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Crude Prices Under Pressure as U.S. Dollar Slumps

LONDON—Crude oil prices diverged on Friday, but remain under pressure as the dollar lost some ground against other major currencies. With several Asian markets closed for a holiday on Friday, trading resumed in the European session close to levels from Thursday’s close. For now, investors have set aside concerns about the Greek debt crisis and the possibility of more crude oil coming from Iran , and turned their attention to the U.S. dollar. The euro was marginally higher against the dollar at $1.089 by midmorning Friday. The British pound hit a fresh seven-year high against the euro after Bank of England Governor Mark Carney on Thursday suggested a rate hike may come sooner than markets expect. The Wall Street Journal’s dollar index was down 0.1% on Friday. A weaker dollar makes it cheaper for overseas buyers to purchase dollar-denominated oil. “The weak euro/dollar worked against crude oil yesterday and […]

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Crude spreads remain firm in the face of ‘massive oversupply’: Kemp

A drop of diesel is seen at the tip of a nozzle after a fuel station customer fills her car’s tank in Sint Pieters Leeuw December 5, 2014. The oil market was massively oversupplied in the second quarter and remains so today, the International Energy Agency (IEA) wrote in its latest monthly oil market report. “The market’s ability to absorb that oversupply is unlikely to last. Onshore storage space is limited. So is the tanker fleet. New refineries do not get built every day. Something has to give,” the agency warned starkly. If so, someone forgot to tell the futures markets, where timespreads have remained firm and give no indication storage might be running out ( link.reuters.com/zyt25w ). Brent and WTI futures imply the market is willing to pay less than 45 cents per barrel per month to finance and store crude on average over the next half-year, down […]

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Natural Gas Rises on Warm Weather Forecasts

By Timothy Puko Natural-gas prices rose slightly Friday after weather forecasts suggested strong demand in the coming weeks, outweighing signs of continuing oversupply. The front-month August contract settled up 1.6 cents, or 0.6%, to $2.87 a million British thermal units on the New York Mercantile Exchange. For the week, gas gained 3.6%. The small moves are a continuing sign of plummeting volatility in gas. It has settled within about a 23-cent range every day for more than a month, and settled within an eight-cent range every day this week. Traders, especially on Friday, have been caught between signs of strong demand in the power sector and continuing signs of oversupply from producers. "It’s probably fairly priced going into the weekend," said Frank Clements, co-owner of Meridian Energy Brokers Inc. outside New York. "I think people are going to wait for the hot weather to pan out." This week’s gains […]

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Islamic State claims suicide car bomb that kills more than 100 in Iraq

More than 100 people were killed in a suicide car bombing at a busy market in an Iraqi town on Friday, in one of the deadliest attacks carried out by Islamic State militants since they overran large parts of the country. The blast brought down several buildings in Khan Bani Saad, about 30 km (20 miles) northeast of Baghdad, crushing to death people who were celebrating the end of the Muslim fasting month of Ramadan, police and medics said. Islamic State, which controls large parts of northern and western Iraq claimed responsibility for the attack in the mixed eastern province of Diyala where Khan Bani Saad is located and said the target was "rejectionists", as the group refers to Shi’ite Muslims. Angry crowds went on the rampage after the explosion, smashing the windows of cars parked in the street in grief and anger. Body parts were flung onto the […]

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Iran’s Ayatollah Ali Khamenei Says Nuclear Deal Won’t Change U.S. Ties

TEHRAN—Iran will uphold its anti-American policies and continue to support regional allies inimical to Western interests, Supreme Leader Ayatollah Ali Khamenei said Saturday, days after Tehran and six world powers struck a landmark nuclear deal that renewed hopes of improved ties between longtime adversaries. “Our policy regarding the arrogant U.S. government will not change,” Mr. Khamenei said in a televised address to mark Eid al-Fitr, the Muslim feast day at the end of the holy month of Ramadan. “We don’t have any negotiations or deal with the U.S. on different issues in the world or the region.” Mr. Khamenei said the country wouldn’t surrender to excessive demands, and vowed not to change Iran’s policy of supporting regional allies that the U.S. and Israel oppose. Iran provides vital support for the Syrian regime, Hezbollah in Lebanon and Shiite militias in Iraq, among other groups. “Whether [the deal is] ratified or […]

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Anti-Houthi forces advance in Yemen amid heavy Arab air strikes

Military vehicles of the Southern Resistance fighters move during clashes with Houthi fighters on a street in Yemen’s southern port city of Aden July 17, 2015. Local fighters and army forces in Yemen have wrested two military bases from Houthi forces overnight, residents and officials said, building on a week of gains against the country’s dominant faction. The advances come a day after Yemen’s government in exile declared the key southern city of Aden "liberated," in their biggest victory yet in a Saudi-led air campaign and civil war that has raged almost four months and killed more than 3,500 people. Saudi-backed Yemeni forces backed up by air strikes seized the Labuza army base in Lahj province north of the port city and the headquarters of the 117th armored division in eastern Shabwa province some 230km (145 miles) away. Officials in the anti-Houthi forces say the offensive was planned for […]

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Iran leader withholds verdict on nuclear deal, vows anti-U.S. policies

Iran’s Supreme Leader Ayatollah Ali Khamenei speaks during the 16th summit of the Non-Aligned Movement in Tehran, August 30, 2012. Supreme Leader Ayatollah Ali Khamenei withheld his verdict on Iran’s nuclear deal on Saturday but in a fiery address vowed enduring opposition to the United States and its Middle East policies, saying Washington sought Iran’s ‘surrender’. In an speech at a Tehran mosque punctuated by chants of "Death to America" and "Death to Israel", Khamenei said he wanted politicians to examine the agreement to ensure national interests were preserved, as Iran would not allow the disruption of its revolutionary principles or defensive abilities. An arch conservative with the last word on high matters of state, Khamenei repeatedly used the phrase "whether this text is approved or not", implying the accord has yet to win definitive backing from Iran’s factionalized political establishment. "Whether the deal is approved or disapproved, we […]

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No contact with Iran, European gas pipeline group says

Consortium overseeing natural gas pipeline for Europe says it hasn’t been in contact with Iran, where sanctions may be easing after a breakthrough nuclear deal. File Photo by Hamid Forotan/ISNA BAAR, Switzerland, July 17 (UPI) — A consortium managing a pipeline designed as a way to diversify the European natural gas sector said it hasn’t made any contacts with potential Iranian suppliers. Iran may receive staged sanctions relief as a result of the breakthrough nuclear agreement brokered with the five permanent members of the U.N. Security Council and Germany. Energy companies BP and Shell both confirmed in response to emailed questions they were reviewing potential work in an Iranian oil sector that could be opening up to investors. When reviewing the credentials of Bulgarian Ambassador to Tehran Christo Polendakov in May, Iranian President Hassan Rouhani said his government viewed Bulgaria as a means to tap into the European energy […]

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Saudi-Backed Forces Said to Wrest Aden, Yemen, From Houthis

CAIRO — The exiled prime minister of Yemen said early Friday that Saudi-backed forces in Aden had “completely liberated” the southern city from the Houthi rebels who have been fighting to control it for nearly four months. The prime minister, Khaled Bahah, writing on Facebook, called it a “historic moment” and said his government would turn its attention to repairing the devastation in Aden and driving the Houthis from other areas of Yemen. Security officials and witnesses in Aden said that clashes were continuing in several areas on Friday, and that the Houthis retained at least partial control of at least one district. The rapid advances by the Saudi-backed forces in the city over the past few days appeared hard to reverse, however, signaling the first significant defeat for the Houthis and their allies. Mr. Bahah’s government, led by President Abdu Rabbu Mansour Hadi, fled to Saudi Arabia in […]

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Deaths and arrests in southern power protests

Protestors outside the Majnoon oil field in Basra province on July 16 demand electricity from Royal Dutch Shell. (ALI ABU IRAQ/Iraq Oil Report) At least one protestor was killed in a series of armed clashes with police over persistent power outages in Basra, as demonstrations across Iraq’s sweltering southern provinces continued for a second day, and threatened to halt an oil project in the province’s supergiant Majnoon field.A young man was killed by police during protests in Basra’s al-Madayna district, just south of the West Qurna 2 oil field in the north of the province, said a senior Basra Operations Command official. Fou… This content is for registered users. Please login to continue. If you are not a registered user, you may purchase a subscription or sign up for a free trial .

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King Salman of Saudi Arabia Meets With Hamas Leaders

CAIRO — King Salman of Saudi Arabia met Friday with top political leaders of the Palestinian militant group Hamas , in the most striking example yet of the new king’s willingness to work with Islamist organizations long considered foes. Analysts with close ties to the Saudi royal family said the meeting appeared to reflect King Salman’s determination to rally as much of the Arab world as possible against Iran, the kingdom’s chief rival, at a time when the Saudis fear that Iran will emerge empowered by its deal with Western powers to lift economic sanctions in exchange for limits on its nuclear program . The meeting was held in Mecca and included Khaled Meshal, Hamas ’s political leader who lives in Qatar. It was a startling reversal from the approach of the previous king, Abdullah, who had led a campaign to roll back or eradicate the Muslim Brotherhood and […]

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China Unleashes $483 Billion to Stem the Market Rout

China has created what amounts to a state-run margin trader with $483 billion of firepower, its latest effort to end a stock-market rout that threatens to drag down economic growth and erode confidence in President Xi Jinping’s government. China Securities Finance Corp. can access as much as 3 trillion yuan of borrowed funds from sources including the central bank and commercial lenders, according to people familiar with the matter. The money may be used to buy shares and provide liquidity to brokerages, the people said, asking not to be named because the information wasn’t public. While it’s unclear how much CSF will ultimately deploy into China’s $6.6 trillion equity market, the financing is up to 25 times bigger than the support fund started by Chinese brokerages earlier this month. That’s probably enough to restore confidence among China’s 90 million individual investors, says Bocom International Holdings Co. The Shanghai Composite […]

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Oil Drilling Retreat Resumes in U.S. After Two-Week Reprieve

Drillers sidelined rigs in U.S. oil fields for the first time in three weeks, resuming the steepest and most protracted decline in drilling on record. Rigs targeting oil in the U.S. decreased by 7 to 638, Baker Hughes Inc. said on its website Friday. They rose by five last week. Natural gas rigs rose by 1 to 218 and miscellaneous rigs were unchanged at 1, bringing the total down by 6 to 857. America’s oil drillers have sidelined more than half the country’s rigs since October as U.S. crude collapsed from its mid-2014 peak to less than $45 a barrel in March. After rebounding somewhat and staying near $60 for much of the second quarter, West Texas Intermediate has dropped 17 percent from June 23. The latest rig-count decline was more of a “normal churn” when operators look to get more bang for their buck by letting go of […]

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A timeline recent oil train crashes in the US and Canada

The derailment of an oil train in rural northeastern Montana follows a string of accidents as shipments of crude by rail have increased dramatically in recent years, driven by a surge in domestic production: – July 5, 2013: A runaway Montreal, Maine & Atlantic Railway train that had been left unattended derailed, spilling oil and catching fire inside the town of Lac-Megantic in Quebec. Forty-seven people were killed and 30 buildings burned in the town’s center. About 1.6 million gallons of oil was spilled. The oil was being transported from the Bakken region of North Dakota, the heart of an oil fracking boom, to a refinery in Canada. – Nov. 8, 2013: An oil train from North Dakota derailed and exploded near Aliceville, Alabama. There were no deaths, but an estimated 749,000 gallons of oil spilled from 26 tanker cars. – Dec. 30, 2013: A fire engulfed tank cars […]

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Worst may be over for oil market, Schlumberger says

Oil services company Schlumberger said it’s still struggling, but the worst of the downturn in the crude oil market may be over. File Photo by Gary C. Caskey/UPI HOUSTON, July 17 (UPI) — Oil services company Schlumberger said it would be spending less on exploration and production in North America, but the sector may be recovering. Lower crude oil prices means energy companies are forced to cut spending on exploration and production to endure. Weatherford, the No. 4 oil field services company in the world, in April followed its peers Halliburton, Baker Hughes and Schlumberger in trimming its payroll during a weak crude oil market. Schlumberger Chairman and Chief Executive Officer Paal Kibsgaard said second quarter revenues dropped 12 percent because of what he described as a "dramatic" decline in North American exploration and production . "Exploration and production investment in North America is now expected to fall by […]

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API sees strong U.S. energy sector

American Petroleum Institute said its data show a recovery emerging in the domestic energy market despite a depressed crude oil market. File Photo by UPI/Shutterstock/ekina WASHINGTON, July 17 (UPI) — Data published by the American Petroleum Institute show the U.S. energy sector is thriving, with consumption and production on the rise. API reported gasoline demand in particular was on the rise, with deliveries from refineries increasing 2.6 percent during the second quarter compared to last year for the highest level for any month since August 2007. "Demand for and production of oil and refined products grew almost across the board over the last year," API Chief Economist John Felmy said in a statement. "Notably, gasoline demand last month reached the highest level since the summer of 2007." Motor club AAA said U.S. consumers are reaping the economic impacts of lower gasoline prices during an era when crude oil markets […]

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Coal Miners Pressed on Cleanup Costs

State and federal regulators are pressing U.S. coal companies to prove that they can pay for the cost of cleaning up after they are finished mining, putting new financial pressure on an industry already facing historic strains. Regulators even in energy-friendly states such as Wyoming and West Virginia are stepping up oversight on coal companies amid concerns that taxpayers could be left on the hook for expensive and environmentally complicated cleanups if the companies go bankrupt. That has created a political challenge for governors of coal states, who don’t want to be viewed as pushing vital industries into further financial trouble. “It is tough times in the coal fields right now,” said Harold Ward, acting director of the mining and reclamation division at the West Virginia Department of Environmental Protection. “You hope for them to be successful, but you anticipate the worst.” Coal producers have been rocked by competition […]

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Oil-Company Earnings Will Be Bleak (Again)

Don’t expect a pretty second quarter earnings season for the oil sector. Even though crude prices have rebounded from the lows hit at the start of the year, they’re still under pressure. Both U.S. West Texas Intermediate and international benchmark Brent crude are down around 40% compared to the second quarter of 2014. Low gas prices are also a problem, particularly as many of the biggest oil companies now produce as much, if not more, gas than oil. That means investors should brace themselves for another punishing set of results when big oil reports on its performance for the quarter later this month. Oppenheimer has a particularly bleak view of what’s coming, predicting the oil majors will report their lowest quarterly earnings in five years. That follows a dismal first quarter in which the companies had to contend with oil dropping to a six-year low below $50 a barrel. […]

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U.S. Oil Rig Count Falls to 638 After Two-Week Upturn

By Angela Chen The U.S. oil-rig count fell by seven to 638 this week, reversing the brief upturn of the past two weeks, according to the latest report from Baker Hughes Inc. Last week had been the second straight week of increases after 29 weeks of declines. The number of U.S. oil-drilling rigs, which is a proxy for activity in the oil industry, had fallen sharply since oil prices headed south last year. Oil prices fell nearly 60% from June 2014 to a six-year low in March, as soaring production from the U.S. and other countries overwhelmed global demand. There are about 60% fewer rigs working since a peak of 1,609 in October, though the pace of declines has slowed considerably recently. In late May, several U.S. shale-oil companies said they were ready to bring rigs back into service, setting up the first big test of their ability to […]

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US Atlantic Coast gasoline imports slide as European arbitrage window closes

A bounty of supplies in the US Atlantic Coast gasoline market and a recent surge in European gasoline values shut an arbitrage window for shipments from Europe this week, sources say. Atlantic Coast gasoline stocks totaled 62.1 million barrels in the week that ended July 10, up 1.6 million barrels week on week and 1.5 million barrels higher than a year ago, according to US Energy Information Administration data. Meanwhile, imports of gasoline into the region, which have been strong all year and peaked at 797,000 b/d in the week that ended July 3, are starting to fall. Imports fell to 634,000 b/d in the week that ended July 10, a total which remains strong by historical standards — imports averaged 514,000 b/d in 2014 — and reflects an average of two cargoes a day. And looking forward, market observers expect import levels to slip yet further. Data from […]

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Using the PHEV (Plug-In Hybrid Electric Vehicle) to Transition Society Seamlessly and Profitably From Fossil Fuel to 100% Renewable Energy

« BMW launches operations at Center of Urban Mobility Competence; boosting electromobility through EV sharing | Main | New non-metallic molecular catalyst system approaches efficiency of platinum in fuel cell oxygen reduction reaction » by Professor Andrew Alfonso Frank CTO Efficient Drivetrains Inc. and UC-Davis Emeritus and Catherine JJ DeMauro Abstract. The alternative-fuel car evolved to reduce exhaust emissions and other problems derived from burning fossil fuels. The PHEV (Plug-in Hybrid Electric Vehicle), a subset of the electric car, combines a primary electric motor with a much smaller back-up engine fueled with a hydrocarbon/biofuel mix. (In this paper PHEV refers solely to the long-range PHEV of 60 miles (100 km) electric-only range.) The PHEV does not require the heavy, costly batteries required by other electric cars, nor does it suffer from a limited range or poor freeway performance. Though the PHEV combines the two types of energy and power, […]

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The Mighty Bakken Bites Back

Defying the trend in declining rig counts, daily volumes in the Bakken are climbing higher to the point of a record for gas production at an all-time high of 1.63 billion cubic feet per day (bcfd) in May. Well completions also increased from 102 to an early count of 114, which coincided with previous estimates by Wood Mackenzie Ltd. Jonathan Garrett, WoodMac’s principal Bakken analyst, said the most interesting data point was the fact that despite oil bring priced in the $50 per barrel range and that the rig count is down by 60 percent, production is still increasing at the Bakken in both oil and gas. Operators have achieved this with three primary approaches: drilling only in the acreage’s sweet spot—this means no testing around the perimeter; rig efficiency with high horsepower; and better completion rates, Garrett said. What’s more, during the second half of the year, operators […]

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Oil, Gas Industry Sounds Off on BSEE Proposed Well Control Rule

The International Association of Drilling Contractors (IADC) is one of seven oil and gas industry trade associations who expressed concerns in a joint letter to the BSEE about the Bureau of Safety and Environmental Enforcement’s (BSEE) Proposed Blowout Preventer Systems and Well Control rule . The rule, which was proposed in April , came as a response to the April 2010 Deepwater Horizon tragedy. Itwill require more controls over the maintenance and repair of blowout preventers (BOPs), identified by BSEE in an April 13 press release as “a point of failure” in the Deepwater Horizon event. In a release, IADC president and CEO Stephen Colville said the association “believes in the need for better regulation” as long as it’s “fair, fit for purpose, practically implementable and affordable” for the industry. Colville added that “the lengthy period of gestation of rule is regrettably unmatched by the very short period for […]

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Canada Provinces Agree To Strategy On Pipelines, Climate Change

OTTAWA, July 17 (Reuters) – Canada’s provinces reached a long-sought deal on Friday over an energy plan for the country, agreeing broadly to curb greenhouse gas emissions while also promoting the use of pipelines. The oil-producing province of Alberta originally conceived the strategy as a way to ensure that it could move its fuel to market. The plan was changed at the insistence of some of the provinces to reflect their desire to fight climate change. Alberta and Saskatchewan have limited markets for their land-locked oil, with environmentalists opposing pipelines that have to go through other provinces to reach the Pacific or Atlantic oceans. These include the Energy East pipeline proposed by TransCanada Corp, which is also trying to build the controversial Keystone XL pipeline through the United States. Canada’s provinces agreed to ensure that regional, Canadian and international infrastructure exists for sending energy products to domestic and international […]

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Comerica Drops as Oil Crash Pain Spreads to Shale Boom Bankers

Comerica Inc., a Dallas-based bank that has helped finance U.S. shale drillers, fell the most in three years after reporting Friday that it set aside more money to cover souring energy loans. Shares fell by as much as 6.8 percent, the most since October 2011, after the bank said Friday that its at-risk energy loans grew by $329 million in the second quarter, with past-due accounts up by $100 million. About 14 percent, or $578 million, of the bank’s energy portfolio has been classified as “criticized,” the bank said in a call with investors and analysts. Banks that have been critical to the U.S. shale boom have set aside more cash to cover potential losses after oil fell 51 percent in the past year to about $50 a barrel. This week, JPMorgan Chase & Co., Wells Fargo & Co., Bank of America Corp. and Citigroup Inc. all reported increased […]

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Montana train derailment spilled 35,000 gallons of crude oil

A train derailment in rural eastern Montana spilled 35,000 gallons (132,489 liters) of crude oil and forced the evacuation of about 30 people, a U.S. official said on Friday in an email to state officials. About 20 cars on the Berkshire Hathaway-owned BNSF [BNISF.UL] crude oil train went off the rails east of Culbertson, Montana, on Thursday evening, officials said. There was no fire and no injuries were reported. A hazardous materials team from BNSF responded to the scene and contained the spilled oil with earthen dams, Michael Turnbull, an official with the U.S. Department of Transportation, said in an email to Montana officials that was released to the media. The spilled crude did not reach any waterways, the email said. Culbertson authorities temporarily evacuated about 30 people from an area a half-mile around the accident site, Turnbull’s email said. The spilled crude came from three breached tank cars […]

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Hedge Funds Turn Bearish on Ruble for the First Time This Year

Investors using Russian ruble futures turned bearish this week for the first time since December, according to data compiled the U.S. Commodity Futures Trading Commission. Hedge funds and large speculators were net short 2,001 futures contracts on the currency in the week ended July 14, wagering that the ruble will decrease in value, the data show. That compares with 999 long positions in the prior five trading days. The ruble dropped 0.9 percent this week, widening its loss from this year’s high to about 14 percent. Brent crude, the oil grade traders use to price the country’s main export blend, slid 2.8 percent to $57.10 per barrel, extending the decline from last year’s high to 50 percent. Economists surveyed by Bloomberg estimate that Russia’s gross domestic product will contract 3.5 percent this year. The country’s last recession was in 2009.

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German Parliament Approves Deal for Greek Bailout Talks

Photo Chancellor Angela Merkel and her finance minister, Wolfgang Schäuble, on Friday. Both urged the German Parliament to back the Greek bailout. Credit Tobias Schwarz/Agence France-Presse — Getty Images BERLIN — German lawmakers on Friday approved entering into detailed negotiations for a Greek bailout amid a simmering international debate over providing more debt relief to Athens and intensifying questions about whether Greece would be better off leaving the European common currency. With resistance to providing more help to Greece growing among conservatives, 439 lawmakers voted in favor of moving ahead with the bailout deal European leaders negotiated last weekend in Brussels. There were 119 votes against, and 40 legislators abstained. Chancellor Angela Merkel and her finance minister, Wolfgang Schäuble, had urged Parliament to back the bailout, which both called “a last attempt” to order Greece’s finances and build a functioning state. It would be Greece’s third bailout in five […]

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Ukraine considers Kazakh gas transit options

Ukraine is reviewing its natural gas options after tilting away from its former Soviet patrons. File Photo by UPI/Hamid Forotan KIEV, Ukraine, July 17 (UPI) — Trade agreements with Kazakhstan may include the possibility of receiving natural gas shipments sent through the country, Ukraine’s government said. The Ukrainian government said Friday it was working to develop trade and economic deals with Kazakhstan. Arrangements were drafted during bilateral economic sessions attended by deputy ministers on both sides. Kiev said the terms of the agreement call on representatives from each country to examine the potential for energy cooperation. "The participants of the meeting also agreed to study the issue of supply to Ukraine of Kazakhstan natural gas and transit through the territory of Kazakhstan of Turkmen and Uzbek natural gas," the Ukrainian government said in a statement. An April report from the International Energy Agency said a more liberalized energy sector […]

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Europe welcomes Polish gas diversity efforts

Gas transit projects slated for Polish government support will connect to the European market and eliminate internal bottlenecks. Photo by tcly/Shutterstock BRUSSELS, July 17 (UPI) — More than half of the gas projects slated for Polish government grants will connect to European markets and help diversify the sector, an EU commissioner said. The European Commission said Poland’s plans to grant nearly $830 million in grants to nine different gas projects are line with efforts to advance a "true energy union" by creating more connections to regional economies. Margrethe Vestager, the European Union’s commissioner in charge of competition policy, said the grants were an encouraging testament of sensible public spending . "Interconnections enable energy flows between countries, improve cross-border connections and allow diversification of gas supply sources," she said in a statement. Five of the nine gas projects set to receive Polish state assistance will connect to European gas networks […]

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Oil rises on weak dollar, North Sea outage but glut weighs

Pump jacks are seen in the Lost Hills Oil Field, California April 20, 2015. Brent crude oil rose slightly on Friday, underpinned by a weaker dollar and a power outage at Britain’s largest oilfield, though a supply glut kept prices pinned near $57 per barrel. Brent crude LCOc1 was up 15 cents at $57.07 by 0827 GMT. Front-month U.S. crude futures CLc1 were trading at $50.87 per barrel, down 4 cents from their last settlement. "With the Iran deal people are aware there is more supply coming so all impetus for a price correction higher has gone," said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam. Iran has started to ship oil to Asia that it had been storing offshore for months after Tehran and six world powers reached a landmark nuclear deal on Tuesday, clearing the way for an easing of international sanctions on Iran. […]

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Dollar, stocks set for biggest weekly gains in months

The dollar was set for its biggest weekly rise since May on Friday as economic data reinforced expectations for a U.S. rate hike by the end of 2015, with euro zone shares steadying after strong gains as Greece looked set to secure a bailout. The dollar steadied near a seven-week high against a basket of major currencies, receiving a boost against its peers after lower U.S. jobless claims. The dollar index is up 1.5 percent this week. The euro hovered close to a seven-week low of $1.0854 hit in the previous session. The dollar touched a three-week high of 124.23 yen. Investor attention has returned to gauging the timing of the next U.S. interest rate rise, with clues sought in U.S. CPI data and Michigan sentiment data later in the session. "The focus is turning to the U.S. rate cycle, and (the market reckons) a September rate hike is […]

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Oil Set for Longest Run of Weekly Losses Since January on Glut

Brent oil headed for the longest run of weekly declines since January as ample inventories and an accord to ease sanctions on Iran suggested global markets will remain oversupplied. Futures gained 0.4 percent in London, paring their third weekly drop to 2.8 percent. U.S. crude stockpiles remain almost 100 million barrels above the five-year average for this time of the year, Energy Information Administration data show. The prospect of increasing Iranian output may still weigh on prices even if the gain is gradual, according to Barclays Plc and Australia & New Zealand Banking Group Ltd. Oil’s recovery from a six-year low has faltered amid speculation the surplus will be prolonged as U.S. drillers return rigs to fields and Iran seeks to regain market share. The full impact of higher Iranian exports won’t be felt until 2016 as the nuclear deal is implemented, banks including Goldman Sachs Group Inc. predict. […]

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Oil prices steady as stock draw balances supply

Pump jacks are seen in the Lost Hills Oil Field, California April 20, 2015. Oil prices steadied on Thursday after data showed U.S. crude inventories dropped and refinery demand was robust, although the global market remained extremely well supplied. U.S. crude inventories fell by 4.3 million barrels last week, according to the Energy Information Administration (EIA), as refineries boosted throughput to a record level. The data suggested demand in the United States, the world’s biggest oil consumer, was holding up well and still absorbing fuel at a time of ample global production. Brent crude for August was unchanged at $57.05 a barrel by 0750 GMT. U.S. light crude, also known as West Texas Intermediate or WTI, was up 10 cents at $51.51. Daniel Ang of brokerage Phillip Futures said the U.S. crude inventory figures looked bullish for both global oil benchmarks. "As a result of this, we would believe […]

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Oil Benchmarks Diverge as Supply Weighs on U.S. Prices

NEW YORK—U.S. oil futures fell to a new three-month low Thursday on fresh indications of a supply surplus, while global benchmark Brent ticked higher on production concerns. Light, sweet crude for August delivery settled down 50 cents, or 1%, at $50.91 a barrel on the New York Mercantile Exchange, the lowest settlement since April 9. Brent, the global benchmark, rose 46 cents, or 0.8%, to $57.51 a barrel on ICE Futures Europe. On Thursday, data provider Genscape Inc. reported that stockpiles in the key hub of Cushing, Okla., rose by nearly a million barrels between July 10 and 14, according to three market participants. U.S. oil prices erased early gains on the news. The U.S. benchmark slid Wednesday after inventory data showed total U.S. inventories of crude oil and petroleum products at a record high, even as refineries processed more crude than ever before into gasoline and other fuels. […]

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Natural Gas Slips on Inventory Data

By Nicole Friedman NEW YORK–Natural-gas futures fell Thursday on a weekly inventory report showing that supplies rose more than expected last week. Futures for August delivery settled down 6.4 cents, or 2.2%, at $2.854 a million British thermal units on the New York Mercantile Exchange. U.S. natural-gas inventories grew by 99 billion cubic feet in the week ended July 10, the Energy Information Administration said Thursday, more than the 95 bcf that analysts surveyed by The Wall Street Journal had expected. Stockpiles now stand at 2.767 trillion cubic feet, 2.7% above the five-year average for the week. "Rapidly growing storage levels are hard to ignore," said energy-advisory firm Gelber & Associates in a note. "At this pace, we expect jam-packed storage to be a driver of market action come this autumn." Moderate weather and robust production in the first half of the summer have kept the market well-supplied, but […]

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Muslim scholars say climate change poses dire threat

The sacred mosque at Mecca in Saudi Arabia, one of the oil-rich countries urged to refocus on the environment. Photo by XXXshatha via Wikimedia Commons LONDON, 15 July, 2015 − Human beings could cause the ending of life on the planet, says a group of Islamic scholars − and countries round the world, particularly the rich ones, must face up to their responsibilities. Climate change, they say, is induced by human beings: “As we are woven into the fabric of the natural world, its gifts are for us to savour – but we have abused these gifts to the extent that climate change is upon us.” The views of the scholars – some of the strongest yet expressed on climate from within the Muslim community – are contained in a draft declaration on climate change to be launched officially at a major Islamic symposium in Istanbul in mid-August. Allah, […]

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Israel won’t strike Iran alone, no matter how much it hates the nuclear deal

Tags: AIR STRIKES | Benjamin Netanyahu | Iran | Iran Nuclear Deal | Israel An Israeli F-16 fighter jet takes off at Ramon air base in southern Israel during routine training, October 21, 2013. REUTERS/Amir Cohen The day after a nuclear deal with Iran was announced, the sun rose high above Jerusalem’s shimmering hills just as it does every July, as if the ancient land shrugged off two decades of apocalyptic warnings from Israeli Prime Minister Benjamin Netanyahu and decided to go about its usual routine. Israeli officials across the political landscape decried the “very bad deal,” as Netanyahu termed the agreement, which the United States and five world powers hope will curb Iran’s weaponization of its nuclear program. But no one, not even the prime minister, rattled the sabers of war. “An Israeli attack on Iranian nuclear sites is no longer a relevant scenario,” wrote Amos Harel, military […]

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Iran’s possible oil production response post-sanctions: Kemp

Malta-flagged Iranian crude oil supertanker ”Delvar” is seen anchored off Singapore March 1, 2012. Iran could increase its oil production by up to 1 million barrels per day within 12 months of sanctions being lifted, provided it can find buyers for the crude. In 2014, the country produced an average of just over 1,350 barrels per day (bpd) per well, from 2,280 wells, according to the OPEC Annual Statistical Bulletin ( link.reuters.com/xes25w ). In 2011, the last year before sanctions were tightened, the country produced an average of around 1,750 bpd per well from 2,025 wells. The reduction of 400 bpd in per-well output since 2011 gives some indication of how far the country has been forced to choke back the wells because it cannot find buyers for more crude. If Iran increased flow rates from the existing stock of producing wells by an average of 400 bpd, back […]

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First Iranian ship storing oil sails for Asia after nuclear deal

Iran’s Oil Minister Bijan Zangeneh talks to journalists before a meeting of OPEC oil ministers in Vienna, Austria, June 5, 2015. An Iranian supertanker with two million barrels of oil is heading to Asia after sitting in Iranian waters for months, the first vessel storing crude offshore to sail after a nuclear deal this week, data showed on Thursday. Iran and six major world powers reached a landmark nuclear deal on Tuesday, clearing the way for an easing of international sanctions on Tehran and higher oil exports. While oil analysts do not expect Iran to make a major return to the market until next year, it has been parking millions of barrels of oil on tankers for months. The fully laden Starla, operated by Iran’s top tanker group NITC, had been used for floating storage since Dec. 12, a tanker tracking source said. "This is the first tanker to […]

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Iran’s Oil Spigot

Sanctions against Iran, devised to bring it to the negotiating table and curb its nuclear program, made it hard for the country to sell its oil. Deprived of customers and investment, Iranians saw production fall to less than half its peak before the 1979 revolution. A July 13 deal between Iran and six major nations could lift those sanctions, and the oil will flow.

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Oil ‘El Dorado’ Iran Can Double Output by 2020, Scaroni Says

International oil companies will rush back to Iran after the removal of sanctions, helping the OPEC member double production by the end of the decade, according to former Eni SpA Chief Executive Officer Paolo Scaroni. The country can restore production to 1970s levels of 6 million barrels a day by 2020 as its “plentiful” and inexpensive reserves draw in foreign oil explorers despite the risk of sanctions being restored, Scaroni said. The flood of Iranian oil into a global market that’s already oversupplied will keep crude prices low for the rest of the decade, he said. “Iran is one of three or four countries which are part of the ‘El Dorado’ of oil in the world,” Scaroni, now deputy chairman of NM Rothschild & Sons Ltd., said by phone from London Wednesday. “In a world of oil prices that are low and will become probably even lower, it is […]

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Russia says to discuss oil markets, Iran with OPEC on July 30

Iranian Foreign Minister Mohammad Javad Zarif reacts during a plenary session at the United Nations building in Vienna, Austria July 14, 2015. Russia and OPEC Secretary-General Abdullah al-Badri will discuss oil markets and the Iran situation in Moscow on July 30 amid sliding oil prices, Russian Energy Minister Alexander Novak said. The prospect of an influx of Iranian crude onto the already-overhung market has dampened oil prices, which have halved from their level in June last year of $115 per barrel. "We will discuss the situation on the oil and gas market on the whole, taking into account the lifting of sanctions on Iran," Novak told reporters about the forthcoming meeting with Badri. He said he did not expect a big impact on prices from additional oil volumes from Iran. "The prices will be determined by the production costs of shale oil," Novak said. Iran and six world powers […]

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Iran Risks Will Curb Investor Enthusiasm Even as Sanctions Ease

Gas flares burn near an oil well in Khuzestan province, Iran. Photographer: Vahid Salemi/AP Photo The end of economic sanctions on Iran under this week’s nuclear deal has been portrayed as a gold-rush opportunity in an oil-rich Gulf state, but returning to business as usual won’t be as easy as the burst of enthusiasm suggests. Investors who wait months for sanctions to be lifted will then have to gamble that they won’t run afoul of enduring blacklists or the vow by the U.S. and other world powers that sanctions will “snap back” into place if Iran fails to live up to commitments to restrict its nuclear program. “Hotel rooms in Tehran will be booked solid for months to come, and I think we’ll see some quick movement even by significant players in different markets,” said Suzanne Maloney, an Iran and Persian Gulf energy analyst at the Brookings Institution in […]

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Iranian Hard-Liners Say Nuclear Accord Crosses Their Red Lines

Photo Ayatollah Ali Khamenei, Iran’s supreme leader, issued in June a list of seven "major red lines" that should not be crossed in a nuclear agreement. Credit Office of the Iranian Supreme Leader, via Agence France-Presse — Getty Images TEHRAN — When Iran ’s supreme leader sent a note to the country’s president, thanking him for bringing the nuclear negotiations with the United States and other world powers to a conclusion, he added an important caveat. The comprehensive plan needs “close scrutiny,” the supreme leader, Ayatollah Ali Khamenei , wrote, adding: “Be concerned about possible violations of the commitments in the accord by other parties.” The tone of the letter might have seemed friendly to those not familiar with the supreme leader’s style, said Hamidreza Taraghi, a political analyst close to Ayatollah Khamenei. “But the reaction was cold,” he said. “Notice how he only thanked the negotiators but did […]

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Netanyahu May Turn Iran Defeat to His Favor

Photo The British foreign secretary, Philip Hammond, left, and Prime Minister Benjamin Netanyahu of Israel delivered joint statements on Iran in Jerusalem on Thursday. Credit Pool photo by Debbie Hill JERUSALEM — Israeli commentators have described this week’s Iran nuclear deal as a “personal failure,” a “stinging failure,” and a “colossal failure” for Prime Minister Benjamin Netanyahu . Yair Lapid, a rival who heads an opposition faction in Israel ’s Parliament, called it “the greatest failure in foreign policy of any Israeli prime minister since the state’s establishment” and demanded his ouster. Mr. Netanyahu has framed his career over two decades around Iran , and battered Israel ’s critical alliance with the United States by alienating President Obama with his aggressive approach. Since the deal was announced, he has seemed lifeless, gray, even in deep despair during public appearances this week, analysts said. Yet there is little indication Mr. […]

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Car bomb explosion kills one in Saudi capital

A car bomb has exploded at a security checkpoint in the Saudi capital Riyadh, killing the driver and wounding two policemen, the interior ministry said. The blast went off on Thursday when policemen manning the checkpoint on Al-Hair Road stopped the car for a routine control, the official Saudi Press Agency reported, quoting a ministry spokesman. The policemen were taken to hospital and were in a "stable condition", the spokesman said. "The driver blew up the car and killed himself," he was quoted as saying. The Saudi authorities were investigating the explosion, which took place on the last day of the holy Muslim fasting month of Ramadan. Source: Agencies

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