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Natural-Gas Prices at Six-Month Low Again; Low Demand Expected

Natural-gas prices closed at a new six-month low, resuming the market’s sluggish July as unseasonably cool weather keeps damping demand. Prices for the front-month August contract settled down 5 cents, or 1.2%, to $4.097 a million British thermal units on the New York Mercantile Exchange. The drop ended two days of nominal gains and brought prices down. They are now 14% lower since last month’s high on June 12. Record production and strong surpluses have been the market’s major influence since then. Money managers who once flooded the market with bets on rising prices started retreating during a record eight-week string of stockpile additions larger than 100 billion cubic feet. Preliminary forecasts from several analysts estimate a return to additions larger than 100 bcf this week. Weather forecasts are calling for temperatures more than 10 degrees below normal in some big Midwestern cities at a […]

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WTI Rises From Two-Month Low on Cushing Supply

West Texas Intermediate rose from the lowest price since May as crude stockpiles shrank in the U.S. Brent recovered from a three-month low as China ’s economic growth exceeded forecasts. Futures rose as much as 0.7 percent in New York . U.S. crude inventories probably fell by 2.75 million barrels last week, a Bloomberg News survey shows before government data today. Supplies at the storage hub in Cushing, Oklahoma , dropped by 944,000 barrels, the American Petroleum Institute was said to have reported yesterday. China’s gross domestic product expanded by 7.5 percent in the second quarter from a year ago, according to the statistics bureau in Beijing. “WTI is being supported by the stockpile draw-down of nearly 1 million barrels at Cushing reported by the API yesterday,” said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd. in London. “The Chinese economic data for June was supportive, with […]

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Goldman Forecasts Lower Commodity Prices as Super-Cycle Ends

Commodities from iron ore to copper and Brent crude will drop over the next five years as global supplies climb, according to Goldman Sachs Group Inc., which highlighted oil’s recent losses as a sign of increased output. There will be substantial declines in some metals, energy and bulk commodities, analysts including Chief Currency Strategist Robin Brooks wrote in a report. The period of continued year-on-year price rises for most commodities is over, they said in the report, which was dated yesterday. Banks from Citigroup Inc. to Deutsche Bank AG have called an end to the commodities super-cycle, when China ’s surging demand combined with supply constraints to more than double prices in the 12 years through 2010. Raw materials rallied this year from three annual losses as a lack of rain in Brazil lifted coffee and a ban of ore exports from Indonesia spurred a rally in nickel. The […]

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Iran says it will work closely with Gazprom

The Iranian government said a joint working group may be set up with Russian natural gas company Gazprom in an effort to broaden bilateral relations. Deputy Petroleum Minister Hamid Reza Araqi, who also heads the National Iranian Gas Co., said Iran would cooperate with Gazprom at the working group level on equipment supply, technology transfers and financing of oil and natural gas projects. NIGC and Gazprom have discussed ways to expand their footprints in the global market, he said Monday. Iran announced a series of joint efforts in the energy sector with its Russian counterparts this year. Both sides cooperate on nuclear energy issues , with Russia supplying nuclear fuel for Iran’s reactor at Bushehr. "Establishment of a joint committee comprising National Iranian Gas Company and Russia’s Gazprom has been put on the agenda with the aim of expanding ties and cooperation," Araqi said . Washington […]

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Tangible Progress Made in Iran Nuclear Talks, Kerry Says

U.S. Secretary of State John Kerry speaks during a news conference in Vienna on Tuesday. Reuters VIENNA—After two days of talks over Iran’s nuclear program, U.S. Secretary of State John Kerry and Iranian Foreign Minister Javad Zarif said Tuesday there had been progress but that significant differences remain. In comments that appear to significantly raise the chance that Washington will agree to extend talks beyond July 20, Mr. Kerry said he sees a way for the negotiations to advance and that there is much work still to do. Mr. Kerry said the U.S. is committed to a "diplomatic course" in the negotiations over Iran’s nuclear program. "I have said—and I repeat—there has been tangible progress on key issues," Mr. Kerry said. "However, there are also very real gaps on other key issues." The U.S. has been calling for a significant reduction in Iran’s nuclear capabilities in return for a […]

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Libya's Oil Production Rises Faster Than Expected

Libya’s oil production has risen to about 554,000 barrels a day as production ramps up faster than expected at the country’s largest field Sharara, an oil official said Tuesday. The official at state-run National Oil Corp. said the production includes about 50,000 barrels a day of condensates and is up from 470,000 barrels a day Monday. The news come despite intense fighting in recent days at Tripoli airport, in the worst violence in six months in the capital.

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Libya’s Oil Production Rises Faster Than Expected

Libya’s oil production has risen to about 554,000 barrels a day as production ramps up faster than expected at the country’s largest field Sharara, an oil official said Tuesday. The official at state-run National Oil Corp. said the production includes about 50,000 barrels a day of condensates and is up from 470,000 barrels a day Monday. The news come despite intense fighting in recent days at Tripoli airport, in the worst violence in six months in the capital.

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Total Pulls Some Expat Employees From Libyan Capital Amid Violence

France’s Total SA said Tuesday it had started pulling out some expatriate employees from Tripoli as the worst clashes in the Libyan capital in six months start affecting the oil industry. The new challenge to the country’s most strategic sector suggests a Libyan oil-production recovery that has pushed crude prices lower may still be fraught with risk. A spokeswoman for Total told The Wall Street Journal it had opened a Malta office this year "to adapt the number of expatriates present in Tripoli to the evolution of the security situation. That’s what we are currently doing given the situation in the airport." A Libyan official said the French company is now considering a force majeure on its operations in the country. The Total spokeswoman said no force majeure has been decided. A force majeure offers legal protection to a company if exceptional circumstances limits its ability to fullfil its […]

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Libyan militia tighten control of Tripoli airport

Libyan militia fighters with anti aircraft guns and mortars fanned out on Tuesday across Tripoli’s airport, transformed into a battlefield by two days of fighting that has cut the Libyan capital off from the outside world. U.S. Secretary of State John Kerry said Washington was working to help end to violence that has brought the north African country to the edge of chaos three years after the uprising that toppled dictator Muammar Gaddafi. At least 15 people have been killed in the capital and the eastern city of Benghazi since Sunday. Fighting between rival militias at the capital’s airport damaged the control tower and wrecked 11 civilian aircraft parked on the tarmac. The main terminal building has been turned into a field hospital. In Benghazi, irregular forces loyal to renegade former general Khalifa Haftar, a former Gaddafi ally, bombarded Islamist militia bases as part of […]

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Libya Airport Is Crippled in Fighting by Militias

The halls of this city’s international airport have been emptied of passengers and converted into a barracks for fighters, with a kitchen and a field hospital. Smoke rose from the building on Tuesday, while beyond it, on the airfield, mortar shells crashed into the tarmac. Three days of pitched battles between feuding militias have left most of the airport’s commercial airplanes, runways and even the tower badly damaged, all but stranding Libyans as their country slides further into turmoil. The country has been plagued by violence for much of the time since Col. Muammar el-Qaddafi’s fall in 2011, as the central government has tried in vain to wrest authority from the powerful militias that control territory and vital installations like the airport. But the latest dark turn, marked by the demoralizing destruction of the airport but also by furious, deadly battles in Libya ’s two largest cities, […]

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Beirut delays offshore energy auction

Lebanon’s government postponed an offshore natural gas auction after rancor erupted Tuesday over the amount of revenue Beirut would get from energy companies. The Lebanese government estimates there are 95 trillion cubic feet of natural gas and 750 million barrels of oil in its territorial waters. A committee led by Prime Minister Tammam Salam has only met a few times to discuss offshore prospects since it was formed early this year. A source close to ministerial negotiations for the auction told The Daily Star newspaper in Beirut policymakers "believe that the state should have a bigger royalty and higher taxes from the profits generated by the oil companies once the actual drilling starts." Royalties of between 5 and 12 percent were seen as too low when compared with other countries. Lebanese Energy and Water Minister Arthur Nazarian is set in August to outline a new date […]

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Natural Gas Discoveries Fueling Gaza Crisis?

Yesterday [Tuesday July 8th], Israeli defence minister and former Israeli Defence Force (IDF) chief of staff Moshe Ya’alon announced that Operation Protective Edge marks the beginning of a protracted assault on Hamas. The operation "won’t end in just a few days," he said, adding that "we are preparing to expand the operation by all means standing at our disposal so as to continue striking Hamas." This morning, he said: "We continue with strikes that draw a very heavy price from Hamas. We are destroying weapons, terror infrastructures, command and control systems, Hamas institutions, regime buildings, the houses of terrorists, and killing terrorists of various ranks of command… The campaign against Hamas will expand in the coming days, and the price the organization will pay will be very heavy." But in 2007, a year before Operation Cast Lead, Ya’alon’s concerns focused on the 1.4 trillion cubic feet of natural gas […]

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Nigeria: Aviation Fuel Scarcity Paralyse Scheduled Operations at Nation's Airports

Visit This Day (Lagos) Scarcity of aviation fuel known as Jet A1, has paralysed flight operations in Nigeria, leading to delays and cancellation of flights. The non-availability of the product which started few days ago, is forcing passengers to wait as long as seven hours before being airlifted, while flights to some destinations were cancelled due to the inability of the airlines to source the product. This had given rise to increase in fares, which might double by weekend if the scarcity continues as the largest Nigerian operator, Arik Air, has started merging its flights in order to ensure that passengers are taken to their destinations. A source from one of the domestic airlines said although the scarcity had started biting hard, the airline’s management has good relationship with its vendors so the scarcity would not disrupted its flights. But that depends on the size of the fleet because […]

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Nigeria: Aviation Fuel Scarcity Paralyse Scheduled Operations at Nation’s Airports

Visit This Day (Lagos) Scarcity of aviation fuel known as Jet A1, has paralysed flight operations in Nigeria, leading to delays and cancellation of flights. The non-availability of the product which started few days ago, is forcing passengers to wait as long as seven hours before being airlifted, while flights to some destinations were cancelled due to the inability of the airlines to source the product. This had given rise to increase in fares, which might double by weekend if the scarcity continues as the largest Nigerian operator, Arik Air, has started merging its flights in order to ensure that passengers are taken to their destinations. A source from one of the domestic airlines said although the scarcity had started biting hard, the airline’s management has good relationship with its vendors so the scarcity would not disrupted its flights. But that depends on the size of the fleet because […]

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China Moves Oil Rig From Contested Waters

In this file photo, the Haiyang Shiyou oil rig 981 is pictured in the South China Sea. Associated Press BEIJING—China is moving a drilling rig out of South China Sea waters claimed by both China and Vietnam, easing a two-month standoff that sparked deadly riots in Vietnam and tense encounters between Chinese and Vietnamese vessels. The move could provide an opening for Beijing and Hanoi to repair relations and comes as the U.S. steps up criticism of China’s efforts to enforce its claims to the strategically important sea. But China’s government said its companies still had the right to explore the contested waters, raising the possibility that tensions could flare again. China Oilfield Services Ltd. , a unit of state-owned China National Offshore Oil Corp., said its deep-water HYSY 981 drilling rig had completed exploration and drilling operations off Triton Island, or Zhongjian Island in Chinese. The island is […]

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China’s second-quarter GDP rises 7.5%

China’s economy expanded by 7.5 per cent in the second quarter , accelerating slightly from the first quarter and improving the government’s chances of realising its target of 7.5 per cent growth for the full year. The figure, which exceeded consensus estimates of 7.4 per cent, shows that the government’s “mini-stimulus” measures have gained some purchase. More On this story Chinese growth 5 themes to watch for On this topic IN Chinese Economy China’s leadership had said it was willing to tolerate slower rates of growth to achieve structural reform, but seems to have blinked when the economy grew by the slowest rate in 18 months in the first quarter, at 7.4 per cent. Data suggest Beijing is on track to meet its annual forecast for gross domestic product to increase by 7.5%. Here are reactions from five economists Economists have warned that supporting short-term growth could come at […]

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China’s G.D.P. Expands, but Businesses Aren’t Feeling the Effect

Millions of Chinese businesspeople like Ou Chengbi are seeing scant signs of recovery in their country’s economy, even as data released Wednesday morning suggest growth is stabilizing. Ms. Ou, a butcher at an open-air market on the outskirts of Guangzhou in southeastern China, dripped perspiration near the unrefrigerated slabs of beef in her stall as she described how as recently as last winter, she could still chop up an entire cow each day and sell it all. “Now I can only sell half a cow a day,” she said. The National Bureau of Statistics in Beijing said Wednesday that growth in gross domestic product edged up in the second quarter to 7.5 percent compared with a year ago. But independent surveys of businesses across China show that in sector after sector, sales and confidence are still deteriorating. “All of them are pointing in the opposite direction […]

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EIA conference speakers warn of US light crude oil’s ‘day of reckoning’

The US could find its light crude oil production growth stymied if it doesn’t allow more of it to be exported, speakers warned during the US Energy Information Administration’s 2014 energy conference’s first day. John R. Auers, executive vice-president of Turner, Mason & Co. Consulting Engineers in Dallas, described what he termed “a day of reckoning” during a July 14 morning session. This day would come, he said, when US crude production exceeds refining capacity to a point that prices become so heavily discounted to comparable overseas grades that producers decide not to increase production further. IHS Vice-Chairman Daniel Yergin agreed. “The rationales for a crude oil export ban are gone, but the ban is still in place,” he said during his luncheon remarks. “We see a risk of a $15-25/bbl domestic light crude discount being locked in during the next couple of years, potentially limiting additional investment.” […]

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North Texas city rejects partial fracking ban

DENTON, Texas (AP) — The council governing a North Texas city that sits atop a large natural gas reserve rejected a bid early Wednesday morning to ban further permitting of hydraulic fracturing in the community after eight hours of public testimony. Denton City Council members voted down the petition 5-2, sending the proposal to a public ballot in November. Fracking involves blasting a mix of water, sand and chemicals deep into underground rock formations to release trapped oil and gas. While the method has long stirred concerns about its effects on the environment and human health, proponents argue that fracking can be done safely and is cleaner than other forms of energy extraction. And industry groups and state regulators had warned such a ban could be followed by litigation and a severe hit to Denton’s economy. Barry Smitherman, chairman of the Railroad Commission, the Texas oil and gas regulator, […]

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Hungry U.S. Power Plant Turns to Russia for Coal Shipment

When New Hampshire ’s largest utility needed to rebuild coal supplies after the past frigid winter, it turned to Russia rather than Appalachia in the U.S. Northeast or Wyoming ’s Powder River Basin. The Doric Victory, a bulk carrier the length of two football fields, transported the fuel almost 4,000 miles (6,436 kilometers) from Riga , Latvia , last month to Public Service of New Hampshire’s Schiller power plant in Portsmouth, a 150-megawatt facility that’s produced electricity since 1952. Utilities in the U.S. are scrambling for coal, on pace to increase imports 26 percent this year, as railroad bottlenecks slow deliveries and electricity demand climbs with an improving economy. Russia, the world’s third-largest exporter of the fuel, will boost shipments 3.9 percent to 106 million metric tons this year, IHS Energy forecasts, part of President Vladimir Putin ’s plan to expand Russia’s role in the global coal market. “Everyone’s […]

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Significant fuel economy improvement options exist for light-duty gasoline vehicles

Although light-duty vehicle types such as diesel, full-hybrid, plug-in hybrid, and plug-in electric have garnered significant attention in recent years as ways to reduce petroleum consumption and lower consumer fuel costs, standard gasoline vehicles, including those that use micro and mild hybridization, are projected to retain nearly 80% of new sales in 2025 and 78% in 2040 in EIA’s Annual Energy Outlook 2014 Reference case. Several fuel-efficient technologies that can deliver significant reductions in fuel consumption are currently or will soon be available for standard gasoline vehicles. These technologies can enable manufacturers to meet future greenhouse gas emissions and Corporate Average Fuel Economy (CAFE) standards, at a relatively modest cost . These technologies include: Engine technologies such as variable valve timing and lift, cylinder deactivation, turbocharging, and downsizing Electrification technologies such as […]

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Shell Reports Deepwater Discovery in Eastern Gulf of Mexico

Royal Dutch Shell PLC said it made a third major oil discovery in the Norphlet play in deep waters of the eastern Gulf of Mexico. Shell’s Rydberg well is 75 miles offshore in 7,479 feet of water. The well, which was drilled to a depth of 26,371 feet, encountered more than 400 feet of net oil pay. Shell expects the discovery contains an estimated 100 million barrels of oil equivalent. The latest discovery brings Shell’s total potential discoveries in the Norphlet play to more than 700 million barrels of oil equivalent. "These successes represent the emergence of another hub for Shell’s deep-water activities that should generate shareholder value," said Marvin Odum, Shell Upstream Americas director. Shell has an operator interest in the Rydberg discovery of 57.2%. The U.S. affiliate of Colombia’s state-run oil company Ecopetrol SA has a 28.5% interest and the Nexen subsidiary of Chinese oil major Cnooc […]

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IEA warns U.S. on energy security

Energy security is more about diversity than abundance in any one particular resource, the head of the IEA warned the United States. International Energy Agency Executive Director Marian van der Hoeven told delegates gathered in Washington for the annual conference of the Energy Information Administration there may be trouble on the horizon for the United States. "Energy security is about much more than supply, and it’s about more than the here and now," she warned . Advancements in drilling technology have given exploration and production companies access to oil and natural gas reserves previously inaccessible. This, in turn, has moved the United States to the top of the list of global energy producers. The peak likely won’t last much beyond the 2030s, the executive director warned. While oil and natural gas are abundant now , policymakers on Capitol Hill need to look to the future energy scenario. "It’s in […]

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Ireland welcomes Robinson as U.N. climate czar

The Irish government welcomed the decision from the United Nations to appoint its former president, , as the special envoy for climate change. U.N. Secretary-General Ban Ki -moon appointed Robinson to serve as special envoy for climate change to mobilize political will ahead of the next international climate summit in September. Robinson became the first female president of Ireland in 1990 and then acted as the U.N. High Commissioner for Human Rights from 1997 to 2002. She’s currently a member of The Elders, a peace advocacy group formed in part by Nelson Mandela . Joan Burton, deputy prime minister of Ireland, said Robinson will inject a much needed sense of urgency into the climate debate. "It is a sign of the esteem in which former President Robinson is held that she has been asked to undertake this very difficult but crucial task, and a sign of her longstanding commitment […]

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Cameron thanked for sacking environment secretary

British Prime Minister was right to bring a new face to the government’s environmental body, British Friends of the Earth said Tuesday. Cameron’s administration reshuffled several key ministerial positions Tuesday. The prime minister sacked Owen Paterson as secretary of state for the environment, food and rural affairs. Paterson was criticized for his controversial stance on climate issues. "David Cameron is right to give Owen Paterson the boot — he’s the worst Environment Secretary the U.K. has had for decades," Friends of the Earth Executive Director Andy Atkins said in a statement . Friends of the Earth said Paterson had "willfully ignored" evidence of climate change. Paterson was replaced by Liz Truss. "We hope she will mark a clean break with Owen Paterson by listening to science and striving for evidence-based decision making," Atkins said. William Hague ‘s decision to stand down as foreign minister was among […]

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Steam-injection blamed for Canadian oil seep

Canadian Natural Resources Ltd. said a steam-injection practice at an oil extraction site in Alberta may have led to major oil spill there last year. More than 12,000 barrels of bitumen, the viscous form of oil found primarily in Alberta, seeped from the company’s exploration areas near the Cold Lake Air Weapons Range in Alberta last year. The company initially said legacy issues at the site may have led to the incident. In a 92-page report , released to the public Tuesday, the company said a process dubbed cyclical steam stimulation, or CSS, may have contributed to what the report described as a flow-to-surface event. CSS may have cracked open other subsurface layers, allowing oil to leak out of control from the site. "The identified causes indicate that changes to steaming strategies and enhanced monitoring, as well as remediation of defective wellbores can prevent the conditions […]

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Brent Crude Hits Three-month Low

Brent crude-oil futures hit a fresh three-month low Tuesday, after staging a small recovery on Monday, with events in Libya still providing an underlying bearish tone. Brent crude for August delivery fell 0.9% to $106.08 a barrel on ICE Futures Europe, continuing a run of down days since the contract topped out at a nine-month high of $115.71 a barrel on June 19. Monday’s gains were influenced by fresh concerns about security of Libya’s oil supplies, after oil officials there said its crude was struggling to make it back to market. Brent’s precipitous fall in the past month has been influenced in no small part by the prospect of the North African country’s prized light crude oil flowing after a year of severe disruption. Late Monday a missile attack on the airport in the capital Tripoli added to the sense of unease. But the gains did nothing to change […]

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WTI Trades Near Two-Month Low Before Supply Data

West Texas Intermediate crude traded near the lowest price in two months before inventory data measuring the strength of fuel demand in the U.S., the world’s biggest oil consumer. Brent fell as supply risks eased. Futures were little changed in New York. U.S. gasoline stockpiles probably increased to the highest since March and distillate supplies also rose, a Bloomberg News survey shows before an Energy Information Administration report tomorrow. Crude stockpiles, while projected to have fallen, are 5.1 percent higher than a year ago. Supplies from Iraq remains unaffected by an insurgency while Libya seeks to boost exports after two ports reopened. “For crude generally, what you are seeing is a correction from the highs of the Iraqi crisis as expectations around a possible supply disruption reversed course,” Harry Tchilinguirian , head of commodity markets strategy at BNP Paribas SA in London, said by e-mail. “For WTI in particular, […]

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Natural-Gas Prices Close Slightly Higher

Natural-gas futures closed up slightly Monday, after a late-day rally likely spurred by profit-taking. Prices for the front-month August contract settled up 0.1 cent, or 0.02%, at $4.147 a million British thermal units on the New York Mercantile Exchange. Prices did set a new six-month intraday low and are still about 13% off from a month ago. Several analysts said profit-taking might spur a rally after weeks of steady losses. Short-sellers, traders who bet prices would fall, would have to buy back contracts to close out those bets. Forecasts are showing the unseasonably cool weather is likely to reverse somewhat in the coming weeks, bringing temperatures 3 to 5 degrees Fahrenheit above normal starting July 24. That made Monday a good day for short sellers to close out positions, said John Woods, president of JJ Woods Associates and a Nymex floor trader. "It’s not earth-shattering, […]

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Iran Outlines Nuclear Deal; Accepts Limit

VIENNA — Iran’s chief nuclear negotiator, faced with an imminent deadline for an agreement with the West on the future of the country’s nuclear program, said in an interview on Monday that Iran could accept a deal that essentially freezes its capacity to produce nuclear fuel at current levels for several years, provided it is then treated like any other nation with a peaceful nuclear program. The proposal, which Iran said was conveyed to the United States and five other world powers during closed-door negotiating sessions in Vienna, would effectively extend a limited series of concessions Iran made last November as part of a temporary deal to get negotiations started on a permanent accord. In return, Iran wants step-by-step relief from sanctions that have substantially weakened its economy. Offering a rare glimpse into the secret talks, Iran’s foreign minister, Mohammad Javad Zarif, described a proposal that sought to satisfy […]

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Fate of the Iran Nuclear Talks Hangs on Three Questions

Iranian President Hassan Rouhani waves after speaking at a press conference in Tehran in June. Associated Press It’s crunch time with Iran. Negotiators from the U.S. and five other international powers have until Sunday to reach a long-term deal with Iran on reducing its nuclear program, declare the negotiations a failure, or make the politically awkward decision to extend their self-imposed deadline for a deal. U.S. officials don’t want to talk about extending the deadline—that would just reduce pressure to get an agreement—though an extension seems the likeliest outcome as a bevy of high-level negotiators wrestle in marathon talks in Vienna. The mood of the talks has gone from optimistic weeks ago, as Iran made concessions on items such as the future of its Arak nuclear reactor, to pessimistic in recent days as it becomes clear a giant gap remains on the crucial question of how much capacity Iran […]

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Iran Indicates Some Flexibility Over Nuclear Deal, Diplomats Say

VIENNA—Iran has signaled for the first time that it is willing to accept a modest reduction in nuclear enrichment throughout the duration of a comprehensive nuclear agreement, according to people involved in the talks. Iran’s Foreign Minister Javad Zarif, left, meets with U.S. Secretary of State John Kerry, right, at talks between the foreign ministers of the six powers negotiating with Tehran on its nuclear program in Vienna on Sunday. Associated Press Although Iran’s suggestion isn’t Tehran’s only proposal on the table, and it is very unlikely to be accepted in current form by the West , it is the first time Iran has shown some flexibility on future enrichment rights-—a key obstacle to a deal. The signs of some flexibility come with six days to go before the July 20 deadline for completing a nuclear deal as U.S. Secretary of State John Kerry held a second day of […]

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Iran Sends Rouhani Brother to Nuclear Talks

Photographer: Jim Bourg/Pool/AFP via Getty Images Iran has for the first time sent President Hassan Rouhani’s younger brother as a special observer to the nuclear talks in Vienna, signaling the importance of the final week of negotiations before a July 20 deadline. The presence of Hossein Fereydoun, who also serves as a special adviser to the president, came to light after he was photographed in one of the sessions between Iran and European foreign ministers. Fereydoun’s presence was also reported by Iran’s state-run Islamic Republic News Agency . “He’s the president’s eyes and ears,” Ali Vaez, an Istanbul-based analyst for the International Crisis Group , said in an e-mailed reply to questions. Thirteen days into negotiations between world powers and Iran, significant gaps remain over the Persian Gulf nation’s uranium-enrichment capacity. U.S. Secretary of State John Kerry arrived in the Austrian capital yesterday along with his counterparts from France, […]

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Iranian oil shipments still restricted

Iranian crude oil tankers are still restricted by international sanctions because of problems with insurance coverage, an official said Monday. Ali Akbar Safaei, director of the National Iranian Tanker Co., said that, although sanctions in the company were lifted, getting insurance coverage was still restricted by international sanctions. Iran last year secured modest relief from sanctions targeting its energy sector in exchange for agreement to curb some of its nuclear research activity. U.S. Secretary of State John Kerry traveled Monday to Vienna to meet with Iranian Foreign Minister Javad Zarif and European delegates leading multilateral nuclear negotiations. The U.S. State Department said Kerry is expected to weigh Iran’s willingness to make the "critical choices" necessary for a comprehensive agreement on nuclear issues. Safaei last week said his company should make a strong recovery following a recent ruling from the European courts last week that it made a "manifest error" […]

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Exclusive: Iran nuclear negotiators under pressure after leader's speech

A major speech by Iran’s Supreme Leader has limited the ability of the Iranian delegation at high-level nuclear talks to make concessions with six world powers and this could scuttle chances for Tehran to reach an accord to end sanctions, diplomats said. In a public address filled with technical detail, Ayatollah Ali Khamenei said last week Iran needs to significantly increase its uranium enrichment capacity, clashing with the powers’ push for it to be reduced to minimise the risk of nuclear bombmaking, as July 20 deadline for a deal nears. The talks with the United States, Britain, France, Germany, Russia and China are aimed at a long-term accord on Iran curbing its nuclear energy programme in exchange for a gradual end of sanctions that have crippled the OPEC member’s economy. In his speech, which analysts compared in importance to a State of the Union address by […]

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Exclusive: Iran nuclear negotiators under pressure after leader’s speech

A major speech by Iran’s Supreme Leader has limited the ability of the Iranian delegation at high-level nuclear talks to make concessions with six world powers and this could scuttle chances for Tehran to reach an accord to end sanctions, diplomats said. In a public address filled with technical detail, Ayatollah Ali Khamenei said last week Iran needs to significantly increase its uranium enrichment capacity, clashing with the powers’ push for it to be reduced to minimise the risk of nuclear bombmaking, as July 20 deadline for a deal nears. The talks with the United States, Britain, France, Germany, Russia and China are aimed at a long-term accord on Iran curbing its nuclear energy programme in exchange for a gradual end of sanctions that have crippled the OPEC member’s economy. In his speech, which analysts compared in importance to a State of the Union address by […]

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Baghdad denounces Kurdish oil raids

The Iraqi Oil Ministry said it denounced the takeover of two key crude oil production facilities by Kurdish military forces in the north of the country. "The Ministry of Oil calls on the Kurdish people to understand the seriousness of the situation and directs those responsible for the action to retreat from the oil fields to avoid punishment," the ministry said in a statement Sunday. Kurdish forces, known as Peshmerga, took control over two key oil facilities in the north of Iraq last week. The seizure comes after Iraqi Prime Minister Nouri al-Maliki accused Kurds of being on the wrong side of the fight against a growing Sunni insurgency. The ministry said Friday the Kurdish force should fight against Sunni-led insurgents rather than occupying oil fields in the north of Iraq. In its statement Sunday, the ministry described the seizure as irresponsible and a blatant disregard […]

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Iraq army launches Tikrit offensive, politicians elect speaker

Iraq’s army and Shi’ite militia forces launched an assault on Tuesday to retake the city of Tikrit from Islamist militants as parliamentarians in Baghdad prepared to vote for a new speaker, a possible step towards breaking months of political deadlock. The Defense Ministry said ground troops backed by air support began their offensive at dawn against insurgents, led by the al Qaeda offshoot the Islamic State, who have held Tikrit since mid-June. If the army and its militia allies retake Tikrit, hometown of Saddam Hussein, it would be the first insurgent-held city to switch back to government control since Iraq’s latest crisis erupted last month. The offensive took place as Iraq’s deeply divided parliament met for a third session aimed at forming a new government to tackle the insurgency, three months after the country held a parliamentary election. Shi’ite Prime Minister Nuri al-Maliki, whose State of […]

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Iraq Moves to Elect Speaker in Bid to Form New Government

The Iraqi Parliament met on Tuesday hoping to elect a speaker, in efforts to reach a political breakthrough that could ultimately lead to the formation of a new government. The meeting came as the Iraqi Army launched a major air assault on Tikrit in an effort to flush out the remaining Sunni militants in that city, which lies 95 miles north of Baghdad. The leading candidate for the post of speaker is Salim al-Jubouri, a member of the main Sunni bloc in Parliament. He was selected on Saturday by the Sunni bloc and his candidacy was being voted on by the full Parliament on Tuesday morning. The effort to elect a speaker came after the United Nations warned of “chaos” if lawmakers failed to start the process of forming a government. By custom, a Sunni holds the position of speaker in the Parliament, a Kurd holds the […]

Posted On : Published By : Tom Whipple
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Barzani in Ankara for Key Talks on Oil Exports, Revenues

Kurdistan Region President Massoud Barzani (R) is received by his Turkish counterpart Abdullah Gul. Photo: DHA Kurdistan Region President Massoud Barzani (R) is received by his Turkish counterpart Abdullah Gul. Photo: DHA ERBIL, Kurdistan Region – Kurdistan Region President Massoud Barzani was in Ankara Monday for important talks on oil exports and revenues, officials said. Safeen Dizayee, spokesman of the autonomous Kurdistan Regional Government (KRG), told Rudaw that the visit could mean Kurdish civil servants finally getting paid at the end of this month, after going without salaries since Baghdad froze budget payments early this year. “We requested that Turkey import more Kurdish oil,” Dizayee said. He revealed that current exports were 120,000 barrels per day (bpd), and that “we will try to raise the rate to 400,000 bpd by the end of the year.”  Despite the fact it has at least $93 million in its account at Halkbank, […]

Posted On : Published By : Tom Whipple
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Get Ready for Kurdish Independence

In the coming weeks, Iraq ’s leaders must make existential decisions. If they cannot form a unity government led by a new prime minister and motivate Sunni moderates and tribes to fight the Islamic State of Iraq and Syria , Iraq is likely to disintegrate. If the central government fails to grant satisfactory concessions to Sunnis and Kurds, the Kurds will push for sovereignty and independence. The Kurds are serious, and the international community must adapt to this emerging reality. While all Iraqi leaders bear responsibility for resolving the current crisis, the greatest share lies with the country’s Shiite politicians, who dominate the central government. Shiite parties must select a candidate for prime minister who can share power, decentralize the government and depoliticize the security forces. As a prerequisite for working with the central government, Kurdistan seeks the right to export its own oil; integrate Kirkuk and […]

Posted On : Published By : Tom Whipple
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Rocket hits airport in Libyan capital

Several rockets have reportedly hit the airport in the Libyan capital, Tripoli, where fighting between rival armed groups has been raging since Sunday. Several Grad rocket struck the airport late on Monday,destroying 90 percent of the planes parked there, government spokesman Ahmed Lamine said.  "The government has studied the possibility to bring international forces to enhance security", he said. The attack also damaging the control tower, residents said. Two people were also killed in the attack, Reuters news agency reported. Authorities had closed the airport due to previous fighting on Sunday, which medics say killed at least seven people . Rival militias have clashed for control of the airport. The powerful Zintan armed group ,which has been in control of the airport since the fall of Gaddafi, was still holding it by Monday. The United Nations mission in Libya said it was withdrawing its staff from Libya "temporarily" because of the deteriorating […]

Posted On : Published By : Tom Whipple
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Militia shells Tripoli airport, U.N. pulls staff out of Libya

TRIPOLI, Libya (Reuters) – A militia shelled Tripoli airport, destroying 90 percent of planes parked there, a Libyan government spokesman said, as heavy fighting between armed groups prompted the United Nations to pull its staff out of the North African country. At least 15 people have been killed in clashes in Tripoli and the eastern city of Benghazi since Sunday, and a Libyan official said several Grad rockets hit the Tripoli International Airport on Monday, damaging the control tower. Government spokesman Ahmed Lamine said 90 percent of the planes parked at the airport were destroyed. "The government has studied the possibility to bring international forces to enhance security," he told reporters On Tuesday. Three years after the fall of Muammar Gaddafi, Libya has slipped deeper into chaos with its weak government and new army unable to control brigades of former rebel fighters and militias who often battle for political […]

Posted On : Published By : Tom Whipple
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Israel to reap rewards of gas reserves

Israel will be able to reap the benefits of energy independence through growing gas reserves at the offshore Leviathan gas field, a development executive said. The partners developing the giant Leviathan offshore gas field said an audit by Dutch consulting company Sewell and Associates put the reserve estimate at 21.9 trillion cubic feet, up from the previous estimate of around 18.9 trillion cubic feet. Gideon Tadmor, board chairman at Delek Drilling and chief executive officer at Avner Oil Exploration — two of the project’s developers — said the revision "will ensure us energy independence for decades to come, and an expansion of export options, with all the accompanying economic and geopolitical benefits." Leviathan should go onstream in 2016, with much of the offshore field’s reserves already designated for exports to regional customers. Noble Energy, another drilling partner, this year signed export contracts for gas from the Leviathan and nearby […]

Posted On : Published By : Tom Whipple
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Yemeni oil pipeline attacked

| License Photo The Yemeni Oil Ministry said restive tribesmen in Marib province attacked an oil pipeline, cutting exports to a Red Sea terminal. Yemen relies heavily on oil revenue to support its economy. Tribesmen in an area thought to be under the influence of al-Qaida fighters targeted the 100,000-barrel-per-day pipeline to the Ras Isa export terminal Saturday, the oil ministry confirmed . Yemen since the so-called Arab Spring in 2011 has struggled to maintain a sense of national security. It’s faced pressure from Shiite rebels in the north of the country and from the presence of al-Qaida, a predominately Sunni group, elsewhere. The Yemeni government has said militants have tried to use attacks on oil infrastructure as a way to bargain for more revenue sharing. Norwegian energy company DNO International said last week it resumed oil production from Yemen, ending a two-week hiatus. The company suspended operations there […]

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Putin vows to help develop offshore Cuba

Russian President Vladimir Putin said at the conclusion of a regional visit his government would help Cuba’s state oil company develop offshore reserves. Putin met in Havana with Cuban President Raul Castro during a tour of Latin American countries. Putin said Russian oil company Rosneft would help its counterparts at state-owned Cubapetroleo develop offshore Cuban reserves. "Developing new blocks on Cuba’s offshore shelf is (expected) in the very near future," the Russian president said Sunday. Cuba has limited proven reserves of its own and relies on imports from Latin American countries to meet its energy demands. Cuba had weighed joint partnerships with its Russian counterparts as recently as 2012. Cuba aims to cut the amount of oil it imports from Venezuela through development of its own offshore reserves. The U.S. Energy Information Administration estimates that, as of 2009, Cuba had less than 1 billion barrels of oil reserves.

Posted On : Published By : Tom Whipple
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Miners Struggle as China's Appetite for Coal Eases

China’s coal imports in the first half of 2014 grew just 0.9%, compared with 13.3% a year earlier. The WSJ’s Ramy Inocencio speaks with Beijing reporter Wayne Ma on the trend’s winners and losers. China’s once insatiable appetite for coal is cooling, raising questions about mining companies’ big bets on new projects. Beijing’s figures on coal imports and domestic production this year indicate sharply weaker demand, which experts say stems from slowing growth in the world’s No. 2 economy. Longer term, factors including new policies to curb air pollution by limiting coal use are likely to keep growth in coal consumption far below the double-digit increases of the past. The slowdown already is affecting the production plans of companies in Australia , China’s largest overseas supplier. "If the economy can speed up again, I think the situation for coal will be better because demand from small factories and small […]

Posted On : Published By : Tom Whipple
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Miners Struggle as China’s Appetite for Coal Eases

China’s coal imports in the first half of 2014 grew just 0.9%, compared with 13.3% a year earlier. The WSJ’s Ramy Inocencio speaks with Beijing reporter Wayne Ma on the trend’s winners and losers. China’s once insatiable appetite for coal is cooling, raising questions about mining companies’ big bets on new projects. Beijing’s figures on coal imports and domestic production this year indicate sharply weaker demand, which experts say stems from slowing growth in the world’s No. 2 economy. Longer term, factors including new policies to curb air pollution by limiting coal use are likely to keep growth in coal consumption far below the double-digit increases of the past. The slowdown already is affecting the production plans of companies in Australia , China’s largest overseas supplier. "If the economy can speed up again, I think the situation for coal will be better because demand from small factories and small […]

Posted On : Published By : Tom Whipple