of $52 million of bank debt. G. Steven Farris, chairman and chief executive officer at Apache, said the company spent much of the year focusing on shaping its portfolio to enhance its "deep inventory" in North America. "This transaction is consistent with that strategy," he said in a statement Wednesday. Apache said it averaged 256 million cubic feet of natural gas per day in terms of production and estimates its reserves in Argentina at approximately 540 billion cubic feet of natural gas. Miquel Galuccio, president of YPF, said the acquisition is an "excellent opportunity" for his company, already […]

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At least two killed by gunfire at Venezuela protests

At least two people were shot dead on Wednesday during anti-government protests in Caracas, escalating the worst bout of unrest in Venezuela since turmoil after President Nicolas Maduro’s election last year. The violence was a crescendo to weeks of sporadic demonstrations in the provinces led by opposition hardliners who denounce Maduro for failing to control inflation, crime and product shortages and vow to push him from office. The government says the opposition is sowing violence to stage a coup similar to the one a decade ago that briefly ousted late socialist leader Hugo Chavez, though there are few signs that the current melees could topple Maduro. The country’s top prosecutor confirmed the death of a student and a pro-government community leader amid chaotic scenes as marches by opposition and government sympathizers ended just a few blocks apart in the city center. Maduro said another student suffered […]

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Chinese researchers propose energy strategy revamp

The director of a Chinese government research institute has suggested China revamp its energy strategy to secure its energy future. Li Wei, head of the Development Research Center of the State Council, China’s Cabinet — in a paper published in the People’s Daily newspaper — called for a "secure, green and efficient" system of energy production and consumption in China, Xinhua News Agency reported Wednesday. While growth of China’s energy demand will experience a slowdown because of the cooling of its economy, China will continue to depend more on foreign suppliers of oil and natural gas, says Li’s report, "Foreseeing and Analyzing China’s Future Energy Development." Li’s report calls for China to set clear strategic goals to limit dependency on foreign oil and natural gas. Li says as much as 75 percent of China’s oil could be imported by 2030, and its dependency on […]

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Japan seen posting record trade deficit in January as import bill soars

Japan is expected to post a record trade deficit in January as a weak yen pushes up the cost of imports and as export demand slows in a cautionary note about the economic outlook, a Reuters poll showed. The trade deficit, which is forecast to swell to 2.5 trillion yen ($24.5 billion), would provide further evidence that a weak yen alone cannot boost exports as many Japanese manufacturers have shifted factories overseas. A record trade deficit would also suggest that overseas demand may not be strong enough to offset the negative impact of a scheduled sales tax increase in April, meaning policy makers may have to consider other ways to stimulate the economy. "The trade deficit may not expand further, but Japan’s terms of trade are likely to continue to deteriorate, so you can’t say things will start to get better," economists at Mitsubishi UFJ Morgan […]

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Why gasoline could spike 10 percent in the near future

Gasoline could jump anywhere from 15 to 40 cents a gallon over the next several months, but it could be one of the cheapest summer driving seasons in several years. GasBuddy.com predicts that more expensive gasoline is on the horizon, as refiners go into annual maintenance mode for the shift to summer fuels. Regular gas has averaged $3.30 per gallon so far this year, the cheapest opening 45 days since 2010 and 6 cents below last year’s price. But GasBuddy forecasts the national average will rise by 15 to 40 cents per gallon by Easter Sunday—April 20. Part of the reason is due to what it describes as an “extensive” refinery turnaround schedule, already underway on the Gulf Coast. Two major northeast refineries on the Delaware River are also down for maintenance and the Irving refinery in St. John, New Brunswick, a big […]

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Oil-by-rail deliveries up for week ending Feb. 8

U.S. rail delivery of petroleum and petroleum products was up 0.7 percent last week from the same period in 2013, the American Association of Railroads said. The AAR said 13,717 carloads of petroleum and petroleum products, or about 9.6 million barrels of oil, were delivered on the rail system for the week ending Feb. 8, up from the same time last year and nearly 3.8 percent more than the preceding week. Since Jan. 1, 85,793 carloads, or about 60 million barrels of oil, were delivered on the U.S. rail system, an 8.7 percent increase from the same period last year, the AAR said Thursday. Industry officials say the increase in U.S. crude oil production is outstripping the existing pipeline capacity, forcing some energy companies to turn to rail as an alternate transit option. The AAR’s rail count excludes deliveries from the Canadian National Railway […]

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Oil industry welcomes Landrieu to Senate energy chair

The American Petroleum Institute said Sen. Mary Landrieu , D-La., will ensure U.S. energy security through "smart policies" as Senate energy committee chair. Landrieu took the gavel Wednesday from Sen. Ron Wyden , D-Ore., to become chairwoman of the Senate Energy Committee. An advocate for the oil industry, API President Jack Gerard said he looks forward to working with the Louisiana senator. "We look forward to working with Sen. Landrieu on smart policies that will strengthen American energy security and harness the full economic potential of domestic oil and natural gas production," he said in a statement Wednesday. Landrieu said in a statement Wednesday she would help stimulate the U.S. "energy revolution" by encouraging an increase in domestic energy production and expanding infrastructure with the Keystone XL oil pipeline planned from Canada. Critics of the energy industry cried foul over her appointment. Last week, […]

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Train carrying Canadian oil derails, leaks in Pennsylvania

A 120-car Norfolk Southern Corp train carrying heavy Canadian crude oil derailed and spilled in western Pennsylvania on Thursday, adding to a string of recent accidents that have prompted calls for stronger safety standards. There were no reports of injury or fire after 21 tank cars came off the track and crashed into a nearby industrial building at a bend by the Kiskiminetas River in the town of Vandergrift. Nineteen of the derailed cars were carrying oil, four of which spilled between 3,000 and 4,000 gallons of oil, Norfolk Southern said. The leaks have since been plugged. The two other derailed tank cars held liquefied petroleum gas. The train, which originated in Chicago, was destined for an asphalt plant in Paulsboro, New Jersey, owned by NuStar, a NuStar spokeswoman said. The clean-up was under way on Thursday as a heavy winter storm gathered pace, leaving […]

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Scotland says independence will make it a reliable energy partner

Scottish Energy Minister Fergus Ewing said Thursday independence will give Edinburgh a chance to boost renewable energy trade with its neighbors. Ewing told an investment conference in Belfast a "strong and diverse" Scottish economy will be an asset for neighboring countries if voters say yes to a late 2014 referendum for independence. The Irish-Scottish Links on Energy Study, a joint effort examining offshore interconnected electricity, and other projects like it "can help Northern Ireland, Ireland and Scotland deliver our huge off-shore renewable energy potential including wind, wave and tidal," he said. Ewing said Ireland last year received $1.3 billion worth of Scottish exports and "so much more" would come through independence. Scotland has one of the most ambitious renewable energy programs in the world. It was cleared this week to develop a research center for offshore wind technology after U.S. real estate mogul […]

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Eurozone economic recovery gains traction on back of improved GDP

The eurozone’s recovery gained a little traction in the final quarter of 2013, with the currency bloc’s economy expanding by 0.3 per cent on the back of stronger-than-expected growth in the region’s two largest economies. Eurostat, the commission’s statistics bureau, on Friday published figures showing growth had edged up from 0.1 per cent in the third quarter by slightly more than the 0.2 per cent expected by economists. The figures will boost hopes that economic conditions in the bloc are steadily improving after the region became engulfed by a sovereign debt and banking crisis. The Eurostat figures were published hours after it emerged that Germany, the bloc’s economic powerhouse, had expanded 0.4 per cent, beating forecasts of 0.3 per cent growth. The German data, published by the Federal Statistics Office, were up from 0.3 per cent in the previous quarter and ahead of its preliminary estimate published last month […]

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Oil’s Acronym-Troika Sheds Light on Market

The oil market’s three wise men have spoken. The acronym-troika of the IEA, OPEC and the EIA each treat the world to their monthly reports on consecutive days—once they have all read the runes, the theory goes, then the world should have a better idea of what’s what in oil. That week is this week—the pronouncements have been passed down from on high. So what have we learned? A driver refuels at a gas station in Dijon, France. Global oil demand will rise faster than expected this year, both the IEA and OPEC forecast, with the developed economies of Europe and the U.S. the focus of growth. Agence France-Presse/Getty […]

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Peak Oil: More Facts Ruining Happy Talk

THE PREMISE Population is a sensitive subject, but it is noteworthy that by 2050, oil supply will have fallen to a level able to support less than half the current population in its present way of life [1] Oil buyers apparently know the Western world’s economic recovery will boost consumption, since growth and oil use are aligned. That’s not all. They also know that the math doesn’t work: Prices can’t go into gradual, long-term decline, or even stay flat, when the world’s conventional oil fields are in fairly rapid decline. Exotic production – oil sands, biofuels, natural gas liquids – are supposed to fill the gap. But this so-called unconventional production is highly expensive and quite possibly insufficient to cover the drop off in cheap, conventional production. Prices will rise to the point that demand will have to level off or fall. [2] […]

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Oil Futures Slip in Asian Trade

Crude-oil futures fell in Asian trading hours Thursday, with Nymex West Texas Intermediate dropping below $100 a barrel after settling higher for six of the last seven trading sessions. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $99.66 a barrel at 0624 GMT, down $0.71 in the Globex electronic session. March Brent crude on London’s ICE Futures exchange fell $0.36 to $108.43 a barrel. Nymex crude was reacting to mixed oil-inventory data. U.S. crude-oil inventories rose 3.3 million barrels last week, the fourth weekly gain for domestic crude supplies, Energy Information Administration data showed. Analysts surveyed by The Wall Street Journal had expected a 2.5 million-barrel increase in stockpiles. However, oil stocks at the delivery point for Nymex in Cushing, Okla. posted its largest weekly decline since July, falling by 2.7 million barrels on the opening of an extension of the […]

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Oil below $100 on concern about US economy

Oil fell back below $100 a barrel Thursday as investors worried upcoming data would show weakness in the U.S. economy. Benchmark U.S. crude for March delivery declined 88 cents to $99.49 a barrel by 0945 GMT in electronic trading on the New York Mercantile Exchange. It rose as high as $101.38 the previous day on signs of strong Chinese demand. A day after the Organization of Petroleum Exporting Countries forecast higher global consumption of oil, investors were looking ahead to U.S. retail sales and initial jobless claims. Economists say last month’s U.S. retail spending may have been weak. Brent crude, which is used to set prices for international varieties of crude, lost 52 cents to $107.82 on the ICE exchange in London. In other energy futures trading in New York: – Wholesale gasoline shed 1.8 cents to $2.919 per gallon. – Heating oil fell 0.1 cent to $3.012 a […]

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WTI Drops Amid Speculation Rally to 4-Month High Was Excessive

West Texas Intermediate crude slid amid speculation that its advance to the highest price in almost four months was excessive. Futures fell as much as 0.8 percent in New York as a technical indicator approached a level signaling further gains can’t be sustained. Prices increased six times in the past seven days. Stockpiles at Cushing, Oklahoma , dropped by 2.67 million barrels last week, Energy Information Administration data show, as a pipeline helped to move oil away from the largest U.S. storage hub. Total crude supplies rose by 3.27 million, more than the median estimate in a Bloomberg News survey. “The market has possibly overshot a bit,” said Victor Shum , a vice president at IHS Energy Insight, a consultant in Singapore . “The Keystone pipeline started service in late January, so the market was looking for an impact on Cushing inventories and it wasn’t disappointed.” WTI for March […]

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International Energy Agency – Oil Market Report

Oil markets rallied in mid-January as bitterly cold weather in the US pushed up demand for heating fuels, but on average benchmark prices weakened month-on-month (m-o-m). Upcoming seasonal refinery maintenance later put downward pressure on markets before prices rebounded in early February, with ICE Brent futures last trading at $109.25/bbl and NYMEX WTI at $101.25/bbl. Total OECD industry stocks plummeted by a further 56.8 mb in December, taking 4Q13 OECD stock draws to 1.5 mb/d, the steepest quarterly decline since 4Q99. At 2 559 mb, total OECD oil stocks stood 103 mb below their five year average at the end of December, while product stocks covered 28.8 days of forward demand. Global supplies fell by 290 kb/d in January, to 92.1 mb/d, on lower non-OPEC output . Supplies were up 1.50 mb/d year-on-year (y-o-y), however, as steep growth of 1.90 mb/d in non‐OPEC output and OPEC NGLs surpassed a drop of 390 kb/d in OPEC […]

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Oil Inventories Fell Most Since 1999 on Demand in IEA Estimate

Oil inventories in advanced economies tumbled in the fourth quarter by the most since 1999 because of “surprising robustness” of demand in the U.S. and other developed nations, the International Energy Agency said. The IEA, a Paris-based adviser to oil-consuming nations, also boosted forecasts for global fuel demand this year and the amount of crude that will be required from the Organization of Petroleum Exporting Countries. Stockpiles of crude and refined products shrank by 1.5 million barrels a day in the last three months of 2013 to end the year at 2.6 billion, their lowest level since 2008, the IEA said. “Far from drowning in oil, markets have had to dig deeply into inventories to meet unexpectedly strong demand,” the agency said. “A glut is looking increasingly elusive. U.S. demand strength likely reflects in part a structural response to the country’s supply bounty,” as surging shale oil output lowers […]

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OPEC sees oil demand growing, but below potential

OPEC said Wednesday in a report from Vienna crude oil demand should increase, though regional economic variances will keep appetites tempered. The Organization of Petroleum Exporting Countries said in its market report for February it expected the world will need about 29.6 million barrels of its crude oil per day in 2014, down 300,000 bpd from the previous year. The 12-member oil cartel said in its report from Vienna its January production of 29.71 million bpd was up 28,000 bpd from the previous month. For cartel members, OPEC said Libya was the stand out in terms of production increases. From Dec. 13 to Jan. 14, Libyan oil production more than doubled to 510,000 bpd, though that’s well below the pre-civil war peak of 1.6 million bpd. For oil producers outside the cartel, OPEC said much of the increase in production is expected to come […]

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Iran Monthly Oil Exports Rise as Demand Spurs Output, IEA Says

Imports of Iranian crude rose by 100,000 barrels a day last month, with China , Japan and India taking more oil as a deal easing sanctions over Iran’s nuclear program took effect, the International Energy Agency said. Purchasing countries received 1.32 million barrels a day last month, the IEA, a Paris-based adviser to 28 nations, said in an e-mailed report today. An increase in the number of barrels shipped to the three Asian importers more than made up for reduced deliveries to South Korea, Syria and Taiwan , the agency said. An interim accord easing restrictions on insurance for Iran’s oil shipments and freeing up cash held outside the country in return for a suspension of nuclear work went into effect last month. Under the agreement, six buyers permitted under U.S. sanctions to take Iranian crude don’t have to cut imports to avoid penalties. Iran had an estimated 30 […]

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Iran's Economy Begins to Improve With New President, Nuclear Accord

Iran’s economy, though still crippled by sanctions, has begun to improve as a new president and a nuclear accord with the West stabilize its currency and raise confidence, say economists and merchants here and abroad. Residents of this ancient trade hub say they are encouraged by the new administration’s economic policies and the prospect of a lifting of international sanctions in the coming years. Such sentiments have helped stabilize the volatile Iranian rial, which in turn has eased rising prices and spurred an uptick in informal trade, economists say. Shiraz, the heartland of Iran’s Persian identity, has been particularly hard-hit by sanctions. Its once-plentiful international tourists, who came to visit the nearby archaeological ruins of Persepolis and tombs of Iran’s most famous poets Hafez and Saadi, have dwindled to a trickle. Many Iranians are optimistic things will gradually improve. At his animal-feed factory here on the outskirts of […]

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Iran’s Economy Begins to Improve With New President, Nuclear Accord

Iran’s economy, though still crippled by sanctions, has begun to improve as a new president and a nuclear accord with the West stabilize its currency and raise confidence, say economists and merchants here and abroad. Residents of this ancient trade hub say they are encouraged by the new administration’s economic policies and the prospect of a lifting of international sanctions in the coming years. Such sentiments have helped stabilize the volatile Iranian rial, which in turn has eased rising prices and spurred an uptick in informal trade, economists say. Shiraz, the heartland of Iran’s Persian identity, has been particularly hard-hit by sanctions. Its once-plentiful international tourists, who came to visit the nearby archaeological ruins of Persepolis and tombs of Iran’s most famous poets Hafez and Saadi, have dwindled to a trickle. Many Iranians are optimistic things will gradually improve. At his animal-feed factory here on the outskirts of […]

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Escaped Inmates From Iraq Fuel Syrian Insurgency

A series of daring but little noticed breakouts from Iraqi prisons has freed hundreds of hardened militants who are now among the leaders and foot soldiers of the radical Sunni groups operating in neighboring Syria and, increasingly, in Iraq itself. The role of the former inmates in fueling a new wave of Sunni jihad across the region is an unfortunate reminder of the breakdown of authority in Iraq since the United States departed in 2011, of the security vacuum that has spread around the region and of the continuing threat of Sunni-led terrorist groups that the United States said it was fighting during its occupation of Iraq. The prison breaks also […]

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Total CEO eyes return to post-sanctions Iran if terms attractive

Total CEO Christophe de Margerie said Thursday the company would be interested in investing in a post-sanctions Iran, but only if the terms of upstream participation were attractive enough. De Margerie, speaking at a briefing in London, also stressed that Total would respect international law with regard to Iran and would not sign any deals with Tehran while the Islamic Republic remained under sanctions. "We will not sign or negotiate anything until the embargo is lifted," he said. But asked whether Total would be interested in returning to Iran if and when international sanctions against Tehran were lifted, de Margerie said: "If the terms are attractive, yes." Iran is currently finalizing a new draft upstream contract model. It hopes to offer international oil companies an early glimpse of the new draft contracts in February in Tehran, months before it introduces the finalized contracts at […]

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Officials: Bomb blasts kill 5 people in Baghdad

Iraqi officials say simultaneous bomb blasts at a Baghdad market have killed at least five people. A police officer says two bombs, hidden in clothing stalls in the capital’s al-Arabi wholesale market, went off simultaneously on Thursday morning. The officer says the explosions also wounded 15 people. A medical official confirmed the causality figures. Both officials spoke on condition of anonymity as they were not authorized to talk to media. Public places such as cafes, restaurants, mosques and markets are favorite targets for militants in Iraq seeking to undermine the Shiite led-government efforts to maintain security nationwide. Thursdays’ bombings took place as Iraqi security forces and allied Sunni tribal militias are battling al-Qaida-linked militants who have seized significant areas in the country’s west since late December. © 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more […]

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Iraqi pipeline attacks raise fears of threat to oil

Fifteen soldiers were killed this week guarding an oil pipeline in northern Iraq, the first assault to involve so many casualties amid concerns an al-Qaida insurgency in western Iraq is spreading to vital oil-producing regions. Iraqi security authorities said Tuesday’s attack on the camp in Nineveh province took place the same day that Iraqi security forces captured three al-Qaida suspects as they tried to blow up a pipeline near the northern Kirkuk oilfields, which hold about a third of Iraq’s oil reserves of 431 billion barrels. Twin pipelines that carry Kirkuk’s oil production to Turkey’s Ceyhan terminal on the Mediterranean for export are a frequent target for saboteurs. Hussein al-Shahristani , Iraqi’s deputy prime minister for energy, told reporters in Baghdad Jan. 28 Iraq’s oil industry, the country’s economic lifeline, is increasingly coming under attack because of the civil war in neighboring Syria in […]

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Reports of South Sudan Fighting, Despite Pact, Prompt Worry and Warnings

Less than a month after the cease-fire was signed, a rebel leader’s hometown was attacked. Goran Tomasevic/Reuters NAIROBI, Kenya — The ranks of displaced people have swelled to nearly 900,000, close to a tenth of the entire population. Humanitarian groups warn that millions could go hungry if fields remain unplowed before the coming rainy season. Aid workers themselves are on the run, hiding ever deeper in the bush to escape attack. Fighting has continued in South Sudan, both rebels and government officials say, in spite of the cease-fire agreement last month that was meant to bring peace to the young nation while a broader political solution was found. Negotiators from the two sides will meet again in Ethiopia this week. But in a sign of the continuing hostilities, the hometown of Riek Machar, a former vice president […]

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Libyan army helicopter missing, possibly shot down

A Libyan military spokesman says an army helicopter with eight people on board has gone missing in the country’s east and may have been shot down. Colonel Ali al-Sheikhy says the aircraft went missing late Wednesday while en route to the city of Benghazi. He says there was no word on the fate of its two-member crew and six passengers. A regional security operations center in the coastal city of Ajdapia said the aircraft went down near the oil town of Ras Lanov. A military official said the helicopter had come under fire, which forced it to change course before it went missing. The official spoke on condition of anonymity because he was not authorized to talk to media. © 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy and Terms […]

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Putin backs Egypt army chief's run for president

Russian President Vladimir Putin on Thursday wished Egypt’s military chief victory in the nation’s presidential vote as Moscow sought to expand its military and other ties with a key U.S. ally in the Middle East. Putin said at the start of his meeting with Field Marshal Abdel-Fattah el-Sissi that he’s aware of his intention to seek the presidency. "I know that you have made a decision to run for president," Putin said, according to Russian news reports. "That’s a very responsible decision: to undertake such a mission for the fate of the Egyptian people. On my own part, and on behalf of the Russian people I wish you success." El-Sissi, who rose to prominence after the ouster of Islamist President Mohammed Morsi last July, is popular among a large segment of Egyptians and is widely expected to announce a candidacy for presidential elections that […]

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Putin backs Egypt army chief’s run for president

Russian President Vladimir Putin on Thursday wished Egypt’s military chief victory in the nation’s presidential vote as Moscow sought to expand its military and other ties with a key U.S. ally in the Middle East. Putin said at the start of his meeting with Field Marshal Abdel-Fattah el-Sissi that he’s aware of his intention to seek the presidency. "I know that you have made a decision to run for president," Putin said, according to Russian news reports. "That’s a very responsible decision: to undertake such a mission for the fate of the Egyptian people. On my own part, and on behalf of the Russian people I wish you success." El-Sissi, who rose to prominence after the ouster of Islamist President Mohammed Morsi last July, is popular among a large segment of Egyptians and is widely expected to announce a candidacy for presidential elections that […]

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3 killed as Venezuelan protests turn violent

As people fled in panic, one demonstrator fell to the ground with a bullet wound in his head. Onlookers screamed “assassins” as they rushed the 24-year-old marketing student to a police vehicle. He was later identified by family members as Bassil Da Costa. Also killed was the leader of a pro-government 23rd of January collective, as militant supporters of Venezuela’s socialist administration call themselves. National Assembly President Diosdado Cabello said the “revolutionary” known by his nickname Juancho was “vilely assassinated by the fascists” but he didn’t provide details. The troubles moved eastward to the wealthier neighborhood of Chacao after nightfall, leaving another unidentified demonstrator dead from a bullet wound, district Mayor Ramon Muchacho said via Twitter. Calm returned as midnight approached, leaving smoldering trash cans strewn along several blocks where demonstrators threw rocks at government buildings. The unrest comes on the heels of a wave of increasingly violent, student-led […]

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Venezuelan anti-government protests turn violent

Venezuelan security forces fired rubber bullets into the air Wednesday to break up a crowd of activists following the largest protests against President Nicolas Maduro’s government since he was re-elected almost a year ago. Five people were killed during standoffs including a police officer, two student demonstrators and a member of militant community groups known as "colectivos," according to local media. Twenty-five people have been injured during the protests. The fatalities came at the end of rival demonstrations to support and denounce Maduro’s government. Under the banner "The Exit," meaning Maduro’s departure, hard line opposition groups have been holding protests around the country for the past two weeks, to complain about rampant crime, corruption and economic hardships. "All of these problems — shortages, inflation, insecurity, the lack of opportunities — have a single culprit: the government," Leopoldo Lopez, a Harvard University-trained former mayor, told a crowd of about 10,000 […]

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Ford says January China auto sales up 53 percent year-on-year

Ford Motor Co ( F.N ) and its Chinese joint ventures sold 94,466 vehicles in China in January, an increase of 53 pct from a year earlier, the U.S. automaker said on Wednesday. That compares with a 35 percent increase in December and a 47 percent jump in November. In 2013, Ford sold a total of 935,813 vehicles in China, up 49 percent from the previous year. Ford operates joint ventures in China with Chongqing Changan Automobile Co Ltd ( 000625.SZ ) and Jiangling Motors Corp ( 000550.SZ ). (Reporting By Shanghai newsroom and Norihiko Shirouzu; Editing by Kazunori Takada)

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China's auto sales growth tumbles in January

China’s auto sales growth tumbled to 7 percent in January amid an economic slowdown and curbs imposed to fight smog and traffic. Drivers in the world’s biggest auto market bought 1.85 million passenger vehicles, the China Association of Automobile Manufacturers said Thursday. It was the first time monthly sales surpassed 1.8 million. Auto sales growth is forecast to decelerate sharply from last year’s 15.7 percent expansion to about 8 to 10 percent. Sales grew 17 percent in December. Chinese leaders see auto manufacturing as a driver of economic development. But rapid growth has left Beijing, Shanghai and other major cities choking on smog. Some cities have responded by limiting the number of new vehicle registrations. China’s auto market is the world’s most crowded, with major global automakers and dozens of small Chinese brands jostling for sales. Intense competition is squeezing indigenous Chinese automakers that have less […]

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