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Suncor Looks East to Find Buyers for Western Canada Crude

Western Canadian crude may be crossing the Atlantic Ocean soon as Canada’s oil companies seek buyers outside North America. Suncor Energy Inc. (SU) , the largest Canadian oil company by market capitalization, loaded its first tanker of heavy crude out of Canada’s eastern coast this week. Enbridge Inc. (ENB) ’s Line 9B is scheduled to complete its reversal next month, bringing 300,000 more barrels a day to the Saint Lawrence River, which empties into the Atlantic. Canada’s search for overseas markets comes as its crude production is rising along with that of its traditional buyer, the U.S. Combined output of those countries has risen 51 percent in the past five years to 12.2 million barrels a day, according to their governments. Unlike the U.S., Canada has no restrictions on exporting crude. “As we get more and more production in North America, prices will get lower and companies will have […]

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Kiev commits to gas transit to Europe

KIEV, Ukraine, Sept. 23 (UPI) — Members of a European energy council met Tuesday in Kiev to discuss energy security challenges in the European market. Europe gets about a quarter of its gas needs met by Russia, though more than half of that runs through the Soviet-era transit system in Ukraine. Russian energy company Gazprom in 2006 and 2009 cut gas through Ukraine in response to contractual rows, and ongoing tensions in eastern Ukraine add another layer of risk to European energy security. Ukrainian Prime Minister Arseniy Yatsenyuk said energy solidarity in the European community would lead to advances in energy independence and energy security. "Ukraine will abide by the Energy Community rules and ensure uninterrupted transit of gas through its territory," he said in a statement. Ukrainian, Russian and European leaders are scheduled to meet Friday in Berlin to discuss lingering challenges to their trilateral energy ties. European […]

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EU confirms schedule for trilateral gas talks

| License Photo BRUSSELS, Sept. 22 (UPI) — The European Commission confirmed a trilateral meeting with Russian and Ukrainian energy ministers was scheduled for Friday in Berlin. The commission said European Energy Commissioner Gunther Oettinger would sit down with Russian Energy Minister Alexander Novak and Ukrainian Energy Minister Yuri Prodan. No agenda was given in Monday’s announcement . Russian media reported European leaders were ready to discuss reliable gas transits and would consider the status of the planned South Stream gas pipeline if the issue was raised. Members of the European Parliament passed a resolution Thursday calling on "EU countries to cancel planned energy sector agreements with Russia, including the South Stream gas pipeline." South Stream is a Russian option to avoid geopolitically sensitive territory in Ukraine, plagued by conflict since a November pivot toward the European Union . Russia meets about a quarter of Europe’s gas needs, though […]

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EU Set for New Clash with Russia over Ukraine Pact

EU enlargement chief Stefan Füle, pictured in Brussels last year, has told The Wall Street Journal that the Russian government is living in a "virtual reality" over its interpretation of a recent compromise trade deal involving Ukraine. Agence France-Presse/Getty Images NEW YORK—The European Union seemed set for a fresh clash with Russia after the bloc’s enlargement chief, Stefan Füle, accused Moscow of living in a "virtual reality" over its interpretation of a recent deal aimed at defusing trade tensions over Ukraine. The dispute threatens to dampen hopes that a Sept. 12 accord between the EU, Russia, and Ukraine could start to ease tensions between Brussels and Moscow. Last week, Russian Economy Minister Alexei Ulyukaev sent a letter to the European Commission’s trade chief and Ukraine’s foreign minister setting out Moscow’s interpretation of the agreement and warning that Russia could still retaliate against Ukraine for ratifying a broad trade and […]

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Brent Rebounds From 1-Week Low on China Manufacturing; WTI Rises

Brent rose from a one-week low after a Chinese manufacturing gauge beat forecasts, signaling increased demand from the world’s second-biggest oil consumer. West Texas Intermediate climbed in New York . Futures advanced as much as 0.5 percent in London . A preliminary Purchasing Managers ’ Index from HSBC Holdings Plc and Markit Economics was at 50.5 for September, compared with the median estimate of 50 in a Bloomberg News survey and a final reading of 50.2 for August. U.S. gasoline stockpiles probably shrank for a second week, a separate survey shows before an Energy Information Administration report tomorrow. “The PMI data reduces concern in the market that crude demand in China will be affected by slowing growth,” said Hong Sung Ki, an analyst at Samsung Futures Inc. in Seoul. “For today, this will be the supporting reason for higher prices.” Brent for November settlement gained as much as 51 […]

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Natural-Gas Futures Gain on Forecasts for Warmer Weather

By Christian Berthelsen NEW YORK–Natural-gas futures ticked higher Monday as the market took stock of predictions of warm weather for much of the country in the coming weeks and whether that might prompt demand for gas-powered air conditioning. Natural gas for October delivery rose 1.3 cents, or 0.3%, to settle at $3.850 a million British thermal units on the New York Mercantile Exchange. The market flipped between gains and losses over the course of the day as traders bet whether the forecasts could spell higher demand for natural gas, the fuel stock for power plants that ramp up production as customers run their air conditioners. An approaching late-season warm front is expected to bring temperatures in the 70s and 80s to much of the Midwest and Northeast into early October. Some analysts said the higher temperatures wouldn’t be hot enough to drive cooling demand and would likely result in […]

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U.S., Arab partners launch first strikes on IS in Syria

WASHINGTON/BEIRUT (Reuters) – The United States and several Gulf Arab allies launched air and missile strikes on Islamic State strongholds in Syria on Tuesday, U.S. officials said, opening a new, far more complicated front in the battle against the militants. "I can confirm that U.S. military and partner nation forces are undertaking military action against (Islamic State) terrorists in Syria using a mix of fighter, bomber and Tomahawk Land Attack Missiles," Rear Admiral John Kirby, Pentagon press secretary, said in a statement. "Given that these operations are ongoing, we are not in a position to provide additional details at this time." A U.S. official, speaking on condition of anonymity, said that Saudi Arabia, the United Arab Emirates, Jordan and Bahrain were all involved, although their exact roles in the military action were unclear. Qatar played a supporting role in the air strikes, the official said. Another official said at […]

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OPEC Output-Target Cut Not Agreed Yet, U.A.E. Oil Minister Says

OPEC nations have yet to decide to cut their collective oil-production target, the United Arab Emirates’ energy minister said, days after the group’s chief suggested its 12 members may lower the ceiling in 2015. “It’s not a one-man decision,” Suhail Al Mazrouei told reporters today in Abu Dhabi . “It’s a decision by all the ministers when we meet.” The Organization of Petroleum Exporting Countries, supplier of about 40 percent of the world’s oil, will review its target of 30 million barrels a day when it meets next on Nov. 27 at its Vienna headquarters. The group may reduce its official daily limit by 500,000 barrels to 29.5 million next year, OPEC Secretary-General Abdalla El-Badri said Sept. 16. OPEC’s monthly report on Sept. 10 showed demand for its oil will decline to 29.2 million barrels a day in 2015 from 29.5 million this year. Brent crude , a global […]

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Iraq relying on oil wealth from Basra

BASRA, Iraq, Sept. 22 (UPI) — Iraqi Oil Minister Adil Abd al-Mahdi visited oil and natural gas installations in southern Iraq, saying there’d be a rise in production levels that would benefit the people of Iraq. Describing Basra as the economic capital of the country, the minister said oil, the ports and all parts of the energy sector would lift Iraq as a nation. "These are not just promises," he said during Sunday’s visit. "Our aim is to build Iraq." Iraq last week said southern oil exports were 73.6 million barrels for August, down more than 2 percent from the previous month. Oil ministry spokesman Assim Jihad said oil from the southern port city of Basra was sent to nearly three dozen international companies. Kuwait Energy and Dragon Oil, two companies holding assets in Basra, announced the production of 2,000 barrels of oil per day during testing, describing the […]

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Report: MENA unprepared for climate change

| License Photo WASHINGTON, Sept. 22 (UPI) — Countries in the Middle East and North Africa have done little as a whole to address the threats from climate change, the American Security Project said Monday. International delegates gather Tuesday in New York City for a climate change summit hosted by U.N. Secretary-General Ban Ki -moon. The summit comes on the heels of a report from the World Meteorological Organization that said the level of greenhouse gases in the atmosphere last year reached a new record in part because of the steady use of fossil fuels. A report Monday from the American Security Project found the Middle East and North Africa — home to nine of the 12 members of the Organization of Petroleum Exporting Countries — least prepared for climate change . "Perhaps an explanation of this is the continued political and military strife in the region," the report […]

Posted On : Published By : Tom Whipple