Inside Oil - Monday December 19 2011

MONDAY, DECEMBER 19, 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: Oil slips on Europe concern, posts 2nd weekly loss NEW YORK, Dec 16 (Reuters) - Oil edged lower in volatile trading on Friday, posting a second consecutive weekly loss as caution about Europe's debt crisis and year-end positioning continued to spark selling into rallies.  "After the recent sell-off on the disappointing European Union summit people are going to be reluctant to go back in long at least until after the holidays," said Phil Flynn, analyst at PFGBest Research in Chicago.   NYMEX-Natural gas ends flat to down, weather weighs NEW YORK, Dec 16 (Reuters) - Front-month U.S. natural gas futures ended unchanged on Friday after some early short covering ahead of the weekend, but record high supplies and mild early-winter weather continued to limit any upside.  ""The forecasts continue to come in milder. We're not  matching last year's cold, and we're on course to build in  unwieldy storage surplus by mid-winter," said Steve Mosley at  SMC Advisory Services.   Euro Coal-Spreads widen, activity muted LONDON, Dec 16 (Reuters) - Physical prompt coal prices were little changed again on Friday but few players were active in the market and the bid/offer spreads widened as a result.  "Few people among the usual players were in the market, the holidays seem to have started early and the bid/offer spreads are so wide that clearly very little if anything is going to trade," one European trader said.   COMMODITIES-Down sharply on week despite late climb in gold, copper NEW YORK, Dec 16 (Reuters) - Gold and copper rallied on Friday as the dollar fell and the outlook for the U.S. economy continued to improve versus Europe, but losses from earlier in the week still cost commodities their biggest weekly decline in two months.  "Obviously, turnover will rapidly decline through next week in all financial markets which in itself leaves the market open to volatility, especially if there are any developments," said   Stephen Briggs, commodities strategist at BNP Paribas in London.   GLOBAL MARKETS-Stocks fall on Europe debt rating warning TOKYO, Dec 19 (Reuters) - Asian stocks fell on Monday on fears possible credit ratings downgrades of several European countries could derail progress towards resolving the euro zone's debt crisis, while the euro steadied after its worst weekly performance in three months.  "Investors will remain cautious of Europe's sovereign debt problems and volume will remain thin on the Tokyo Stock Exchange as foreign investors leave ahead of the Christmas holiday," said Hiroichi Nishi, equity general manager at SMBC Nikko Securities.      China's Sinopec eyes 2.7 bln Repsol stake - FT LONDON, Dec 18 (Reuters) - Chinese oil firm Sinopec  is eyeing a multibillion-euro stake in Spain's Repsol , as indebted Spanish builder Sacyr-Vallehermoso  races to sell half of its shares in the oil company to pay back loans in order to avoid a possible collapse, the Financial Times reported on Monday.  Sacyr ran into debt trouble when it acquired 20 percent of oil group Repsol just before the global financial crisis and the collapse of Spain's property and construction bubble, and it must refinance a 4.9 billion euro ($6.39 billion) syndicated loan this year.   Petrochina's crude output reaches 2.15 mln bpd -paper BEIJING, Dec 19 (Reuters) - PetroChina  will have produced 107.53 million tonnes or 2.15 million barrels per day of crude oil this year, up 2.12 million tonnes from a year earlier, the China Petroleum Daily reported on Monday.  This was the second year that the increase in crude oil production by the top Chinese oil producer surpassed 2 million tonnes, according to the newspaper, which is run by parent China National Petroleum Corp (CNPC).   Exxon reports leak at Baytown refinery unit -filing HOUSTON, Dec 18 (Reuters) - Exxon Mobil Corp's  560,640 barrel per day (bpd) Baytown, Texas, refinery reported a leak in a naphtha line on a crude light ends unit on Saturday, according to a notice filed with state pollution regulators.  The leak was to be repaired with a clamp but did not impact production at the refinery, according to the notice filed with the Texas Commission on Environmental Quality.   Protests spread in troubled Kazakh oil region AKTAU, Kazakhstan, Dec 18 (Reuters) - Hundreds of demonstrators confronted riot police on Sunday as Kazakhstan's biggest protests in decades spread to the capital of a western oil region where 15 people have been killed in clashes.  The unrest in Mangistau region, triggered by the sacking of oil workers, is the worst to hit Kazakhstan in the 20 years since it gained independence with the collapse of the Soviet Union.   Russian oil firm Ruspetro eyes London listing -source MOSCOW/LONDON, Dec 18 (Reuters) - Russian oil firm Ruspetro is planning a London listing a source told Reuters, making the company the latest Russian resource company to seek liquidity and international profile on the UK's index.  The source said the flotation of the company, which owns oil assets in Siberia, could occur in the first quarter of 2012.   Indonesia sees 15 new oil, gas fields on stream next year JAKARTA, Dec 18 (Reuters) - At least 15 oil and gas projects are expected to come onstream in Indonesia in 2012 as Southeast Asia's largest economy is struggling with declining output, the energy regulator BPMigas said on Sunday.  Combined output from the projects is expected to produce 1.158 million standard cubic feet of gas (MMSCFD) and 35,200 barrels of oil per day (BPOD), BPMigas said in a statement. These projects would add to Indonesia's annual average of 400 million cubic of gas per day and 15,000 barrel of oil per day.   Russian floating oil rig has sunk - agencies MOSCOW, Dec 18 (Reuters) - An oil drilling platform that capsized off Russia's Far Eastern island of Sakhalin has sunk And most of the 67 crew are unaccounted for, an Emergencies Ministry official was quoted by news agencies as saying.  The Kulskoye jack-up rig operated by Russian offshore exploration company Arktikmorneftegazrazvedka had capsized in a storm while being towed from the eastern peninsula of Kamchatka.   Mexico's Pemex to launch second-round of contracts in Jan MEXICO CITY, Dec 16 (Reuters) - Mexico's state oil company Pemex will disclose terms for a second round of private operating contracts in early January, the company said on Friday.  Last month Pemex said it expected to publish those terms in `,December.     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.       EVENTS TO WATCH TODAY (GMT)   U.S. NAHB HOUSING MARKET INDX DEC (1500)   U.S. USDA EXPORT INSPECTIONS WEEKLY (1600)   MORE INFORMATION   Learn more about our products and services for Commodities Professionals click here Contact Thomson Reuters click here To subscribe to this and other Commodities News Briefs click here  Join our market Forums. 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