Europe Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. http://www.brecorder.com/markets/energy/europe.html Mon, 24 Nov 2014 17:37:02 +0000 SRA Framework 2.0 en-gb Oil steadies around $80 as Iran deadline extended http://www.brecorder.com/markets/energy/europe/206652-oil-steadies-around-$80-as-iran-deadline-extended.html http://www.brecorder.com/markets/energy/europe/206652-oil-steadies-around-$80-as-iran-deadline-extended.html imageLONDON: Brent crude oil stabilised around $80 a barrel on Monday as world powers extended talks with Iran over its nuclear programme, maintaining sanctions and preventing an immediate increase in Iranian oil supply to world markets.

The decision came ahead of a key meeting of OPEC to discuss production in response to a collapse in oil prices. British Foreign Secretary Philip Hammond said the talks between Iran and six world powers had made clear progress and would resume next month.

Negotiators had until June to come up with a comprehensive deal.

Iran has reduced its stockpile of low-enriched uranium gas and taken other actions to comply with the terms of last year's interim nuclear agreement.

Brent was trading at $80.00 a barrel, down 36 cents, by 1440 GMT.

The contract hit a one-week high of $81.61 on Friday.

US crude was also down 15 cents at $76.36.

Oil prices have fallen 30 percent since June, with Brent plunging from a high above $115 and US crude from above $107. Ministers from the Organization of the Petroleum Exporting Countries meet on Nov. 27 and may decide to cut output.

Iran, alongside fellow OPEC members Libya and Venezuela, has urged fellow crude producers to support oil prices through production cuts ahead of the cartel's meeting.

Fund managers say oil prices could plunge to $60 a barrel if the OPEC fails to make significant cuts to reduce an oversupply on world markets.

"The longer the price stays weak, the more amicable OPEC members will be to follow a collective course of action that involves cutting," said Harry Tchilinguirian, senior oil strategist at French bank BNP Paribas.

"The most likely scenario is that we get a cut of 1 million barrels per day (bpd), maybe a bit more."

In desperate need of higher oil prices to support its economy, Russia made a last ditch attempt to sway the OPEC decision on Monday, suggesting it could cut oil production by around 15 million tonnes a year (300,000 bpd) from next year.

Russian Energy Minister Alexander Novak said on Monday there was a possibility of an OPEC output cut but "it is not high".

A cut in Chinese interest rates on Friday helped bolster oil prices, raising expectations that demand could be stimulated in the world's biggest energy market.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Mon, 24 Nov 2014 15:17:59 +0000
Oil starts week with gains as OPEC moves into focus http://www.brecorder.com/markets/energy/europe/206584-oil-starts-week-with-gains-as-opec-moves-into-focus.html http://www.brecorder.com/markets/energy/europe/206584-oil-starts-week-with-gains-as-opec-moves-into-focus.html imageLONDON: Global oil prices firmed Monday, making a positive start in a week that will be centred on the OPEC cartel's output meeting, dealers said.

Nearing midday, Brent North Sea crude for delivery in January rose four cents to $80.40 a barrel.

US benchmark West Texas Intermediate for January advanced 15 cents to $76.66 per barrel.

The Organization of the Petroleum Exporting Countries (OPEC) will hold one of its most significant meetings in recent years on Thursday, with members under pressure to address slumping prices and protect their precious revenues.

The oil market has tumbled 30 percent since June on the back of plentiful supplies, the stronger dollar, and growing doubts about both global demand and economic growth.

Before the weekend, crude futures had rallied Friday on China's surprise interest rate cuts and rising expectations that the 12-nation OPEC cartel could decide to reduce its collective production ceiling.

"Activity (on Monday) looks to extend the positive moves seen towards the end of last week as investors position themselves ahead of OPEC's meeting in Vienna later on this week," said Sucden brokers analyst Kash Kamal on Monday.

"Prices have found support around Friday's close and with speculation among investors that Iranian oil minister, Bijan Namdar Zanganeh may propose a 1.0 million barrels per day production (mbpd) cut to OPEC members to Saudi Arabia's vocal oil minister, Ali Al-Naimi.

"We could see further upside potential in the coming sessions."

OPEC's poorer members, led by Venezuela and Ecuador, have called publicly for output to be slashed, while Iran has also hinted at a need to reduce production.

But the cartel's Gulf members, led by kingpin Saudi Arabia, are rejecting such calls unless they are guaranteed market share in the highly competitive arena, according to analysts.

- Choppy trading ahead -

"All eyes will be on the OPEC meeting in Vienna and how members are going to react to the falling prices," said Daniel Ang, investment analyst with Phillip Futures in Singapore, adding the market is divided on what action the cartel will take.

"Although oil bulls take the stand that OPEC would likely be cutting production to help support prices, we take the contrary view and expect that OPEC would unlikely be doing so," he said.

"With Libya resuming their production and OPEC's combined production already lower than past years, we believe that cuts in OPEC output are unlikely."

The market is however expected to experience choppy trade on Thursday, with many US traders absent for the Thanksgiving holiday.

"Even with this being a short week, courtesy of Thanksgiving, there will be plenty for US traders to get their teeth into, on top of the usual turkey," added analyst Alastair McCaig at trading firm IG.

"With OPEC meeting on Thursday and oil prices still struggling around the $80 level, Wednesday's US oil inventories result has taken on a little more meaning."

OPEC produces about one third of global crude at more than 30 million barrels per day. However, the cartel's actual output stood at 30.6 mbpd in October, according to estimates from the International Energy Agency.

The sliding oil prices are hurting producers hard. Russia's finance minister said Monday the tumbling prices were translating into economic damage worth "some $90 to $100 billion per year".

Copyright AFP (Agence France-Presse), 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Mon, 24 Nov 2014 12:25:20 +0000
Ghana says signs oil and gas exploration deal with Italy's ENI http://www.brecorder.com/markets/energy/europe/206544-ghana-says-signs-oil-and-gas-exploration-deal-with-italys-eni.html http://www.brecorder.com/markets/energy/europe/206544-ghana-says-signs-oil-and-gas-exploration-deal-with-italys-eni.html imageACCRA: Ghana's government said on Monday it had signed a $6 billion deal to allow Italy's Eni Exploration to start oil and gas work at the Offshore Cape Three Points block and deploy a third floating production storage and offloading (FPSO) vessel.

The deal is subject to parliamentary approval and the block should start producing oil and gas by mid-2017, a statement said. Ghana produces around 100,000 barrels per day from the offshore Jubilee field. It plans to start production of oil and gas from the TEN field in 2016.

Copyright Reuters, 2014

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parvezjabri@yahoo.com (Parvez Jabri) Europe Mon, 24 Nov 2014 09:34:44 +0000
Oil price seen falling to $60 if OPEC does not cut output http://www.brecorder.com/markets/energy/europe/206507-oil-price-seen-falling-to-$60-if-opec-does-not-cut-output.html http://www.brecorder.com/markets/energy/europe/206507-oil-price-seen-falling-to-$60-if-opec-does-not-cut-output.html imageLONDON: Oil prices could plunge to $60 a barrel if OPEC does not agree a significant output cut when it meets in Vienna this week, market players say.

Brent crude futures have fallen 34 percent since June to touch a four-year low of $76.76 a barrel on Nov. 14, and could tumble further if OPEC does not agree to cut at least 1 million barrels per day (bpd), commodity fund managers say.

"The market would question the credibility of OPEC and its influence on global oil markets if there was no cut," said Daniel Bathe, of Lupus alpha Commodity Invest Fund.

That could send Brent down to around $60, Bathe said.

"Herding behaviour and a shift to net negative speculative positions should accelerate the price plunge," he added.

Fund managers are divided over whether OPEC will reach an agreement on cutting output. Bathe put the likelihood at no more than 50 percent.

The oil price has been falling since the summer due to abundant supply -- partly from US shale oil -- and low demand growth, particularly in Europe and Asia. As a result, some investors believe a small cut -- of around 500,000 bpd -- would not be enough to calm the markets.

Doug King, chief investment officer of RCMA Capital, sees Brent falling to $70, even with a cut of 1 million bpd.

If OPEC fails to agree a cut, prices will drop "further and quite quickly", with US crude possibly sliding to $60, he said. US crude closed at $76.51 on Friday, with Brent just above $80.

"OIL WAR" With member states struggling to balance budgets, many OPEC countries will be pushing for an output cut.

"Prices below $80 are putting significant strain on the cartel's weakest members such as Venezuela," said Nicolas Robin, a commodities fund manager at Threadneedle.

He said a bigger cut -- of 1 million bpd or more -- was an "outlier scenario", but such a move would rapidly push prices above $85.

"A move higher would likely be accelerated by the lack of liquidity owing to the US (Thanksgiving) holiday next week," Robin added.

Doug Hepworth of Gresham Investment Management said: "A surprise significant cut, say of 2 million bpd, is needed to push prices back up to $80. And that would have to be accompanied by some new-found discipline in the non-Saudi members."

The market has been awash with conspiracy theories as to why Saudi Arabia has not already intervened. New York Times columnist Thomas Friedman hinted at "a global oil war under way pitting the United States and Saudi Arabia on one side against Russia and Iran on the other."

Tom Nelson, of Investec Global Energy Fund, said Saudi Arabia had allowed the price to fall to incentivise the smaller OPEC producers, which often rely on the biggest producer to intervene, to join Riyadh in cutting output.

"They (the Saudis) want to cut but they don't want to cut alone," Nelson said, adding that a cut of between 1 million and 1.5 million bpd should be sufficient to balance the market.

"The market really wants to see that OPEC is still functioning ... if there is a small cut, with an accompanying statement of coherence from OPEC that presents a united front, and talks about seeing demand recovery, and some moderation of supply growth, then Brent could move up to $80-$90

Copyright Reuters, 2014

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parvezjabri@yahoo.com (Parvez Jabri) Europe Mon, 24 Nov 2014 06:23:12 +0000
Oil nears $80 on possible OPEC cut, strong US data http://www.brecorder.com/markets/energy/europe/206246-oil-nears-$80-on-possible-opec-cut-strong-us-data.html http://www.brecorder.com/markets/energy/europe/206246-oil-nears-$80-on-possible-opec-cut-strong-us-data.html imageLONDON: Brent crude oil rose towards $80 a barrel on Friday on speculation OPEC could agree output cuts at a meeting next week, with strong US economic data also bolstering prices.

Venezuela reiterated its call for production cuts, with Foreign Minister Rafael Ramirez saying it was willing to curb its own output if the Organization of the Petroleum Exporting Countries agreed to reduce production at its Nov. 27 gathering. Libya and Ecuador have also called for OPEC to cut output.

Iran urged fellow OPEC members to shore up oil prices, which have fallen 30 percent since June as new supplies from North America have overwhelmed demand at a time of lacklustre global economic growth.

"I hear more and more sounds indicating that markets are expecting a possible cut in OPEC production, from a more balanced view earlier," said Hans van Cleef, senior energy economist at Dutch bank ABN Amro in Amsterdam.

"Even if OPEC cuts production without altering its output target, it is moderately bullish," van Cleef added. Speculation over what OPEC might do pushed Brent to a high of $80 a barrel in early Asian trade on Friday and US crude futures rose nearly $1.

Brent was up 30 cents at $79.63 a barrel by 0850 GMT after jumping $1.23 in the previous session.

The benchmark could snap an eight-week slide if the gains are sustained on Friday. US crude was up 40 cents at $76.25 a barrel after gaining $1 in the previous session.

Oil prices were supported by a raft of US economic data showing the world's largest economy and single biggest oil consumer was growing faster than many economists had expected.

Factory activity in the US mid-Atlantic region expanded in November to its highest level in 21 years, while home resales rose to an annual rate of 5.26 million units, the highest since September 2013.

Investors kept a wary eye on talks in Vienna between Iran and the big world powers over Tehran's nuclear programme.

Sharp divisions remain at the talks, which could result in the tightening, or ending, of sanctions that have severely restricted the Islamic state's oil exports.

Officials have said the nuclear talks could be extended to March from Nov. 24.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Fri, 21 Nov 2014 15:13:17 +0000
Oil market climbs on new hopes of OPEC output trim http://www.brecorder.com/markets/energy/europe/206209-oil-market-climbs-on-new-hopes-of-opec-output-trim.html http://www.brecorder.com/markets/energy/europe/206209-oil-market-climbs-on-new-hopes-of-opec-output-trim.html imageLONDON: Global oil prices rallied Friday on fresh hopes that the OPEC cartel will overcome internal resistance to trim output, while upbeat US economic data also provided support, analysts said.

Nearing midday, Brent North Sea crude for delivery in January jumped $1.27 to $80.60 a barrel.

US benchmark West Texas Intermediate for January advanced 93 cents to $76.78 per barrel.

"Brent ... rose to $80 a barrel on Friday on speculation that OPEC could agree to output cuts at its meeting next week, with strong US economic data also bolstering oil prices," said ETX Capital analyst David Papier.

Prices recovered slightly after three days of losses owing to "changing expectations" on the outcome of an OPEC production meeting on November 27, added analysts at Singapore's United Overseas Bank (UOB).

"Investors are now speculating that OPEC will be able to agree to a small cut or a stronger commitment to rein in excess oil production and keep to its 30-million barrels per day quota," UOB said in a commentary.

Despite a drop of more than 25 percent in prices since June, the Organization of the Petroleum Exporting Countries (OPEC) has been divided on whether to reduce output and prevent further falls.

Cartel kingpin Saudi Arabia has so far resisted calls for a cut, in contrast to Ecuador and Venezuela.

Venezuela is ready to cut its own oil production as a way to boost falling prices if OPEC agrees to curb output, Foreign Minister Rafael Ramirez said Thursday.

Ramirez, who served as oil minister for 12 years until September and as longtime president of the state oil firm PDVSA, said the fair price for a barrel of oil is $100.

He said his country would make the proposal for cuts when OPEC holds talks in Vienna next week.

But Gulf members of OPEC, led by Riyadh, are poised to reject production cuts unless they are guaranteed market share in a highly competitive market, according to analysts.

The kingdom, which is the world's top producer, earlier this month slashed prices on exports in order to maintain market share.

Crude futures had risen on Thursday following strong economic reports from the United States -- the world's biggest oil consumer -- which offset disappointing data from China and the eurozone.

A regional manufacturing index from the Federal Reserve Bank of Philadelphia surged unexpectedly, while the Conference Board's Leading Economic Index also improved.

US existing-home sales gained in October for the second straight month.

Copyright AFP (Agence France-Presse), 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Europe Fri, 21 Nov 2014 12:44:08 +0000
Oil steadies above $78 as market awaits OPEC http://www.brecorder.com/markets/energy/europe/206072-oil-steadies-above-$78-as-market-awaits-opec.html http://www.brecorder.com/markets/energy/europe/206072-oil-steadies-above-$78-as-market-awaits-opec.html imageLONDON: Brent crude oil steadied above $78 a barrel on Thursday as reports that oil producers would agree to cut output next week offset weak economic data from China and Europe.

Ministers from the Organization of the Petroleum Exporting Countries will meet in Vienna on Nov. 27 to decide how to respond to a collapse in oil prices that have fallen more than 30 percent in five months.

The chances of an OPEC agreement to cut production aimed at bolstering the market have risen in recent days, analysts say, citing meetings between the top members of the cartel.

Saudi Arabia's King Abdullah said on Twitter on Thursday he had an "important phone conversation" with Iranian President Hassan Rouhani, but gave no details.

Brent was up 25 cents at $78.35 a barrel by 1315 GMT after closing 37 cents down in the previous session. U.S. crude was down 15 cents at $74.43 a barrel.

Austrian consultancy JBC Energy said on Thursday they expected OPEC to agree to reduce their collective crude oil production by at least 1 million bpd in an attempt to clear some of the heavy overhang of excess supply.

"If anything, the cut could be bigger," JBC Energy said in a note to clients.

Oil prices have come under intense pressure over the last few months as North American shale oil production of high quality, light oil has overwhelmed demand at a time of lacklustre economic growth in many parts of the world.

A survey on Thursday showed euro zone business growth weaker than expected by any forecasters this month and new orders down the first time in more than a year. A survey of China's manufacturing also came in weaker than expected.

"We've had disappointing data from China and Europe, and U.S. crude inventories are high, so there's plenty of supply, but tepid demand," said Michael Hewson, chief market analyst at CMC Markets.

Investors also awaited economic data from the United States on Thursday, including figures on U.S. manufacturing and home sales.

U.S. crude stockpiles unexpectedly rose by 2.6 million barrels last week, supported by an increase in oil imports, data from the U.S. Department of Energy's Energy Information Administration showed on Wednesday.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Europe Thu, 20 Nov 2014 16:15:38 +0000
Oil market drops as OPEC seen holding output ceiling http://www.brecorder.com/markets/energy/europe/206028-oil-market-drops-as-opec-seen-holding-output-ceiling.html http://www.brecorder.com/markets/energy/europe/206028-oil-market-drops-as-opec-seen-holding-output-ceiling.html imageLONDON: Global oil prices fell Thursday as traders deemed that the OPEC cartel was unlikely to trim output at its key production meeting next week.

Nearing midday, Brent North Sea crude for delivery in January dipped 40 cents to $77.70 a barrel.

US benchmark West Texas Intermediate for December slid 25 cents to $74.33 per barrel.

"The Brent price fell ... below the $78 per barrel mark because any major cut in OPEC production is regarded as increasingly unlikely," said Commerzbank analysts.

"The minimum consensus that appears likely to be reached at OPEC's meeting is a commitment to better comply with the official production target of 30 million barrels per day."

The Organization of the Petroleum Exporting Countries (OPEC), which will meet in Vienna on November 27, pumps about a third of global crude and currently produces just under 31 million bpd. That is around one million more than its official target.

"The market is keenly watching the outcome of the OPEC meeting next week," said Sanjeev Gupta, head of the Asia-Pacific oil and gas practice at business consultancy EY.

Gulf members of OPEC, led by kingpin member Saudi Arabia, are poised to reject production cuts unless they are guaranteed market share in a highly competitive market, analysts said.

Analysts say the stance of Gulf nations will be crucial for a positive decision on reducing supplies to boost prices, which have fallen around 30 percent since June.

Saudi Arabia, Qatar, the United Arab Emirates and Kuwait together pump a total 16.2 million barrels per day, or 52 percent of the 12-member cartel's total output.

They account for two thirds of the group's exports, according to figures from OPEC and other agencies.

"It is extremely unlikely for Gulf states to accept output cuts unless other OPEC members take the initiative... They need assurances other OPEC or non-OPEC producers won't fill the gap," Kuwaiti oil expert Kamel al-Harami told AFP.

"It is not in the interest of the Gulf states to cut output because they risk losing highly valuable market share," the former oil executive said.

OPEC members Venezuela, Ecuador and Iran have so far indicated a preference for an output reduction in order to defend prices.

Sentiment also soured on Thursday as weak Chinese manufacturing data stoked demand worries in the world's top energy consuming nation.

Manufacturing activity in China stagnated in November, British banking giant HSBC said Thursday, warning of "significant" pressures on the world's second-largest economy as its key purchasing managers' index (PMI) hit a six-month low.

HSBC's preliminary PMI for the month came in at the 50.0 breakeven point dividing expansion and contraction, the bank said in a statement.

It was lower than October's 50.4 and was the weakest reading since May's 49.4, according to the bank's data.

"China PMI data only goes to highlight uncertainty of global (oil) demand," added analyst Michael van Dulken at trading firm Accendo Markets.

The index tracks activity in China's factories and workshops and is a closely watched indicator of the health of the economy, a key driver of global growth.

Copyright AFP (Agence France-Presse), 2014

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imad_kueconomist@yahoo.com (Imaduddin) Europe Thu, 20 Nov 2014 13:11:51 +0000
UK gas prompt gas prices rise on lower Norwegian supplies http://www.brecorder.com/markets/energy/europe/206004-uk-gas-prompt-gas-prices-rise-on-lower-norwegian-supplies.html http://www.brecorder.com/markets/energy/europe/206004-uk-gas-prompt-gas-prices-rise-on-lower-norwegian-supplies.html imageLONDON: Prompt natural gas prices in Britain rose on Thursday morning as lower supplies from Norway led to an undersupplied system.

Prices for within-day delivery were trading at 56.20 pence per therm at 0940 GMT, up 1.15 pence from their last settlement. Prices for delivery on Friday were up 0.90 pence at 56.00 pence per therm.

With supply flows at about 229.7 million cubic metres per day (mcm/d) and demand expected to be about 254.9 mcm, the system was 25.2 mcm undersupplied, National Grid data showed.

Norwegian imports via the Langeled pipeline were down by around 10 mcm/d on Thursday morning, according to National Grid data.

Langeled is Britain's main sub-sea gas import route with a total capacity of around 70 million mcm/d.

The drop in flows through Langeled was a result of an unplanned outage at Statoil's Troll field off Norway.

Gas output from the field will be reduced by 16 mcm/d on Thursday due to maintenance, which is expected to last for three weeks, gas system operator Gassco said on Wednesday.

Further along the curve, gas for December delivery was up 0.70 pence at 55.95 pence per therm, while the January contract was up 0.43 pence at 56.85 pence.

In the Dutch TTF gas market, day-ahead prices were up 0.30 euros at 23.10 euros per megawatt hour. They were also pushed higher by the drop in supply from Norway.

In Europe's carbon market, benchmark EU Allowances (EUA) was down 0.08 euros to 6.96 euros per tonne.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Europe Thu, 20 Nov 2014 12:20:53 +0000
Oil slips below $78 a barrel hit by Europe, China data http://www.brecorder.com/markets/energy/europe/205994-oil-slips-below-$78-a-barrel-hit-by-europe-china-data.html http://www.brecorder.com/markets/energy/europe/205994-oil-slips-below-$78-a-barrel-hit-by-europe-china-data.html imageLONDON: Brent crude oil fell below $78 a barrel on Thursday, as the demand outlook was hit by weak economic data in China and Europe, outweighing support from possible cuts in oil output at an OPEC meeting next week.

"We've had disappointing data from China and Europe, and U.S. crude inventories are high, so there's plenty of supply, but tepid demand," said Michael Hewson, chief market analyst at CMC Markets.

Brent crude futures fell 42 cents to $77.68 a barrel at 1057 GMT after closing 37 cents down in the previous session. It was heading for its lowest close in four years and has fallen a third from its peak for the year in June.

U.S. crude for December delivery was down 25 cents at $74.33 a barrel, after finishing down 3 cents on Wednesday. The December contract expires on Thursday.

A survey showed euro zone business growth weaker than any forecaster expected this month and new orders down the first time in more than a year, while a survey of China's manufacturing also came in weaker than expected.

Oil investors are closely watching comments from OPEC members to try to establish the likelihood of a possible cut to supply ahead of next Thursday's meeting.

According to Samir Kamal, Libya's OPEC governor and head of planning at the Libyan oil ministry, ministers from the oil producers' cartel will agree to scale back production to OPEC's own target of 30 million barrels a day at the Nov. 27 meeting.

That would result in a cut in output of between 250,000-600,000 barrels a day in an effort to buoy oil prices.

Iran will double its oil exports within two months if sanctions against it end, Oil Minister Bijan Zanganeh told official news agency IRNA.

"Under no circumstance will we reduce our global market share, even by one barrel," he said.

The market was also waiting for a slew of economic data from the United States later on Thursday, including consumer prices for October.

U.S. crude stockpiles unexpectedly rose by 2.6 million barrels last week, supported by an increase in oil imports, data from the U.S. Department of Energy's Energy Information Administration showed on Wednesday.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Europe Thu, 20 Nov 2014 12:09:48 +0000