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22 Jan, 2012, 12.14PM IST, PTI


Crude oil prices may remain below $100/barrel in 2012: Report

NEW DELHI: Crude oil prices are expected to remain below $100 a barrel in 2012 due to slowing global demand amid an expected higher supplies, a report has said.

"Oil prices ( World Bank average) are expected to decline from $ 104 per barrel in 2011 to an estimated $ 98 a barrel in 2012," the World Bank said in its report 'Global Economic Prospects 2012'.

It said that slowing of global demand, growing supplies on efficiency improvements and availability of substitute for crude oil could weigh on prices.

The multi-lateral agency further said: "It is expected that OPEC (Organisation of the Petroleum Exporting Countries) will endeavour to limit oil output to keep prices relatively high, given the large expenditure needs in most countries".

However, the OPEC will "also be wary of letting prices rise too high, having witnessed the impact this has had on demand in recent years, especially in OECD countries, which accounts for 60 percent of total world oil supplies," it said.

Nevertheless, the return of Libya's oil production may necessitate accommodation by other OPEC members to keep prices from falling significantly, it added.

Currently, crude oil prices are showing a declining trend. Last week, oil futures for February delivery fell 1.9 per cent to $ 98.46 a barrel on the New York Mercantile Exchange, the lowest settlement since December 20, 2011.

Similarly, brent oil for March settlement dipped 1.5 per cent to $ 109.86 a barrel on the London-based ICE Futures Europe exchange.

Highlighting the global supply-demand situation of crude oil, the World Bank said the oil demand from the OECD, a grouping of 34 developed and developing nations, is on track to fall again this year.

However, the overall world oil demand is projected to jump by 1.3 million barrel per day or 3.6 percent in 2012, with all of the growth in emerging markets, it noted.

On the supply side, the report said in the near term, light/sweet crude markets could ease with recovery of oil production in Libya and growing supply in non-OPEC countries.

Production increases are seen from non-OPEC countries such as Brazil, Canada, the Caspian and West Africa, it said.

Last month, oil production in Libya is reported to have reached 0.9 million barrels per day (mb/d), which is more than half of pre-crisis levels of 1.6 mb/d, the report said

It said the International Energy Agency (IEA) expects production in that country to fully recover by 2014.

Similarly, Iraq's oil output is expected to reach nearly 3.2 mb/d in 2012. Its production has risen above 2.7 mb/d, due to increased output from new joint venture projects. Its Oil exports have also reached new highs, it added.

Offshore oil drilling in South Atlantic could lead to North Sea-style boom

It's not just a bunch of windswept rocks and sheep – there's oil in the Falklands, enough perhaps for a real boom that could generate billions of pounds.


The Falklands are not just a bunch of windswept rocks and sheep – there's oil in the Falklands, enough perhaps for a real boom that could generate billions of pounds. Some was found in the 1990s, but what has really got the oil industry excited is Sealion, a "discovery" which geologists think is about the size of decent North Sea oilfield. Other finds nearby in the North Basin, about 70 miles north of the islands, are also promising.

By Nick Meo

8:20PM GMT 21 Jan 2012


Some was found in the 1990s, but what has really got the oil industry excited is Sealion, a "discovery" which geologists think is about the size of decent North Sea oilfield. Other finds nearby in the North Basin, about 70 miles north of the islands, are also promising.


And then there is the South Basin, which has never been drilled. It is big, and the geological structures look good. A drilling ship is en route from Aberdeen to start a proper search. There was speculation about oil even at the time of the Falklands War, but the islands were too far away in an environment which was too difficult for any company to raise the investment to prospect seriously. Now the price of oil is high, the world's main oil fields are menaced by political insecurity - whether in the Gulf or Nigeria - and technology is better than ever at extracting black gold, even in the harshest environment.


The stage is being set for the transformation of the South Atlantic.

Oil, Euro Fall on Greek Debt Concerns

By Lynn Thomasson and Sarah Jones - Jan 23, 2012 8:42 AM GMT

European stocks rose and the euro erased losses before regional policy makers meet in Brussels to discuss new budget rules and a Greek debt swap. U.S. equity futures and oil declined.

The Stoxx Europe 600 Index climbed 0.2 percent as of 8:20 a.m. in London, poised for its fifth advance in six days. The euro was little changed against the dollar after earlier falling as much as 0.6 percent. Standard & Poor’s 500 Index futures slid 0.1 percent and oil declined 0.2 percent. Treasuries snapped three days of losses and wheat and corn futures added at least 0.9 percent.

Markets including China, South Korea and Taiwan were shut today for the Lunar New Year holiday. Bondholders negotiating a debt swap with Greece have made their “maximum” offer, leaving it to the European Union and International Monetary Fund to decide whether to accept the deal, said Charles Dallara, managing director of the Institute of International Finance and representative for the private creditors.

“Traders are treading cautiously, faced with the heightened risk of a disorderly default in Greece,” said Jonathan Sudaria, a trader at London Capital Group. A deal “is in the hands of two groups that appear to be in a standoff waiting to see who blinks first.”

Lower S&P 500 futures suggest the U.S. equity benchmark may end its four-day winning streak. The index has gained 4.6 percent in 2012, the best start to a year since 1997, after companies from Goldman Sachs Group Inc. to Union Pacific Corp. and EBay Inc. topped analysts’ profit projections.

'The Falkland Islands will always be Argentine territory'


http://www.telegraph.co.uk/news/worldnews/southamerica/falklandislands/9030275/The-Falkland-Islands-will-always-be-Argentine-territory.html

Petrol scare as Coryton oil refinery closes

Drivers were urged yesterday not to panic-buy petrol after a major oil refinery stopped deliveries to filling stations.


Charles Hendry, the oil minister, said motorists should “carry on their lives as normal” after the Coryton plant in Essex, which supplies a fifth of fuel in London and the South East, halted supplies when its Swiss-owned parent company went into administration.


Fears were raised that it could lead to a rise in the price of petrol but Mr Hendry insisted that major companies such as BP and Shell would have enough fuel to keep their pumps flowing.


“We don’t want everybody to go out and get it [fuel] tonight, because that clearly wouldn’t be helpful,” Mr Hendry said. “People need to be completely confident that if they go about their business as normal then there is completely enough fuel available and that BP and Shell have been going to great lengths to make sure that is the case.


“There is the capacity in some of the other refineries in the UK. Companies like BP and Shell, who are the main buyers of the output from Coryton, have already made short-term arrangements to make sure that they get the fuel from other sources. We have spare import capacity so we can bring extra fuel in as necessary.”


However, last night a Shell garage in Trumpington, which is near the M11 in Cambridgeshire, said it had run out of regular petrol and diesel because of “panic buying”. Coryton is one of eight refineries in the UK and supplies one tenth of the country’s total fuel production, with a capacity of 175,000 barrels of crude oil per day.

Richard Howitt, an MEP for the East of England, said he feared petrol supplies would be affected.

“I don’t want to be alarmist, but I don’t want to be dishonest either,” he said. “Supplies across London and the South East could be affected and I have been told this could impact the Olympics.”

The refinery was processing oil as usual but no deliveries of petrol or other products, including bitumen needed for roadworks, were leaving the site.

BP, a major customer of the Coryton refinery, said it had no immediate supply issues but it was “watching the situation very closely”.

Adrian Tink, motoring strategist at the RAC, called on drivers to be sensible, following rumours of petrol stations in the area experiencing shortages. “The message for motorists in the area is a simple one, don’t panic buy and potentially create a problem,” he said.

The shutdown at the Coryton plant, which was previously owned by BP, came as its Zurich-based owner, Petroplus, said talks with its lenders had broken down.

The company reported a net loss of £265 million in the first nine months of last year.

PwC, the professional services company, was appointed as administrator to the UK arm of Petroplus, which includes Coryton, an oil storage site in Teesside and a research and development site in Swansea.

Unions warned that 1,000 jobs were at risk. The GMB said contract workers at the refinery had been asked if they wanted to transfer to other sites or take redundancy.

Þ Foreign lorry drivers will be charged £10 a day to use British roads under government plans for the first national road pricing scheme. The move is intended to level the playing field between British lorry drivers, who already face charges when they drive abroad, and their Continental counterparts.

The EU allows countries to charge lorries a maximum of €16 (£13) a day.

British hauliers will also face the charges but they will be reimbursed, possibly by a reduction in the fuel duty they pay.

The industry believes the scheme could be enforced in a number of ways, including using spy in the sky technology or fixing a sticker to the windscreen that could be read by scanners placed on an overhead gantry.

Coryton oil refinery restarts shipments

Decision by Essex refinery's administrators eases fears of petrol shortages in the south-east

http://www.guardian.co.uk/business/2012/jan/26/coryton-oil-refinery-restarts-shipments?newsfeed=true

UPDATE 1-EnQuest to buy North Sea oilfield stake for up to $240 mln


Tue Jan 24, 2012 5:32am EST

* EnQuest to buy 25 pct stake in Kraken from Nautical

* Says 25 pct interest provides 40 mmboe of contingent resources

Jan 24 (Reuters) - EnQuest Plc raised its stake in the Kraken oil discovery in the UK North Sea by acquiring a 25 percent interest from Nautical Petroleum for $150 million to $240 million based on the determination of gross reserves.

Enquest, which bought a 20 percent interest in the Kraken discovery from oil and gas explorer Canamens earlier this month, will become the operator of the field with Tuesday's deal.

The 25 percent interest in Kraken provides 40 million barrels of oil (MMboe) of contingent resources to Enquest.

The development field now adds almost 70 percent to EnQuest's end 2010 contingent resources.

"This latest transaction also gives us further potential upside from the surrounding exploration opportunities and an agreed farm-in to the Ketos discovery which we will jointly appraise with Nautical," EnQuest said in a statement.

Nautical retains a 25 percent interest in Kraken and First Oil the remaining 30 percent.

EnQuest shares were up 2 percent, while those of Nautical were up 7 percent at 1031 GMT on Tuesday on the London Stock Exchange.

Oil up as Fed sees low rates through late 2014


Reuters, Thursday January 26 2012


NEW YORK, Jan 25 (Reuters) - Crude oil futures rose on Wednesday as investors cheered a plan by the U.S. Federal Reserve to keep interest rates low at least through late 2014, much longer than it had said previously, in a move aimed at helping speed the slow economic recovery.

Following a two-day policy meeting, the Fed said that, while the economy was expanding moderately despite slowing global growth, the U.S. unemployment rate was still elevated and that the economy faces "significant downside risks."

"While we did not get an indication of an implementation of a third round of quantitative easing, the Fed is clearly continuing in an activist mode with the extension of the 'exceptionally low' interest period," said John Kilduff, partner at Again Capital LLC in New York.

"This bodes well for a lower dollar and higher commodity prices (as) the Fed looks to be willing to continue to stoke inflation as part of its efforts to revive the economy," he added.

Near the close of the market, after the Fed issued the full text of its longer-run goals and policy strategy, oil futures pared gains.

"As the Fed released the text of its policy-setting pronouncements for the day, some profit-taking pared gains, said Phil Flynn, analyst at PFGBest Research in Chicago.

"We saw that some Fed policymakers preferred to see the first rise in interest rates by this year, with some others eyeing increases by as far as 2016. On that score, investors probably reined in their longer-term view of policy accommodation from the Fed," Flynn added.

U.S. crude futures for March delivery settled at $99.40 a barrel, gaining 45 cents, after rising to a session high of $100.40, having climbed from a session low of $97.53.

Implied volatility in U.S. crude futures tumbled to a six-month low even as prices traded in a nearly $3 range.

In London, ICE Brent crude for March delivery settled at $109.81, down 22 cents, after hitting session high of $110.89.

In post-settlement electronic trading, Brent rebounded and was up 47 cents at $110.50 by 4:23 p.m. (2123 GMT), while U.S. crude rose 93 cents to $99.87.

Oil prices regained momentum after the close as Fed Chairman Ben Bernanke signaled that the central bank may consider further monetary easing.

Bernanke also suggested that the Fed might be willing to tolerate inflation above its newly unveiled target of 2 percent if it means putting a dent on high unemployment.

Brent's premium against U.S. crude narrowed to $10.41, after closing at $11.08 on Tuesday.

Brent's trading volume shot up 53 percent above its 30-day average. U.S. crude volume was up 14 percent against the 30-day average.



STOCK BUILD OVERSHADOWED

The bullish Fed news overshadowed earlier U.S. government data showing crude inventories rose and worries over a potential Greek debt default.

The U.S. Energy Information Administration said that domestic crude oil inventories jumped 3.6 million barrels in the week to Jan. 20, far above the 800,000-barrel build forecast in a Reuters poll.

However, the EIA's data was far less than the 7.3 million-barrel build reported by industry group American Petroleum Institute on Tuesday.

EQUITIES UP, DOLLAR DOWN

Oil futures rose with equities and other major commodities in the wake of the Fed statement.

The euro jumped to a near five-week high against the U.S. dollar, a situation that encourages buying of riskier assets such as oil and other commodities.

A gloomy outlook for the euro zone, centering on Greek's debt troubles, keeping gains for the day limited, traders said.

After weeks of bargaining, Greece hopes to conclude tough debt-restructuring negotiations when its private creditors return to Athens for fresh round of talks to avoid a messy default.

Britain's economy may have entered a mild recession in the last three months of 2011, as the economy shrank by 0.2 percent at the end of the year. The British finance minister blamed the euro zone crisis for the contraction.

Iran oil official says crude could reach $120 to $150 per barrel, downplays EU embargo


By Associated Press, Updated: Sunday, January 29, 8:51 AM




TEHRAN, Iran — The head of Iran’s state oil company said Sunday that the price of crude will reach $120 to $150 per barrel, as officials in Tehran prepare to discuss a ban on crude sales to European Union countries in retaliation for an EU embargo.

Head of the National Iranian Oil Company Ahmad Qalehbani also said that Tehran would expand its capacity to refine crude domestically, instead of selling it on international markets.

The EU announced an embargo on Iranian oil last week to pressure Tehran on its controversial nuclear program.

The embargo is set to go into effect in the summer, but Iran says that it may cut the flow of crude to Europe early.

Iran says the EU accounts for only 18 percent of its output and that it can find new customers. It says the embargo will hurt the West more than Iran, in part by causing a spike in prices.

“It seems we will witness prices from $120 to $150 in the future,” Qalehbani was quoted as saying by IRNA. He did not give a time frame for the prediction, nor any other details.

The price of benchmark U.S. crude on Friday was around $99.56 per barrel.

Qalehbani also said that Iran could find other customers for its crude in the short term, while in the longer term expanding its refining capacity to turn the crude into other petroleum products.

“The sale of some 18 percent of Iranian oil, to a market other than the EU, is quite possible. But our long term idea is to increase refining capacities to produce valuable products,” he said.

Qalehbani’s statement came as Iranian oil officials prepare to debate a ban on crude sales to European Union countries.

Many Iranian lawmakers and officials have called for an immediate ban on oil exports to the European bloc before the EU’s ban fully goes into effect in July. They say this will hurt Europe before it can find alternative suppliers.

It also coincided with a visit by a U.N. nuclear team expected to focus on Iran’s alleged attempt to develop nuclear weapons.

The United States and its allies argue that Iran is trying to develop nuclear weapons technology, while Tehran says the program is for purely peaceful purposes.

With some 3.5 million barrels of crude production, Iran is the second largest OPEC producer.

Some 80 percent of the country’s foreign revenue comes from exporting around 2.2 million barrels of oil per day.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


http://www.washingtonpost.com/world/middle-east/report-iran-oil-company-chief-says-oil-will-reach-150-per-barrel/2012/01/29/gIQAnMfNZQ_story.html

Dozens of licences granted for North Sea oil exploration

The UK Government has granted 46 exploration licences to continue the search for oil off the Scottish coast.
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January 2012 14:21 GMT

Dozens of North Sea oil companies have been granted new licenses to search Scottish waters for more sources of fuel.

The UK Government has granted 46 new exploration licences for the oil and gas industry to explore for hydrocarbons off the coast of Scotland.

International oil companies Shell, Wintershall, GDF Suez and Hurricane are among the dozens of companies to be offered the licences.

The awards were originally announced in October 2010, but some were held back because the government wanted a closer assessment of some environmentally sensitive areas.

Energy Minister Charles Hendry said: "Overall within the UK context around 2% of our GDP comes from the oil and gas sector, but that's massively greater in Scotland.

"What we want to see now is not just the international companies coming in to develop those resources, but the fabrication of the rigs being done in Scotland, the subsea work being done in Scotland.

"We want to see much more of that supply chain work coming to companies in Scotland and elsewhere in Britain so we get the full economic gain of these activities."

http://news.stv.tv/scotland/north/292214-dozens-of-licences-granted-for-north-sea-oil-exploration/

Oil dips below $111, EU and Iran eyed
Published on Mon, Jan 30, 2012 at 15:06 | Source : Reuters

LONDON (Reuters) - Oil prices retreated on Monday, dipping below $111 a barrel after an expected Iranian vote to suspend crude exports to Europe was postponed and markets continued to wait for a deal on Greek debt.

Brent crude futures were down 55 cents to $110.91 a barrel by 0919 GMT and U.S. crude was down 75 cents at $98.81 a barrel. Both contracts gained more than 1 percent last week.

Analysts and traders said that prices had retreated a little after an Iranian parliamentary vote expected on Sunday proposing the immediate suspension of crude oil exports to the European Union did not go ahead.

Lawmakers had raised the possibility of turning the tables on the EU which will implement its own embargo on Iranian oil by July as it tightens sanctions on Tehran over the nuclear programme.

"The newsflow regarding Iran will continue to drive prices. If there are further comments about stopping oil exports to Europe, prices will rise, but I rather doubt this will happen. It is just jawboning," said Carsten Fritsch, an energy analyst at Commerzbank in Frankfurt.

Christopher Bellew, a trader at Jefferies Bache in London, said that continued uncertainty around Iranian exports was keeping a floor under oil prices.

The International Atomic Energy Agency (IAEA) has a delegation in Iran to try to resolve a row about the nuclear programme that Iran says is purely civilian but the West suspects is for nuclear weapons manufacture.

India, a major customer for Iranian crude, said it would not join the wider international efforts to put pressure on Tehran by cutting oil purchases.

Centrica raises stake in North Sea field

Mon 30 Jan 2012

- British Gas owner Centrica is to pay ConocoPhillips $223m for its non-operated interests in the gas- and oil-producting Stratfjord field (and associated satellites) in the North Sea.

“Increasing our stake in Statfjord marks the latest stage in our drive to secure high quality sources of gas for our customers, adding both earnings and long-term value to Centrica," said Managing Director Mark Hanafin.

The fields are located across both Norwegian and UK sectors of the Northern North Sea and produce gas for the UK market. The transaction takes Centrica's interest in the field from 19.13% to 34.3%.

The acquisition adds additional reserves of 36 million barrels of oil equivalent to Centrica's portfolio. The resulting net increase in production will be over 11,000 barrels of oil per day.

"The acquisition, which follows our announcement last year of a new 10-year gas supply deal with Norway and acquisition of assets from Statoil, underlines our commitment to invest in North Sea production and secure future energy supplies for the UK," Hanafin added.

Centrica said that £200m of field development costs will be required in order to "maximise the long-term recoverable reserves". The acquisition is expected to be earnings- and cashflow-enhancing immediately.

BC

31/01/2012

Higher oil prices boost Exxon 4Q profit 2 percent

By CHRIS KAHN, AP Energy Writer – 1 hour ago

NEW YORK (AP) — Exxon Mobil's fourth-quarter profit rose 2 percent as higher oil prices offset a drop in production.

The world's largest publicly traded oil company said Tuesday that it sold crude between October and December for 27 percent more than one year ago. Natural gas prices also jumped 27 percent outside the United States.

Higher prices pushed net income to $9.4 billion, or $1.97 per share, in the fourth quarter, matching Wall Street expectations. It made $9.25 billion, or $1.85 per share, a year earlier.

Revenue rose 15.6 percent to $121.6 billion in the latest quarter.

Exxon, based in Irving, Texas, said that production declined nearly 9 percent in the quarter, even

after spending a record $36.8 billion last year in search of new sources of crude and natural gas.

Exploration projects can take years to yield new production. And some of Exxon's biggest investments recently have been in U.S. natural gas fields, which so far haven't paid off because prices have dropped to their lowest level in a decade.

Crude production declined as some of its fields matured and produced less. And many contracts in foreign countries limit the amount of oil that Exxon can sell as prices rise. And natural gas demand fell in Europe as well.

Overall, earnings in Exxon's exploration and production business rose 18 percent offsetting a 63 percent drop in income from the company's refining business.

The company's refineries, which produce gasoline, diesel and other fuels, have struggled to pass on the higher cost of their primary input, which is crude. Exxon announced Sunday that it is selling its Japanese refining and marketing business to partner TonenGeneral Sekiyu K.K. for $3.9 billion following an extended slide in Japanese fuel demand.

Exxon's chemicals business also saw profits decline 49 percent.

For the full year, Exxon's net income rose 34.8 percent while revenue rose 26.9 percent.

Last week, Chevron Corp. said profits slipped 3.2 percent. ConocoPhillips reported a 66-percent increase in quarterly earnings, though much of that came from the sale of a pipeline and other assets. Royal Dutch Shell expects to report its financial results later this week.

Shares of Exxon Mobil Corp. fell 91 cents to $84.58 in early trading.

Oil price tops $100 as demand hopes rise on new European treaty to fight debt crisis

January 31, 2012 - 9:20 AM

Oil prices are climbing on hopes that demand may improve after European leaders agreed on new measures to resolve the region's crippling debt crisis.

Benchmark oil rose $1.52 to $100.30 per barrel Monday morning in New York. Brent crude rose $1.60 to $112.35 per barrel in London.

Investors are worried that Europe's financial crisis will affect the global economy and hurt oil demand. European leaders agreed to a treaty designed to curb overspending, jump-start economic growth and add jobs.

In other energy trading, natural gas is down about 6 percent on renewed concerns about bulging supplies and weak demand.

At the pump, AAA says the national average for a gallon of gasoline is $3.44. That's up nearly 17 cents from a month ago and 34 cents from a year ago.

Shell and ORTEC Sign Contract for Technical Consultancy Services

Wednesday, Feb 01, 2012

Shell Global Solutions International B.V. and ORTEC, a leading supplier in resource optimization tools and consulting services, have signed a contract to work closely together on a worldwide scale. The cooperation between Shell and ORTEC focuses on the optimization of supply chain processes and strategic decision making in up- and downstream engineering disciplines like planning & scheduling, gas field production capacity optimization, spare parts management, and cost estimating. Shell and ORTEC have already been working together in a successful way for more than 25 years.
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"The signing of the contract symbolizes the continuation of the long-lasting relation between Shell and ORTEC. Increasing global energy demand accelerates the pace of change in the oil and gas industry. Making the right decisions fast and accurate becomes evidently more important to retain a leading position in the industry. We are very proud to support Shell in this process with our modeling and fact-based consultancy services ", says Lambert van der Bruggen, CEO ORTEC Consulting Group.
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Paulus Steenkamp, Vice President Manufacturing, Production and Engineering Software, Shell Global Solutions International B.V., adds: "In Shell's drive to help secure a responsible energy future, ORTEC, with their high quality software development and technical consultancy services supports us in underpinning Shell's strategic objective to deliver leading technology solutions. This agreement secures the continuation of our relationship."
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About ORTEC Consulting Group
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The ORTEC Consulting Group, member of the ORTEC Group, assists companies and organizations to make informed, fact-based decisions based on thorough analysis. This provides decision-making confidence, which is a much-needed requirement especially when optimizing business processes. By analyzing historical data and projected forecasts, our specialist consultants can calculate scenarios that provide a clear view of the facts and figures. This information is vital for balanced decision-making and business processes optimization. For more information, visit http://www.ortec-consulting.com.
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About Royal Dutch Shell plc
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Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 100 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For more information see: http://www.shell.com
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The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this press release "Shell", "Shell group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.

FTSE 100: Oil majors fuel blue-chip rebound

Oil explorers and producers helped to haul the large-caps back into positive territory as investors were heartened by robust results from a clutch of blue-chip players.
BP jumped 2.7pc and Tullow Oil advanced 3.7pc as Brent crude rose above $111 per barrel on concerns over supply from Iran and South Sudan trumped worries about a global economic slowdown that could hit oil demand.

Oil Trades Near One-Week Low on Rising Stockpiles, U.S. Outlook
February 01, 2012, 3:17 AM EST

Oil traded near the lowest price in more than a week on signs that consumer confidence and demand for fuel are slipping in the U.S., the biggest crude consumer.

Futures were little changed in New York before a U.S. Energy Department report forecast to show crude supplies gained for a second week. Data from the American Petroleum Institute indicated stockpiles rose to the highest level since November. Oil fell for a third day yesterday after the government said consumer confidence and business activity cooled. Greece pledged to prevent the collapse of a second rescue package.

“In the U.S., we have seen long-term demand destruction on gasoline that may never come back, even if the economy improves,” Phil Flynn, vice president of research at PFGBest in Chicago, said in an e-mailed response to questions. “We still have a significant Iranian risk premium. That is only being offset by European uncertainty.”

Crude for March delivery was at $98.67 a barrel, up 14 cents in electronic trading on the New York Mercantile Exchange at 2:27 p.m. Singapore time. The contract yesterday declined 0.3 percent to $98.48 a barrel, the lowest since Jan. 20. Prices slid 0.4 percent in January, falling for a second month.

Brent oil for March settlement gained 29 cents to $111.27 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to West Texas Intermediate futures traded at $12.90, the highest since Nov. 15. That compares with a record spread of $27.88 on Oct. 14.

Crude Stockpiles

Oil in New York has technical resistance along the 50-day moving average around $99.17 a barrel today, according to data compiled by Bloomberg. Futures settled below that indicator in the previous two days. Investors tend to sell contracts close to chart-resistance levels.

U.S. crude inventories rose by 2.1 million barrels last week to 339.5 million barrels, the highest since the week ended Nov. 11, data from the American Petroleum Institute showed yesterday. An Energy Department report today may show they increased by 2.6 million barrels, according to the median of 12 analyst estimates in a Bloomberg News survey. Gasoline supplies are projected to rise 500,000 barrels, according to the survey.

The API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The Energy Department requires that reports be filed for its weekly survey, which is scheduled to be released at 10:30 a.m.

U.S. drivers bought 8.51 million barrels a day of gasoline in the week ended Jan. 27, according to MasterCard Inc.’s SpendingPulse report on Jan. 31. While that was up from 8.48 million the prior week, fuel demand fell below year-earlier levels for the 22nd consecutive time last week, declining 5.5 percent from 2011, the report said.

Refiner Strike

The United Steelworkers union and Royal Dutch Shell Plc agreed on a three-year contract, subject to union membership approval, averting a potential strike that would have idled as many as 69 plants.

The New York-based Conference Board’s confidence index decreased to 61.1, lower than the most pessimistic forecast in a Bloomberg News survey of economists, from a revised 64.8 the prior month. The Institute for Supply Management-Chicago Inc. said yesterday its business barometer declined to 60.2 from 62.2 in December. Readings above 50 signal growth.

The European Union has announced plans to ban Iranian oil imports starting in July and to freeze the assets of the country’s central bank as part of sanctions against its nuclear program. Iran’s Foreign minister Ali Akbar Salehi said this week that the International Atomic Energy Agency team would be visiting some of the country’s nuclear sites and could extend its stay if it needed to.

http://www.bloomberg.com/news/2012-02-01/fracking-boom-could-finally-cap-myth-of-peak-oil-peter-orszag.html

Oil hovers below $98 in Asia amid mixed signs on US crude demand strength

SINGAPORE — Oil prices hovered below $98 a barrel Thursday in Asia amid mixed signs about the strength of U.S. crude demand.

Benchmark crude for March delivery was up 1 cent at $97.62 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 87 cents to settle at $97.61 on Wednesday.
Brent crude rose 30 cents to $111.86 a barrel on the ICE Futures Exchange in London.

A jump of U.S. crude inventories last week by 4 million barrels suggested oil consumption is sluggish. However, factories raised output in January by the most in seven months, the Institute for Supply Management said Wednesday while the Commerce Department said construction spending rose 1.5 percent in December, the fifth straight monthly gain.

Oil prices have hovered near $100 for the last few months amid mixed economic signs from the U.S., Europe and Asia. Some analysts expect crude to begin to rise as the global economy may grow more this year than previously expected.

“The crude oil price has become stuck in a remarkably extended period of narrow sideways trading,” Barclays Capital said in a report. “However, the market is now likely to start to position for an upside break based on a greater degree of relaxation about macroeconomic prospects.”

In other energy trading, heating oil rose 1.8 cents to $3.06 per gallon and gasoline futures were steady at $2.89 per gallon. Natural gas gained 1.3 cents to $2.40 per 1,000 cubic feet.

Shell profits up 54% on firm oil prices

Thursday 2 February 2012 08.30 GMT

Brent crude averaged more than $111 per barrel during 2011 compared with $80 in 2010, helping Shell to reap rewards despite a 3% decline in production
Concerns about corporate profiteering in the energy sector are likely to be reignited again on Thursday with Shell reporting a 54% increase in annual earnings to $28.6bn (£18bn) - £2.2m an hour.

Peter Voser, the Shell chief executive, said the final three month results for 2011, at $6.4bn, were still lower than he wanted - hit by a "sharp downturn" in refining margins and he warned: "The global economy and energy markets are likely to see high volatility."

The Anglo-Dutch oil group kept its dividend payout to investors steady at 42 cents per share but said it expected to raise this to 43 after the first three months of the new financial year - the first increase since 2009.

Brent crude averaged more than $111 per barrel during 2011 compared with $80 in 2010, helping the company to reap rewards despite a 3% decline in production.

Shell gave no figures for its petrol sales in Britain or the rest of the world and has previously argued that its profit margins on the forecourt are wafer thin as most of the pump price is made up of government tax.

But UK motorists are facing near record prices for diesel and the exit of big companies such as Shell from the British refining sector is blamed by some for making the market more volatile. Shell sold off its Stanlow refinery in Cheshire last year while the financial troubles at the smaller Swiss company, Petroplus, which bought the Coryton plant from BP has led to fears of petrol shortages in the south east of England.

Oil and power supply companies that make up the wider energy sector have been under fire for making increasing profits at a time when motorists and householders are struggling to pay their bills.

Shell shares, down around 2% to £22.30 in early trading, have risen strongly over the last 12 months - 11% over the calendar year while arch-rival BP saw a 1% decline, continuing to be hit by the fallout from the Gulf of Mexico oil spill of 2010.

Meanwhile Shell has been expanding. The company pledged to spend $100bn over four years to 2014 aimed at reversing declining oil output by concentrating on 30 major development projects to come on stream