David's Feed
May 9, 2013

Analysis: Collapse in Brent-WTI oil spread spooks refiners, railways

NEW YORK (Reuters) – After almost three years of churning bumper profits from the massive price gap between the world’s two most actively traded crude oil contracts, traders, refiners, railways and investors are all asking the same question: Is the game finally coming to a close?

The near $20 premium North Sea Brent held for much of 2012 over U.S. benchmark West Texas Intermediate (WTI) has fallen to less than $8 a barrel, the lowest since the crude-by-rail boom began to gather steam in early 2011.

May 1, 2013

Texas oil sails to Canada, refiners fume over tanker law

NEW YORK/LONDON, May 1 (Reuters) – Oil traders including
commodities giant Trafigura and Australian bank Macquarie have
quietly begun shipping U.S. crude oil from Texas to Canada,
raising the ire of U.S. East Coast refiners who may pay four
times as much for a similar voyage.

In the latest oil trading trend to emerge from the
unexpected boom in U.S. shale production, the firms have hired
at least seven foreign-flagged tankers to run the route to
Canada this year, most of them for the first time, according to
market sources and data analyzed by Reuters.

Apr 12, 2013

Brent oil hits 9-month low near $101, bounces on spread trade

NEW YORK, April 12 (Reuters) – Brent crude oil fell to a
nine-month low near $101 a barrel on Friday as a broad investor
sell-off in commodities triggered a fall as much as $3 a barrel,
but the global oil benchmark pared losses in afternoon New York
trade as bargain hunters emerged.

The cross-commodity rout started in gold on Friday after the
precious metal fell below $1,500 an ounce for the first time
since July 2011. An unexpected contraction in U.S. retail sales
added to pressure on oil, grains and metals as investors moved
into cash.

Apr 11, 2013

Exclusive: Goldman explores sale of Metro metals warehouse business

NEW YORK (Reuters) – Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) has explored a sale of its metals warehousing business Metro International LLC, three sources with knowledge of the matter told Reuters, just three years after the investment bank bought the firm for $550 million.

Detroit-based Metro has attracted the scrutiny of regulators since Goldman took over the warehouse company in 2010, as companies such as Coca-Cola Co (KO.N: Quote, Profile, Research, Stock Buzz) and other big metal consumers have accused it of distorting aluminum supplies. Goldman has consistently said Metro has not broken any laws or rules.

Apr 11, 2013

Goldman explores sale of Metro metals warehouse business

NEW YORK, April 11 (Reuters) – Goldman Sachs has
explored a sale of its metals warehousing business Metro
International LLC, three sources with knowledge of the matter
told Reuters, just three years after the investment bank bought
the firm for $550 million.

Detroit-based Metro has attracted the scrutiny of regulators
since Goldman took over the warehouse company in 2010, as
companies such as Coca-Cola Co and other big metal
consumers have accused it of distorting aluminum supplies.
Goldman has consistently said Metro has not broken any laws or
rules.

Apr 5, 2013

Brent crude slumps to 8-month low on weak US jobs report

NEW YORK, April 5 (Reuters) – Brent crude oil fell to an
eight-month low below $105 a barrel on Friday and was on course
for the biggest weekly slide since June, as a weak U.S. jobs
report fed worries about the economy in the world’s largest oil
consumer.

The U.S. Labor Department reported that employers added just
88,000 jobs in March, the slowest pace of hiring in nine months.
The jobless rate ticked 0.1 point lower to 7.6 percent, largely
due to people dropping out of the workforce.

Apr 3, 2013

Oil down most in 5 months as US inventories near record

NEW YORK, April 3 (Reuters) – Oil prices fell 3 percent on
Wednesday in the steepest daily drop in five months, as U.S.
crude inventories rose to their highest since 1990 and as weak
economic data weighed on the outlook for demand.

Selling was widespread across oil markets with U.S. gasoline
leading the slide, dropping more than 4 percent and taking
losses for the last two sessions to almost 20 cents a gallon.

Mar 31, 2013

Exxon pipeline leaks thousands of barrels of Canadian oil in Arkansas

NEW YORK (Reuters) – Exxon Mobil was working to clean up thousands of barrels of oil in Mayflower, Arkansas, after a pipeline carrying heavy Canadian crude ruptured, a major spill likely to stoke debate over transporting Canada’s oil to the United States.

Exxon shut the Pegasus pipeline, which can carry more than 90,000 barrels per day (bpd) of crude oil from Pakota, Illinois, to Nederland, Texas, after the leak was discovered on Friday afternoon, the company said in a statement.

Mar 27, 2013

Train hauling Canadian oil derails in Minnesota

NEW YORK/CALGARY March 27 (Reuters) – A mile-long train
hauling oil from Canada derailed and leaked 30,000 gallons of
crude in western Minnesota on Wednesday, as debate rages over
the environmental risks of transporting tar sands across the
border.

The leak – the first major spill of the modern North
American crude-by-rail transit boom – came when 14 cars on a
94-car Canadian Pacific train left the tracks about 150 miles
north west of Minneapolis near the town of Parkers Prairie, the
Otter Tail Sheriff’s Department said.

Mar 26, 2013

Oil up on strong US data, Brent premium to US crude shrinks

NEW YORK, March 26 (Reuters) – Brent crude rallied late on
Tuesday to settle up more than $1 above $109 a barrel, after
U.S. crude had surged to a five-week high above $96 a barrel,
lifted by stronger manufacturing and housing data in the United
States.

Brent’s premium to U.S. crude narrowed to as little as
$12.52 a barrel CL-LCO1=R at one point, the smallest in eight
months. Brent’s late rally moved the spread back to around $13 a
barrel.