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WTI Crude Declines After U.S. Gasoline Supplies Rise

West Texas Intermediate declined after inventories of gasoline expanded for a third week in the U.S., the world’s largest oil consumer. Brent was steady in London. Futures decreased as much as 0.4 percent in New York after rising 0.7 percent yesterday. Gasoline stockpiles expanded by 3.38 million barrels, compared with a projected gain of 1 million, according to an Energy Information Administration report yesterday. Crude stockpiles at Cushing, Oklahoma , the biggest U.S. oil-storage hub, dropped by 1.45 million barrels to 18.8 million, the least since November 2008, the report showed. “High refinery runs in the U.S. are translating into a gasoline stock build as we are starting to look at the end of the gasoline season,” Olivier Jakob , managing director at Petromatrix GmbH in Zug, Switzerland , said by e-mail. “The declining gasoline crack is putting pressure on the flat price of crude oil,” while low crude […]

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Iraq: Attack on prisoner convoy kills 60 people

Gunmen attacked a prisoner convoy north of Baghdad on Thursday, setting off a gunbattle with troops in which scores of prisoners and eight soldiers were killed, brutally underscoring Iraq’s instability as lawmakers convened to elect a new president. U.N. chief Ban Ki-moon arrived in Baghdad earlier Thursday, urging lawmakers to "find a common ground" so they can address the crisis sparked by the rapid advance of the Islamic State extremist group and allied Sunni militants across much of northern and western Iraq last month. At a press conference with embattled Prime Minister Nouri al-Maliki, Ban said Iraq is facing an "existential threat," but one that could be overcome if it forms a "thoroughly inclusive government." "I am deeply saddened by the senseless death of so many Iraqi people," Ban said. He added that political leaders in Baghdad and the largely autonomous Kurdish region have a "clear […]

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EIA: Iran still hurt by sanctions

International sanctions still inhibit Iran’s ability to attract foreign investments to its energy sector, the U.S. Energy Information Administration said. EIA, the statistical arm of the Energy Department, updated its country profile for Iran. The report , published one day after the U.S. Treasury Department said sanctions relief for Iran will continue through November, said investors may face restrictions in Iran’s energy sector. "International sanctions continue to affect foreign investment in Iran’s energy sector, limiting the technology and expertise needed to expand the capacity at oil and natural gas fields and reverse production declines," the report said. Iran under the terms of an agreement reached with Western powers in November 2013 secured relief from some sanctions on its energy sector in exchange for a pledge to curb its nuclear research activity. Iran can export around 1 million barrels of oil per day according to the terms of the deal […]

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IRAN

According to data from the International Energy Agency (IEA), Iran’s crude oil and condensate exports averaged 1.1 million bbl/d in 2013, 1.4 million bbl/d less than the volume exported in 2011. Iran’s ability to sell oil was substantially impeded by new sanctions imposed by the United States and the EU, which went into effect in summer 2012. Iran’s exports increased in the beginning of 2014. From January to May 2014, Iran’s exports averaged 1.4 million bbl/d, 300,000 bbl/d higher than the 2013 annual average, according to the IEA. China and India accounted for nearly all of that increase. Effects of 2011-12 sanctions According to the IEA, Iranian crude oil and condensate exports declined by 1 million bbl/d in 2012 compared with the previous year. The decline is attributed to new sanctions imposed by the United States and the EU at the end of 2011 and during the summer of […]

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Egypt Seeks to Clinch LNG Deal With Algeria, But Will Pay High Price

;Egypt is set for an expensive price tag as it seeks to clinch a deal to import much-needed liquefied natural gas from Algeria, according to people familiar with talks between the two countries. Late last month gas-rich Algeria agreed in principle to supply Egypt with roughly five cargoes containing 145,000 cubic meters of LNG each before the end of the year. The deal, made during a visit by Egyptian President Abdel Fattah Al Sisi to Algiers, is intended to alleviate Egypt’s energy crisis after talks for it to import more gas from Qatar broke down last August due to political tensions. "We had initially hoped that Algeria could be willing to give us a good discount or flexible credit terms, but as we stand we are likely to pay a high price for the deal," a senior Egyptian oil official said. "Algeria wants us to pay almost $13 per […]

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Shell holds crisis talks with Niger Delta community over threat to operations

Shell has opened talks with leaders of the Nembe community in the Niger Delta to stave off potential unrest that could disrupt the company’s operations, a Shell spokesman said Thursday. The talks come after the Nembe community in Brass Local Government Area of southern Bayelsa State Wednesday issued a 30-day ultimatum to Shell to shut down its operations for failing to abide by the terms of a General Memorandum of Understanding reached between the two parties last year. "We held discussions with the board [of the Nembe city development foundation] at Yenagoa on July 22 and are continuing to jointly explore ways of resolving the issues at stake," Shell spokesman Precious Okolobo said. He said Shell is committed to the development of host communities in the Niger Delta. The Nembe community is host to Shell-operated Nembe Creek pipeline, which can carry 150,000 b/d of crude feeding directly into the […]

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Anti-piracy watchdog concerned about rising attacks on tankers in Southeast Asia

International Maritime Bureau Thursday expressed serious concern over the rise in hijackings of tankers in Southeast Asia and warned that this could be a new trend in piracy attacks in the region. IMB, an international anti-piracy watchdog, said the attacks in Southeast Asia constituted the bulk of the incidents of piracy reported globally so far this year. At least six known cases of coastal tankers being hijacked for their cargoes of diesel or gasoil have been reported in Southeast Asia since April this year, sparking fears of a new trend in attacks in the area, IMB said in a quarterly report. It pointed out that this was in contrast to earlier attacks on vessels at anchorage, that were boarded for petty theft. "The recent increase in the number of successful hijackings is a cause for concern," IMB Director Pottengal Mukundan said in the report. Though the serious attacks have […]

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China Gasoline Stockpiles Extend Record Amid Rise of Hybrid Cars

China ’s gasoline inventories rose to a record high for a third month in June as an expanding fleet of new-energy vehicles limited demand for conventional supplies in the world’s second-largest oil consumer. Gasoline stockpiles increased 2.7 percent from May, China Oil, Gas & Petrochemicals, a newsletter published by the official Xinhua News Agency, said today. Supplies expanded to an estimated 7.81 million metric tons, the highest level since January 2010, when Bloomberg started compiling the data. Kerosene inventories also climbed to a record 1.88 million tons, up about 4.3 percent from a month earlier. China will waive a 10 percent tax on purchases of new-energy autos, the local term for electric cars, plug-in hybrids and fuel-cell vehicles, starting Sept. 1 to the end of 2017, the government said on July 9. The nation’s gasoline supply was “sufficient” last month, according to OGP. Production of the motor fuel expanded […]

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U.S. proposes new rules for moving crude oil by rail

The U.S. Department of Transportation on Wednesday proposed an overhaul of safety standards for transporting crude oil and ethanol by rail, after a number of explosive accidents over the past year. The draft rules, which are subject to a 60-day public comment period, propose new tank-car braking systems, train-speed restrictions, more testing for volatile gases and liquids, and a two-year phase out of older tank cars that officials have said are prone to puncture and fire when derailments occur. The rules follow an 18-month period which saw more than a dozen derailments of trains carrying crude oil, six of which led to major fires and one of which caused the death of 47 people in the Canadian town of Lac Megantic, in Quebec province. "Today’s proposal represents our most significant progress yet in developing and enforcing new rules to ensure that all flammable liquids… are transported […]

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Puncture-Prone Rail Cars May Be Phased Out in Two Years

The Obama administration proposed phasing out older tank cars tied to a deadly derailment a year ago and lowering speed limits as part of a set of new rules intended to reduce the risks of hauling crude oil. The proposal, which follows a series of fiery accidents, also will require improved braking systems and testing of crude oil before being loaded, according to Transportation Department statement today. The rule applies to shipments of corn-based ethanol as well as oil. “Today’s proposal represents our most significant progress yet in developing and enforcing new rules to ensure that all flammable liquids, including Bakken crude and ethanol, are transported safely,” Transportation Secretary Anthony Foxx said in Washington . The regulations are designed to update standards to account for an increase in the use of trains to carry flammable liquids, particularly crude oil from places like North Dakota’s Bakken field where production is […]

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