POST YOUR OIL NEWS, Clips here


"

December 2008 oil prices will be in the region $197 - $210.

WHY?????PLEASE TELL/

Huge sell off again today before the open and now rallying, so far to the close. Inventories tomorrow.20 dollar drop in last week, has the bubble burst, through speculation restriction increased production, decreased demand or is it preparing for a rally on steroids with the next geopolitical/ climatic hiccup , time will tell

DITTO//

EASY MONEY

shadow is not renouned for his forecasting, or maybe he is, in as much as he has this uncanny knack of being totally wrong, but we shall have to wait and see on his 'look into the future'.
2517

Oil extends decline, drops below $128
By GILLIAN WONG 23.07.2008

SINGAPORE (AP) Oil prices slipped further Wednesday after tumbling more than $3 a barrel in the previous session as a hurricane looked likely to spare key oil installations in the U.S. Gulf of Mexico.

Traders in Asia awaited the release of U.S. oil supply data later in the day that was expected to show a rise in gasoline stocks amid weakening demand in the world's largest energy consumer.

Light, sweet crude for September delivery fell 82 cents to $127.60 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract fell $3.40 to settle at $128.42 in the previous session.

The August contract fell $3.09 to settle at $127.95 a barrel as it expired at the end of floor trade.

The overnight sell-off dragged oil prices to their lowest level since early June and was crude's fifth decline in the last six sessions.

Prices fell as Dolly a tropical storm that spun into a hurricane on Tuesday headed toward the U.S.-Mexico border but grew increasingly unlikely to threaten key oil supply in the Gulf. That gave traders one less reason to buy as a strengthening dollar helped keep prices in check.

The drop offered further evidence that investors are now quickly pulling money out of the market, after driving prices to a record above $147 only a week and a half ago. It was also a reminder that, with traders for the moment turning bearish, the absence of major news can push the market down just as incremental supply concerns previously drove prices sharply higher.

"Clearly, there's not a lot of price-supporting news in the market, and what was there has been diminished now with Hurricane Dolly," said Mark Pervan, a senior commodities strategist with ANZ Bank in Melbourne.

"This market's still fundamentally quite strong it's just that we've seen prices coming off from over-inflated levels. The market's letting steam out," Pervan said. "There's genuine reason to be taking profits in this market with the weak U.S demand numbers."

Crude oil inventories were expected to drop by 1.9 million barrels in the U.S. Energy Information Administration's weekly petroleum supply report, according to the average of analysts' estimates in a survey by energy research firm Platts.

The survey also showed that analysts projected gasoline stocks to rise by 500,000 barrels.

"I suspect we'll see another rise in gasoline stocks, highlighting again that demand is certainly weak," Pervan said.

In its weekly pump spending survey, MasterCard found U.S. gasoline demand dropped last week for the thirteenth week in a row. Demand fell 3.3 percent compared with the same week a year earlier, according to the survey. Since the start of 2008, gasoline demand is down 2.2 percent.

In other Nymex trading, heating oil futures lost 1.82 cents to $3.66 a gallon (3.8 liters) while gasoline prices dropped 0.74 cent to $3.1396 a gallon. Natural gas prices added 0.7 cents to $10.074 per 1,000 cubic feet.

September Brent crude fell 74 cents to $128.81 a barrel on the ICE Futures exchange in London.

Oil hits 7-week low on demand worries, dollar gain
By STEVENSON JACOBS 29 July 2008

NEW YORK (AP) Oil prices tumbled more than $2 a barrel Tuesday, finishing at their lowest level in seven weeks as a stronger dollar and beliefs that record prices are eroding the world's thirst for energy sparked another dramatic sell-off.

The drop which surpassed $4 a barrel at one point during the day was a throwback to oil's nosedive over the past two weeks and outweighed supply concerns touched off by a militant attack Monday on two Nigerian crude pipelines. It was oil's seventh decline in the last 10 sessions.

Light, sweet crude for September delivery fell $2.54 to settle at $122.19 on the New York Mercantile Exchange. It was the lowest settlement price for a front-month contract since June 10. Earlier, prices fell to $120.42, also the lowest level since June 10. Oil has now fallen more than $25 from its trading high of $147.27, reached July 11.

More concerns that crude's run-up over the past year has pushed prices to unsustainable levels fed Tuesday's decline. The U.S. Transportation Department said Monday that U.S. drivers logged 9.6 billion fewer vehicle miles in May or 3.7 percent compared to the same period last year, the biggest drop ever for the historically busy summer driving month.

And demand for oil in the U.S. the world's thirstiest consumer continues to fall, dropping by 891,000 barrels per day in May compared the same month a year ago, the Energy Department's Energy Information Administration said Monday.

"We're seeing both statistical and anecdotal evidence of a very rapidly weakening demand picture," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill.

The declines accelerated after oil briefly dipped below $122, a key resistance level that triggered technical selling by computers programmed to dump oil contracts once prices fall under a certain threshold.

"Once we break through $120, we could easily slide through to $100," said Darin Newsom, senior analyst at DTN in Omaha.

Also weighing on prices was a sharply stronger dollar compared to the euro, which made commodities less attractive to investors who have bought oil futures as a hedge against inflation and weakness in the U.S. currency.

The euro bought $1.5584 compared with $1.5752 late Monday in New York.

"It looks like oil is selling off today with the very, very strong dollar and nothing to drive it higher. Quiet seems to be bearish these days," said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service in Wall, N.J.

In another sign that high prices are curbing Americans' consumption for fuel, retail gas prices fell further below the $4-a-gallon mark. The average price of a regular gas fell 1.7 cents to $3.941, according to auto club AAA, the Oil Prices Information Service and Wright Express.

Monday's attack in Nigeria targeted two pipelines believed to be owned by a unit of Royal Dutch Shell PLC and was the latest in a two-year campaign of attacks on the country's oil industry. Shell said a pipeline had been damaged in attacks and that some crude production had been shut down to prevent the oil from spilling into the environment.

The oil company said Tuesday it may not be able to fulfill some oil-export contracts because of the damage. Shell didn't specify how much oil production was cut by the attack or how long repairs would take.

The Movement for the Emancipation of the Niger Delta says it is acting to force the Nigerian federal government to send more oil industry funds to the southern region, which produces all of Nigeria's crude oil but remains impoverished after decades of corrupt and wasteful governance.

Analysts at JBC Energy in Vienna, Austria, estimated the repeated attacks on country's oil installations, Nigeria's output had fallen to just below 1.9 million barrels a day from more than 2.4 million barrels a day in 2005.

Oil market analysts are awaiting U.S. data later in the week for indications of how the world's largest economy could be expected to perform in coming months. Figures for gross domestic product for the second quarter will be released Thursday, while July auto sales and the July employment report are both due Friday.

In other Nymex trading, heating oil futures fell 8.98 cents to settle at $3.4722 a gallon while gasoline prices fell 6.23 cents to settle at $3.0077 a gallon. Natural gas futures rose 5.4 cents to settle at $9.217 per 1,000 cubic feet after trading lower most of the day.

In London, September Brent crude lost $3.13 to settle at $122.71 a barrel on the ICE Futures exchange.

thanks smiler o. always a good read cheers.

;)

Oil falls below $120 as Opec production risesPublished: Tuesday, 5 August, 2008, 01:15 AM Doha Time

LONDON: Oil fell below $120 a barrel yesterday, pressured by evidence of rising Opec output in the midst of declining demand in the US and Europe.
The losses, adding to a record slide from the mid-July peak over $147 a barrel, came despite a storm in the Gulf of Mexico that was curbing oil production, shipping and refining.
Crude futures are down despite a brewing storm and that shows you how momentum has shifted in this market, said Phil Flynn, analyst at Alaron Trading in Chicago.
US light crude fell $4.10 to $121 a barrel by evening after slipping as low as $119.50. London Brent crude dipped $3.55 to $120.63 a barrel.
The losses came after a Reuters survey showed Opec supply rose for a third consecutive month in July mainly because of increased output from the worlds top exporter Saudi Arabia.
The boost in production from Opec comes as soaring energy prices and an economic slowdown cut into consumption in the US and Europe.
The market is focused on falling demand with Opec seen producing more oil, said Alarons Flynn.
The bearish impact was countered by Tropical Storm Edouard, which was barreling across a major oil and gas producing area of the northern Gulf of Mexico.
Traders also were nervous supplies could be disrupted as a result of tension between the West and the worlds fourth largest oil producer, Iran.
Oil supplies already have been disrupted from Nigeria, the worlds No8 oil exporter, as a result of militant attacks that have cut about a fifth of its production. Reuters

http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=233829&version=1&template_id=48&parent_id=28

ADRL - New Contract In United Kingdom: Drilling Of Gas Storage Caverns


Ability Drilling AS Date: 6 August 2008

New contract in United Kingdom: Drilling of gas storage caverns

Ability Drilling has been awarded a contract with an estimated value of NOK 100 million for drilling of gas storage caverns with Scottish and Southern Energy plc ("SSE"). The contract is for drilling operations related to the Aldbrough Gas Storage Project II, Eastern York. The project is a 50/50 joint venture between SSE and StatoilHydro.

The Aldbrough Gas Storage Project II is the second project for storage of natural gas underground in the area by the two companies. The development of the gas storage area was started in 2002, and the actual project is the second phase of the total development. The contract covers drilling of nine wells, which will subsequently be leeched to caverns (so far not part of the contract). The leaching contract will be awarded during drilling of these 9 wells. The caverns will have a storage capacity of 420 million cubic metres. This equals to the supply of gas in one day to more than 6 million homes. Ability Drilling's operations in this project will commence in Q4 2009 and will last for approximately two years with one rig.

CEO in Ability Drilling Hans Petter Eikeland comments: "We are proud to be awarded this important contract with such a well-reputed company as Scottish and Southern Energy. It is also a pleasure for the management and crew in Ability Drilling to again work with StatoilHydro, who we know very well from the Norwegian Continental Shelf".

Gas storage is a central part of the UK's strategy for handling more imports of gas. It secures the required flexibility in reserves for the country. Strategically, gas storage also increases energy independence. Other countries also evaluate development of more gas storage caverns. Says Mr. Eikeland, "we experience growing interest for the storage concept and believe this market will grow rapidly."

The gas storage caverns are created using well known and proven technology and drilling processes. Directional drilling is used from a central area down to the salt strata. In Aldbrough, this area is about 1700 metres underground. After drilling is completed, the leaching process starts by pumping seawater into the boreholes to dissolve the salt and form the cavern. The natural gas will then be pumped into the caverns and stored under high pressure.

"Some of Ability Drilling's competitive edges, high focus on QHSE and more environmental friendly operation, were crucial in winning this contract," says Mr. Eikeland, who expects the contract will pave the way for new opportunities in the gas storage market.

For further information, please contact:

CEO Hans Petter Eikeland, phone +47 56 32 43 43, or +47 93 20 81 77 CFO Kenneth Tunes, phone +47 56 32 43 43, or +47 91 54 49 01

About Ability Drilling ASA: Ability Drilling aims to become the preferred operator and provider of Rack & Pinion (R&P) rigs in its defined core markets, by combining fourth generation drilling technology with outstanding drilling experience from offshore North Sea exploration and production activities.

The Company currently targets onshore oil operations in the MENA (Middle East North Africa) market, the geothermal market in Europe, as well as the market for drilling of LNG reservoirs. Both the land rig market in MENA and the geothermal segment in Europe are markets with strong growth and significant potential, while the market for drilling of LNG reservoirs is an emerging growth segment. Ability Drilling targets extension of the geographical footprint within all current focus areas.

Ability Drilling has already ordered 11 rigs, of which 10 rigs are still under construction. In addition, the company has options for 33 additional land rigs and 40 additional workover rigs. Ability Drilling's target is to have 20 rigs in operation within 2010.

Ability Drilling is listed on Oslo Axess, with ticker ADRL.

Ability Drilling AS

http://www.ability-drilling.com/

Business, 8/7/2008 11:52 AM August 7, 2008
World oil prices move up slightly in Asian trade

Agence France-Presse

SINGAPORE - Oil prices were slightly higher in Asian trade Thursday after steep falls in recent sessions on worries about waning energy demand, especially in the United States, dealers said.

In morning trade, New York's main contract, light sweet crude for September delivery, rose 30 cents to 118.88 dollars a barrel.

London's Brent North Sea crude for September delivery added 45 cents to 117.45.

"I think it's partly that it has been such a big sell-off (in recent sessions)," said Jason Feer, from energy market analysts Argus Media in Singapore.

Oil prices have tumbled this week on new concerns about demand amid signs of slowing global growth. Crude is down almost 20 percent since reaching record highs above 147 dollars last month.

Prices fell Wednesday after an unexpected jump in US crude reserves but a bigger-than-expected drop in gasoline stockpiles was the other surprise element for the market.

The US Department of Energy announced in its weekly report Wednesday that American crude reserves increased by 1.7 million barrels in the week ended August 1.

The reading caught the market off guard because expectations had been for a 200,000-barrel decline. The weekly report often has an impact on market prices.

Motor fuel stockpiles plunged 4.4 million barrels, well beyond consensus forecasts for a drop of 1.5 million.

"The gasoline numbers have probably raised enough doubts in traders' heads... they probably want to see some more data to see if that is the trend," said Feer.

Traders are closely tracking the level of US gasoline stockpiles amid the ongoing peak-demand summer driving season, when many Americans take to the roads for their holidays

Oil dips to near $119 on stronger dollar
Staff and agencies
08 August, 2008




By ALEX KENNEDY, Associated Press Writer 13 minutes ago

SINGAPORE - Oil prices dropped to near $119 a barrel Friday in Asia as a strengthening dollar and worries about economic growth offset supply concerns over Turkish pipeline sabotage that was claimed by Kurdish rebels.

The gains Thursday in the U.S. came after pro-Kurdish news agency Firat said the separatist group Kurdistan Workers Party, known as PKK, admitted sabotaging the Turkish section of the critical Baku-Tbilisi-Ceyhan pipeline earlier this week.

But the dollar has also strengthened against the euro and yen after the European Central Bank and the Bank of England both left their benchmark interest rates unchanged under conflicting pressure from higher inflation and mounting concern about economic growth.

The central banks actions fed investors sentiment that economic growth is slowing in the developed world, cutting demand for crude, said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney.

In London, September Brent crude was down 84 cents at $117.02 a barrel on the ICE Futures exchange.

"The disruptions to that pipeline have provided some support to oil prices," Moore said.

Nymex front-month crude futures are down about 18 percent from a record high of $147.27 hit on July 11.

Oil prices turn bearish, but bulls may yet return

9 Aug, 2008, 1000 hrs IST, AGENCIES

NEW YORK: In less than a month crude oil, which some saw hitting $200 a barrel by year-end, has plunged $32 but a rebound could happen, for example, over the Iranian nuclear crisis, analysts say.

From a record-high $147.27 on July 11, the New York futures contract slid to about $115 on Friday, losing almost 22 per cent in the course of four weeks.

In its wake, most other commodity prices, which were driven higher by the oil market surge, have fallen from their peaks: an ounce of gold has dropped to 800 dollars from 1,000; farm commodity prices are between 25 and 40 per cent lower and gasoline prices have dropped about 6.0 per cent.

"Oil is at a tipping point. It is an exaggeration to cry that a bubble has burst. It is a break," said Ellis Eckland, an independent analyst based in Chicago who insisted the "oil market was not in a bubble."

For James Williams at WTRG Energy, the law of supply and demand reins. "The market is simple reflecting the fundamentals of supply and demand. Markets participants are considering the world slowdown, the deterioration in expectations for the growth worldwide," Williams said.

Russian warships are deployed near ports along the Georgian Black Sea coast, including Poti, where Georgian officials say wheat and fuel shipments are being blocked. Russia insists there are no plans to stop oil exports, but says it reserves the right to search any ships. Later reports say the warships have been withdrawn.

UPDATE 1-Oil rises towards $116 on military conflict in Georgia
Mon Aug 11, 2008 6:09am Oil up on fighting between Georgia and Russia

* Shipments of oil and oil products from two Georgia ports suspended, according to a report


By Fayen Wong

PERTH, Aug 11 (Reuters) - Crude oil rose towards $116 a barrel on Monday, rebounding from the previous session's $5 decline on concern fighting between Russia and Georgia could disrupt energy exports from the Caspian region.

U.S. light crude for September delivery CLc1 was up 51 cents at $115.71 a barrel by 0026 GMT, after rising as much as $1.19 earlier.

The contract had finished $4.8 lower at $115.20 a barrel on Friday, before falling to $114.90 in post-settlement trade, the lowest level since early May.

Oil has shed about $31, or 21 percent, since its peak of over $147.27 struck on July 11 on concerns of a slowdown in demand.

London Brent crude LCOc1 rose 66 cents to $113.99 on Monday. Continued...

http://in.reuters.com/article/oilRpt/idINSYD9643720080811

Georgia, oil and gold
Published: August 11 2008 19:17 | Last updated: August 11 2008 19:17

War, what is it good for? Neither oil nor gold is the surprising answer. The explosion of the South Ossetian powder keg should have sent crude and gold prices soaring. Instead, both are down 4 per cent since Thursday. This is odd. Gold rises on geopolitical frisson. And Georgia is a transit route for Caspian oil to Europe.

Why are oil bulls and goldbugs so quiescent? With oil consumption falling in North America and recessionary signals coming from Europe, weak demand trumps geopolitics. Moreover, one of the pipelines crossing Georgia was shut down already and that had failed to support oil prices even before the shooting started.

EDITORS CHOICE
Explorers struggle to secure growth funding - Aug-10In depth: Oil - Apr-29Wildcatters come up to scratch - Jul-28Shell leads as big oil raises R&D by 16% - Jul-28Oil innovation after years of caution - Jul-28Brown seeks US support for action on prices - Jul-24

Oil falls to USD 114.45 a barrel


Oil prices tumbled on Monday, August 11 on worries about slowing global demand and a stronger dollar.

Light, sweet crude for September delivery fell 75 cents to settle at USD 114.45 a barrel on the New York Mercantile Exchange (NYMEX).

Gasoline futures fell 2.08 cents to settle at USD 2.8666 a gallon. The retail price of a gallon of regular gas stood at USD 3.81.

Heating oil futures fell 0.85 cent to settle at USD 3.1195 a gallon at the NYMEX.

In London, Brent crude futures fell 66 cents to settle at USD 112.67 a barrel on the ICE Futures exchange.

Natural gas futures rose by 10.1 cents to USD 8.349 per 1,000 cubic feet.

Oil steady near $113 ahead of inventory data
By ALEX KENNEDY 6 hours ago

SINGAPORE (AP) Oil prices were steady near $113 a barrel Wednesday in Asia ahead of weekly oil and gasoline inventory data that may show further evidence of declining crude demand in the U.S.

The U.S. Energy Department's Energy Information Administration was to report on U.S. oil stocks for the week ended Aug. 8 later in the day. The petroleum supply report was expected to show that crude stocks rose by 500,000 barrels, according to the average of analysts' estimates in a survey by energy research firm Platts.

Light, sweet crude for September delivery rose 7 cents to $113.08 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract dropped $1.44 overnight to settle at $113.01 a barrel.

Investors "have taken profits as they've seen demand destruction in the U.S. and they're seeing it spread a little into Europe," said Jonathan Kornafel, Asia director for brokerage Hudson Capital Energy in Singapore.

The Platts survey also showed that analysts projected gasoline inventories to have fallen 2.2 million barrels and distillates to have risen 1.9 million barrels during last week.

The International Energy Agency lowered its forecast on Tuesday for oil product demand from 30 developed countries, located mostly in Europe and North America, to 48.6 million barrels a day, down 1.3 percent from last year.

The Paris-based energy watchdog's report arrived a day after China said its crude imports in July, while historically strong, were down 7 percent from the same month last year.

The IEA cautioned that it is too early to determine whether the recent fall in oil prices is a longer-term trend. It said demand in developing countries could offset declines in developed nations, and that it sees Chinese oil demand continuing to grow at a robust pace.

"The question is where will the number level off at for China in the next few months," Kornafel said. "China is an enormous driver for the price of oil, along with India, Brazil and the Middle East."

In London, Brent crude for September delivery rose 40 cents to $111.55 a barrel.

Oil prices were supported by a weakening dollar. The euro rose Wednesday to $1.4927, while the dollar fell to 108.50 yen.

Nymex crude is down about $34, or 23 percent, from its high of $147.27 on July 11.

"I think a drop of 20 percent is a bit over done," Kornafel said. "We've fallen too far, too fast. I expect the market to sit between 110 and 120 in the short-term."

In other Nymex trading, heating oil futures rose 0.24 cent to $3.0805 a gallon (3.8 liters) while gasoline prices gained 0.93 cent to $2.8525 a gallon. Natural gas futures rose 4.8 cents to $8.378 per 1,000 cubic feet.

Crude oil prices continue to rise 14/08/2008

Oil prices hit record highs in July
Oil prices have continued to climb in early trade in Asia after US government weekly figures on Wednesday showed a drop in oil and petrol inventories.

After adding $3 following the news, US light sweet crude continued to climb on Thursday, adding 86 cents to stand at $116.86 a barrel in Singapore trade.

And London Brent climbed 72 cents to $114.19, extending overnight gains.

Disruptions to exports from the Caspian region following the Georgia-Russia clashes had also underpinned prices.

Opec option

Oil giant BP had closed an oil pipeline and a natural gas pipeline running from its Caspian Sea fields through Georgia but neither have been damaged.

On Thursday morning it said it had restarted pumping through the gas pipeline, known as the South Caucausus gas pipeline.

Another BP pipeline that runs through Georgia, the Baku-Tblisi-Ceyhan oil pipeline, was closed last week after an explosion in Turkey.

Meanwhile Iran's Opec governor Muhammad Ali Khatibi has said this week that the cartel of oil producing nations should trim its oil output if demand falls in industrialised nations.

Despite the recent rises prices remain well off the peak of $147 a barrel hit in July.

"There are not that many factors that can drive prices higher," said Gerard Burg, a commodities analyst at National Australia Bank.

Government data

As the US economy slows, demand for oil has fallen and there are predictions that this trend will continue.

On Wednesday the US Energy Department's (EIA) Energy Information Administration data showed that crude oil imports had been hit by tropical storm Edouard.

Petrol stocks fell 6.4 million barrels to 202.8 million barrels in the week ending August 8 - marking a fall three time greater than expected, the EIA data showed.

But data from the EIA also showed that demand for oil in the first half of 2008 saw its sharpest drop in 26 years, compared to a year before.