EuropeStay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder..http://www.brecorder.com/markets/energy/europe.htmlThu, 18 Sep 2014 03:38:42 +0000SRA Framework 2.0en-gbEndesa board approves 8.25 bln eur Enersis stake sale to Enel http://www.brecorder.com/markets/energy/europe/195748-endesa-board-approves-825-bln-eur-enersis-stake-sale-to-enel.htmlhttp://www.brecorder.com/markets/energy/europe/195748-endesa-board-approves-825-bln-eur-enersis-stake-sale-to-enel.html

imageMADRID: The board of Spanish elecricity firm Endesa on Wednesday approved the sale of its Latin American assets to Italian parent group Enel for 8.25 billion euros (10.7 billion US dollar), the firm said in a statement.

The deal, in which Enel will buy the stake of just over 60 percent that Endesa has in Chilean electricity group Enersis , will leave the Spanish group almost entirely focused on its domestic market.

Enel, meanwhile, which owns 92 percent of Endesa, will get more direct control over the Latin American assets as it tries to reduce debts.

Endesa said it would hold an extraordinary general meeting for shareholders on Oct. 21 to get approval for the transaction, and sign off on a proposed cash dividend equal to the value of the sale, which is also part of the transaction.

Copyright Reuters, 2014

]]>
m.iqbal1967@yahoo.com (Muhammad Iqbal)EuropeWed, 17 Sep 2014 18:00:30 +0000
North Sea Crude Forties weakens at prompt on ample supply http://www.brecorder.com/markets/energy/europe/195743-north-sea-crude-forties-weakens-at-prompt-on-ample-supply.htmlhttp://www.brecorder.com/markets/energy/europe/195743-north-sea-crude-forties-weakens-at-prompt-on-ample-supply.htmlimageLONDON: North Sea Forties crude differentials fell on Wednesday as Vitol sold a prompt cargo, although bidding from Total supported the value of cargoes loading further out.

The Brent market remains in contango, indicating ample crude supply in the Atlantic basin, and refinery buying in northwest Europe remains muted despite strong margins.

According to Reuters models, the Brent cracking margin in Rotterdam stands at more than $7 a barrel, almost double the average over the past year.

The status of the Buzzard oilfield, the largest contributor to the Forties stream, was unclear.

Field operator Nexen did not comment on Wednesday after trade sources said it had experienced another outage early Tuesday as it struggled to return from seasonal maintenance.

FORTIES

Vitol sold to Shell its cargo loading on Sept. 27-29 at dated Brent minus 70 cents, down 20 cents from Tuesday's offer.

Total bid for Forties loading on Oct. 7-9 at dated Brent minus 5 cents, up 10 cents from its bid on Tuesday.

Copyright Reuters, 2014

]]>
m.iqbal1967@yahoo.com (Muhammad Iqbal)EuropeWed, 17 Sep 2014 17:43:42 +0000
Restart of paper mills, cooler weather lift spothttp://www.brecorder.com/markets/energy/europe/195737-restart-of-paper-mills-cooler-weather-lift-spot.htmlhttp://www.brecorder.com/markets/energy/europe/195737-restart-of-paper-mills-cooler-weather-lift-spot.htmlimageOSLO: An expected restart of two paper mills in the region and colder weather lifted Nordic spot power prices on Wednesday, analysts said.

The spot price for physical power delivery on Thursday was set at 36.71 euros per megawatt-hours (MWh)on the Nord Pool Spot exchange, up from 36.56 euros/MWh on Wednesday.

The day-ahead power contract on Nasdaq OMX Commodities was last traded at 37.00 euros/MWh, indicating that traders expected a higher delivery price.

"Expected higher consumption due to colder weather and restart of several paper mills helped the spot price," Kristoffer Uppheim, an analyst at Thomson Reuters Point Carbon, said.

Paper mills are one of the biggest power consumers in the Nordic market, and have to report to the power exchange about their closure and restart plans.

The price for delivery in the fourth quarter fell by 30 cents to 35.30 euros/MWh, extending losses from the previous day.

The latest forecasts showed Atlantic lows moving to southern Scandinavia on the weekend, bringing wetter and windier weather towards the end of the next week.

Meteorologists said it was still uncertain whether it will evolve into a longer lasting wet period.

Point Carbon estimated the Nordic water balance the level of water stored in reservoirs, soil and snowpack to be equivalent to 15.7 terrawatt-hours (TWh) below normal.

Taking into account the latest weather forecasts, it is expected to improve to 15 TWh below normal by Oct. 1.

The Nordic market generates about half its electricity from hydropower, meaning that changes in precipitation are an important factor for prices.

Copyright Reuters, 2014

]]>
m.iqbal1967@yahoo.com (Muhammad Iqbal)EuropeWed, 17 Sep 2014 17:22:40 +0000
Oil steadies around $99 on possible OPEC output cuthttp://www.brecorder.com/markets/energy/europe/195735-oil-steadies-around-$99-on-possible-opec-output-cut.htmlhttp://www.brecorder.com/markets/energy/europe/195735-oil-steadies-around-$99-on-possible-opec-output-cut.htmlimageLONDON: Brent crude oil steadied at around $99 per barrel on Wednesday, after jumping on Tuesday on hopes the Organization of the Petroleum Exporting Countries (OPEC) would help reduce a global supply glut by cutting output.

Prices rose by the most in two-and-a-half months on Tuesday after OPEC Secretary General Abdullah al-Badri said the group could trim its 2015 output target by 500,000 barrels per day (bpd). The benchmark had hit a a 26-month low the previous day on rising supplies and signs of slower demand growth in China and Europe.

Many OPEC countries need oil prices above $100 a barrel in order to meet their budget needs and analysts say Saudi Arabia, OPEC's biggest producer, could cut production in an effort to support prices. Any production cut by OPEC, due to meet in November, would be the group's first since 2008.

"It makes sense for Saudi Arabia to curb supply," Michael Poulsen, oil analyst for A/S Global Risk Management, said. "We're a bit in no man's land at the moment ... until we enter the season for higher demand for distillates and heating oil."

Brent was up 23 cents at $99.28 a barrel by 1330 GMT, after closing up $2.40 in the previous session, the biggest daily gain since Sept. 3. U.S. crude was down 21 cents to $94.67 after rising 2.1 percent on Tuesday.

Brent hit a high above $115 a barrel in June on concerns an Islamist insurgency in Iraq could hit oil output in OPEC's second biggest producer. But Iraqi oil exports have been steady and rising U.S. oil production, mostly from shale, has more than compensated for any lost output, creating a huge surplus in the Atlantic Basin and Asia.

Conflict in oil producing regions remains a worry.

Libya's El Sharara oil field was shut after a tank was damaged at the Zawiya refinery, which it supplies, an oil ministry official said on Wednesday, closing around 200,000 barrels a day of output.

Traders kept an eye on Nigeria, where oil workers said they had started a strike that could affect exports.

Oil investors are concerned about the global economic outlook, the strength of the U.S. dollar and the outcome of an independence vote in Scotland that could rock financial markets.

Data from the American Petroleum Institute on Tuesday showed a surprise build of 3.3 million barrels in U.S. crude stocks last week, compared with analysts' expectations of a 1.6 million barrel draw.

The Energy Information Administration will release official inventory data at 1430 GMT.

Copyright Reuters, 2014

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeWed, 17 Sep 2014 17:09:41 +0000
Oil falls below $99 after large stock build in UShttp://www.brecorder.com/markets/energy/europe/195720-oil-falls-below-$99-after-large-stock-build-in-us.htmlhttp://www.brecorder.com/markets/energy/europe/195720-oil-falls-below-$99-after-large-stock-build-in-us.htmlimageLONDON: Brent crude oil fell below $99 per barrel on Wednesday after a bigger-than-expected build in weekly U.S. crude stocks, and a strong dollar continued to create headwinds for commodities.

U.S. crude stocks rose more than twice as much as expected week-on-week, the Energy Information Administration said, as refineries cut output and imports jumped.

Crude inventories were up 3.7 million barrels, compared with analysts' expectations for a decrease of 1.6 million barrels.

Brent was down 42 cents at $98.63 a barrel by 1457 GMT, after closing up $2.40 in the previous session, the biggest daily gain since Sept. 3. U.S. crude was down 86 cents at $94.02 after rising 2.1 percent on Tuesday.

"It looks like we've got extra oil hanging around - that was the initial shock of the number," said Phil Flynn, an analyst at the Price Futures Group in Chicago.

"The number indicates the imports were pretty darn good last week, (which) may be in part because we had a pretty strong dollar situation, I think that's why the number was so big."

The strong dollar remains a significant headwind for oil, as it makes commodities priced in dollars more expensive for buyers using other currencies.

OPEC LOOKS AHEAD

The U.S. crude stock builds were big enough to reverse Brent's rally on Tuesday, when prices had risen by the most in two-and-a-half months.

Brent had been boosted by a statement from Abdullah al-Badri, the Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), saying that the group could trim its 2015 output target by 500,000 barrels per day (bpd).

On Wednesday, others in OPEC were cautious. The group may not need to cut its oil output target at a meeting in November, a Gulf OPEC delegate and other OPEC sources said, as strengthening demand in coming winter months should support oil prices.

The market hoped this might help reduce a global supply glut, which has weighed on physical crude prices in northwest Europe and prompted traders to put large volumes of crude into storage.

Many OPEC countries need oil prices above $100 a barrel in order to meet their budget needs and analysts say Saudi Arabia, OPEC's biggest producer, could cut production in an effort to support prices. Any production cut by OPEC, due to meet in November, would be the group's first since 2008.

"It makes sense for Saudi Arabia to curb supply," Michael Poulsen, oil analyst for A/S Global Risk Management, said. "We're a bit in no man's land at the moment ... until we enter the season for higher demand for distillates and heating oil."

Abundant supplies and weak demand have tended to outweigh worries about conflicts in the Middle East and North Africa over the past month.

Libya's El Sharara oil field was shut on Wednesday after a tank was damaged at the Zawiya refinery, which it supplies, closing around 200,000 barrels a day of output.

But the Islamist insurgency in Iraq has had little impact on Iraqi oil exports to date and rising U.S. oil production, mostly from shale, has more than compensated for any lost output.

In Nigeria, oil workers have gone on strike, but in recent years, similar strikes have not significantly hurt production or exports.

Copyright Reuters, 2014

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeWed, 17 Sep 2014 16:49:07 +0000
Oil prices hold steady http://www.brecorder.com/markets/energy/europe/195685-oil-prices-hold-steady.htmlhttp://www.brecorder.com/markets/energy/europe/195685-oil-prices-hold-steady.htmlimageLONDON: Oil prices steadied on Wednesday as dealers squared positions after the previous day's bumper gains which were stoked by indications the OPEC cartel will cut its production target next year.

The market also awaited the latest energy stockpiles report and an interest rate decision in the United States, traders said.

In early afternoon deals, Brent North Sea crude for delivery in November firmed seven cents to $99.12 a barrel from Tuesday's closing level.

US benchmark West Texas Intermediate for October dipped 46 cents to $94.42 a barrel.

"We are seeing some consolidation in the oil market in Asian hours after news of the OPEC production cut led to gains overnight," Ric Spooner, chief market analyst at CMC Markets in Sydney, told AFP.

Crude futures had rebounded sharply on Tuesday after the head of OPEC indicated that the crude producers' cartel could cut its production target for 2015.

WTI jumped $1.96 on Tuesday while Brent gained $1.17.

In comments widely reported Tuesday, Abdullah El-Badri, secretary-general of the Organization of the Petroleum Exporting Countries (OPEC), said he expected the cartel to trim output in 2015 by about 500,000 barrels per day to 29.5 million.

The cartel is due to hold its next production meeting in Vienna on November 27.

In June, OPEC agreed to keep production at 30 million barrels a day, saying that while demand was picking up, downside risks to the global economy "remain unchecked".

Since the June meeting, oil prices have been in fairly steady retreat, with Brent falling to a two-year low Monday owing partly to concerns about demand in China.

McCarthy said dealers are standing on the sidelines ahead of the release of the latest official US stockpiles data later Wednesday.

Analysts polled by Dow Jones Newswires expect crude reserves to have dropped by 1.2 million barrels on average in the week to September 12.

A key monetary policy statement due to be released by the US Federal Reserve at 1800 GMT on Wednesday will also be in focus, McCarthy said.

Copyright AFP (Agence France-Presse), 2014

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeWed, 17 Sep 2014 14:44:20 +0000
Oil steadies below $99 on talk of OPEC output cuthttp://www.brecorder.com/markets/energy/europe/195666-oil-steadies-below-$99-on-talk-of-opec-output-cut.htmlhttp://www.brecorder.com/markets/energy/europe/195666-oil-steadies-below-$99-on-talk-of-opec-output-cut.htmlimageLONDON: Brent crude oil consolidated around $99 per barrel on Wednesday, recovering from a sharp sell-off, on hopes the Organization of the Petroleum Exporting Countries (OPEC) would help reduce a global supply glut by cutting output.

The benchmark sank to a 26-month low this week on rising supplies and signs of slower demand growth in China and Europe, but prices rallied after OPEC Secretary General Abdullah al-Badri said the group could trim its 2015 output target by 500,000 barrels per day (bpd).

Many OPEC countries need oil prices above $100 a barrel in order to meet their budget needs and analysts say Saudi Arabia, OPEC's biggest producer, could cut production in an effort to support prices. Any production cut by OPEC, due to meet in November, would be the group's first since 2008.

"It makes sense for Saudi Arabia to curb supply," Michael Poulsen, oil analyst for A/S Global Risk Management, said. "We're a bit in no man's land at the moment ... until we enter the season for higher demand for distillates and heating oil."

Brent was down 25 cents to $98.80 a barrel by 0755 GMT, after closing up $2.40 in the previous session - the biggest daily gain since Sept. 3. U.S. crude was down 25 cents to $94.63 after rising 2.1 percent on Tuesday.

Brent hit a high above $115 a barrel in June on concerns an Islamist insurgency in Iraq could hit oil output in OPEC's second biggest producer. But Iraqi oil exports have been steady and exports from Libya have risen sharply in recent weeks.

Rising U.S. oil production, mostly from shale, has also more than compensated for any lost output, creating a huge surplus in the Atlantic Basin and Asia.

Conflict in oil producing regions remains a worry.

Libya's National Oil Corp said on Tuesday output at its El-Sharara oil field had been reduced after rockets landed close to the nearby 120,000 bpd Zawiya refinery.

Traders kept an eye on Nigeria, where oil workers said they had started a strike that could affect exports.

Oil investors are concerned about the global economic outlook, the strength of the U.S. dollar and the outcome of an independence vote in Scotland that could rock financial markets.

Data from the American Petroleum Institute on Tuesday showed a surprise build of 3.3 million barrels in U.S. crude stocks last week, compared with analysts' expectations of a 1.6 million barrel draw.

The Energy Information Administration will release official inventory data at 1430 GMT.

Copyright Reuters, 2014

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeWed, 17 Sep 2014 13:43:54 +0000
UK gas prompt dips on resumed St Fergus flowshttp://www.brecorder.com/markets/energy/europe/195658-uk-gas-prompt-dips-on-resumed-st-fergus-flows.htmlhttp://www.brecorder.com/markets/energy/europe/195658-uk-gas-prompt-dips-on-resumed-st-fergus-flows.htmlimageLONDON: Prompt natural gas prices in Britain dipped on Wednesday following two days of strong gains, as flows resumed at Shell's St Fergus terminal after an unplanned outage on Tuesday.

The day-ahead contract was down 0.2 pence or 0.4 percent at 49.80 pence/therm by 0917 GMT, retreating from a two-week high of 50.45 pence touched in the previous session.

On Tuesday, Shell said some minor unplanned maintenance had impacted flows to St Fergus, but the company failed to flag up the unplanned drop in volume to zero from around 20 mcm/day on Monday evening.

"St Fergus receipts are not yet up to pre-outage levels of 22 million cubic metres. However, some gas has been re-routed through Langeled, mitigating the impact," analysts at Thomson Reuters Point Carbon wrote, referring to the pipeline that connects Britain to Norway.

An appreciating British pound also weighed on prices.

British gas demand, estimated to be 167.9 mcm on Tuesday, was around 8 mcm above forecast supply, according to the National Grid.

Temperatures across the country are also expected to remain above seasonal norms until Sept. 22, meaning likely lower demand for gas.

Front-month prices, however, were 1 percent higher at 51.50 pence/therm on concerns over medium-term disruptions in Russian gas supplies, which accounts for around a third of Europe's total consumption.

"The curve could also be slightly bearish for the prompt depending on how market players view the potential for gas talks next week to lead to a comprehensive agreement between (Ukraine's) Naftogaz and (Russia's) Gazprom," the Point Carbon analysts said.

Russian natural gas flows to the European Union through Slovakia via Ukraine on Wednesday were similar to previous days this week but still down from last week, Slovak pipeline operator Eustream said on Wednesday.

Nominations, or the amount scheduled for entry, totalled 48.9 mcm, Eustream's website showed.

Polish gas pipeline operator Gaz-System said the country was receiving 19-20 mcm of gas per day from its eastern supply route, 20 percent less than gas importer PGNiG had requested.

Copyright Reuters, 2014

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeWed, 17 Sep 2014 13:30:25 +0000
Rosneft calls Khodorkovsky comments on Sistema owner arrest ‘absurd’ http://www.brecorder.com/markets/energy/europe/195597-rosneft-calls-khodorkovsky-comments-on-sistema-owner-arrest-‘absurd’.htmlhttp://www.brecorder.com/markets/energy/europe/195597-rosneft-calls-khodorkovsky-comments-on-sistema-owner-arrest-‘absurd’.html

imageMOSCOW: Russia's top oil producer Rosneft said comments by ex-Yukos chief Mikhail Khodorkovsky linking the house arrest of a the owner of Sistema to Rosneft's interests in the conglomerate's oil assets as "absurd", RIA news agency reported.

"I don't understand why Rosneft has something to do with that? This is absurd," the news agency quoted a Rosneft spokesman as saying on Wednesday. Khodorkovsky, in an interview with Vedomosti business daily, alleged that Rosneft's head, Igor Sechin, was behind the house arrest of Sistema's owner Vladimir Yevtushenkov.

Copyright Reuters, 2014

]]>
s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui)EuropeWed, 17 Sep 2014 08:08:08 +0000
Oil prices rebound as OPEC hints at lower output http://www.brecorder.com/markets/energy/europe/195488-oil-prices-rebound-as-opec-hints-at-lower-output.htmlhttp://www.brecorder.com/markets/energy/europe/195488-oil-prices-rebound-as-opec-hints-at-lower-output.htmlimageLONDON: World oil prices rebounded sharply on Tuesday after the head of OPEC indicated that the crude producers' cartel could cut its production target for 2015.

The widely-reported comments came from Abdullah El-Badri, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), after talks with Russian Energy Minister Alexander Novak in Vienna.

In late afternoon deals, Brent North Sea crude for delivery in November rallied $1.40 to $99.28 per barrel from Monday's closing level.

US benchmark West Texas Intermediate for October leapt $1.65 to $94.57 a barrel.

"Oil prices rose by over $1 per barrel ... after the OPEC meeting in Vienna concluded with OPEC stating that it might reduce oil output by 500,000 barrels per day (bpd) in 2015 to 29.5 million bpd," said Natixis commodities analyst Abhishek Deshpande.

"That should help balance the markets provided Libya and Iraq do not increase production separately.

"OPEC also suggested oil price to rise by end of this year on seasonality."

Vienna-based OPEC -- which comprises crude exporting nations from the Middle East, Africa and Latin America -- will hold its next production meeting in the Austrian capital on November 27.

The cartel's 12 member nations left their collective oil production ceiling at 30 million bpd at their last gathering in June.

"OPEC's secretary-general expects oil prices to recover by the end of the year, and hints that the cartel will decide to reduce its output cap to 29.5 mbpd for next year at its meeting in November," added PVM analysts in a note.

Brent oil prices on Monday had tumbled to a two-year intra-day low of $96.21, dented by abundant global supplies and after weak economic data from top energy consumers the United States and China.

"Brent futures declined to their lowest levels in more than two years yesterday as concerns regarding slowing Chinese growth saw trading volumes decline substantially as investors grew wary of falling demand in the world's second-biggest oil consumer," said Sucden analyst Kash Kamal.

Brent was also pushed lower on Tuesday by technical reasons as speculative traders sold off their positions ahead of Monday's October contract expiry.

US industrial production unexpectedly fell in August by 0.1 percent, after six months of gains. Manufacturing output meanwhile fell 0.4 percent.

The data came after China reported over the weekend that growth in industrial production fell sharply to 6.9 percent in August, the slowest pace in more than five years.

"This (Chinese) data has acted to consolidate current fears for global demand going forward in a time where supply is ample and robust," noted Inenco analyst Dorian Lucas.

Analysts said investors were also awaiting the highly anticipated two-day meeting of the Fed's policy-making committee that begins Tuesday.

They are concerned by the prospect the Fed will begin hiking interest rates sooner than expected, and will be scrutinising statements by the bank's chief Janet Yellen on Wednesday.

The Fed has previously said it would keep interest rates low for a "considerable time" after ending its massive stimulus programme, based on continued weakness in the labour market. Its bond-buying programme is expected to be fully wound down by the end of October.

Copyright AFP (Agence France-Presse), 2014

]]>
imad_kueconomist@yahoo.com (Imaduddin)EuropeTue, 16 Sep 2014 16:59:58 +0000