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FRIDAY, DECEMBER 16, 2011
To download the full report (PDF document) please click here SPECIAL PDF REPORT - THREAT OF IRAN SANCTIONS WORRIES OIL MARKET Iran aims to sell its biggest Asian customers oil at higher prices and on tougher terms, even as it faces the prospect of fewer sales as Western nations mull sanctioning the economic lifeline of the world's fifth largest crude exporter.
For Reuters reports on the meet, click here COLUMN: Asia oil buyers key as West raises Iran stakes: Clyde Russell
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, Dec 16 (Reuters) - It's clear the United States and Europe are increasing the pressure on Iran to halt its nuclear programme by going after its oil trade in Asia. What's not clear is how this will play out.
Iran sends more than 1.4 million barrels of crude a day to Asia, about 60 percent of its total exports, and the planned U.S. sanctions target the payment for shipments. MARKET NEWS: Brent rises above $104 on supply concerns; econ woes weigh
SINGAPORE, Dec 16 (Reuters) - Brent crude futures rose above $104 on worries about supply disruption after the U.S. Congress approved a bill imposing sanctions on Iran's central bank, limiting buyers' ability to pay for oil they buy from the Islamic Republic.
"The geopolitical tensions surrounding Iran are putting a floor, keeping prices supported at current levels, despite growing worries about the economy," said Ben Le Brun, market analyst at OptionsXpress. "China can run but can't hide from what's going on in Europe. The fallout will hurt everybody."
U.S. stock futures signal higher open for equities
U.S. stock index futures pointed to a higher open for equities on Wall Street, with futures for the S&P 500 , for the Dow Jones and for the Nasdaq 100 rising 0.3 to 0.6 percent.
The Labor Department will release at 1330 GMT the November Consumer Price Index. Economists expect a 0.1 percent rise, compared with a 0.1 percent drop in October.
FOREX-Euro steadies, outlook shaky on ratings worry
LONDON, Dec 16 (Reuters) - The euro was steady against the dollar but on track for its worst weekly performance in more than three months, with the threat of euro zone sovereign downgrades keeping investors wary of buying the common currency given the possibility.
"Any minute a rating agency might announce they are cutting ratings for a euro zone country. I doubt the summit results will change their mind, there was not really anything sustainable in it," said Lutz Karpowitz, currency analyst at Commerzbank.
GLOBAL MARKETS-Stocks rise from 3-wk low; Bunds supported
LONDON, Dec 16 (Reuters) - World stocks rose after upbeat U.S. data and corporate results, while concerns over the European banking sector and nervousness about potential ratings downgrades in European sovereign debt underpinned German government bonds.
"France is the biggest worry. The spread on its bond yields versus German Bunds has widened since the beginning of the crisis and if it loses its triple A credit rating, the crisis may start engulfing the euro zone core," said Michiyoshi Kato, senior trader at Mizuho Coporate Bank.
TOP NEWS:
Primorsk, Novo early Jan oil exports seen flat
MOSCOW, Dec 16 (Reuters) - Russia's Urals oil supplies from the Baltic Sea port of Primorsk and Novorossiisk in the Black Sea are likely to be flat in the first week of January, a preliminary export schedule showed on Friday.
Urals exports from Primorsk are expected at 1.2 million tonnes on Jan. 1-6, same as in the corresponding period this month.
February Pacific crude exports steady vs January
SINGAPORE, Dec 16 (Reuters) - Sweet crude and condensate exports from Australia, Papua New Guinea and East Timor will hold steady in February from a month earlier, traders said on Wednesday.
A total of around 22 cargoes will be available for February loading, largely in line with the 22-24 cargoes seen in the previous month, preliminary estimates show.
S.Korea extends Iran sanctions but leaves accounts intact
SEOUL, Dec 16 (Reuters) - South Korea on Friday imposed new sanctions on Iran, banning fresh investment in its oil and gas sectors and blacklisting additional Iranian firms and personnel, although its moves appeared to fall short of demands from Washington.
South Korea's finance ministry said it would keep bank accounts held by the Iranian central bank in Seoul open so as not to distrupt crude oil supply from the Gulf nation that supplies almost 10 percent of its oil needs.
Dragon Oil hits 2011 production rate target
Dec 16 (Reuters) - Dragon Oil reached its output rate target for 2011, after the Turkmenistan-focused oil firm successfully tested and brought one of its wells on stream for production.
Dragon Oil touched a production rate of 70,000 barrels of oil per day (bopd), representing a production growth rate of over 25 percent in 2011, the company said in a statement.
Cameron Intl reaches agreement with BP on oil spill
Dec 16 (Reuters) - Cameron International Corp said BP Plc had agreed to indemnify the company for current and future compensatory claims associated with the Deepwater Horizon incident.
As part of the deal, Cameron said it had agreed to pay $250 million to BP.
China 2015 oil demand to grow 19 pct from 2010 -report
BEIJING, Dec 16 (Reuters) - China's oil demand is expected to reach 535 million tonnes in 2015, or about 10.7 million barrels per day (bpd), an increase of 19 percent from 449 million tonnes in 2010, according to a research report issued on Friday by the country's top oil firm CNPC.
Demand in the world's second-largest oil consumer is estimated at 603 million tonnes in 2020, or about 12 million bpd, which would be a third higher than the 2010 level.
Japan oil demand to keep declining next yr -industry body
TOKYO, Dec 16 (Reuters) - Oil demand in Japan is expected to keep fading next year, although reconstruction after the March earthquake and tsunami will limit declines in coming months, an industry body said on Friday.
Japan is the world's third biggest oil consumer, and its usage of gasoline, which accounts for the bulk of demand, has been falling due to a sluggish economy and growing appetite for energy efficient cars.
China starts pumping oil into northwest reserves -sources
BEIJING, Dec 15 (Reuters) - China has started pumping oil into new reserve tanks in its landlocked northwest since September, in a move that may have swelled the country's crude imports to a peak in November and is likely to bolster its imports in December.
An estimated 17 million barrels of crude oil, or a rough daily rate of 190,000 barrels, have flowed into both commercial and strategic tanks, recently completed in the remote Xinjiang region and Gangsu province, industry sources told Reuters.
REFINERY NEWS: Shell reports process upset at Norco refinery
Dec 16 (Reuters) - Shell Oil Co reported a process upset on Thursday at Motiva Enterprises' 234,700 barrel-per-day Norco, Louisiana refinery, according to a filing with regulators.
"During swapping of furnaces there was a release from a converter to the flare," the filing with the National Response Center said.
Conoco reports equipment failure at Wood River
Dec 16 (Reuters) - ConocoPhillips reported an equipment failure on Thursday at its 356,000 barrels-per-day (bpd) joint-venture Wood River refinery in Roxana, Illinois, according to a filing with regulators.
The unit involved in the malfunction was not identified in the report.
Wynnewood reports compressor malfunction at Oklahoma refinery
Dec 16 (Reuters) - Wynnewood Refining Co reported a compressor malfunction at its 70,000 barrel-per-day refinery in
Wynnewood, Oklahoma, according to a notice filed with the U.S. National Response Center.
There was a release of sulfur dioxide from a flare late Wednesday due to the upset, the filing showed.
Delek reports ops restored at Tyler refinery after FCCU snag
Dec 15 (Reuters) - Delek U.S. Holdings reported normal operations were restored at its 60,000 barrel-per-day Tyler, Texas, refinery after an upset at the gasoline-making fluid catalytic cracking unit (FCCU), according to a filing with state pollution regulators.
"Excess opacity occurred intermittently at the CO Boiler stack during an operational transition period," the filing with the Texas Commission on Environmental Quality said.
BEYOND THE HEADLINES: Malaysia to award 5 marginal oilfield licences in 2012
KUALA LUMPUR, Dec 16 (Reuters) - Malaysia is expected to award at least four to five licences to develop smaller fields next year as the Southeast Asian country looks to halt a decline in crude oil and natural gas production, a senior government official said.
The government has been developing deep-water fields, rejuvenating old areas and introducing incentives to develop so-called marginal fields once deemed less profitable to explore in a bid to increase output as global energy use climbs.
Keystone XL still ahead of rivals -TransCanada CEO
CALGARY, Alberta, Dec 15 (Reuters) - TransCanada Corp still has a big advantage in the race to supply U.S. oil markets with Canadian supplies, despite a year's delay to its $7 billion Keystone XL project, because of the preparation already done, Chief Executive Russ Girling said on Thursday.
TransCanada's customers have shown they believe the controversial pipeline is still the best option for moving burgeoning Canadian oil sands and North Dakota shale oil production by signing up for more capacity and backing an extension of the line in Texas, Girling told Reuters in an interview.
Asia frets over oil as US eyes new Iran sanctions
SEOUL/TOKYO, Dec 15 (Reuters) - Plans for fresh U.S. sanctions to isolate Tehran have sent shudders among Asian governments who fear they will have no way to pay for Iranian crude imports and face rising costs to fuel the region's growing economies.
Top buyer China, meanwhile, is looking to cash in on the pressure Tehran faces to snap up discounted Iranian crude.
Chevron lawsuit flags Brazil investment risks
RIO DE JANEIRO, Dec 15 (Reuters) - A $10.6 billion lawsuit against U.S. oil company Chevron and rig contractor Transocean could further cool an increasingly chilly investment climate in Brazil's natural resources industry.
The lawsuit, filed in response to a small oil spill off Brazil's coast on Nov. 7, will likely drag on for years and seeks to shut down the companies' local operations. But its biggest impact may be on investors, both foreign and Brazilian, who are being asked to spend upward of $600 billion to turn Brazil up among the world's top three or four oil producers.
Peru says natgas negotiations suspended
LIMA, Dec 15 (Reuters) - Peru and the consortium operating the giant Camisea natural gas fields have suspended negotiations over gas supplies and royalties, and talks should resume in three or four months, the head of Peru's oil agency said on Thursday.
The consortium, led by Argentina's Pluspetrol, asked for the suspension, seeking time to broker an agreement with its international financial backers over one of the largest parcels, known as lot 88, Aurelio Ochoa, head of state-run Perupetro, told Reuters.
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