Oil Companies Reject Iraq's Contract Terms

Iraq awarded a BP led consortium the right to develop the giant Rumaila oil field but failed to strike deals for seven oil and gas fields as companies balked at the country's contract terms. The outcome raised questions about how quickly Iraq could rehabilitate its oil sector, which has suffered from years of war and neglect. The country relies on oil sales for more than 90% of government revenue. Iraqi officials hailed the sole award for the Rumaila.....Complete Story

How Can You Tap Into Oil's Potential?

Dan Dicker of The Street .Com breaks down crude's recent run up and reveals two stocks that could pop, if oil pushes even higher.

Oil Rises On Consumer Confidence Report, Majors Switching Strategy

"Oil Rises to Six Month High as U.S. Consumer Confidence Gains"
Crude oil rose to a six month high after a report showed that U.S. consumer confidence jumped to the highest level since September, signaling demand may rebound. Oil followed gains in the stock market after the Conference Board’s sentiment index surged to 54.9, more than forecast and the biggest increase since 2003, the New York based research group said today. Oil futures declined earlier on speculation OPEC will maintain production quotas at a meeting this week. “History shows that a jump in consumer confidence signals an economic rebound,” said Bill O’Grady, chief markets strategist at Confluence Investment.....Complete Story

"Switching Horses On Oil Strategy"
Thunder Horse turns 10 next month. BP's billion barrel oil field, discovered in 1999 in the Gulf of Mexico, is a source of pride. It also is a reminder of what ails the oil majors. Thunder Horse, which started up in 2008, will provide 42% of BP's incremental upstream production over the next three years, according to analysts at J.P. Morgan Chase. Unfortunately, it is also one of BP's few discoveries of such scale in recent memory. Neil McMahon of Sanford C. Bernstein calculates that less than half of BP's additions to reserves over the past five years have come through its exploration efforts.....Complete Story

"Hottest Oil Options Show 18% Drop as Demand Falls"
After oil passed $60 a barrel for the first time in six months, the New York Mercantile Exchange’s fastest growing options trade in July is for a 18 percent drop.The number of options to sell oil at $50 a barrel for July settlement rose 22 percent last week to 24,948. Traders expect prices to fall because U.S. crude inventories are 1.8 percent below the highest level in two decades, the International Energy Agency says demand is falling the most since 1981, and there’s enough unsold crude stored in offshore tankers to supply the U.S. for a week. Oil traded as high as $62.16 today.....Complete Story

Oil Rebounds On Potential OPEC Price Support, Russia Continues Talks With Spain

"Early Signs of Petroleum Demand Revival in U.S."
G. Allen Brooks, in his analysis of rising and falling crude oil prices, notes that weekly demand in the oil market has begun to show signs of improving....Complete Story

"Gazprom Discusses Spanish Involvement in Russian Projects"
Russia's Gazprom is involved in talks with Spanish Repsol, as well as other companies, about the Russian Yamal field development....Complete Story

"Oil Rebounds After 10% Drop on Speculation OPEC May Act to Support Prices"
Oil gained, after dropping 10 percent yesterday, on speculation OPEC may take further steps to support prices at its meeting later this month....Complete Story

"BP Cuts Production Forecast Through 2012; Trims Spending on Low Oil Price"
BP Plc, Europe’s second-largest oil company, cut its production forecast through 2012 and reduced a spending target because of lower crude prices....Complete Story

"Shell Sees Recession Improving Opportunities to Acquire Oil, Gas Assets"
Royal Dutch Shell Plc, Europe’s biggest oil company, said the recession is creating opportunities to acquire oil and natural-gas assets....Complete Story

"Libya Wants Conoco, Hess, Marathon to Agree to Lower Oil Production Share"
Libya urged ConocoPhillips, Hess Corp. and Marathon Oil Corp. to agree to lower their share of production from the Waha oil venture as state revenue is squeezed by lower crude prices and OPEC-mandated output cuts....Complete Story

Crude Oil and Gasoline Futures Jump, Chevron Delays Nigerian Projects

"Crude Oil, Gasoline Futures Jump on Signs of Stronger U.S. Demand for Fuel"
Crude oil rose more than $2 a barrel and gasoline surged to a three-month high after U.S. stockpiles of the motor fuel dropped....Complete Story

"Chevron Delays 3 Nigerian Projects, Raises Cost Estimates as Much as 103%"
Chevron Corp., the world’s fourth- largest energy company, delayed the start of production at three Nigerian projects and raised cost estimates as much as 103 percent on some of its biggest new sources of output....Complete Story

"Compromise Energy Policy Within Reach"
BP's Chief Executive, Tony Hayward, writes that a collapse in world energy demand and the fall of energy prices present a rare once in a generation opportunity to craft an innovative energy policy for the United States....Complete Story

Crude Oil Industry Headline News For Tuesday

"U.S. Refiners, Steelworkers Reach Tentative Contract Accord, Avert Strike"
Refiners reached a tentative agreement on a new contract for about 30,000 unionized employees, averting a strike that would have affected almost two thirds of U.S. capacity to make gasoline, diesel and other fuels....Complete Story

"BP Reports Its First Quarterly Loss in Seven Years as Oil Prices Decline"
BP Plc, Europe’s second-biggest oil company, posted its first quarterly loss in seven years and predicted demand for crude will continue to fall in 2009 as the global recession deepens....Complete Story

"Iraq Extends 2nd Bidding Round of Oil Contracts"
The Iraqi Oil Ministry gave a two-week extension for foreign oil firms to send in documentation for the second round of licensing for long-term development contracts....Complete Story

"BP Says Oil Majors Could Merge with State Oil Cos"
BP Chief Executive Tony Hayward said western oil majors could merge with state owned oil companies but dismissed mergers between the majors themselves....omplete Story