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MARKET NEWS:
Brent drops below $109; Iran threat supports
SINGAPORE, Dec 28 (Reuters) - Brent crude edged down after rallying for six straight sessions, but prices continued to hover near $109 per barrel supported by Iran's threat to halt oil shipments through the Strait of Hormuz and positive U.S. data.
"The U.S. is ending the year so far on a rather upbeat note, which is good for oil," said John Vautrain, a director at energy consulting firm Purvin & Gertz.
U.S. stock index futures seen inching lower
U.S. stock index futures pointed to a lower open on Wall Street, with futures for the S&P 500, Dow Jones futures and Nasdaq 100 futures down 0.04 to 0.2 percent at 0901 GMT.
On the macro economic front, investors will watch U.S. Redbook weekly U.S. Retail Sales at 1355 GMT.
FOREX-Euro subdued in year-end trade, Italy bond sale eyed
TOKYO, Dec 28 (Reuters) - The euro held above an 11-month low against the dollar in Asia, with thin year-end trade set to keep the common currency subdued ahead of an Italian bond sale later in the week.
"The Italian auctions will be carefully watched especially with Italian 10-year yields nearing 7 percent; it will be another test of the market's appetite for what will be a feast of sovereign issuance in 2012," analysts at BNP Paribas said.
GLOBAL MARKETS-Iran oil threat buoys crude, curbs shares
LONDON, Dec 28 (Reuters) - Iran's threat to stop the flow of oil from the Gulf supported crude prices and put world shares on the back foot, while looming Italian debt auctions hampered the euro.
"The only way Iran would actually close Hormuz is when it is attacked and war breaks, but such a possibility appears low as no country would want to take the risk when growth worldwide was likely to slow down," said Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory Co.
TOP NEWS:
Turkey, Russia reach deal on South Stream pipeline
ANKARA, Dec 28 (Reuters) - Turkey and Russia have reached an agreement on the award of a final construction permit for the South Stream pipeline, which will carry Russian gas from the Black Sea to Europe, Turkish government officials told Reuters.
The South Stream is designed to start carrying 63 billion cubic metres of gas a year from the Caspian region to Europe in 2015, bypassing transit countries such as Ukraine and Belarus. The 15.5 billion euro ($20 billion) project is a rival to the EU-backed Nabucco project.
Vietsovpetro 2011 crude output seen flat y/y at 6.4 mln T -Petrovietnam
HANOI, Dec 28 (Reuters) - Crude oil output from Vietnam-Russia venture Vietsovpetro will stay flat this year from last year at 6.4 million tonnes, or 128,500 barrels per day, Petrovietnam said on Wednesday, at a time when production is expected to decline annually.
The joint venture had recorded its output at 6.31 million tonnes as of Tuesday, already above its full-year target of 6.2 million tonnes, Vietnam state oil and gas group Petrovietnam said in a statement.
Vietnam 2011 crude exports +3.6 pct y/y-govt
HANOI, Dec 28 (Reuters) - Vietnam's crude oil exports this year are estimated to have risen 3.6 percent from a year ago to 8.27 million tonnes, or 166,000 barrels per day, the government said on Wednesday.
The General Statistics Office said the full-year crude exports generated $7.24 billion, a 45.9 percent increase from a year ago.
Japan's Nov crude imports from Iran tumble, tanker delay cited
TOKYO, Dec 28 (Reuters) - Japan's crude imports from Iran tumbled 38 percent last month to 1.09 million kiloliters (228,000 barrels per day) from a year earlier, a decline that a source at an importer attributed to a delay in at least one tanker arrival rather than sanctions-related problems.
Iran is facing the threat of fresh sanctions from the United States and European Union over its nuclear programme that could prevent Asian refiners from paying for Iran's oil, and European refiners from buying it.
Hungary's MOL to boost Kurdistan exploration in 2012
BUDAPEST, Dec 28 (Reuters) - Hungarian oil and gas group MOL plans to boost its exploration, appraisal and development program in the Akri-Bijeel block in Kurdistan, spending more than $100 million on the project in 2012, the company said in a statement on Wednesday.
MOL said an exploration well, Bekhme-1, tested between October and December this year, produced no commercial inflow so work at the well would be suspended, but the results would not change the recoverable resource potential of the block.
Poland says firms should team up over shale gas
WARSAW, Dec 28 (Reuters) - Polish state-linked companies should work together in shale gas exploration, with utilities teaming up with gas monopoly PGNiG and oil refineries PKN Orlen or Lotos , the country's treasury minister was quoted as saying.
PGE , Tauron , Enea or Energa could later use the non-conventional gas to produce energy, Mikolaj Budzanowski added.
Sinopec's Puguang meets 2011 gas output, sales targets
BEIJING, Dec 28 (Reuters) - Puguang gasfield, China Petroleum & Chemical Corp's (Sinopec) largest, achieved its 2011 production target of 5.9 billion cubic metres of purified natural gas as of Dec. 23, a report on a company website showed on Wednesday.
The field in southwestern Sichuan province has also fulfilled its gas sales target of 5.43 bcm, according to the report posted on www.sinopecnews.com.cn.
Output at PetroChina's Changqing oilfield rivals Daqing -paper
BEIJING, Dec 28 (Reuters) - Oil and gas output this year at PetroChina's Changqing Oilfield reached 40.59 million tonnes of oil equivalent, or 811,800 barrels per day as of Dec 27, China Petroleum Daily reported on Wednesday, rivaling Daqing, the top Chinese oilfield for decades.
Changqing, PetroChina's second-largest oil and gas field, churned out 35 million tonnes of oil equivalent in 2010, 5 million tonnes more than in 2009.
REFINERY NEWS:
Tesoro plans work at Wilmington, CA, refinery
Dec 27 (Reuters) - Tesoro Corp said on Tuesday it plans maintenance on an unspecified unit at its 96,860-barrel-per-day Wilmington, California, refinery.
The company had warned of planned flaring at the refinery from Dec. 28-30, in a notice with South Coast Air Quality Management District.
Valero says McKee refinery is at planned rates
Dec 27 (Reuters) - Valero Energy Corp said on Tuesday its 156,000-barrel-per-day (bpd) McKee refinery in Sunray, Texas was back at planned rates.
The company had reported a power disruption at the refinery on Thursday.
Valero sees Houston FCC at planned rates in few days
Dec 27 (Reuters) - Valero Energy Corp said a gasoline-making fluid catalytic cracker (FCC) at its 88,000-barrels-per-day Houston refinery is expected to be back at planned rates within a few days.
A wet gas compressor issue had led to the FCC outage.
Tesoro: planned work under way at Martinez refinery
Dec 27 (Reuters) - Tesoro Corp said on Tuesday that planned maintenance on some unspecified units was under way at its 166,000-barrels-per-day Golden Eagle refinery in Martinez, California.
"We do not anticipate any impact upon our ability to meet regional contractual product supply commitments," a company spokeswoman said.
Exxon says Baytown refinery ops unhurt from valve snag
Dec 27 (Reuters) - Exxon Mobil Corp said Tuesday production at its 560,640 barrel-per-day Baytown refinery in Texas was not impacted due to a malfunctioning valve.
The company earlier reported a flaring event at the facility due to a malfunctioning valve on the jet vent gas system, in a notice filed with the Texas Commission on Environmental Quality.
BEYOND THE HEADLINES:
Iran threatens to stop Gulf oil if sanctions widened
TEHRAN, Dec 27 (Reuters) - Iran threatened on Tuesday to stop the flow of oil through the Strait of Hormuz if foreign sanctions were imposed on its crude exports over its nuclear ambitions, a move that could trigger military conflict with economies dependent on Gulf oil.
Western tensions with Iran have increased since a Nov. 8 report by the U.N. nuclear watchdog saying Tehran appears to have worked on designing an atomic bomb and may still be pursuing research to that end. Iran strongly denies this and says it is developing nuclear energy for peaceful purposes.
Green groups find success fighting shale oil boom
WASHINGTON, Dec 27 (Reuters) - A resurgent green movement is launching a multi-pronged counter-attack against the shale oil and gas boom in the United States that could slow, though ultimately not stop, development.
Building upon their unexpected success in the battle against the Keystone XL pipeline, a renewed onslaught from environmentalists is putting the shale industry on the defensive while adding to costs, limiting expansion and potentially scuttling major projects.
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