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Norwegians Turn Ambivalent on Statoil, Their Economic Bedrock

OSLO — This has not been a particularly good year for Statoil , the huge state-controlled oil company that has had a commanding presence in Norway ’s economy and society for more than four decades. In the spring, Statoil cut 1,000 jobs, or 4 percent of its work force. In September, it postponed a much-criticized project in the Canadian tar sands for at least three years. On Oct. 29, reflecting collapsing oil prices and a steep tumble of its stock, it reported its first quarterly loss since 2001. And in November, it announced disappointing results from the year’s program of drilling for new oil and gas in the Norwegian Arctic. But it is not just the vicissitudes of oil markets and exploratory wells that are causing difficulties for Statoil. In an era of climate change , the company — and by extension Norway’s entire oil and gas industry, which […]

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Oil Prices Continue to Slide on Oversupply Concerns

By Georgi Kantchev LONDON–Oil prices continued their relentless slide on Tuesday on concerns about a growing oversupply of the commodity. Fueled by booming U.S. shale oil production and reluctance from other major producers to cut output, the selloff shows no signs of abating despite news of disruptions in Libya and an apparent scaling back of drilling rigs in the U.S. Front month Brent crude on London’s ICE Futures exchange fell $0.50 to $57.34 a barrel, following a 2.6% drop on Monday. In electronic trading on the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $53.27 a barrel, down 0.7%. "There is a lot of negative sentiment going around despite the holidays, " said Thina M. Saltvedt, senior oil analyst at Nordea Bank in Oslo. According to her, the slide will continue into the New Year and Brent might average $55 in the first […]

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Oil Drops to Lowest Since ’09 With Stockpiles at Year-End Record

Oil fell to the lowest since 2009 in New York and London amid speculation that U.S. crude inventories will stay at the highest for the time of year in at least three decades. Futures dropped as much as 1.7 percent in New York. U.S. stockpiles are projected to remain at 387.2 million barrels last week, the highest for the period in data going back to 1982, a Bloomberg News survey shows before government statistics tomorrow. U.S. oil drillers idled the most rigs since 2012, Baker Hughes Inc. said on its website yesterday. Oil has slumped 46 percent this year, set for the biggest annual decline since 2008, as the highest U.S. production in more than three decades contributed to a global surplus estimated by Qatar at 2 million barrels a day. Saudi Arabia , which is steering the Organization of Petroleum Exporting Countries to resist cutting output, has said […]

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Oil hits five-and-a half-year low below $57 on supply glut

LONDON (Reuters) – Brent crude oil fell to a 5-1/2-year low below $57 a barrel on Tuesday as a global supply glut outweighed concerns of lost supply from Libya where battling militias have closed ports. Brent LCOc1 fell $1.14 a barrel to $56.74, its lowest since May 2009, before recovering to trade around $57.20 by 4.50 a.m.. U.S. crude CLc1 fell 60 cents to $53.01 after hitting $52.70 – also its lowest since May 2009. It fell $1.12 on Monday. Oil markets have been oversupplied this year due to increasing output of high quality, light oil from U.S. shale and lower-than-expected consumption as a result of faltering global economic growth and competition from alternative fuels. Several members of the Organization of the Petroleum Exporting Countries have suffered supply disruptions in recent months, but this has had little impact on prices. In Libya, clashes between rival factions have closed oil […]

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Energy Bargain Hunters Plow Record Amounts Into ETFs

Bargain-seeking investors have turned bullish on embattled energy stocks, plowing record amounts into the industry. More than $3.16 billion went into exchange-traded funds holding stakes in Exxon Mobil Corp. (XOM) , Schlumberger Ltd. (SLB) and other energy stocks this month, even as the price of oil fell 20 percent, according to data compiled by Bloomberg. That’s almost four times the average for the year and more than the prior record in December 2007, when oil was trading near $91 a barrel. “There definitely seems to be evidence of investors seeking to bottom-fish this market and pre-position for 2015,” David Mazza, head of ETF research at State Street Corp., said in a phone interview. “Some investors we’ve spoken with don’t believe the negative picture on energy that’s become consensus.” Investors are betting on a higher long-term price for crude oil. Brent, the global benchmark, has traded around $60 a barrel […]

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Crude futures fall to five-year lows despite Libyan oil port fire

New York (Platts)–29Dec2014/444 pm EST/2144 GMT Crude futures settled at five-year lows Monday, as the market brushed aside continued fires at Libya’s largest oil terminal, as persistent oversupply concerns led the oil complex lower. NYMEX February crude closed down $1.12 at $53.61/b. ICE February Brent settled $1.57 lower at $57.88/b. Both settlements represented lows not seen for front-month contracts since May 2009. In refined products activity, NYMEX January ULSD futures settled 5.88 cents softer at $1.8491/gal. NYMEX January RBOB ended the session 5.59 cents lower at $1.4528/gal. Article continues below… Oilgram Price Report is a daily report that covers market changes, market fundamentals and factors driving prices. Oilgram Price Report also brings a vast array of Platts international prices for crude and products, netback tables, and market critical data. Three crude storage tanks at the Es Sider terminal remained on fire Monday following attacks December 25 by Islamist militias […]

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Libyan oil output shrinks more as oil tanks blaze

* Hariga fields still producing -oil official * Fire at Es Sider oil storage site after fighting * Es Sider, Ras Lanuf ports closed * Brega port open but mostly supplying refinery (Adds comment from Conoco in paragraph 5; U.S. firm to help, in paragraph 6) By Ayman al-Warfalli BENGHAZI, Libya, Dec 29 (Reuters) – Libya’s oil output has shrunk further after blazing oil tanks at a major terminal helped push world oil prices higher and put a strain on the country’s dollar currency reserves. Libya is surviving on a mere 128,000 barrels per day from fields connected to the eastern port of Hariga, an oil official said on Monday, while fighting halted the major ports Es Sider and Ras Lanuf. Total oil output, adding offshore fields and Brega output, is about 350,000 bpd – a fraction of the 1.6 million bpd it produced before the 2011 civil war. […]

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Libya’s losses mount as oil terminal burns

Conflict in Libya, more than three years removed from civil war, leaves key oil storage depot in flames. UPITarek Alhuony. TRIPOLI, Libya, Dec. 29 (UPI) — Around $100 million worth of crude oil has gone up in flames as a result of a blaze burning at a tank storage facility in Libya, the government said. Militants with a group calling itself Libya Dawn launched attacks last week on the port of Es Sider, leaving oil storage depots in flames and at least 19 soldiers dead. The state-run National Oil Corp. confirmed as many as five of the 21 tanks storing oil at the site are in flames, which represents about $100 million worth of crude oil . The storage depot is next to the Ras Lanuf terminal, which has suffered several outages as opposing Libyan forces struggle to fill a power vacuum left over when the regime of Moammar […]

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Guard of Libyan Oil Ports Calls In Strikes on Islamist Militias

Libyan oil production has fallen below 300,000 barrels a day after Islamist militants shifted attacks to energy facilities including the country’s largest oil export terminal, said Energy Aspects Ltd. Output is the lowest since May and down at least 65 percent from a recent high of 850,000 barrels a day in October following the assault on the Es Sider terminal, according to the Energy Aspects estimate. Libya holds Africa ’s largest oil reserves. The fighting last week marked a turning point in the unrest that followed Muammar Qaddafi’s 42-year rule, according to Energy Aspects and Eurasia Group consultants. All the factions, including the Islamist militia coalition known as Libya Dawn, had committed to spare the energy industry that provides 80 percent of public spending. “The latest phase in fighting is a serious development as Libya Dawn is now trying to gain control of oil facilities, which up to now […]

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Libya Struggles to Extinguish Oil Storage Tanks After Assault

ENLARGE Libya has appealed to Italy, Germany and the United States to send firefighters. Reuters Firefighters worked Monday to extinguish a blaze at Libya’s largest oil terminal, where storage tanks have been burning for days amid fighting. The fire at As Sidra terminal in eastern Libya ignited after a rocket hit an oil storage tank. Some 800,000 barrels of crude have been destroyed. Extremist groups are making a renewed push to seize the country’s oil resources, Libyan Foreign Minister Mohamed Dayri said Sunday, according to the Associated Press. He said the assault on eastern oil terminals was carried out by militias based in the western city of Misrata, who are loyal to a rival Islamist-backed government in the capital Tripoli. The internationally recognized government is based in the eastern city of Tobruk. As Sidra is controlled by anti-Islamist militiamen allied with that government. Crude-oil futures prices closed at five-year […]

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