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Crude Oil Rebounds From Near Two-Year Low

Crude oil rebounded Tuesday, after coming close to two-year lows in the previous session. Commerzbank said that, after weeks of falling prices, money managers were displaying "extremely negative sentiment towards Brent." In the latest available data, speculators cut their net bets that crude would rise by the biggest margin in three years. Brent had been falling on high supply and a strengthening dollar, which make the commodity more expensive to those who trade outside the U.S. There may not be much left for the contract to fall further, said Commerzbank, which could help account for Tuesday’s bounce. The gap between oil prices on either side of the Atlantic is closing , said analysts at Energy Aspects. "The narrowing of the WTI-Brent spread was long overdue," they said. A combination of factors has kept U.S. benchmark WTI high as Brent has fallen, Energy Aspects noted, including later-than-expected refinery maintenance in […]

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Oil Heads for Biggest Quarterly Drop Since 2012 on Ample Supply

Brent and West Texas Intermediate headed for the biggest quarterly decline in more than two years as abundant crude supplies offset the risk of disruption from conflict in the Middle East . Futures were up 0.4 percent in London, trimming a drop of 13 percent since the beginning of July. The U.S. and its European and Arab allies have conducted thousands of air missions since starting a bombing campaign to counter Islamic State militants in Syria and Iraq, OPEC’s second-largest producer. U.S. crude stockpiles probably expanded by 1.5 million barrels last week, a Bloomberg News survey shows before an Energy Information Administration report tomorrow. “There’s plenty of supply but no demand,” said Michael Hewson , a London-based market analyst at CMC Markets Plc, who forecasts that Brent could drop to $90 a barrel and WTI fall as low as $85 next quarter. “We have weak growth, with China and […]

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WTI Narrows Discount to Brent as U.S. Economy Strengthens

West Texas Intermediate crude narrowed its discount to Brent to the least in more than a year as U.S. economic growth outpaced that of Europe , bolstering demand for the American benchmark oil. The spread between WTI and Brent shrank to $2.63 at today’s close, the smallest gap since Aug. 9. 2013. The U.S. economy expanded in the second quarter at the fastest rate since the fourth quarter of 2011, government data showed Sept. 26. The improving American outlook contrasts with Europe, where a gauge of economic confidence published today slipped to the lowest level since November. “It’s a tale of two cities,” John Kilduff , a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. “The respective demand environments in the U.S. and Europe have diverged and that’s being reflected in the price.” WTI’s discount to the European grade was […]

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WTI Rises to Two-Week High on Economy; Brent Gap Shrinks

West Texas Intermediate rose to the highest in almost two weeks on speculation stronger U.S. economic growth will boost demand for oil. WTI’s discount to Brent narrowed to a one-year low. Futures climbed 1.1 percent after a government report showed consumer spending in the U.S. rebounded in August. Gasoline advanced for the fourth time in five days on concern refinery shutdowns will reduce production. Both WTI and Brent are headed for their biggest quarterly loss in more than two years as supply gains shield the market from the U.S.-led military campaign against Islamic State. “The fact that the U.S. economy looks bullish and the gasoline price is elevated is pulling up oil prices ,” said Michael Lynch , president of Strategic Energy & Economic Research in Winchester, Massachusetts. WTI for November delivery increased $1.03 to $94.57 a barrel on the New York Mercantile Exchange, the highest settlement since Sept. […]

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Natural-Gas Futures Rally as Market Catches Glimpse of Autumn

By Christian Berthelsen Natural-gas prices rose to their highest levels in more than two months on Monday as forecasts for cold weather over the northern Midwest in the coming weeks prompted expectations of the season’s first gas-fired heating demand. Natural gas for November delivery rose 12.5 cents, or 3.1%, to $4.1540 a million British thermal units on the New York Mercantile Exchange. The settlement was the highest since July 9, and the day’s rally was the largest since June 12. The market has gained nearly 9% in the last four trading sessions. The market opened higher with the adoption of November as the new front-month contract, since it was trading higher than the just-expired October contract, and gained momentum as prices broke through levels where they previously stalled. "The market takes on strength in reaction to chatter about seasonal demand," said Gene McGillian, an analyst with wholesale brokerage Tradition […]

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Iran’s oil exports ‘acceptable,’ oil minister says

Iranian Oil Minister Bijan Zanganeh says oil exports and revenue at acceptable levels. UPI/Maryam Rahmanian TEHRAN, Sept. 29 (UPI) — Iranian Oil Minister Bijan Zanganeh said Monday oil exports from the Islamic republic were "acceptable" and revenue was on the rise. Iran, under the terms of a November 2013 agreement with Western powers, secured relief from some of the sanctions targeting its energy sector in exchange for a pledge to cut back on its nuclear research activity. The U.S. Treasury Department in July extended that relief through November. Iran can export around 1 million barrels of oil per day under the deal. "Iran’s oil exports are acceptable and growing currently, and revenues are higher than the previous estimates," the oil minister said. The International Monetary Fund in April said inflation and unemployment are both high in the Iranian economy and the outlook was "highly uncertain." Constraints on oil revenues […]

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Dana Gas wins exploration rights in Egypt

Emirati energy company Dana Gas taps deeper in Egypt’s Nile Delta region. UPI/Maryam Rahmanian SHARJAH, United Arab Emirates, Sept. 29 (UPI) — Emirati energy company Dana Gas said Monday it was the successful bidder for two onshore license areas in the Nile Delta region onshore Egypt. Regional subsidiary Dana Gas Egypt was awarded the rights to operate in the North el-Salhiya and el-Matariya onshore areas in the Nile Delta . "We are extremely pleased to have been awarded these two new blocks," Dana Gas Chief Executive Officer Patrick Allman-Ward said in a Monday statement. "The area is particularly well known to Dana Gas, given its long-term commitment to the Nile Delta." Dana is the sixth largest energy company working in Egypt . Overall, its share of production has reached 39,100 barrels of oil equivalent per day. Dana will hold 100 percent of the interest in the North el Salhiya […]

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BP, Shell in running for Emirati oil fields

BP, Shell in top running for onshore licenses in the United Arab Emirates. UPI/Maryam Rahmanian LONDON, Sept. 29 (UPI) — British energy company BP and Dutch supermajor Shell are in the running for oil prizes in the Persian Gulf region, the Emirati minister of energy said Monday. Close to a dozen international energy companies are competing for the rights to tap in to onshore oil fields in the region. BP and Royal Dutch Shell have a decades-old partnership with the Abu Dhabi Co. for Onshore Oil Operations, already pumping 1.5 million barrels of oil per day. Suhail al-Mazrouei, minister of energy for the United Arab Emirates, told The Telegraph both companies are in the top running for onshore licenses . "Shell and BP are amongst those companies that submitted bids," he said in an interview published Monday. "They have been legacy partners, and we hope they will have a […]

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Islamic State Draws U.A.E. Into Fight Against Extremists

For the desert cities of Dubai and Abu Dhabi , luxury, prosperity and security in a region torn by conflict are things worth protecting. In a country known more for building glitzy shopping malls and trophy skyscrapers than battling terrorists, the United Arab Emirates is involved in the fight against Islamic militants like never before. It took part last week in U.S.-led airstrikes against Islamic State, underlining the scale of the perceived threat from the extremists after they took cities in Iraq and this month gained ground in Syria . “This is more than a red line for them and that is why they are pro-actively taking part in those strikes,” said Ghanem Nuseibeh, founder of Cornerstone Global Associates, which advises clients on risk in the Middle East. Islamic State has “the ability to expand whereas al-Qaeda did not,” he said. The U.A.E. and fellow Gulf Arabs regard Islamist […]

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Petrobras Slumps Most Since 2008 as Rousseff Support Grows

Petroleo Brasileiro SA (PETR4) fell the most in almost six years as President Dilma Rousseff gained support in a voter poll, sinking wagers that a new government will reduce intervention in the state-owned oil company . Shares of Petrobras slumped 11 percent to 18.60 reais at the close of trading in Sao Paulo , the biggest decline since November 2008. That loss contributed the most to the 4.5 percent drop in the benchmark Ibovespa today. Rio de Janeiro-based Petrobras had gained 95 percent from its lowest level this year in March through Sept. 2 as support for opposition candidate Marina Silva increased. “There was a moment in the past weeks when a victory by the opposition was almost a certain thing, but this expectation seems now more and more distant,” Marcelo Varejao, an analyst at the brokerage firm Socopa, said in a phone interview from Sao Paulo. “The way […]

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