Crude Oil Tumbles as Supplies Gain, Concerns About Fuel Demand

"Oil Tumbles as Supplies Gain, Fuel Demand Drops to 10 Year Low"
Crude oil fell the most in two weeks after a government report showed that U.S. supplies unexpectedly increased as fuel consumption plunged to a 10-year low.
Inventories climbed 2.9 million barrels to 366 million in the week ended May 29, according to the Energy Department. The gain occurred as imports surged 9.9 percent and refineries increased operating rates to the highest level in six months. Fuel demand fell to the lowest since May 1999. “The high inventories and weak demand we’re seeing don’t justify prices in the $60s,” said Chip Hodge, who oversees a $9 billion natural resource.....Complete Story

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"US Interior to Collect Billions from New O&G Fees in 2010"
The U.S Interior Department has projected $14 billion in revenue collections for fiscal year 2010, stemming from several new and increased fees. A new fee on non producing Gulf of Mexico offshore oil and gas leases would increase revenue by requiring lease holders to pay $4 per acre when leases are in non producing status, Interior Secretary Ken Salazar said in prepared testimony before a subcommittee of the Senate Appropriations Committee on Wednesday.The hearing addressed the Interior Department's fiscal.....Complete Story

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"Natural Gas Tumbles in New York on Outlook for Inventory Glut"
Natural gas futures fell the most in two weeks on speculation a government report tomorrow will show an above average stockpile increase as the recession restricts demand for the industrial fuel. The Energy Department will probably say inventories gained 117 billion cubic feet in the week ended May 29, according to the median of 16 analyst estimates compiled by Bloomberg. The five-year average change is an increase of 94 billion. Supplies in last week’s report were 22 percent above normal.
“I expect tomorrow’s number to be more of the same,” said Stephen Schork, president of the Schork Group Inc.....Complete Story

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Oil Retreats On Drop In Stock market, Interior Dept. Seeks Drilling Clarification

"Oil Retreats on Stock Market Drop, U.S. Inventory Forecast"
Crude oil retreated after U.S. equities dropped and on expectations that a government report will show U.S. inventories increased for a 10th week. Oil followed stocks lower, reversing gains made last week after the U.S. economy lost fewer jobs than expected. Stockpiles climbed 1 million barrels last week, according to the median of 14 responses in a Bloomberg News survey. Supplies rose to the highest level since September 1990 in the week ended May 1 as fuel demand plunged, the Energy Department said.

“Equities are having another bad day, which is taking some of the wind out of the sails of the oil market,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “The oil market is going to be taking its direction from equities.....Complete Story

"US Interior Dept Seeks Clarification of Offshore Leasing Ruling"
The Interior Department is expected to ask a federal appeals court in Washington, D.C., to clarify what it meant when it determined the agency failed to adequately consider the effect of an offshore oil and gas leasing program in Alaska.

The court in April ruled that the department's Minerals Management Service failed to consider the effect on the environment and marine life before it began under the Bush administration in 2005 to expand an offshore oil and gas leasing program in the Beaufort, Bering and Chukchi seas. The appeals court ordered the Interior Department, now run by President Barack Obama's appointee Ken Salazar, to analyze the areas to determine.....Complete Story

"Oil Companies May Wait for Hedges to End to Go Bargain Shopping"
Quantum Energy Partners, the Houston private-equity firm that put together a $3.5 billion bankroll to go bargain hunting for acquisitions after oil and natural-gas prices plunged, is waiting for a better time to pounce. Buyers will accelerate acquisitions late this year and in early 2010 as the hedging contracts that shielded potential takeover targets from tumbling prices expire, said Wil VanLoh, Quantum’s chief executive officer.

“By the first quarter of next year, we’ll be pretty darn active,” VanLoh said in an interview at his downtown office. “Many companies are very well hedged for 2009, so the squeeze hasn’t happened yet. The point of capitulation probably will arrive in the fourth quarter or the first.....Complete Story


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Crude Oil Industry Headline News

"Oil Declines as U.S. Crude, Fuel Inventories Increase More Than Expected"
Crude oil futures plunged after a U.S. government report showed a bigger than forecast increase in crude and fuel inventories as the recession curbed demand....Complete Story

"Saudi Arabia Will Cut Production 300,000 Barrels Below Quota, Khelil Says"
Saudi Arabia, the world’s top oil exporter, will cut production by 300,000 barrels a day below the quota agreed on with OPEC to prop up prices, Algerian Oil Minister Chakib Khelil said....Complete Story

"US Interior Department to Go Ahead with Offshore Drilling Plan"
A proposal issued in the final days of the Bush administration to expand offshore drilling in previously banned areas will move forward under the administration of U.S. President Barack Obama, Reuters reported Wednesday....Complete Story

"Iceland Opens First-Ever Offshore Licensing Round"
Applications are now being accepted in the First Oil and Gas Licensing Round in Icelandic Waters....Complete Story

"Energy Companies Find Money Pipeline Is Open Again"
Credit markets are showing some signs of life after months of inactivity, with energy companies helping to lead a surge in new debt and equity deals in recent weeks....Complete Story