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U.S. crude inventories might be tighter than they look: Kemp

Stacked rigs are seen along with other idled oil drilling equipment at a depot in Dickinson, North Dakota June 26, 2015. U.S. oil markets have been transformed over the last decade by the emergence of oil trading and storage as a major business in its own right, separate from production and refinery operations. At the end of 2014, there were more than 390 million barrels of crude stored at refineries and tank farms as well as in transit in pipelines and barges and in storage tanks at oilfields. Commercial crude stockpiles had climbed by more than 100 million barrels since the end of 2004, almost 38 percent, according to annual data published by the U.S. Energy Information Administration (EIA). By the end of April 2015, commercial stocks had climbed by another 105 million barrels to a record 491 million as the oversupply in the global oil market ended up […]

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Bosch presenting new heat pump EV thermal management system at IAA; up to 25% increase in effective range

« Toyota Tsusho becomes official partner for EFOY Pro direct methanol fuel cells in Japan | Main | DEINOVE and Tyton partner to combine bacterial fermentation solutions with energy tobacco feedstock for biofuels and bio-based chemicals » At IAA next week, automotive supplier Bosch is presenting a new heat-pump-based thermal management system for EVs that it says can enable an increase in effective range of up to 25% without modifications to the battery. In battery-driven powertrains, heating and cooling can play a significantly greater role than in gasoline or diesel engines, since without a combustion engine, the vehicle does not have a generous supply of heat. If the passenger compartment is heated using a purely electrical system drawing its power from the battery, range can be significantly reduced. As a result, there has been interest in the industry about the use of heat pumps as a lower energy-intensity solution. […]

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US House panel set to approve crude oil exports bill Thursday

A US House Energy and Commerce subcommittee is expected Thursday to approve a bill to lift all limits on US crude exports. The House energy and power subcommittee is scheduled to vote on a bill from Texas Representative Joe Barton, a Republican, to repeal these limits, which have been in place for roughly four decades. In a joint statement, Michigan Representative Fred Upton, a Republican and the full committee’s chairman, and Kentucky Representative Ed Whitfield, a Republican and the subcommittee’s chairman, said current limits on US crude exports have become "obsolete." "We have taken a thoughtful approach to reconsidering oil exports, and the time to lift the ban is now," Upton and Whitfield said. The subcommittee vote, which will be the first of its kind in the House, is expected to set up a potential full House vote as early as this month. There are enough votes in the […]

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Impact of Exxon Valdez spill on fish far greater than thought, study finds

Federal scientists may have found a link between the 1989 Exxon Valdez oil spill and a decline of herring and pink salmon populations in Prince William Sound. In a study published Tuesday in the online journal Scientific Reports, researchers from the National Oceanic and Atmospheric Administration (NOAA) found that embryonic salmon and herring exposed to even very low levels of crude oil can develop heart defects. Herring and pink salmon juveniles that were exposed to crude oil as embryos grew slower and swam slower, making them vulnerable to predators, said John Incardona, a research toxicologist at NOAA Fisheries’ Northwest Fisheries Science Center in Seattle, in a prepared statement Exxon Valdez: 25 years later We explore the lasting impacts of oil spills on communities and the country. "These juvenile fish on the outside look completely normal, but their hearts are not functioning properly and that translates directly into reduced swimming […]

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Heitkamp Reacts to Methane Ruling

Global Warming Debate Rages North Dakota senator, Heidi Heitkamp, pushes back against the latest federal mandate to reduce methane emissions. President Obama revealed a plan last month that would require oil and gas companies to cut methane pollution from drilling sites, distribution systems and in other areas of operation. This ruling is part of the President’s broad and aggressive plan to fight climate change, and many believe it would literally transform the energy industry. The EPA said the proposed standards will reduce 340,000 to 400,000 short tons of methane in 2025, the equivalent of reducing 7.7 to 9 million metric tons of CO2. The agency estimates the rule will yield net climate benefits of $120-150 million in 2025. Senator Henkamp is proposing bipartisan, “commonsense solutions” to reduce methane emissions including speeding up the permit approval process for gas-gathering lines and pipeline projects to reduce flaring. Heitkamp commented, “Energy production […]

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Baker Hughes: North America adds more rigs

Baker Hughes data show an increase in the number of rigs deployed across the North American energy sector. Photo by Calin Tatu/Shutterstock HOUSTON, Sept. 8 (UPI) — The number of rigs actively exploring for or producing oil and natural gas in North America increased by nearly 4 percent, Baker Hughes said Tuesday. Baker Hughes published its rig count report for August , finding a net increase in the upstream sector in North America. Energy companies in the first half of 2015 unveiled cost-savings strategies as crude oil traded at a 50 percent discount from June 2014. Low crude oil prices means less capital for exploration and production, a trend data from Baker Hughes suggests may be reversing. "The average U.S. rig count for August 2015 was 883, up 17 from the 866 counted in July 2015, and down 1,021 from the 1,904 counted in August 2014," it said. "The […]

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Gas prices should begin steady decline

Only one state — South Carolina — has an average price below $2 per gallon, though more may follow suit as refiners switch to a cheaper production process. UPI/John Angelillo GAITHERSBURG, Md., Sept. 8 (UPI) — Though refinery issues kept retail gasoline prices somewhat elevated, a switch to a different blend of gas will be a net industry win, GasBuddy.com reports. The price watchdog website reports a national average retail price for a gallon of regular unleaded gasoline at $2.39 per gallon, about 2.8 percent less than last week and 8 percent lower than one month ago. The national average price is 30 percent, or $1.04 per gallon, less than this date in 2014. An outage at BP’s refinery in Whiting, Ind., last month skewed the national average price higher because gas prices in the Great Lakes states spiked by up to 50 cents per gallon. Low output from […]

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Canadian Oil Sands Not Planning to Sell Future Production

Canadian Oil Sands Ltd. isn’t planning to sell future royalty production after considering the option, a company spokeswoman said. Canadian Oil Sands has enough liquidity to survive a period of low oil prices, Siren Fisekci, a company spokeswoman, said in a phone interview on Tuesday. The company isn’t pursuing any other plans at the moment to raise capital and isn’t for sale, she said. Management of the largest owner of Syncrude Canada Ltd. spoke with Holder Highfields Capital about selling some future production for upfront payment to help boost the company’s flagging shares, the Wall Street Journal reported earlier. The oil-sands producer in January cut its dividend the most since 1998 to cope with sinking crude prices. Shares of Canadian Oil Sands have declined 38 percent this year. The stock rose 3.7 percent to C$6.50 at 2:44 p.m. in Toronto.

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U.K. North Sea Oil Industry Warns Investment May Fall 80% to ’17

Investment in U.K. North Sea oil and gas projects could drop as much as 80 percent by 2017 as the collapse in oil prices forces the industry to cut back. Capital investment across the industry of 14.8 billion pounds ($22.8 billion) last year will probably decline by 2 billion to 4 billion pounds annually to 2017, Oil & Gas U.K., an industry lobby group, said in its annual economic report Wednesday. “This great industry of ours is facing very challenging times,” Deirdre Michie, Oil & Gas U.K.’s chief executive officer, said in a statement. “Exploration for new resources has fallen to its lowest level since the 1970s” and few new projects are gaining approval from “hard-pressed” companies, she said. The decline in crude prices of more than 50 percent over the past year has forced the oil industry to review projects and reduce operating costs. The U.K. North Sea […]

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Russia Dismantles Fiscal Rules as Oil Volatility Rattles Budget

Step by step, Russia is undoing the budget policy assembled during the past decade as it tries to ride out turmoil on the energy market. The government is halting the so-called budget rule a week after announcing plans to drop three-year fiscal plans in favor of a one-year program for 2016. That rule, which went into effect in 2013 and sought to cap public spending based on average long-term oil prices, may be modified, reinstated or dropped entirely, Economy Minister Alexey Ulyukayev told reporters Tuesday in Paris. The world’s biggest energy exporter is tearing down its fiscal mechanisms as it contends with fluctuations in the price of oil, which together with gas accounts for about half of budget revenue. Crude is down more than 25 percent from this year’s closing peak in May, helping deepen Russia’s first recession since 2009 and putting the budget on course for its widest […]

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Moscow Bourse Outage Interrupts Ruble’s First Gain in Six Days

The ruble strengthened for the first time in six days as crude oil rebounded and investors bet on a pause in the Bank of Russia’s rate-cutting cycle. Equipment failure on the main bourse in Moscow knocked out currency, stocks and bond trading for two hours. The Moscow Exchange switched to backup systems after the shutdown at about 3 p.m. in Moscow, the latest in a string of interruptions this year. When trading resumed, the ruble continued its advance, appreciating 1.6 percent to 68.0490 against the dollar by 7:15 p.m. in Moscow, the biggest rally among emerging markets tracked by Bloomberg. Oil surged 4 percent in London, helping lift the Micex index of stocks to a second day of gains. The ruble is getting some relief as the biggest currency slump in emerging markets this quarter raises the odds that Bank of Russia Governor Elvira Nabiullina will end a string […]

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Revenues down for oil-rich Norway

Norwegian government data show revenue losses during depressed oil economy. Photo by tcly/Shutterstock OSLO, Norway, Sept. 8 (UPI) — The Norwegian government said total revenues for the oil-rich economy were down by nearly 5 percent for the second quarter of 2015. Statistics Norway, the government’s data-recording agency, said total revenue for the second quarter of the year was $40.4 billion, down 4.7 percent from the same period last year. "Sales revenue, transfers and the operating surplus from petroleum activities have all been reduced from the second quarter of 2014," the agency said in a statement. The Norwegian government said its oil-driven economy has been pressured by lower crude oil prices, with overall investments expected to decline by 12 percent this year. Slow global growth leaves the government somewhat pessimistic, but an uptick is expected to emerge on the horizon. German energy company Wintershall last week said it aims to […]

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Bourbon to Idle Oil-Service Vessels as Losses Widen With Rout

Bourbon SA, a French supplier of ships and crew to oil and natural gas producers, is pulling as many as 35 vessels from operation in the second half of the year as overcapacity in the deepwater market leads to widening losses. “The drop in the oil price and the uncertainty of the price recovery will continue to affect the development of new deepwater fields and the level of activity in shallow-water fields,” the Paris-based company said in a statement Wednesday. Bourbon is the latest oil-services company to warn that the crash in crude prices will hurt business this year as customers delay or cancel exploration and development projects. Seadrill Ltd., the rig-operator controlled by billionaire John Fredriksen, said last week it expects the rout to force an industry consolidation that will leave only the largest offshore players intact. Bourbon’s first-half net loss widened fourfold to 19.2 million euros ($21.5 […]

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North Sea oil at ‘serious risk’ of shutdown

There is a “serious and urgent risk” that parts of the North Sea oil industry will be abandoned unless energy companies join forces to become more efficient, the man in charge of reviving the sector has warned. Andy Samuel, the head of the new Oil and Gas Authority, told the Financial Times that companies need to fundamentally change some of their working practices if they are to keep parts of the lifeline of the Scottish economy alive. Companies have been struggling for the past 14 months with a low oil price, which has plunged more than 50 per cent since last June and now sits around $50 a barrel. In response, the government has offered companies a range of new tax breaks, but has also urged the industry to work together, appointing Mr Samuel to oversee that process . He warned that there could be a “domino effect”, where […]

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How Fracking Changed the Economics of Oil Production Around the World

New technology, high oil prices, and plentiful cheap credit have encouraged the boom. Some $200bn has been borrowed to invest in fracking in the last few years, accounting for 15 percent of the entire $1.3tr US junk bond market . Investors were, in effect, betting on continuing high oil prices making their investments profitable for years to come. Price Slump Last year’s slump in prices trashed that calculation. From a mid-year high of $115 per barrel, by the end of 2014 the price per barrel had fallen by more than 40 percent. More than half of US shale rigs have been laid up since October. The driver, last year, was the behaviour of OPEC – the Organization of Petroleum Exporting Countries. OPEC is a cartel agreement among major oil producers that seeks to manage the international market for oil. With oil prices already plunging over the summer, OPEC could […]

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Oil prices stabilize on strong German data, but slowing Asia still weighs

Oil rig pumpjacks, also known as thirsty birds, extract crude from the Wilmington Field oil deposits area where Tidelands Oil Production Company, which is owned by Occidental Petroleum Corporation (Oxy), operates near Long Beach, California July 30, 2013. Oil prices stabilized at low levels on Tuesday as strong German economic data countered Asia’s darkening outlook that continues to clash with a global supply glut. German exports and imports hit record highs in July despite a slowdown in China. Exports climbed by 2.4 percent on the month to 103.4 billion euros ($115.58 billion) while imports grew 2.2 percent to 80.6 billion euros, the highest values on record. Traders said that the strong German data had helped counter a further darkening of Asia’s economic outlook. U.S. crude CLc1 was at $44.74 per barrel at 0730 GMT, down $1.31 since Friday’s close, weighed down by the closure of the largest crude distillation […]

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Dollar edges higher vs yen, China shares and data in focus

A woman walks past a money exchange shop in Kuala Lumpur, Malaysia, August 25, 2015. The dollar edged up against the yen early on Tuesday, as the prior session’s gains in European and Tokyo equities tempered demand for the safe-haven Japanese currency. Early Asian trading was subdued due to the closure of U.S. markets on Monday for a holiday, with the dollar up 0.1 percent at 119.40 yen JPY= , pulling away from an overnight low of 118.66. The euro was steady at $1.1165 EUR= , having been confined to a narrow $1.1122-1.1177 range over the past two days. The dollar tentative gains against the yen, however, were seen hinging on how risk asset markets react to Chinese trade data and Shanghai shares later in the session. "With the U.S. markets closed on Monday, risks emanating from China will be the main currency driver. Shanghai stocks will be in […]

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U.S. Crude Prices Stay in Negative Territory; Brent Crude Rises 1.8%

LONDON—International oil benchmarks diverged on Tuesday as U.S. prices caught up with the previous day’s drop in Brent crude when U.S. markets were shut for a holiday, but behind the split the market remained focused on a recurring theme, the Chinese slowdown. On Tuesday, worse than expected trade data out of China added to fears of the slowdown in the world’s No. 2 oil consumer. Oil prices dropped to more than six-year lows last month following a slew of weak economic readings, a slide in the Chinese stock market and continued concerns about oversupply . “We experience further sell-off in [U.S.] crude oil as bearish Chinese data verified our recent concerns about how weak the Chinese economy has become,” said Myrto Sokou, analyst at Sucden Financial Research. Meanwhile, robust German exports data provided some support for Brent, the global oil benchmark, Mrs. Sokou added. Exports from Europe’s biggest economy […]

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Oil Extends Drop as Russia Rules Out Production Cuts With OPEC

Oil extended declines as Russia ruled out cooperation with OPEC to cut production, fueling speculation the global glut will persist. Futures slid as much as 4.2 percent in New York from Friday’s close. Russia won’t do a deal with Saudi Arabia, the biggest member of the Organization of Petroleum Exporting Countries, to cut output, OAO Rosneft Chief Executive Officer Igor Sechin said, according to the Financial Times. Sanctions on Iran’s oil exports will probably be lifted within the first three months of 2016, according to four western diplomats familiar with the nuclear monitoring process. Oil has slumped more than 25 percent since this year’s closing peak in June amid signs the global glut that drove prices to a six-year low will be prolonged. Iran has signaled it will boost output once sanctions are removed as the nation seeks to regain market share. U.S. crude stockpiles remain about 100 million […]

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Oil prices fall on global glut fears, slowing U.S. jobs growth

An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen Oil prices fell on Monday as oversupply concerns, a firmer dollar and lackluster U.S. non-farm payrolls data weighed on global markets, but a rebound in Chinese stocks after a two-day holiday helped prop up prices. The long Labor Day holiday in the United States may also lead to thin trading until U.S. markets open in the next session. "I think there is a bit of investor relief China’s stock market opened relatively firm," said Ric Spooner, chief market analyst at Sydney’s CMC Markets. China’s main indexes rose on Monday in the first trading after a two-day holiday during which further restrictions on futures trading were announced. Oil prices have seesawed in recent weeks due to turmoil in global stock markets after a devaluation of its currency and weaker economic data raised concerns about a slowing Chinese […]

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Stock Futures Rise Amid China Relief as Focus Shifts to Trade

Chinese and U.S. index futures foreshadowed gains and the Australian dollar strengthened amid relief that Monday’s stock losses in Shanghai didn’t ignite a wider selloff in riskier assets. While the Shanghai Composite Index fell 2.5 percent after resuming following a two-day holiday, traders took solace from the fact the slump wasn’t deeper, driving European shares higher and fueling a pull back in the yen. Forward contracts on Asian emerging-market currencies signaled a rebound, while copper futures climbed ahead of an update on Chinese trade. Ongoing concern over the global oil glut kept U.S. crude below $45 a barrel. While the Chinese index ended last session down, almost three times as many Shanghai-traded stocks rose as fell, with investors looking to mainland markets to gauge sentiment amid a holiday in the U.S. Data Tuesday is projected to show further declines in Chinese exports and imports, potentially reinforcing concern over the […]

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Oil Bears Cashing Out From Crude Market’s Roller-Coaster Ride

Oil bears are cashing out. Hedge funds slashed short positions in West Texas Intermediate by 13 percent in the week ended Sept. 1 as the largest three-day rally in 25 years sent crude up by almost $10 a barrel before it dropped again. It was the biggest liquidation of bearish bets since May. The week made for a wild ride in the crude markets as volatility jumped to a five-month high amid anxiety about a stubborn worldwide glut of crude. Rising production from Iran and the U.S. combined with weaker demand from China put an end to three days of gains on Sept. 1, the last day of the report week, as oil plummeted 7.7 percent. “There’s a lot of nervousness in this market,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. “Everyone is retrenching in the face of […]

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Kurdistan authorizes $75m September IOC payment

A worker checks the valve gears of pipes linked to oil tanks at Turkey’s Mediterranean port of Ceyhan, which is run by state-owned pipeline company Botas. (UMIT BEKTAS/Reuters) The Kurdistan region’s Ministry of Natural Resources (MNR) will soon make its first payment of 2015 to oil exporting companies.“MNR approved the allocation of $75 million of revenue from the Kurdistan Regional Government’s direct crude oil sales in Ceyhan as payment on account to TTOPCO as operators of the Taq Taq block ($30m), DNO as operators of Tawke ($30m), and Gulf Keystone Petroleum as operators of Shaikhan ($15m),” the ministry said in a statement released Monday.A KRG of… 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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Two Main Libyan Militias Are Maintaining a Truce to Battle Islamic State

Two of Libya’s most powerful rival militias have maintained pragmatic truces in a joint effort to beat back the advance of extremist group Islamic State, commanders and political representatives said. The truces have been centered in the country’s west, where armed groups supporting two competing governments have been engaged in fierce conflict for more than a year. The fight has effectively split the country and stirred concerns of a full-blown civil war. The two main militias, originating from the western cities of Misrata and Zintan, agreed to cease-fires that have largely held since June. They are exploring ways to try to halt the march of Islamic State westward out of the central city of Sirte on Libya’s Mediterranean coast. The results of truce talks between rival militias could help determine the fate of the oil-rich nation, beset by infighting since the overthrow and killing of longtime dictator Moammar Gadhafi […]

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Iran Sanctions Seen Lifted in Early 2016 by Nuclear Envoys

People celebrate after the 5+1 nuclear agreement was announced on Vali Asr Avenue in Tehran, Iran, on July 14, 2015. Oil and financial sanctions on Iran will probably be lifted within the first three months of 2016, according to four western diplomats familiar with the nuclear monitoring process. Under the terms of a July 14 accord between world powers and Iran, sanctions imposed internationally on the Persian Gulf nation will be lifted in return for restrictions on nuclear work. The Vienna-based International Atomic Energy Agency will assess when Iran has fulfilled the terms of deal, paving the way for the removal of restrictions. The monitoring necessary for that to happen will probably be in place by January or February, according to three of the envoys. A fourth saw restrictions lasting as late as March. All of the officials have knowledge of the IAEA’s verification regime in Iran and asked […]

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Indonesia Said to Be on Course to Rejoin OPEC in December

Indonesia is on track to resume full OPEC membership in December after a break of almost seven years, according to three people familiar with the matter. The Asian nation, which suspended membership in January 2009 after becoming a net oil importer, received formal notification that the Organization of Petroleum Exporting Countries’ 12 members all support its return, said the people, who asked not to be identified because the discussions aren’t public. The move is subject to final approval at the group’s ministerial meeting on Dec. 4, they said. OPEC agreed to suspend Indonesia’s membership in September 2008 at the country’s own request, almost half a century after the nation joined. The country pumped 852,000 barrels a day of oil in 2014 and consumed almost twice as much, according to BP Plc. Indonesia received confirmation of members’ support on Aug. 31, one of the people said. OPEC member countries also […]

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China Exports Mark Latest Soft Reading for Economy

BEIJING—Weaker demand for Chinese goods in most global markets led to a drop in exports for the second consecutive month, as the economy continued its struggle to regain momentum. China’s exports fell 5.5% in August from a year earlier in dollar terms, after a drop of 8.3% in July, data from the General Administration of Customs showed Tuesday. Customs said in a statement that China’s exports will continue to face “relatively big pressure” in the fourth quarter. Export weakness last month was broad-based, ANZ economist Li-Gang Liu said, with shipments to the U.S., European Union, Japan and Southeast Asia all down. Earlier this year, the World Trade Organization lowered its 2015 global trade forecast to 3.3% from 4%. Imports in August fell 13.8% in dollar terms from a year earlier, compared with a 8.1% decrease in July, fueling another significant trade gap, Customs said. China’s trade surplus widened in […]

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China’s Forex Reserves Fall by Record $93.9 Billion on Yuan Intervention

BEIJING—China’s foreign-exchange reserves fell by a record $93.9 billion in August, a result of aggressive intervention in the currency market by the country’s central bank to prevent the yuan from free-falling and limit money leaving Chinese shores . The People’s Bank of China on Monday reported $3.56 trillion in its foreign-exchange holdings as of the end of last month, compared with $3.65 trillion as of July. China’s currency reserves, still the world’s largest, have been falling from a peak of $3.99 trillion in June 2014 as gathering fears of a deepening slowdown in the world’s No. 2 economy have led more businesses and investors to take money out of the country. Based on central-bank data, it was the largest single monthly drop in reserves in absolute terms, and the biggest fall in more than three years on a percentage basis. “Capital outflow is a big concern,” said an official […]

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China’s trade surplus surges 40% as imports plummet

Sign up for quick access to a wealth of global business news, including: China’s trade surplus surges 40% as imports plummet Newspaper + Premium online Newspaper + Premium online Premium Full FT.com subscription Premium Full FT.com subscription Standard Full news & archive Standard Full news & archive Trial Try Premium online Trial Try Premium online Price Monthly Annual $66.30 $11.77 per week $53.00 $9.25 per week $36.00 $6.45 per week $1.00 for 4 weeks $1.00 for 4 weeks FT Alphaville plus selected FT blogs yes yes yes yes Unlimited FT.com article access yes yes yes yes Unlimited mobile and tablet access yes yes yes yes Unlimited fast FT yes yes yes yes 5 year company financials archive yes yes yes yes The LEX column yes yes no yes ePaper access yes yes no yes Three exclusive weekly emails yes yes no yes Daily newspaper delivery yes no no For […]

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‘Strippers’ Pose Dilemma for Oil Industry

Steve Plants, vice president of Plants & Goodwin Inc. in Shinglehouse, Pa., still pumps crude oil from wells drilled in the 1890s. But with the price of crude below $50 a barrel, some of those low-producing wells, known as stripper wells, don’t turn a profit. Mr. Plants has permanently closed 10 wells, he says, and plans to plug another 10 by the end of the year. “We’re losing money every day,” said Mr. Plants, who operates about 200 wells in Pennsylvania and New York. “If we were pumping wells every day, we might be pumping them once a week now,” to save on costs. Mr. Plants, and thousands of individual operators like him, could turn out to be a key element in ending the oil-price rout, rather than a large producing country like Saudi Arabia or a big public company. A sharp drop in stripper-well output, currently estimated at […]

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In Canada’s prairies, crude slump puts first oil patch in reverse

Sr. foreman Dwayne Roy checking tap for production at an active well site about 60 kilometres east of field office during a tour of Gear Energy’s well sites near Lloydminster, Saskatchewan August 27, 2015. Amid the corn and canola fields of eastern Saskatchewan, oil foreman Dwayne Roy is doing what Saudi Arabia and fellow OPEC producers are loath to do: shutting the taps on active wells. Inside a six-foot-square wooden shed that houses a basic hydraulic pump, the Gear Energy Ltd employee demonstrates how shutting down a conventional heavy oil well in this lesser-known Canadian oil patch is as simple as flipping a switch. His company has already done so hundreds of times this year, making the Lloydminster industry among the first in the world to yield in a global battle for oil market share that has sent crude prices tumbling to six-year lows. Gear Energy Ltd, has idled […]

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Shell Cheapest in 6 Years for Buyers Braving Takeover Doubts

Royal Dutch Shell Plc It’s the cheapest opportunity in six years to be a shareholder in Europe’s largest oil and gas company. BG Group Plc, the oil and gas producer Royal Dutch Shell Plc agreed to buy for about $70 billion, is trading at a price equivalent to paying just over 14 pounds ($21.53) for a Shell B share, according to data compiled by Bloomberg. That would be the lowest valuation for Shell since the global recession of 2009 and a discount of 13 percent to the company’s current share price. Investing in BG “would be the cheapest way into Shell, if you’re taking the view that the deal is going to go through,” said Philip Lawlor, a strategist at Smith & Williamson Investment Management LLP in London, which oversees about $24 billion of investments including in Shell and BG. The outlook for the oil market has deteriorated since […]

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Congress Set to Duel Over Iran Nuclear Pact This Week

WASHINGTON—Lawmakers set to begin a bruising foreign policy fight over the Iran nuclear accord this week are likely to hand President Barack Obama a narrow and partisan victory, but one that saddles Democratic supporters with uncertain political consequences. Both chambers return to Washington on Tuesday after Congress’ annual summer recess, kicking off a fractious fall that will feature acrimonious debate and a possible veto fight over the nuclear agreement. The issue also will set the tone for showdowns later this year over government spending. A stream of Democratic endorsements dribbling out over recent weeks has all but guaranteed the White House will be able to implement the deal before Mr. Obama leaves office in less than two years. The agreement, reached in Vienna on July 14, imposes strict curbs on Iran’s nuclear program that will start to be eased after 10 years. In exchange, the U.S., the European Union […]

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Move Over Exxon, Russian Drillers Are Oil World’s Top Performers

At a time when the collapse in crude prices pushes Russia’s economy into a recession, the nation’s oil producers are managing to beat their western counterparts. On measures including cash flow, profit margins and share prices, OAO Rosneft, Lukoil PJSC– Russia’s two largest oil producers — and OAO Gazprom Neft are performing better than Royal Dutch Shell Plc, BP Plc or Exxon Mobil Corp. “When oil goes down, the western companies are hurt more than the Russian companies,” said Maxim Edelson, a Senior Director at Fitch Ratings in Moscow. Because Russian tax rates adjust automatically to lower prices the nation’s companies enjoy a buffer to the slump in crude while “a lot of the hit is taken by the government.” The oil industry is struggling to adapt after prices fell to the lowest level in six years amid a global supply glut. While energy producers have fallen more than […]

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Oil prices fall on global glut fears, slowing U.S. jobs growth

An oil pumpjack operates near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen Oil prices fell on Monday as oversupply concerns, a firmer dollar and lackluster U.S. non-farm payrolls data weighed on global markets, but a rebound in Chinese stocks after a two-day holiday helped prop up prices. The long Labor Day holiday in the United States may also lead to thin trading until U.S. markets open in the next session. "I think there is a bit of investor relief China’s stock market opened relatively firm," said Ric Spooner, chief market analyst at Sydney’s CMC Markets. China’s main indexes rose on Monday in the first trading after a two-day holiday during which further restrictions on futures trading were announced. Oil prices have seesawed in recent weeks due to turmoil in global stock markets after a devaluation of its currency and weaker economic data raised concerns about a slowing Chinese […]

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Oil Futures Edged Lower Amid Cautious Trade

By Eric Yep Crude-oil futures pared early losses in Asian trade Monday but were still trading marginally lower on demand concerns and amid lingering fears over volatility in China’s markets after Asia’s top oil consumer cut its growth rate for last year. On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at $45.79 a barrel at 0329 GMT, down $0.26 in the Globex electronic session. October Brent crude on London’s ICE Futures exchange fell $0.32 to $49.29 a barrel. Nymex and Brent futures regained some ground after having fallen as much as 1.6% earlier in the session. Oil prices had ended mixed last week, with Nymex crude gaining 1.8% while Brent crude lost 0.9%. Nymex crude has risen for two consecutive weeks and Brent crude has fallen for eight of the past 10 weeks; both oil benchmarks are down by around 13%-14% year-to-date. […]

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Golden age of OPEC has passed: Rosneft CEO

The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria, August 21, 2015. The Golden Age of OPEC countries to keep oil markets balanced passed when the group decided not to cut production in November last year to end a price rout, the chief executive of Russian oil major Rosneft said. "The Golden Age of this organization has passed," Igor Sechin said during the Financial Times’ Commodities Retreat in Singapore on Monday. "If quotas (for production) had been observed, global oil markets would have been rebalanced by now," he added, referring to OPEC’s decision in November 2014 to keep production near record highs in defense of market share over prices. Oil prices have fallen to below $50 per barrel since June 2014 as record global output has started to outweigh consumption. Sechin said an average oil price of $70 dollar […]

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Gulf Arabs Expand Yemen Ground War as More Troops Enter Country

The city Sana’a in Yemen Gulf Arab nations are expanding the ground war in Yemen, pouring more troops into the country to defeat Houthi rebels they say are backed by regional rival Iran. About 1,000 troops from Qatar entered the country on Sunday from the Wadia post on Saudi Arabia’s border with Yemen, the Qatari-owned Al Jazeera television reported. The soldiers, backed by armored vehicles, missiles and missile launchers, were headed to the oil-rich central Marib province, Al Jazeera said, citing its corresponding at the border. The reinforcements arrived after 45 troops from the United Arab Emirates and 10 Saudi soldiers were killed in Marib on Friday in the worst setback for the coalition since the Saudi-led military campaign started in March. Bahrain, another member of the coalition, said five of its soldiers were also killed defending Saudi Arabia’s southern border. Expanding the ground war carries a “huge risk […]

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Britain Leans Toward Participating in Airstrikes on Syria

LONDON—The British government will move toward participating in Syrian airstrikes if there is a political consensus to do so, a senior minister said Sunday, the latest sign of building momentum within the U.K. to step up military action. George Osborne, U.K. Treasury chief and close political ally of Prime Minister David Cameron , said the West hadn’t done enough to contain Islamic State militants that control territory in Syria and Iraq. Speaking in an interview with the British Broadcasting Corporation, Mr. Osborne said Mr. Cameron’s government would seek parliamentary approval to extend the U.K.’s current involvement in Iraq airstrikes to Syria. The prime minister and other senior government ministers believe “there is a strong case” for doing so, but that there needs to be support for the move from parliament, Mr. Osborne said. It comes days after Mr. Cameron said Britain would take “thousands” of Syrian refugees , which […]

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France to Begin Syria Reconnaissance Flights, Mulls Air Strikes

PARIS — France will begin reconnaissance missions over Syria on Tuesday and could launch air strikes against Islamic State militants in the country, President Francois Hollande said on Monday. France until now had only taken part in air strikes against Islamic State in Iraq because it feared strikes against the group in Syria could strengthen Syrian President Bashar al-Assad. "We have proof that attacks have been planned from Syria against several countries, notably France," Hollande told a news conference. "My responsibility is to ensure that we are informed as much as possible on the threats to our country … so I have asked the defence minister that from tomorrow reconnaissance flights begin over Syria that will enable us to consider air strikes against Islamic State." France was poised to join air strikes on the Assad regime in Syria in 2013, before U.S. President Barack Obama unexpectedly backed off the […]

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PKK attack kills soldiers in south-eastern Turkey

Image copyright More than 60 members of the security forces have been killed in recent months A number of Turkish soldiers have been killed in an attack in the south-eastern province of Hakkari. The Kurdistan Workers’ Party (PKK) rebel group said in a statement that it had carried out the attack. Turkish media said Prime Minister Ahmet Davutoglu was calling an emergency security meeting. There has been a surge in violence between the army and the PKK after a ceasefire collapsed in July in the wake of Turkish raids on PKK camps in Iraq. On Sunday, Turkish media said bombs were detonated as two military vehicles were passing in the village of Daglica. The PKK statement said 15 soldiers had died and weapons had been seized, but there was no official confirmation of the toll. President Recep Tayyip Erdogan promised "a very particular and decisive" response on Turkish TV. […]

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Arab Gulf countries to discuss unifying oil product pricing

The six oil ministries from the Gulf Cooperation Council (GCC) countries will meet Wednesday to discuss the possibility of unifying the prices of oil products, Kuwait’s oil ministry said in a statement late Sunday. The meeting, planned for Doha will be attended by undersecretaries from each of the ministries — from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia andthe United Arab Emirates– according to state-run KUNA news agency. The group will review a memo prepared with the Organization of Arab Petroleum Exporting Countries (OAPEC) to increase cooperation on energy and petroleum strategy. The Kuwaiti ministry highlighted the importance of the Doha meeting in light of rapid changes in the global oil industry and the need for stability, KUNA reported. Article continues below… Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand […]

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Will China crash?

Investors monitor a display showing the Shanghai Composite Index at a brokerage in Beijing last month. (Ng Han Guan/Associated Press) The questions that now face China are whether it can maintain its internal stability and contribute to the vitality of the wider global economy. Like many economic juggernauts before it — Japan springs to mind — China seemed unstoppable. Its economy hummed along at the almost unimaginable annual growth rate of about 10 percent. No obstacle seemed beyond its power to surmount. After the 2008-2009 financial crisis, it adopted a huge stimulus package equal to about 13 percent of its gross domestic product. Growth resumed, and China’s leaders were widely praised. It now turns out that the Chinese — like the Japanese — are not infallible. Indeed, after allowing for differences in historical circumstances, China and Japan seem to have committed similar mistakes. Japan had relied on exports and […]

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China’s Forex Reserves Fall by Record $93.9 Billion on Yuan Intervention

BEIJING—China’s foreign-exchange reserves fell by a record $93.9 billion in August, a result of aggressive intervention in the currency market by the country’s central bank to prevent the yuan from free-falling and limit money leaving Chinese shores . The People’s Bank of China on Monday reported $3.56 trillion in its foreign-exchange holdings as of the end of last month, compared with $3.65 trillion as of July. China’s currency reserves, still the world’s largest, have been falling from a peak of $3.99 trillion in June 2014 as gathering fears of a deepening slowdown in the world’s No. 2 economy have led more businesses and investors to take money out of the country. Based on central-bank data, it was the largest single monthly drop in reserves in absolute terms, and the biggest fall in more than three years on a percentage basis. “Capital outflow is a big concern,” said an official […]

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China Cuts 2014 Economic Growth Estimate to 7.3% From 7.4%

BEIJING—China revised its 2014 growth rate to 7.3% from 7.4% due to a weaker-than-reported contribution from the service sector, casting doubt on an economic bright spot amid concerns about the health of the world’s second-largest economy. The change is relatively small but suggests that China’s effort to meet its official growth target of about 7.5% last year was tougher than it seemed. It comes as worries grow that China will struggle to reach this year’s goal of about 7%. “That’s the beauty of using ‘about’ in your targets,” said IHS Global Insight economist Brian Jackson. “It’s undefined. No one knows if you reach it. Even they may not know. It gives them flexibility to revise it later.” The country’s gross domestic product last year totaled 63.614 trillion yuan, or about $10 trillion, China’s statistics bureau said Monday. That was down 32.4 billion yuan from its initial estimate in January […]

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China policymakers try to calm investors as stocks resume trading

An investor stands in front of an electronic board showing stock information at a brokerage house in Shanghai, China, September 2, 2015. China’s policymakers and regulators tried to soothe the country’s jittery markets on Monday, promising deeper financial market reforms and stressing the economy was showing signs of stabilizing, as stocks resumed trading after a four-day long weekend. Looking to draw a line under wild gyrations in Chinese equity markets, which have fallen 40 percent since mid-June, China’s securities regulator said it would take more steps to ensure stable markets, while government officials said the worst of the volatility was over. "The government won’t normally intervene, but when there are severe, abnormal fluctuations in the markets, the government can’t just sit on the sidelines and must take decisive and timely measures," the China Securities Regulatory Commission said late on Sunday. It added it would consider launching a circuit breaker […]

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GM’s sales drop in August highlights automaker divide in China

An employee looks on next to an assembly production line of Buick cars at a General Motors factory in Wuhan, Hubei province January 28, 2015. REUTERS/Stringer General Motors Co ( GM.N ) reported on Monday its biggest drop in China sales in five months for August as global automakers struggle with a deepening economic slowdown and slumping equities in the world’s largest auto market. Vehicle sales for GM and its joint venture partners fell 4.8 percent year-on-year in August, while Ford Motor Co ( F.N ) and Nissan Motor Co Ltd ( 7201.T ) also reported contracting sales for the month, highlighting the divide between winners and losers in the Chinese market. The figures contrast sharply with last week’s major sales gains for Toyota Motor Corp ( 7203.T ), Honda Motor Co Ltd ( 7267.T ) and Mercedes maker Daimler AG DIAGn.DE in China, demonstrating the importance of having […]

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China’s Worst nightmare–The US Oil Weapon

Tingbin Zhang writes: China’s islanding building on the four-mile-long and two-mile-wide Subi Reef in the South China Sea has put The US in a tight spot. To protect its ally from China’s aggression, The US will be left with little choice but to constrain China by military means. However, the US won’t directly engage China in the war in the foreseeable future, because the US dominates China with its superior naval and air force and the only way for China to level the playing field is to apply nuclear weapons. The nuclear nature of Sino-American warfare will make both the world no.1 and no.2 economy the fallen giants. So There is a possibility that The US might use its oil weapon instead to strike at the core of China’s weakness–it’s huge dependence on oil import. At the moment, China imports 55% of its oil, almost half of which sails […]

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