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Global crude oil prices gain on U.S. jobs data, Libya doubt

U.S. crude oil rose on Friday as data showed strong jobs growth in the United States and Brent crude followed suit as investors cast doubt on reports Libya’s oil ports were about to reopen. Both benchmarks retreated from the day’s highs along with the U.S. equities market, which fell sharply from the intraday record highs hit after the March U.S. nonfarm payrolls report was released. The report showed 192,000 jobs were added in March. The jobs figure was seen as confirmation that the weakness in the U.S. economy in January and February was the result of severe winter weather. Expectations had been building that an eight-month blockage of Libya’s oil export ports would end after rebels and […]

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U.S. crude oil imports fall, but share of top three suppliers highest in four decades

While U.S. total net crude oil imports fell during 2013, the share of imports last year from the United States’ top three foreign oil suppliers—Canada, Saudi Arabia, and Mexico—was the highest in at least four decades, according to preliminary annual trade data from EIA’s Petroleum Supply Monthly report. These three countries provided almost three out of every five barrels of oil imported into the U.S. market last year. U.S. net crude oil imports in 2013 declined 10.2% to 7.6 million barrels per day (bbl/d), the lowest level since 1996, as rising domestic crude oil production cut into the volume of imports needed to meet refinery demand for crude oil. The overall decline in U.S. net imports has led to an increasing concentration of net imports from Canada , Saudi Arabia , and Mexico . Combined net oil imports from these countries decreased by 1.5% last year. As a result, […]

Posted On : Published By : Tom Whipple
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US ethanol prices rebound after historic two-day tumble

US ethanol prices reversed course on a historic three-day tumble Friday as demand for prompt material rebounded significantly. Chicago Argo ethanol was assessed 20.5 cents higher at $3.01/gal, recovering a portion of value lost in the previous three sessions. Beginning Tuesday when buyers positioned themselves ahead of weekly production data that sent an extremely bearish sentiment throughout the market, the assessment plunged 95.5 cents in three sessions. "This week was a wild ride," one broker said. "No one had seen something like the movements on Wednesday and Thursday since the infancy of this industry in 2006." Article continues below… Request a free trial of: Biofuelscan Platts Biofuelscan is a daily report, covering the latest worldwide biofuel news and prices. It provides a daily summary of market events and developments, along with closing market price assessments from the Americas, Europe, and Asia. Platts Biofuelscan includes […]

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U.S. Warns on Potential Russia-Iran Oil Deal

The U.S. has no information to suggest that a reported Russian oil-for-goods deal is being completed, but has expressed concerns about a move that could lead to fresh U.S. sanctions, a senior official said late Friday. "We do not have any information to suggest this deal has been culminated," the senior U.S. official said in a teleconference ahead of the resumption of international talks on Iran’s nuclear program. "We have been very clear about our concerns with both parties regarding this or any similar deal." Reuters reported earlier this week that Iran and Russia were working to seal a $20 billion oil-for-goods deal in which Russia will receive oil in exchange for Russian goods and equipment. "If such a deal were to happen, it appears it would be inconsistent with" last November’s interim nuclear deal "and could potentially trigger U.S. sanctions against the entity and individuals involved in any […]

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Kashagan Oil Field Seen as Unlikely to Restart This Summer

Production at the giant Kashagan oil field in Kazakhstan is unlikely to restart this summer as the companies involved in the consortium running the project are still awaiting a report on a gas leak that closed the field last October, people familiar with the project said Wednesday. Resuming output is important so the companies, which include Exxon Mobil Corp. , Royal Dutch Shell PLC, France’s SA and Italy’s SpA, can start generating revenue to recoup some of the $50 billion they have already invested in Kashagan over the last 17 years. It is also important for the Kazakh government, which had based its economic forecasts on revenue from Kashagan, where output was expected to ramp up to 370,000 barrels a day from 180,000 barrels a day initially. "There’s no date for restart, but it certainly won’t be this summer," said one person familiar with the project. In February, Claudio […]

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Canada's Sonoro Energy eyes Iraqi oil sands

Canadian energy company Sonoro Energy said it was exploring the opportunity to develop oil sands resources in Iraq. Sonoro said it met with Iraqi officials during the first quarter of 2014 to discuss exploration, production and development of bitumen, or oil sands, in Iraq. "The company has received a positive response to its efforts, and management is of the opinion that it is feasible to achieve a form of federal approval to pursue the development," the company said in a statement Thursday. Bitumen is a viscous form of oil found primarily in the Athabasca deposit in Alberta, Canada. Its viscosity means it requires special heating processes to refine. Sonoro said it was optimistic about its potential to explore the resource in Iraq, but cautioned there are no guarantees approval would be granted. Iraq holds general elections in late April. The company said it expected some regulatory delays given the […]

Posted On : Published By : Tom Whipple
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Canada’s Sonoro Energy eyes Iraqi oil sands

Canadian energy company Sonoro Energy said it was exploring the opportunity to develop oil sands resources in Iraq. Sonoro said it met with Iraqi officials during the first quarter of 2014 to discuss exploration, production and development of bitumen, or oil sands, in Iraq. "The company has received a positive response to its efforts, and management is of the opinion that it is feasible to achieve a form of federal approval to pursue the development," the company said in a statement Thursday. Bitumen is a viscous form of oil found primarily in the Athabasca deposit in Alberta, Canada. Its viscosity means it requires special heating processes to refine. Sonoro said it was optimistic about its potential to explore the resource in Iraq, but cautioned there are no guarantees approval would be granted. Iraq holds general elections in late April. The company said it expected some regulatory delays given the […]

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Syria Ships Out More Chemicals After a 2-Week Lapse

Syria has delivered a consignment of chemical weapons materials for export and destruction overseas for the first time in more than two weeks, a delay that revived concerns about the country’s readiness and ability to meet newly extended deadlines for completing the task this month. The delivery, completed on Friday, involved an unspecified volume of chemical agents, according to a statement by the Organization for the Prohibition of Chemical Weapons, the international monitor group helping the United Nations oversee the destruction of Syria’s chemical weapons arsenal. However, Friday’s consignment involved only a small volume of chemical agents, Michael Luhan, a spokesman for the agency, said in an interview. Syria missed a February deadline for completing the shipment of all chemical weapons materials to be destroyed abroad and later agreed it would finish the job by April 27, so as to fulfill the agreement brokered by the […]

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North Sea Crude Loadings to Drop During May Maintenance

The amount of crude oil due to be pumped from fields in the North Sea is set to fall nearly 15% in May compared to the previous month, as maintenance season takes large swathes of production out of the market. The Oseberg field will load only two cargoes this month, according to provisional loading programs seen by The Wall Street Journal, compared with six last month. "I think it’s just normal field maintenance [and] I would say it was planned. Whether or not the market knew about it until very recently is another matter," said Steve Sawyer, an oil consultant at FACTS Global Energy. The total number of barrels to be loaded in May will be 24 million, down 14.9% from 28.2 million the month before. A North Sea oil trader said that the "large maintenance" was likely priced in, and that the Oseberg field is […]

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Brazil Court Says Chevron Unit and 10 Employees Face Spill Charges

A judicial panel in Brazil ruled a Corp. subsidiary and 10 of its employees will face criminal charges related to offshore oil spills in 2011 and 2012, the company said on Friday. The original criminal charges had been dismissed in February 2013, but an appellate court last October reinstated two counts for environmental damage and failing to immediately notify authorities. Chevron appealed, but a three-judge panel upheld the charges in a 2-1 ruling last week, sending the case back to the federal court that had dismissed the criminal complaint. Chevron has appealed last week’s decision, saying its Brazilian unit "responded appropriately and responsibly to the incident and that there is no damage to the environment or risk to human health." The charges stem from two oil spills, totaling a little more than 2,400 barrels, in the Frade field, about 75 miles off the coast of Brazil. The country’s oil […]

Posted On : Published By : Tom Whipple