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WTI Gains for Second Day as U.S. Stockpiles Shrink

West Texas Intermediate rose for a second day after an industry report showed crude inventories declined in the U.S., the world’s biggest oil consumer. Brent climbed in London amid reports of worsening security in eastern Libya . Futures advanced as much as 0.6 percent in New York . Crude stockpiles fell by 1.4 million barrels last week as supplies at Cushing, Oklahoma , the delivery point for WTI, slid 300,000 barrels, the American Petroleum Institute said yesterday. Government data today is forecast to show a 250,000 barrel drop nationwide, according to a Bloomberg News survey. Oil companies concerned over fighting in Libya’s eastern city of Benghazi are evacuating workers, state-run news agency Lana reported. “WTI has been supported by persistent crude stockpile draws at Cushing at the end of the spring,” Andrey Kryuchenkov , an analyst at VTB Capital in London, said by e-mail. WTI for July delivery climbed […]

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Natural-Gas Prices Close at High of Nearly Four Weeks on Warming Weather

atural gas prices closed at a high of nearly four weeks Tuesday as forecasts showed warmer weather coming in mid-June. Prices for the front-month July contract settled up 1.7 cents, or 0.4%, at $4.629 a million British thermal units on the New York Mercantile Exchange. That was the highest closing price since May 7, after which prices dropped down a tier from the $4.70/mmBtu price they had spent several days at. It was an aggressive move by speculators, said Aaron Calder, senior market analyst at energy-consulting firm Gelber & Associates in Houston, in a note. While some forecasts Tuesday predicted summer heat would hit in mid-June, Mr. Calder noted that others predicted milder temperatures settling in within the same period. High temperatures lead to air conditioners switching on, driving more demand for power and the gas that fuels it. It’s just not certain that will […]

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IEA: $48 trillion needed to satisfy global energy demand

It will require $48 trillion in investments through 2035 to meet the world’s growing energy needs, the International Energy Agency said Tuesday from Paris. IEA Executive Director Maria van der Hoeven said in a statement the reliability and sustainability of future energy supplies depends on a high level of investment. "But this won’t materialize unless there are credible policy frameworks in place as well as stable access to long-term sources of finance," she said. "Neither of these conditions should be taken for granted." She said there was a real risk that any investments in global energy could be misdirected because the environmental impacts of various resources may not be reflected in the overall costs. The IEA’s report says around 15 percent of annual investments target renewable energy resources, while the bulk of spending, more than $1 trillion, is directed at fossil fuels. More than half of […]

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IEA Expects World to Rely More on Middle East Oil

A top energy watchdog said the world will need more Middle Eastern oil in the next decade, as the current U.S. boom wanes. But the International Energy Agency warned that Persian Gulf producers may still fail to fill the gap, risking higher oil prices. In its first update to the agency’s energy investment outlook in more than a decade, the IEA—which represents some of the world’s largest consumer nations—said it sees "growth in oil demand [becoming] steadily more reliant on investment in the Middle East." Surging American production from tight oil—extracted from shale formations in places like Texas and North Dakota—has led the agency and other oil-market analysts to predict the U.S. could leapfrog the world’s largest oil producers, Saudi Arabia and Russia, by 2020. That has triggered debate in Washington about easing a long-standing ban on most crude exports from American shores. It has also engendered hope of […]

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New Energy Report from I.E.A. Forecasts Decline in North American Oil Supply

National Public Radio’s “ Morning Edition ” reported this morning: NPR’s Business News starts with the outlook for oil. This is a change of course – the International Energy Agency has released a report on global energy investment. And this group predicts the United States will have to rely more heavily on Middle East oil in the coming years, as North American sources start to dry up a little bit. U.S. energy production has boomed recently, much of it coming from oil and gas extracted from shale. But the IEA says U.S. production will start to lose steam around 2020, and that would put more bargaining power back in the hands of OPEC countries, such as Saudi Arabia. This is quite interesting, given that in 2012, the IEA forecast that the U.S. would overtake Saudia Arabia in oil production by 2020, and would be a net oil exporter by […]

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Will Developing World Join EPA Push for Carbon Cuts?

Cows graze last week in the shadow of the Chalk Point Generating Station, a coal-fired power plant in Benedict, Md. Getty Images America’s push to cut carbon-dioxide emissions is partly intended to spur other large emitters—especially China—to cut their own emissions more aggressively to tackle climate change. But will it work? Other countries already have national policies aimed at cutting carbon-dioxide emissions, and they are much further along than the U.S. The world’s largest system for trading emission allowances is operated by the European Union, which covers more than 11,000 power stations and industrial plants in 31 countries, as well as airlines. And some countries have implemented carbon taxes. Persuading other countries to follow suit won’t be easy. Many developing countries are on a long-term path of trying to industrialize their economies and continue to resist big domestic cuts in carbon emissions. "No matter what your view of climate […]

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July deadline for Iran nuclear deal appears in jeopardy: envoys

It is increasingly unlikely that six world powers and Iran will meet their July 20 deadline to negotiate a long-term deal for Iran to curb its nuclear program in return for an end to economic sanctions, diplomats and analysts say. In theory, an extension to the high-stakes talks should not be a problem if all sides want it. But President Barack Obama would need to secure Congress’ consent at a time of fraught relations between the administration and lawmakers. Iran, the United States, Britain, France, Germany, Russia and China included the July 20 deadline to reach a comprehensive agreement in an interim deal they reached in Geneva on Nov. 24. The November agreement allowed for a six-month extension if more time was needed for a final deal to end sanctions on Iran and remove the threat of war. An extension would allow up to half […]

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Exclusive: Iran's reactor fuel demand emerges as sticking point in nuclear talks

Iran has said it should be able to produce fuel for its Bushehr nuclear power plant, a demand that world powers are unlikely to agree to and which may put a July deadline for a deal to end its nuclear standoff with the West in jeopardy. Diplomats from the major powers negotiating with Tehran said Iranian negotiators expressed the demand at the latest talks in May – identifying one reason little progress was made towards a nuclear deal that could end Tehran’s economic isolation. Iran’s ability to produce enriched uranium goes to the heart of a decade-old dispute over its nuclear program as the fuel can be used both to power reactors and – if further processed – to make the core of a nuclear warhead. "They expect to get capacity to fuel Bushehr and that’s unrealistic," one diplomat from the ‘P5+1’ countries in talks with […]

Posted On : Published By : Tom Whipple
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Exclusive: Iran’s reactor fuel demand emerges as sticking point in nuclear talks

Iran has said it should be able to produce fuel for its Bushehr nuclear power plant, a demand that world powers are unlikely to agree to and which may put a July deadline for a deal to end its nuclear standoff with the West in jeopardy. Diplomats from the major powers negotiating with Tehran said Iranian negotiators expressed the demand at the latest talks in May – identifying one reason little progress was made towards a nuclear deal that could end Tehran’s economic isolation. Iran’s ability to produce enriched uranium goes to the heart of a decade-old dispute over its nuclear program as the fuel can be used both to power reactors and – if further processed – to make the core of a nuclear warhead. "They expect to get capacity to fuel Bushehr and that’s unrealistic," one diplomat from the ‘P5+1’ countries in talks with […]

Posted On : Published By : Tom Whipple
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Getting harder

A street in the al-Jdeida ("New Baghdad") area of Baghdad, the Iraqi capital Source: All images by Dylan Roberts A young boy cooks the head and limbs of a sheep with a blowtorch. Many children in this area sell bits of sheep in the market Young boys in al-Jdeida wake up find rain has flooded their football pitch. The area’s drainage system is poor Large piles of rubbish are a common sight in al-Jdeida An Iraqi man shops in the market A man who lost his limbs begs in the middle of the street as cars pass by A football pitch now occupies the area where a statue of Saddam Hussein once stood. This is one of few grassy areas where children can play Smoke rises after a car bomb. Such attacks often happen during rush hours in the mornings and late afternoons A woman with health problems sits […]

Posted On : Published By : Tom Whipple