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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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