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Jul 20, 2013

Fed rethinking move allowing banks to trade physical commodities

NEW YORK, July 19 (Reuters) – The U.S. Federal Reserve is
“reviewing” a landmark 2003 decision that first allowed
regulated banks to trade in physical commodity markets, it said
on Friday, a move that may send new shockwaves through Wall
Street.

The one-sentence statement suggests the Fed is taking a much
deeper, wide-ranging look at how banks operate in commodity
markets than previously believed, amid intensifying scrutiny of
everything from electricity trading to metals warehouses.

Jul 19, 2013

Fed reviewing banks’ physical commodities trading

NEW YORK (Reuters) – The Federal Reserve is “reviewing” a landmark 2003 decision that first allowed bank holding companies to trade in physical commodity markets, it said on Friday, a move that may send new shudders through Wall Street.

While it is well known that the Fed is considering whether or not to allow regulated banks like Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) and JPMorgan (JPM.N: Quote, Profile, Research, Stock Buzz) to own trading assets like storage tanks or warehouses, Friday’s one-sentence statement suggests that it is also reconsidering the full scope of all banks’ activities in physical commodity markets.

Jul 19, 2013

US crude oil trades above Brent for first time in 3 years

NEW YORK, July 19 (Reuters) – U.S. oil futures traded above
the global crude-market benchmark, North Sea Brent, for the
first time since 2010 on Friday as signs of strong demand from
U.S. refiners boosted spread trading and bets that the era of
the U.S. discount was ending.

While prices on both sides of the Atlantic fell for most of
Friday’s session as traders booked end-of-week profits, U.S.
benchmark West Texas Intermediate (WTI) crude climbed in the
final minutes of trade to close near a 16-month high above $108,
while Brent settled lower.

Jul 18, 2013

US crude hits 16-month high, Brent-WTI spread near $1

NEW YORK, July 18 (Reuters) – U.S. crude oil hit the highest
level in 16 months on Thursday, rising above $108 a barrel on
signs of a strengthening economy in the United States and
narrowing its discount to North Sea Brent to the lowest in
almost three years.

U.S. equity markets hit new record intraday highs shortly
after the opening bell as a closely-watched survey of factory
activity in the U.S. mid-Atlantic region leapt to its highest
pace since March 2011, boosting the outlook for demand in the
world’s largest oil consumer.

Jul 17, 2013

Barclays to fight $453 mln power fine in U.S. court

NEW YORK, July 16 (Reuters) – Barclays will contest
a record $453 million fine imposed by a U.S. energy regulator
against the British bank and four of its power traders, setting
up a likely federal court battle.

The fines, which were upheld by the Federal Energy
Regulatory Commission (FERC) on Tuesday, confirm the top U.S.
energy cop will pursue its most ambitious market manipulation
case to date.

Jul 17, 2013

Regulator upholds record $453 million Barclays power-trade fine

NEW YORK (Reuters) – The Federal Energy Regulatory Commission (FERC) said on Tuesday Barclays and four of its power traders must pay fines totaling $453 million, confirming the nation’s top energy cop will pursue its most ambitious market manipulation case to date.

The record fines, first proposed by the regulator’s staff in October 2012 over alleged manipulation of California and other western power markets by the British bank last decade, were upheld in an order after assessment by FERC commissioners.

Jul 16, 2013

Regulator upholds $453 million Barclays power trading fine

NEW YORK (Reuters) – The Federal Energy Regulatory Commission (FERC) said on Tuesday Barclays and four of its power traders must pay fines totaling $453 million, confirming the nation’s top energy cop will pursue its most ambitious market manipulation case to date.

The record fines, first proposed by the regulator’s staff in October 2012 over alleged manipulation of California and other western power markets by the British bank last decade, were upheld in an order after assessment by FERC commissioners.

Jul 3, 2013

As US crude gap shrinks, CME retakes lead in oil benchmark battle

NEW YORK, July 3 (Reuters) – Trading in CME Group’s
benchmark U.S. crude oil contract surpassed
IntercontinentalExchange Inc’s North Sea Brent in June
for the first time in 15 months as the huge price difference
between the two contracts collapsed.

The move halts a three-year trend that has seen CME cede
ground to ICE in crude oil trading, as soaring North American
production flooded the delivery point of the flagship New York
Mercantile Exchange (NYMEX) contract and disconnected it from
global prices.

Jun 27, 2013

Texas oil output surges, growth now outpacing North Dakota

June 27 (Reuters) – Crude oil production in Texas has jumped
by a third in just 12 months, government figures showed on
Thursday, with booming output driven by the Eagle Ford shale
fields now outpacing growth in North Dakota.

Oil output in Texas hit 2.45 million barrels per day (bpd)
in April, the U.S. Energy Information Administration said in its
Petroleum Supply Monthly report, an increase of more than 33
percent in the past year or more than 600,000 bpd.

Jun 24, 2013

Oil bounces off 3-week low as Alberta floods threaten imports

NEW YORK, June 24 (Reuters) – Brent and U.S. crude prices
recovered from an early sell-off to three-week lows on Monday,
rising as record flooding in Canada’s main oil producing
province threatened exports to the United States.

Major Canadian pipelines that move almost 1 million barrels
per day (bpd) of Alberta oil sands crude remained shut on Monday
after a spill on a smaller line was discovered over the weekend,
a spokesman for operator Enbridge Inc said.