National Petroleum Authority, Ghana

Oil falls a second day

landpado — Wed, 28 Jul 2010 11:37:07 +0000

Oil declined for a second day in New York after an industry report showed US crude inventories rose and an index of consumer confidence fell more than forecast, bolstering speculation that growth and energy demand may falter. Oil dropped the most in more than three weeks Tuesday as the Conference Board’s sentiment index declined to 50.4 for July, the lowest in five months. Crude for September delivery dropped as much as 62 cents, or 0.8%, to $76.88 a barrel in electronic trading on the New York Mercantile Exchange. It was at $77.30 at 12:55 p.m. Singapore time. Crude supplies increased 3.1 million barrels last week, the most in five weeks, according to the industry-funded American Petroleum Institute. “Sentiment really hasn’t improved,” Ben Westmore, a minerals and energy economist at National Australia Bank Limited in Melbourne, said by telephone. “There was a sell-off in the crude market because of a fall in US consumer confidence. The fundamentals are still weak.” Yesterday, the contract fell $1.48, or 1.9 percent, to $77.50. Futures have declined 2.6% this year. The confidence gauge from the Conference Board, a New York- based private research group, showed American consumers were shaken by concerns over jobs and wages that threaten to constrain the economic recovery. It was forecast to fall to 51, based on the median estimate from economists surveyed by Bloomberg News.

Oil supply falling to four-month low.

landpado — Tue, 27 Jul 2010 12:54:27 +0000

US crude oil inventories probably fell to a four-month low last week as imports declined and Tropical Storm Bonnie disrupted production in the Gulf of Mexico, a Bloomberg News survey showed. Stockpiles fell 1.75 million barrels, or 0.5%, in the seven days ended July 23 from 353.5 million the week earlier, according to the median of 11 analyst estimates before an Energy Department report tomorrow. The last time supplies were so low was March 19, when prices averaged $81.46 a barrel. Producers evacuated 15 rigs and 106 production platforms in anticipation of Bonnie, idling 52% of U.S. Gulf oil output, according to according to the U.S. Bureau of Ocean Energy Management, Regulation and Enforcement. The storm dissipated over the Gulf on July 24 without making landfall in the oil-producing region. About 27 percent of production remained shut-in yesterday. “We’ll see storm-related statistics because we’ll see delays in the shipping and delays in production,” said Carl Larry, president of Oil Outlooks and Opinions LLC in Houston. “The big delays are going to come from imports and maybe even carry over to next week.” Oil for September delivery settled at $78.98 a barrel Monday on the New York Mercantile Exchange, unchanged from July 23. It was at $79.07 as of 11:43 a.m. in London today. Prices have dropped 0.4% this year. The Gulf accounts for about 31% of U.S. oil output, according to the Energy Department.

Oil Trades near $79

landpado — Tue, 27 Jul 2010 12:52:24 +0000

Crude oil traded near $79 a barrel for a fourth day in New York as concern over gains in US fuel supply outweighed rising equity markets. Oil settled unchanged at $78.98 a barrel on Monday after the Commerce Department said home purchases climbed 24% in June to an annual pace of 330,000, bolstering speculation the economic recovery would be sustained. Crude for September delivery was at $78.85 a barrel, down 13 cents, in electronic trading on the New York Mercantile Exchange at 3:22 p.m. Singapore time. Monday was the first day since September that oil closed unchanged. Futures have gained 15% in the past year. US gasoline and distillate stockpiles rose last week, analysts said in a Bloomberg News survey. “The economic numbers in general were quite positive lately,” said Serene Lim, a commodity strategist at Australia & New Zealand Banking Group Ltd. in Singapore. “We’re still seeing builds in the gasoline inventories which suggest that demand is increasing year-on-year but not as much as expected. So the positive news counterbalanced by the negative has given us a really range-bound market.” Gasoline inventories probably climbed 300,000 barrels last week, based on the median estimate from 11 analysts polled by Bloomberg News before an Energy Department report Wednesday. Stockpiles of distillate fuel, including heating oil and diesel, are expected to have increased by 2 million barrels. Crude inventories probably fell 1.75 million barrels last week, according to the survey.

Caltex Sydney refinery operates normally after leak

landpado — Tue, 27 Jul 2010 12:49:23 +0000

Caltex Australia Limited, the nation’s biggest oil refiner, said its Kurnell plant in southern Sydney operated normally as a propane leak from a gas pipeline prompted the removal of some workers. Emergency services are at the site and the propane pipeline is being depressurized after the “small leak,” Felicity Wilson, a Sydney-based spokeswoman for Caltex Australia, said by telephone. The leak was discovered around 9 a.m. on Tuesday. The oil and lubricating refineries at the site have not been shut down, she said. Kurnell, the biggest of Caltex Australia’s two refineries, has the capacity to process about 135,000 barrels of crude a day. The refinery is one of seven in the country, with others operated by Royal Dutch Shell Plc, Exxon Mobil Corp. and BP Plc. Caltex Australia, half-owned by Chevron Corp., also operates the Lytton plant in Queensland state.

BP Boss is replaced

landpado — Tue, 27 Jul 2010 12:47:17 +0000

BP’s embattled Chief Executive Officer Tony Hayward will be replaced by American Robert Dudley on October 1, the company said Tuesday, as it reported a record quarterly loss and set aside $32.2 billion to cover the costs of the devastating Gulf of Mexico oil spill. BP said the decision to replace Hayward, 53, with the company’s first ever non-British CEO was made by mutual agreement. In a mark of faith in its outgoing leader, BP said it planned to recommend him for a non-executive board position at its Russian joint venture and will pay him 1.045 million pounds ($1.6 million), a year’s salary, in lieu of notice.”The BP board is deeply saddened to lose a CEO whose success over some three years in driving the performance of the company was so widely and deservedly admired,” BP Chairman Carl-Henric Svanberg said in a statement accompanying the quarterly earnings update. Svanberg said the April 20 explosion of the Macondo well on the Deepwater Horizon platform run by BP in the Gulf of Mexico has been a “watershed incident” for the company.”BP remains a strong business with fine assets, excellent people and a vital role to play in meeting the world’s energy needs,” he said. “But it will be a different company going forward, requiring fresh leadership supported by robust governance and a very engaged board.” Besides permanently plugging the oil leak and cleaning up the spill and the company’s image, Dudley will oversee the sale of $30 billion in assets over the next 18 months to bolster the company’s finances. Hayward, who has a Ph.D in geology, had been a well-regarded chief executive. But his promise when he took the job in 2007 to focus “like a laser” on safety came back to haunt him after the explosion on the Deepwater Horizon rig killed 11 workers and unleashed a deep-sea gusher of oil. He became the lightning rod for anti-BP feeling in the United States and didn’t help matters with a series of gaffes, raising hackles by saying “I want my life back,” going sailing, and what was viewed as an evasive performance before U.S. congressmen in June. In a statement on Tuesday, Hayward said it was right that BP embark on its next phase under new leadership.

Nigeria’s refineries are not for sale.

landpado — Fri, 23 Jul 2010 13:44:49 +0000

Nigeria has no plans of selling any of oil refineries. Sources say the Nigerian National Petroleum Corporation would not sell it products marketing company or the National Gas Company. Levi Ajuonuma, the group general manager of public affairs, said in an e-mailed statement on Thursday. “I wish to categorically state that there is no clandestine move whatsoever to privatize the nation’s refineries, the PPMC or the NGC,” he said. “Efforts are in top gear by the federal government to ensure the speedy reform of the industry”. Earlier, there were speculations that the Nigeria is in talks with key industry investors to sell some of the country’s key petroleum installation.

Alert: Tropical Storm

landpado — Fri, 23 Jul 2010 13:42:32 +0000

Tropical Storm Bonnie hit the Bahamas and was on a track to take it across or near southern Florida and into the Gulf of Mexico, according to the U.S. National Hurricane Center. The Gulf accounts for about 31% of U.S. oil output and 10% of its natural-gas production, according to the Energy Department. The coast along Louisiana and Texas is home to 42% of US refining capacity. The US Energy Department said on July 21 U.S. Crude stockpiles grew by 360,000 barrels last week. Gasoline inventories climbed 1.12 million barrels to 222.2 million barrels, the highest level since April. Crude oil may fall next week on speculation that U.S. inventories will climb as imports increase, a Bloomberg News survey showed. Thirteen of 34 analysts, or 38%, forecast crude oil will decline through July 30. Eleven respondents, or 32%, predicted that futures will be little changed and 10 saw an increase. Last week 39% of analysts forecast a drop.

Oil Drops From 11-Week High on Speculation Prices Rose Too Fast

landpado — Fri, 23 Jul 2010 13:33:49 +0000

Crude oil dropped after approaching an 11-week high, on speculation that rising U.S. inventories signal that prices have risen too fast. Oil has gained 3.8% this week as global stock markets rallied on growing optimism about the world’s economy. Crude for September delivery dropped as much as 51 cents, or 0.6 percent, to $78.79 a barrel, in electronic trading on the New York Mercantile Exchange. It was at $78.93 at 10:20 a.m. in London. Earlier, the contract rose as high as $79.42, the highest price since May 5. Brent crude for September settlement on the London-based ICE Futures Europe exchange traded at $77.43, down 39 cents. Prices may fall next week on speculation that U.S. inventories will climb as imports increase, a Bloomberg News survey showed. Tropical Storm Bonnie is forecast to move into the Gulf of Mexico, according the National Hurricane Center. “We are now at the upper end of the trading range and should come off, unless something unexpected happens,” said Carsten Fritsch, a Commerzbank AG analyst in Frankfurt. “Fundamentals still look pretty poor and do not justify prices close to $80.” On Thursday, the contract jumped $2.45, or 3.3%, to $77.82, the highest settlement since June 25.

Crude Oil Erases Losses after Declining on Inventory Report

landpado — Thu, 22 Jul 2010 14:54:44 +0000

Crude oil recovered from losses posted earlier after a report yesterday showed an increase in U.S. inventories. Crude for September delivery was up 8 cents at $76.64 a barrel in electronic trading on the New York Mercantile Exchange after falling as low as $76.16.

Shell in talks with Vitol, Helios over sale of outlets in Africa

landpado — Thu, 22 Jul 2010 14:53:04 +0000

Royal Dutch Shell Plc said it’s in exclusive talks with Vitol Group and Helios Investment Partners LLP over its planned sale of interests in 19 African retail and distribution units. “Under the terms of the proposed deal, which would see the Shell brand and products remain in each country, Vitol and Helios would become the majority shareholders in the businesses, with Shell retaining a shareholding,” Shell Oil Products said in an e-mailed statement on Wednesday. Shell said in April it’s reviewing its downstream businesses in 21 African countries and other regions to focus on fewer, larger markets. The businesses under review in Africa are profitable, Shell said at the time. The countries include Morocco, Egypt, Ghana, Togo, Kenya, Uganda, Tanzania, Botswana and Namibia among others. “We’re talking about 1,350 retail sites and about 2,000 staff members,” Dennis Matsane, a spokesman for Shell, said by mobile phone in Johannesburg on Wednesday, declining to disclose the potential deal value. Shell’s fuels, lubricants, refining and liquefied petroleum gas businesses in South Africa are not part of the deal, according to the statement.