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The plunge in oil will hurt these people most

Getty Images Slide 1 ofOil prices plunged around 50% from their June peak by the end of 2014, the fastest collapse since the dark days of 2008. This time around, supply is seen as the biggest culprit as the world deals with a glut of oil. Overall, the drop is seen as a boon for the U.S. economy and consumers as it translates into a virtual “tax cut.” But, clearly, not everyone will benefit. The energy sector has, unsurprisingly, taken a big hit, as reflected by the 10.6% drop in 2014 posted by the Energy Sector Select SPDR ETF XLE,+0.47% XLE, +0.47% not to mention the 22.4% drop by the fracking-orientated Market Vectors Unconventional Oil & Gas ETF FRAK, +0.78% Here’s a look at others who stand to lose out from the oil rout. Tougher times ahead for the oil patch Getty Images Slide 2 of Oil workers While […]

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Oil Prices Start Year on Volatile Note

ENLARGE A gas price of $1.94 a gallon for regular gas is shown at a gas station in Cleveland on Wednesday. The average cost of gas in Ohio has dipped below $2 a gallon for the first time in more than five years. Associated Press LONDON—Oil prices began the New Year on a volatile note on Friday as Brent whipsawed between gains and losses after closing 2014 at more-than five-year lows. The price of Brent, the global benchmark, nearly halved in 2014, the steepest fall since the recession of 2008, as fears of global oversupply coupled with lackluster demand engulfed the market. In thin holiday trade on Friday, front-month Brent futures were up 0.5% at $57.63 a barrel on London’s ICE exchange, after dropping to an intraday low of $57. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $53.65 a barrel, […]

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Iran says no deal with U.S. to ship enriched uranium to Russia

DUBAI (Reuters) – Iran denied on Saturday that it had reached an agreement with the United States to ship its surplus enriched uranium to Russia under new concessions aimed at clinching a comprehensive nuclear deal with six world powers. The Associated Press, citing diplomats, said on Friday Tehran and Washington had tentatively agreed on a formula to ship to Russia much of the material that could potentially lead to manufacture of atomic arms by the Islamic republic. It said negotiators had drawn up a catalogue for the first time at their December meeting in Geneva outlining areas of potential accord and differences in their 12-year nuclear dispute. Iran’s foreign ministry spokeswoman Marzieh Afkham said "no agreement on any nuclear topic" had been reached. "Such news is spread out of political motives and its goal is to tarnish the climate of the talks and make it more complicated to reach […]

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Crude Oil Trades Near 5 1/2-Year Low Amid Manufacturing Weakness

Oil traded near its lowest closing price since mid-2009 amid signs of manufacturing weakness in Europe and China . Futures headed for a sixth weekly loss in New York and London. Euro-area manufacturing expanded less than initially estimated in December as growth rates for output, new orders and employment remained near stagnation. The bloc’s currency weakened to a 4 1/2-year low against the dollar. A manufacturing gauge in China, the world’s second-largest oil consumer, fell to the weakest level in 18 months, government data showed yesterday. “China PMI was more of the same while we are seeing weaker than expected PMI in Europe,” Ole Sloth Hansen, an analyst at Saxo Bank A/S in Copenhagen, said by e-mail. “This adds to the support for the dollar. So we are kicking off 2015 with a strong dollar and weak oil theme.” Oil slumped 46 percent in New York in 2014, the […]

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Brent turns lower, heads towards $57 as supply glut fears prevail

LONDON (Reuters) – Brent crude LCOc1 slipped towards $57 after an early rise above $58 on Friday, as the glut of oil that has halved prices since June overshadowed investors repositioning at the start of the year for an eventual recovery. Brent has fallen to its lowest since 2009 as top exporter Saudi Arabia has declined to cut production in the face of fast-growing U.S. shale oil output, despite pleas from other members in the Organization of the Petroleum Exporting Countries (OPEC). "Nothing has changed on the supply side. Unless there are some supply cuts, oil markets can’t be strong at the moment," said Ken Hasegawa, commodity sales manager at Tokyo’s Newedge Japan. Brent crude LCOc1 for February delivery was down 24 cents at $57.09 at 0843 GMT (0343 ET), almost $1.50 below the day’s high at $58.54, which was hit within 30 minutes of the open of trading. […]

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Global factory growth ends 2014 on low note: PMI

LONDON (Reuters) – Global manufacturing activity expanded at its weakest pace in more than a year at the end of 2014, even though factories cut their prices at the steepest rate for nine months, a business survey showed on Friday. JPMorgan’s Global Manufacturing Purchasing Managers’ Index (PMI), produced with Markit, fell to 51.6 in December from November’s 51.8. That was its lowest reading since August 2013. Even so, it has now been above the 50 mark that separates growth from contraction for two years. However, a PMI covering output prices slid below the break-even mark, coming in at 49.3 compared with November’s 50.1. The PMI combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia. (Reporting by Jonathan Cable ; Editing by Larry King)

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Year in Review: Record Production

2014 Was a Record Year for Bakken 2014 was one for the record books as exploding production elevated the Bakken region to major-player status amongst the world’s energy leaders. January began as North Dakota set several all-time highs including having over 10,000 producing wells averaging 973,045 b/d and natural gas at 1,086,571 MCF/day. By June, the NDIC announced it had hit the 1 million b/d in production. This long anticipated goal was slowed a bit by difficult weather in the winter but by the time it happened, the U/S. was positioned as the  worlds largest oil producer . Even as oil prices began to decline throughout the fall, production continued to break records and by September, production averaged 1.2 million b/d . The latest numbers from the NDIC show that at the end of the year, the Bakken and Three Forks regions alone averaged 1,118,010 barrels per day and boasted two more all time high […]

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Iran’s non-oil exports on the rise

Iran says economy under President Hassan Rouhani expanding beyond its traditional oil base. UPI /Monika Graff TEHRAN, Jan. 2 (UPI) — Non-oil exports from Iran have increased by around 20 percent since March as the economy broadens its diversity, a customs official said. Masoud Karbasian, director of the Iranian Customs Administration, said non-oil exports from the beginning of the Iranian year, which starts in March, increased to $35 billion, or about 20 percent year-on-year. The director said construction materials, as well as petrochemicals and produce, were among the major non-oil products exported from the Islamic republic. Non-oil exports from a border crossing to Iraq are valued at $777 million per day, he added. Traditionally, Iran relies heavily on oil for revenue. With sanctions restricting oil exports, the government has worked to advance other parts of the economy. Ali Taieb Nia, Iran’s minister of economic affairs and finance, told a […]

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Parts of Libya in the dark

Libyan fighting spills over to ensnare electric grid, leaving parts of the country in the dark.. UPI/Amru Taha TRIPOLI, Libya, Jan. 2 (UPI) — Power shortages that came as a result of fighting in and around the Libyan port city of Ras Lanuf are expected to continue, an electric company said. Two power plants that combine to produce about 500 megawatts of power are down because of fighting in the region, the General Electric Company of Libya said. The restive city of Benghazi this week suffered a full-scale power outage because of poor weather conditions and the electric company said much of western Libya can expect power outages to endure. Power shortages have been chronic since civil war ended in late 2011. Lingering fighting, which has escalated in recent weeks, has pushed the country to the brink of full-scale war, the U.N. Support Mission in Libya warned. In the […]

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