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We could see gas under $2 by Christmas

The last time Labor Day gas prices were this low, George W. Bush was in his first term as president. Prices have been going nowhere but down since June. And according to AAA, the average price of regular gasoline is now $2.40 per gallon — or more than $1 less than it was a year ago. For this weekend, a time when a lot of Americans hop in their cars, prices are at 2004 levels. The decline has been widespread. Average prices are still above $3 in only four states: California and Nevada, as well as Alaska and Hawaii — two states where everything is always more expensive. Of the country’s 130,000 or so gas stations, more than 5% are selling gas for less than $2 a gallon, AAA says. In South Carolina, the statewide average has fallen below $2 in the past week. For a lot of people, […]

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Surging Atlantic Crude Adds to Seasonal Pressure on Oil Prices

The North Sea and Nigeria will ship the most crude in at least two years in October, adding to downward pressure on oil prices just as demand wanes from refiners shutting down for seasonal maintenance. Output of North Sea grades is poised to reach the highest since November 2013 next month, according to loading programs compiled by Bloomberg. Supplies from Nigeria, the biggest oil producer in Africa, are set to reach a level not seen in more than three years. “It’s directionally bearish for crude,” Vikas Dwivedi, an analyst at Macquarie Capital Inc. said by e-mail. “The large loading programs will need buyers.” Production in the North Sea is rising as projects sanctioned when oil prices were above $100 a barrel come online, according to the International Energy Agency. This coincides with the end of a shutdown in Nigeria caused by a pipeline leak, allowing supplies to flow back […]

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Rouble decline stokes fears of Russian credit crunch

Sign up for quick access to a wealth of global business news, including: Rouble decline stokes fears of Russian credit crunch 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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Melting Ice Isn’t Opening Arctic to Oil Bonanza

Photo An Orthodox cross in Teriberka, Russia, a poor village on the Barents Sea that the Kremlin had hoped would be a hub for the expanded operations of its energy giant, Gazprom. But despite the melting ice, getting oil and gas out of the Arctic remains a daunting challenge. Credit James Hill for The New York Times TERIBERKA, Russia — The warming Arctic should already have transformed this impoverished fishing village on the coast of the Barents Sea. The Kremlin spent billions in the last decade in hopes of turning it into a northern hub of its global energy powerhouse, Gazprom. It was once the most ambitious project planned in the Arctic Ocean, but now there is little to show for it aside from a shuttered headquarters and an enormous gravel road carved out of the windblown coastline like a scar. “There are plans,” said Viktor A. Turchaninov, the […]

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Saudi Arabia Loses the Oil War

The oil war has finally reached its tipping point after 13 long months. This struggle between Saudi Arabia, and its much smaller North American adversaries has recently shifted as the application of innovative extraction technologies is now gaining the upper hand. The fiscal damage to national budgets is reaching a breaking point as surpluses have become deficits. Once stable nations face the possibility of having to drastically slash spending as this war has raged risking social instability. Saudi Arabia has figuratively blinked after going eye to eye with the smaller and more nimble players. The question now is how much longer will this war drag on until energy markets once again stabilize, allowing oil-producing nations to balance their budgets. It would be shortsighted to conclude that record low oil prices would not eventually limit future supply, and impair Petrostate economies. Each future barrel of oil has a production cost […]

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Crude Oil Prices Trade Lower Ahead of U.S. Jobs Data

LONDON—Crude oil prices traded lower in Europe Friday, as investors await a key piece of jobs data from the U.S. that could upend the start of a holiday weekend. Analysts say the U.S. nonfarm payrolls are the most significant economic data point before the U.S. Federal Reserve’s meeting in September. A strong number could boost the odds of an increase in interest rates this month, as well as indicating a long-term increase in demand for oil. U.S. jobs data could send oil prices either way, depending on the data’s impact on the U.S. dollar and overall market sentiment, oil traders say. Oil markets have been particularly sensitive to macroeconomic developments in recent weeks. The global oil benchmark, Brent crude, was trading down 0.41% at $50.47 a barrel in morning trade, while the U.S. benchmark was down at 0.81% at $46.37 a barrel. The wait for data, had kept oil […]

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Oil prices stall on U.S. labor figures

Crude oil prices down modestly at the start of Friday trading after Labor Department figures show retreats in the domestic mining sector. File photo by Roger L. Wollenberg/UPI NEW YORK, Sept. 4 (UPI) — Crude oil prices struggled to get out of the gate in early Friday trading following a slowdown in the U.S. labor market, even as broad-based optimism emerged. The U.S. Labor Department said total non-farm payrolls increased by 173,000 in August, pushing the national average unemployment rate down to 5.1 percent. Healthcare and financial services posted gains, while manufacturing and mining posted net job losses. Manufacturing employment fell in August by 17,000, though the overall sector has been relatively flat for the year. Mining jobs fell by 9,000. "Since reaching a peak in December 2014, mining employment has declined by 90,000," the Labor Department. Crude oil has traded in a volatile market navigating a string of […]

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Oil prices dip on caution ahead of U.S. jobs data

Pump jacks and pipes are seen on an oil field near Bakersfield on a foggy day, California January 17, 2015. Oil prices eased on Friday as investors turned cautious ahead of U.S. jobs data that is expected to play into the Federal Reserve’s decision on the timing of any U.S. rate hike. Oil stuck to a narrow range and trading was thin with Chinese markets closed a second day for a holiday to commemorate the end of World War Two. "There’s been a little bit of up and down and range-bound movement, which has all the hallmarks of a market marking time," said Ben Le Brun, market analyst at Sydney’s OptionsXpress. Brent crude for October delivery LCOc1 fell 58 cents to $50.10 a barrel as of 0519 GMT, after ending the previous session 18 cents higher. Brent rose as high as $50.87 a barrel earlier in the session on […]

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Kurdistan exports fall on pipeline problems

In Dohuk province, a pipe-laying machine stands beside sections of 36-inch diameter steel pipe, which await welding. (PATRICK OSGOOD/Iraq Oil Report/Metrography) Kurdistan’s independent oil exports fell by more than 20 percent in August, to 391,000 barrels per day (bpd), due to pipeline outages in Turkey.After achieving record sales in July, of 492,000 bpd, the Kurdistan Regional Government (KRG) suffered from nine days of pipeline downtime in August, caused mainly by sabotage and smuggling. The outages prevented nearly $250 million worth of oil from being sold, according to an Iraq Oil Report analysis."These recent attacks on the pipeline in Tur… 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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Chevron’s hands still tied on Iran

Chevron said there’s been no formal outreach to Iran because of prohibitive U.S. sancitons. File photo by Mohammad Kheirkhah/UPI SAN RAMON, Calif., Sept. 4 (UPI) — U.S. oil major Chevron Corp. does not engage with discussions with Iranian officials because of existing U.S. law, a spokesperson said. Iran is vetting interest from European energy companies examining the post-sanctions options in the country. European sanctions are easing in the wake of a breakthrough July nuclear agreement. U.S. sanctions remain in place. Chevron spokesperson Erika Conner said in response to email questions U.S. sanctions prohibit the company from following its European counterparts into Iran. "We remain in strict compliance with existing U.S. and international laws, and regulatory frameworks that govern commercial activity with Iran," she said. "Chevron acts in full compliance with U.S. law and does not engage in discussions with Iran." Iran said it could become the second largest producer […]

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Saudi Arabia welcomes Iran nuclear deal after Obama meeting: foreign minister

U.S. President Barack Obama (R) meets with Saudi King Salman bin Abdulaziz in the Oval Office of the White House in Washington September 4, 2015. Saudi Arabia is satisfied with U.S. President Barack Obama’s assurances about the Iran nuclear deal and believes the agreement will contribute to security and stability in the Middle East, the country’s foreign minister said on Friday. Speaking after a White House meeting between Obama and Saudi King Salman in Washington, Saudi Foreign Minister Adel al-Jubeir said Obama had assured Salman that the agreement prevents Iran from acquiring a nuclear weapon, includes inspections of military and suspected sites, and has a provision for the snapback of sanctions if Iran violates the agreement. Iran and six world powers, including the United States, negotiated an agreement in July that lifts economic sanctions on Iran in return for limits on its nuclear program. "The Kingdom of Saudi Arabia […]

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U.S. Oil Rig Count Falls to 662 in Latest Week

The number of U.S. oil-drilling rigs, which is a proxy for activity in the oil industry, has fallen sharply since oil prices headed south last year. The rig count dropped for 29 straight weeks before climbing modestly in recent weeks. Despite recent increases, there are still about 59% fewer rigs working since a peak of 1,609 in October. According to Baker Hughes, gas rigs were unchanged at 202. The U.S. offshore rig count is 33 in the latest week, up three from last week and down 32 from a year earlier. For all rigs, including natural gas, the week’s total was down 13 to 864.

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Gasoline prices in week before Labor Day lowest in 11 years

graph of average U.S. regular retail gasoline price, as explained in the article text The U.S. average retail price for regular gasoline was $2.51/gallon (g) on August 31, the lowest price for the Monday before Labor Day since 2004, and 95¢/g lower than the same time last year. Declines in crude oil prices are the main driver behind falling U.S. gasoline prices. Lower crude oil prices reflect concerns about economic growth in emerging markets, expectations of higher oil exports from Iran, and continuing actual and expected growth in global crude oil inventories. The U.S. average retail gasoline price increased 47¢/g since the last week of January, when it was $2.04/g, driven by rising crude oil prices earlier in the year, strong demand during the summer driving season, and unplanned refinery outages on the West Coast and more recently in the Midwest . graph of regular retail gasoline price, as […]

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Lower Gas Prices Yield Uneven Benefits

A year of consistently lower gasoline prices allowed Kimberly Stephens, her husband and three young sons to pile into the family minivan earlier this year to drive to Walt Disney World in Florida from their home outside Des Moines, Iowa. The Stephenses typically take one road trip—a summer visit to family outside of Detroit—but this year they turned that into a two-week vacation, visiting Michigan’s Upper Peninsula and Wisconsin. And, in addition to the Disney trip, they’re taking a third excursion this Labor Day to Iowa City for a vintage farm-equipment fair. “We were just looking for a good summer this year,” said the 34-year-old full-time parent, whose husband retired from the military this year. “With my husband retiring, we had time, and then having the money as well.” The sharp and sustained fall in gas prices that began last summer has altered American life in ways large and […]

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AAA: Gas prices could actually be lower

Were it not for factors like issues at U.S. refineries, motor club AAA said gasoline prices could be even lower. Photo by Pattie Steib/Shutterstock WASHINGTON, Sept. 4 (UPI) — U.S. retail gasoline prices moving into the Labor Day holiday are at historic lows, but could be even lower had it not been for refinery problems, AAA said. "Americans should find good deals on gas prices in most parts of the country heading into the busy Labor Day weekend," AAA spokesman Avery Ash said in a statement. The motor club reports a national average retail price for a gallon of regular unleaded gasoline at $2.42, about 3 percent less than last week and 8.3 percent lower than one month ago. The average price of $2.60 for August was the lowest for than month since 2005, but still high relative to the cost of crude oil. The U.S. benchmark price for […]

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Summer’s Farewell Gift: Cheapest U.S. Gasoline Prices Since 2004

Summer traffic in Los Angeles. Summer’s ending on a sweet note for U.S. drivers. At an average of $2.44 a gallon, nationally, Americans are paying the cheapest price for gasoline over a Labor Day holiday weekend since 2004, according to separate forecasts from the U.S. Energy Information Administration and AAA. Thank crude oil’s 13 percent plunge this year to $46.17 a barrel as of Friday on the New York Mercantile Exchange for relief at filling stations. That’s the lowest, seasonally, in at least a decade. None of it would be possible without the oil wells in shale drilling deposits gushing near the highest level in 40 years, leaving refineries awash in petroleum. Speculation that Iran’s exports will exacerbate a global glut have also helped keep oil in check. This weekend’s Labor Day holiday in the U.S. marks the unofficial end of summer driving season as teenagers return to school […]

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U.S. oil drillers cut rigs as crude prices collapse: Baker Hughes

U.S. energy firms cut a surprisingly sharp 13 oil rigs this week, the first drop in seven weeks, as a renewed slump in prices this summer forced drillers to make a second round of cut-backs. The decline erases weeks of small gains and brings the total to the week ending Sept. 4 down to 662, the lowest since mid-July, oil services company Baker Hughes Inc said in its closely followed report on Friday. "Clearly the precipitous drop in oil prices has hit capital expenditures for new drilling in the U.S. with today’s Baker Hughes rig count numbers. With prices remaining at relatively low levels without much relief in sight, we are likely going to see further declines," said Chris Jarvis, analyst at Caprock Risk Management in Frederick, Maryland. U.S. crude’s front-month was down about 1 percent in early trading along with equities, but pared losses after the rig data, […]

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U.S. gasoline demand indicators pointing one way: up

A car is filled with gasoline at a gas station pump in Carlsbad, California August 4, 2015. This week, U.S. economic indicators have hammered home a bullish point for global oil markets: the resurgence in American gasoline demand is here to stay. On Friday, data showed that U.S. unemployment fell more than expected to just 5.1 percent in August, the lowest since April 2008 – when U.S. crude was trading at over $100 a barrel. More workers mean more commuters burning more gasoline. Days earlier, U.S. August car sales registered their highest annualized rate since 2005, according to Autodata Corp. And consumers are not buying just anything: truck sales surged by 8.6 percent versus a year ago while passenger car sales fell, reflecting the sharp swing this year toward gas-guzzling models. The new SUVs are not sitting in the garage. In June, the last month for which data is […]

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New oil development planned for Norway

German energy company Wintershall is set to spend more offshore Norway, where the government sees economic pressure from low crude oil prices. Graph courtesy of Statistics Norway OSLO, Norway, Sept. 4 (UPI) — German energy Wintershall said its development plans for the Maria oil field in the Norwegian Sea were approved by the government in Oslo. "In a challenging oil price environment, we are moving ahead with the execution of this key development project," Hugo Dijkgraaf, the field’s project director for Wintershall, said in a statement. "Through Maria we are investing in one of our core international regions which demonstrates our commitment on the Norwegian Continental Shelf." Wintershall in June sold its minority shares in four fields on the Norwegian shelf to Tellus Petroleum, which has headquarters in Oslo. Tellus, which said its strategic goal is to become a premier player offshore Norway, agreed to pay more than $600 […]

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Ruble Swinging Most in Four Months Triggers Putin Budget Switch

The ruble fell with oil prices, retreating for a fourth day as market turmoil that’s driven the strongest swings in the Russian currency since May forced Vladimir Putin’s government to cut its budget planning horizon from three years to one. The ruble weakened 0.6 percent against the dollar to 67.6170 by 5 p.m. in Moscow, heading for a 3.3 percent retreat for the week. The currency’s one-month historical volatility rose to 38.3, the highest since May and almost four times the level in October before the central bank stopped managing the exchange rate. Concern over a slowdown in China, Russia’s biggest trading partner, has pummeled commodity prices and rattled emerging markets that are bracing for an outflow of funds as the Federal Reserve weighs its first rate increase since 2006. Putin said on Friday he’s asking parliament to support a switch back to a one-year budget horizon because it’s […]

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Russia Bows to Cheap Oil as Putin Aide Sees $50 Price for Budget

Russia will assume that crude prices will stay near their present level in calculating next year’s budget as the world’s largest energy exporter adjusts to a downturn on the oil market, according to President Vladimir Putin’s top economic aide. The budget will be based on an average oil price of $50 a barrel, Andrey Belousov told reporters in Vladivostok on Friday. Putin said he’s asking parliament to support a shift to a one-year fiscal plan in 2016 because it’s “impossible” to predict the direction of global markets. Non-OPEC member Russia, whose currency has plunged 45 percent in the past 12 months, is growing resigned to slumping oil, which together with gas accounts for about half of budget revenue. The country is seeking to cooperate with members of the 12-member Organization of Petroleum Exporting Countries to stabilize the market after the Finance Ministry said that the turmoil is forcing Russia […]

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Russia may produce 700 million tonnes of oil, export 300 bcm of gas to China

Russia can increase its oil production to as much as 700 million tonnes of oil per year (14 million barrels of oil per day) and export 300 billion cubic meters of gas to China annually, Rosneft Chief Executive Igor Sechin said on Friday. Speaking at the Eastern Economic Forum, Sechin added that production costs for Russia’s largest oil fields were lower than for its global peers. A weak ruble is offsetting low oil prices for Russian oil producers. (Reporting by Katya Golubkova; Editing by Richard Pullin )

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Gazprom seals big gas deals in Europe despite Ukraine crisis

People walk out of an underground crossing, with the company logo of Gazprom company installed on its office building, in Moscow, August 10, 2015. Russia’s Gazprom has bolstered its industrial presence in the heart of Europe with two major gas deals that were announced on Friday despite ongoing tensions with Moscow over the conflict in eastern Ukraine. The first of the deals, an asset swap with German chemicals group BASF that gives Russia greater access to gas trading and storage in Germany, was a surprise as the companies had abandoned it only nine months ago, citing a "difficult political environment". Pressed on what had changed since, BASF declined to respond directly. Its oil and gas production unit Wintershall, which will secure more stakes in Siberian gas fields under the swap, said only that it was convinced that Russian natural gas would help ensure energy security in Europe. The second […]

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Crude Oil Prices Trade Lower Ahead of U.S. Jobs Data

LONDON—Crude oil prices traded lower in Europe Friday, as investors await a key piece of jobs data from the U.S. that could upend the start of a holiday weekend. Analysts say the U.S. nonfarm payrolls are the most significant economic data point before the U.S. Federal Reserve’s meeting in September. A strong number could boost the odds of an increase in interest rates this month, as well as indicating a long-term increase in demand for oil. U.S. jobs data could send oil prices either way, depending on the data’s impact on the U.S. dollar and overall market sentiment, oil traders say. Oil markets have been particularly sensitive to macroeconomic developments in recent weeks. The global oil benchmark, Brent crude, was trading down 0.41% at $50.47 a barrel in morning trade, while the U.S. benchmark was down at 0.81% at $46.37 a barrel. The wait for data, had kept oil […]

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Oil prices dip on caution ahead of U.S. jobs data

Pump jacks and pipes are seen on an oil field near Bakersfield on a foggy day, California January 17, 2015. Oil prices eased on Friday as investors turned cautious ahead of U.S. jobs data that is expected to play into the Federal Reserve’s decision on the timing of any U.S. rate hike. Oil stuck to a narrow range and trading was thin with Chinese markets closed a second day for a holiday to commemorate the end of World War Two. "There’s been a little bit of up and down and range-bound movement, which has all the hallmarks of a market marking time," said Ben Le Brun, market analyst at Sydney’s OptionsXpress. Brent crude for October delivery LCOc1 fell 58 cents to $50.10 a barrel as of 0519 GMT, after ending the previous session 18 cents higher. Brent rose as high as $50.87 a barrel earlier in the session on […]

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NYMEX October gas futures settle 7.7 cents higher at $2.725/MMBtu

The NYMEX October natural gas futures contract settled up 7.7 cents at $2.725/MMBtu on Thursday as the market seemed to have previously priced in a fairly bearish storage report. US natural gas in storage rose 94 Bcf to 3.193 Tcf for the week ended August 28, the US Energy Information Administration said Thursday, above consensus expectations of an injection between 83 Bcf and 87 Bcf. The EIA announced a 79-Bcf injection for the same week last year, while the five-year average is a 60-Bcf build. However, the data included an 8-Bcf reclassification that had already been announced by ANR Pipeline, so it was not a very bearish surprise, Tim Evans, energy futures specialist with Citi, said in a note. Article continues below… Gas Daily offers the most detailed coverage of natural gas prices at interstate and intrastate pipeline and pooling points in major U.S. markets. Gas Daily keeps you […]

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Inside Israel’s Bid to Derail Iran Pact

JERUSALEM—In early August, Israeli Prime Minister Benjamin Netanyahu stood in front of 22 Democratic U.S. lawmakers. He closed the door and instructed an aide to clear his schedule for the afternoon. There was nothing more important, he told the members of Congress, than answering their questions on the Iranian nuclear deal, however long it took. For the next two hours, the prime minister worked the room, according to many of the lawmakers present. His props included a large white board on which he wrote their questions. At one point, he drew what he called a “nuclear gun” to underline his fears. Although Mr. Netanyahu didn’t explicitly tell them to vote against the deal, his feelings were clear. It would seriously jeopardize Israel’s security, he told them. “They weren’t twisting my arm but they were certainly trying to convince me,” said Rep. Bonnie Watson Coleman, a New Jersey Democrat, one […]

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Iran’s Khamenei backs parliamentary vote on nuclear deal with powers: state TV

Iran’s Supreme Leader Ayatollah Ali Khamenei speaks live on television after casting his ballot in the Iranian presidential election in Tehran June 12, 2009. Iran’s Supreme Leader said on Thursday he favored a parliamentary vote on its nuclear deal reached with world powers and called for sanctions against Tehran to be lifted completely rather than suspended, state television reported. President Hassan Rouhani, a pragmatist whose 2013 election paved the way to a diplomatic thaw with the West, and his allies have opposed such a parliamentary vote, arguing this would create legal obligations hampering the deal’s implementation. "Parliament should not be sidelined on the nuclear deal issue … I am not saying lawmakers should approve the deal or reject it. It is up to them to decide," said Ayatollah Ali Khamenei, who has the final say on all state policy in Iran. “I have told the president that it is […]

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Iran’s Supreme Leader Orders Parliament to Vote on Nuclear Deal

Photo Ayatollah Ali Khamenei, Iran’s supreme leader, during a ceremony in Tehran last month. He is widely seen as the architect behind the nuclear agreement. Credit Supreme Leader Official Website, via European Pressphoto Agency TEHRAN — A day after President Obama secured enough votes to ensure approval of the Iranian nuclear deal in the United States Congress, Iran ’s supreme leader, Ayatollah Ali Khamenei , on Thursday ordered Parliament to vote on the agreement and threatened to cancel the pact entirely if the West merely suspended, rather than canceled, economic sanctions, state news media reported. While the Iranian Parliament is expected to approve the agreement, the announcement nonetheless represented a setback for President Hassan Rouhani and his nuclear negotiators, who have long held that the deal should be ratified by the Supreme National Security Council, which Mr. Rouhani heads. Their fear is that a debate in Parliament will provide […]

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Iraqi oil revenue drops in weak market

Iraq sees budget pressure from lower crude oil prices. World Bank report finds structural weaknesses persist in the country. Photo by cherezoff/Shutterstock BAGHDAD, Sept. 3 (UPI) — Iraqi revenue generated from oil exports in August was lower than the previous month by nearly $1 billion in part because of low oil prices, data show. The ministry, using data from a federal marketing company, said total crude oil exports for August was 95.4 million barrels. Roughly 98 percent of those exports left the country from southern ports, with the remainder traveling north across the border to a sea port in Turkey . A monthly newsletter from the Organization of Petroleum Exporting Countries said the federal government was making a "special effort" to increase exports through southern ports to compensate for delays from inclement weather. The Oil Ministry said southern ports faced short-term "technical obstacles" that interrupted some exports. A spokesman […]

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The Oil-Sands Glut Is About to Get a Lot Bigger

The last place oil producers want to be when prices plummet to profit-demolishing lows is midstream on a billion-dollar project in one of the costliest parts of the planet to extract crude. Yet that’s exactly where half a dozen oil sands operators from Suncor Energy Inc. to Brion Energy Corp. find themselves with prices for Canadian oil now hovering around $30 a barrel. While all around them projects have been postponed or canceled, their investments were judged too far along when the oil game suddenly moved from offense to defense. These projects will add at least another 500,000 barrels a day — roughly a 25 percent increase from Alberta — to an oversupplied North American market by 2017. For companies stuck spending billions in a downturn, the time required to earn back their investments will lengthen considerably, said Rafi Tahmazian, senior portfolio manager at Canoe Financial LP. “But the […]

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China buys Russian crude oil to ensure supply security: CNPC chairman

Buying crude oil from Russia allows China to ensure security of supply as cooperation between the two countries is likely "to gain new momentum," China National Petroleum Corp. Chairman Wang Yilin said Friday. Speaking on the sidelines of the Russian 1st Eastern Economic Forum in Vladivostok, Yilin said that while China was looking to diversify its crude oil sources, imports were mainly via sea routes. "Russian crude could be delivered via overland pipelines. This provides security for imports of crude oil for our country," Yilin said in reply to a question on how competitive Russian crude deliveries were in comparison to supplies from other countries that are also seeking to sell the Chinese market. Russia had a major advantage of geographic proximity to China in respect of crude oil supplies, he said. Article continues below… Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry […]

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Will oil’s collapse kill the Keystone pipeline?

While some Wall Street analysts now think the probability of the U.S. economy going into recession are nearly 50 percent , Canada is already there. That bad news comes as Canada gears up for a general election in October and at a time when the slide in global oil prices could spell continuing trouble for Canada’s energy-dependent economy. And that extends to the controversial Keystone pipeline to the U.S. America’s neighbor to the north is the planet’s 11th-largest economy and the U.S.’s biggest trading partner. Last year the U.S. did $634 billion dollars in trade with Canada, booking a $31 billion dollar trade deficit in the process. Canada is a natural resources and commodities exporter, which makes it particularly vulnerable to China’s slowdown. Canada sells China nickel, copper, wood, paper and fish products while importing appliances and consumer goods. In 2014, Canada shipped out close to $20 billion in […]

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The EIA Changes Data Collection Methods

EIA begins monthly survey-based reporting of U.S. crude oil production With the release of today’s Petroleum Supply Monthly , EIA is incorporating the first survey-based reporting of monthly U.S. crude oil production statistics. Today’s Petroleum Supply Monthly includes estimates for June 2015 crude oil production using new survey data for 13 states and the federal Gulf of Mexico, and revises figures previously reported for January through May 2015. Beginning with the June 2015 data, EIA is providing estimates for crude oil production (including lease condensate) based on data from the EIA-914 survey. Survey-based monthly production estimates starting with January 2015 are provided for Arkansas, California, Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Ohio, Pennsylvania, Texas, Utah, Wyoming, and the Federal Gulf of Mexico. For two states covered by the EIA-914—Oklahoma and West Virginia—and all remaining oil-producing states and areas not individually covered by the EIA-914, production estimates are […]

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Private-Equity Firms Plunge Back Into the Oil Patch

EOG Resources CEO Mark Papa Private-equity firms are doubling down on energy, despite heavy damage from their last adventure in the oil patch. These firms’ stakes in a dozen publicly traded energy exploration-and-production companies have lost more than $18 billion in value since last summer, when oil prices began their slide from more than $100 a barrel. Yet with U.S. crude prices down to about $46.75 a barrel at Thursday’s close, private-equity firms are looking for opportunities to spend the hundreds of billions of dollars they have amassed to make new energy investments. They are hoping the commodity-price crash will open up opportunities to pick up assets and entire companies on the cheap. “This is a temporary situation, and investments that are made in this low-price environment are going to look pretty good two or three years out,” said Mark Papa, who joined energy-focused firm Riverstone Holdings LLC earlier […]

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Rubio: Priority No. 1 is lifting U.S. oil export ban

Republican presidential candidate Sen. Marco Rubio (R-FL) pledges to lift 1970s ban on U.S. crude oil exports if elected president. Photo by Kevin Dietsch/UPI OKLAHOMA CITY, Sept. 3 (UPI) — Lifting a ban on U.S. crude oil exports will bring "immediate" economic stimulus to the economy, Republican presidential contender Marco Rubio said. Sen. Rubio, R-Fla., addressed supporters in Oklahoma, saying one of the first things he’d do if elected president would be to lift the 1970s era ban on exports of domestic crude oil. "President Nixon signed it into law in the 1970s — long before the economy had been fundamentally transformed by globalization and technological innovations, long before the hydraulic-fracturing and shale revolutions had launched a new era of American energy," he said. "Lifting the crude-oil export ban will be an immediate boon to our economy." The American Petroleum Institute, which represents the interests of the oil and […]

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Delta’s Philadelphia refinery running at 110 percent, margins swell

Delta Air Lines Inc is running its Philadelphia area oil refinery at a near-record 110 percent of capacity, according to a person familiar with operations, a sign of the surprisingly strong summer profits U.S. refineries are generating. While collapsing global crude oil markets have cast a dark shadow over much of the energy industry, refiners are running flat out this summer to meet record U.S. demand for gasoline. Some have pressed beyond their theoretical limits as rivals suffered unexpected breakdowns or glitches last month. The refinery, in Trainer, Pennsylvania, has been running at a clip of roughly 204,000 barrels per day for the past month, the source said, resulting in higher yields of gasoline and distillates. The plant’s nameplate capacity is 185,000 bpd, according to the U.S. Energy Information Administration. “We have run that before, but not in a very long time,” the source said. The refinery is operated […]

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Maintenance season need not mean higher U.S. crude stocks: Kemp

Stacked rigs are seen along with other idled oil drilling equipment at a depot in Dickinson, North Dakota June 26, 2015. U.S. crude oil stocks are set to rise in the next few months as the summer driving season ends and refineries enter the autumn turnaround season, according to many analysts and traders. Rising stocks will emphasize continuing oversupply in the oil market and are expected to put renewed downward pressure on crude oil prices before the end of the year. The problem with this argument is that there is no evidence that the end of the driving season and autumn refinery maintenance, events which happen every year, normally cause crude stocks to build. Crude stocks and refinery throughput both exhibit distinct seasonal patterns which are evident in the weekly petroleum status reports published by the U.S. Energy Information Administration. But the end of the driving season and the […]

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Friendship Between Putin and Xi Becomes Strained as Economies Falter

Photo Presidents Xi Jinping of China, left, and Vladimir V. Putin of Russia in Beijing on Thursday. Credit Wu Hong/European Pressphoto Agency BEIJING — They have met more than a dozen times and stood shoulder to shoulder during Thursday’s military parade here. But the once-vaunted relationship between the Chinese president, Xi Jinping , and Russia ’s leader, Vladimir V. Putin , has come under strain as the economies of their countries have faltered. Two landmark energy deals signed last year for Russian natural gas to flow to China have made little progress and were barely mentioned when the two men met for talks after watching the show of weapons Thursday on Tiananmen Square. The bilateral trade that was predicted to amount to more than $100 billion this year instead reached only about $30 billion in the first six months, largely because of a reduced Chinese demand for Russian oil […]

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Russia Acknowledges Economy Recovery Slow in Coming

By Andrey Ostroukh MOSCOW–The Russian government acknowledged on Thursday that the country’s economy is going to take longer to recover than it previously expected, weighed down by the slump in the value of the ruble. Russia’s Deputy Finance Minister Alexei Moiseyev said Thursday that the economy, also battered by a drop in oil prices and Western sanctions, will return to growth no earlier than in late 2015 or next year. The latest forecast from the finance ministry follows a recent drop in prices for oil and gas, Russia’s key exports. Oil prices have tumbled to levels not seen since March 2009 with prices of other industrial commodities on which the country is reliant, such as nickel, also on the slide. Despite calls from many quarters to diversify away from commodities, Russia has made little progress over the years. Previously, the finance ministry said the economy might start recovering in […]

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Russia may produce 700 million tonnes of oil, export 300 bcm of gas to China

Russia can increase its oil production to as much as 700 million tonnes of oil per year (14 million barrels of oil per day) and export 300 billion cubic meters of gas to China annually, Rosneft Chief Executive Igor Sechin said on Friday. Speaking at the Eastern Economic Forum, Sechin added that production costs for Russia’s largest oil fields were lower than for its global peers. A weak ruble is offsetting low oil prices for Russian oil producers. (Reporting by Katya Golubkova; Editing by Richard Pullin )

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Russia Energy Minister: ‘Fair’ Oil Price Seen at $50-$70 a Barrel

By Andrey Ostroukh MOSCOW–The global oil market is set to stabilize by the year end, with oil prices seen hovering at what seems to be "fair levels" between $50 and $70 per barrel, Russia’s Energy Minister Alexander Novak said Friday. Speaking on state television channel Rossiya 24, Mr. Novak said oil prices won’t return to levels of $100 per barrel in the mid-term. He said though low oil prices have a negative impact on many countries, the world’s oil producers won’t cut production. After years of buoyant commodity prices, Russia is now coping with a rapid slide in the price of oil, its key export. Volatility in the oil market is having an adverse impact on the Russian economy, as it causes sharp swings in the ruble rate, which, in turn, dents investment activity and consumer demand. Presidential aide Andrey Belousov said earlier on Friday, he hopes oil prices […]

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Oil down on stock builds, equity rally aids

Pump jacks and pipes are seen on an oil field near Bakersfield on a foggy day, California January 17, 2015. Crude oil prices softened on Thursday after a surprise build in U.S. inventory levels and on a firm dollar, although stronger equity markets helped support commodities. A respite from bearish economic news in China, closed for public holidays for the rest of the week, also helped stabilize oil prices that have seen volatile swings over the past two weeks. Brent was 20 cents lower at $50.30 a barrel by 0840 GMT, having gained 94 cents in the previous session. U.S. crude was just 5 cents lower at $46.20 a barrel, up from the day’s low of $45.65, after settling up 84 cents on Wednesday. Olivier Jakob, managing director of PetroMatrix, said the market was quietening down after the extreme moves, with public holidays in the world’s two largest oil […]

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Oil Rangebound with U.S. Jobs Data in Focus

Crude-oil futures were rangebound in Asian trade Thursday with Chinese markets closed for the remainder of the week and after global market sentiment stabilized in the previous session. There was some downward pressure on oil prices from a larger-than-forecast increase in weekly U.S. oil inventories and a strong U.S. dollar, but steadier global markets appeared to have stemmed losses for the time being. On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at $46.00 a barrel at 0331 GMT, down $0.25 in the Globex electronic session. October Brent crude on London’s ICE Futures exchange fell $0.18 to $50.32 a barrel. Most Asian markets were higher on Thursday following a rally in U.S. stocks overnight. Markets in China and Hong Kong were however closed Thursday for a national holiday. The greenback is broadly stronger ahead Friday’s U.S. non-farm payrolls report on expectations that the […]

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U.S. crude oil stocks rise as refinery runs fall, imports jump

A motorist pumps fuel into his vehicle at JJ’s Express Gas Plus station in Phoenix gas station in Phoenix, Arizona August 10, 2011. U.S. crude oil stockpiles rose unexpectedly last week as refinery throughput fell for a fourth week and imports jumped, while gasoline stocks fell, data from the Energy Information Administration (EIA) showed on Wednesday. Crude inventories rose 4.7 million barrels to 455.4 million in the week to Aug. 28, the biggest one-week rise since April, compared with analysts’ expectations for stocks to remain unchanged. U.S. crude imports rose 656,000 barrels per day (bpd) to 7.4 million bpd. Crude stocks at the Cushing, Oklahoma, delivery point for the U.S. crude futures fell 388,000 barrels to 57.3 million barrels, EIA said. Analysts expect inventories at Cushing to rise this autumn as refiners shut for maintenance, potentially exceeding a record 62.2 million barrels reached this past spring. "While there is […]

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Asian consumers missing out on full benefit of crude oil slump: Russell

A customer gets the tank of her car filled at a Sinopec gas station in Qingdao, Shandong province September 11, 2014. Conventional wisdom is that falling oil prices provide significant economic stimulus, but many Asian countries appear to be missing out on much of the benefit. While Brent crude has dropped 51.7 percent in the past 12 months, the retail prices of gasoline and diesel in major countries across the region haven’t fallen by anything like as much. China, the world’s largest crude importer, dropped the retail ceiling price of gasoline by 125 yuan ($19.64) a tonne from Wednesday, taking it to 6,830 yuan a tonne. The retail ceiling for diesel was lowered by 120 yuan a tonne to 5,790 yuan, the sixth straight price cut since June. However, since September last year, the retail ceiling for gasoline has dropped 24 percent and by 29 percent for diesel. While […]

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Oil market takes a walk on the wild side (again): Kemp

Offshore oil platforms are seen at the Bouri Oil Field off the coast of Libya August 3, 2015. Crude oil prices have been on a rollercoaster over the last four trading sessions that has seen some of the highest volatility in a quarter of a century. The market is providing a brutal reminder of the extreme side of commodity pricing, leaving many analysts and traders struggling to identify a safe strategy. Front-month Brent crude futures rose by more than 10 percent on Thursday, 5 percent on Friday and 8 percent on Monday, before plunging by more than 8 percent on Tuesday. To put that in context, the percentage daily price movements were 4.6 standard deviations away from the mean on Thursday, 2.4 standard deviations on Friday, 3.7 on Monday and 3.8 on Tuesday. If price changes followed a normal distribution, a move of 3.5 standard deviations should occur only […]

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Analysis – Eastern Libya struggles to attract oil buyers in row with Tripoli

Pipes are pictured at the El Sharara oilfield December 3, 2014. Libya’s official government is struggling to woo oil majors in a bid to control oil revenue and force a rival Tripoli government into a U.N. peace deal because foreign clients are wary of breaking with the established state energy firm in the capital. The battle over Libya’s oil resources is at the heart of a conflict between two governments and parliaments allied to a host of armed groups fighting for power four years after an uprising ousted leader Muammar Gaddafi. The internationally recognised government, based in the east since losing Tripoli a year ago, wants oil firms to discuss purchase contracts with its own officials instead of the state oil firm based in the capital, which is held by a rival group. So far foreign oil buyers have sought to ignore the conflict by continuing to pay through […]

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OPEC May Recognize ‘Lower For Longer’ Pushes Their Prices, Too

Raising the specter of a global financial crisis, members of the Organization of the Petroleum Exporting Countries (OPEC) appear poised for a new approach in dealing with oil-producing nations outside of the cartel. Or at least, one that’s different from the tactic taken last year. Looking to flex its global muscle as the predominant oil producer in the world, OPEC leader Saudi Arabia refused to cut its production and after Chinese demand waned, the move proved to the global economy the Keynesian theory that oversupply makes for discounted prices. Within 10 months, oil sold per barrel for less than half its previous price. OPEC’s potential about-face is evident in the regular bulletin the organization provides. The July-August 2015 missive leads with a piece called, “Cooperation Holds the Key to Oil’s Future.” “International crude oil prices in July suffered their largest monthly decline since Lehman Brothers collapsed in the United […]

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