Indian Oil, Bharat Petroleum and Hindustan Petroleum are likely to get oil bonds worth Rs 65,942 crore this week to make up for half of their revenue loss on fuel sale during the first nine months of 2008.
"Parliament has already approved (issue of oil bonds)....We expect Finance Ministry to intimate of the bonds anytime now," said Petroleum Ministry Additional Secretary S Sundareshan said in New Delhi.
BPCL is to announce on Thursday its earnings in July-September quarter, while HPCL and IOC are to do so on Friday. Without the oil bonds, the three would post huge losses.
"Even with oil bonds, things are not going to be any better," he said.
The three firms would get Rs 14,956.17 crore worth of oil bonds for selling petrol, diesel, domestic LPG and kerosene below cost in January-March quarter. They will get an additional Rs 24,408 crore compensation for April-June quarter and the remaining will be for July-September quarter.
Government compensates half of the losses resulting from its dictate to oil companies to not to raise fuel prices in line with cost, through issue of oil bonds.
For 2007-08, the oil companies reported a total revenue loss of Rs 70,579 crore of which Rs 35,289.50 crore is to be compensated through oil bonds. The government has already issued, oil bonds worth Rs 20,333.33 crore for April-December 2007 period.
IOC, BPCL and HPCL in April-September lost Rs 92,853 crore on fuel sales (audited figures) and are projected to lose Rs 1,47,486 crore in the full fiscal. Half of the projected revenue loss is to be compensated through oil bonds.
Showing posts with label OIL. Show all posts
Showing posts with label OIL. Show all posts
Thursday, October 30, 2008
Friday, October 10, 2008
Oil hits 1-year low on fears of demand slump
Singapore: US crude oil futures tumbled by more than $4 a barrel on Friday, extending losses to fresh one-year lows, as traders feared the credit crisis would send the global economy into recession and hurt fuel demand.
US light, sweet crude for November delivery fell $4.26 to $82.33 a barrel, having earlier fallen to $82.10 a barrel.
Oil prices earlier fell by $3 to a fresh one-year low below $84 a barrel, as fears that market turmoil will send demand for fuel slumping outweighed news that Opec will hold an extraordinary meeting in November.
With the financial crisis now almost a month old, Japan’s Nikkei stock index plunged 11% on Friday, while the yen and gold rose on growing concerns that no government effort so far has kept the global economy from a path to recession.
Investors, who earlier this year piled into oil and other commodities as a hedge against inflation and the weak dollar, are putting cash into safer havens and have sent oil plummeting by more than $60 from its record high above $147 in July.
US light crude for November delivery fell $2.77, or 3.2%, to $83.82 a barrel, just above its earlier low of $83.78 and extending oil’s more than $20 drop during the past two weeks alone..
London Brent crude shed $2.26 to $80.40 a barrel, matching the previous session’s 12-month low.
“The decline in oil prices was despite Opec indicating that it will hold an extraordinary meeting on 18 November,” said David Moore, a commodity strategist at Commonwealth Bank of Australia.
Opec said it will hold the emergency meeting in Vienna to discuss the impact of the financial crisis on the oil market.
The statement came after calls from Opec ministers this week for action to halt a slide in oil prices.
Investors will also look to Washington, where finance ministers and central bankers from the Group of Seven major industrial nations will meet amid expectations that the group will present a united front on policy to contain the crisis.
The International Energy Agency (IEA) releases its monthly report on the oil market at 0900 GMT, and investors are expecting another cut in demand expectations for this year and next.
The slumping economy has already prompted analysts to revise downwards their global oil demand growth target, with the US Energy Information Administration this week dropping its 2009 projection by 140,000 barrels per day.
US light, sweet crude for November delivery fell $4.26 to $82.33 a barrel, having earlier fallen to $82.10 a barrel.
Oil prices earlier fell by $3 to a fresh one-year low below $84 a barrel, as fears that market turmoil will send demand for fuel slumping outweighed news that Opec will hold an extraordinary meeting in November.
With the financial crisis now almost a month old, Japan’s Nikkei stock index plunged 11% on Friday, while the yen and gold rose on growing concerns that no government effort so far has kept the global economy from a path to recession.
Investors, who earlier this year piled into oil and other commodities as a hedge against inflation and the weak dollar, are putting cash into safer havens and have sent oil plummeting by more than $60 from its record high above $147 in July.
US light crude for November delivery fell $2.77, or 3.2%, to $83.82 a barrel, just above its earlier low of $83.78 and extending oil’s more than $20 drop during the past two weeks alone..
London Brent crude shed $2.26 to $80.40 a barrel, matching the previous session’s 12-month low.
“The decline in oil prices was despite Opec indicating that it will hold an extraordinary meeting on 18 November,” said David Moore, a commodity strategist at Commonwealth Bank of Australia.
Opec said it will hold the emergency meeting in Vienna to discuss the impact of the financial crisis on the oil market.
The statement came after calls from Opec ministers this week for action to halt a slide in oil prices.
Investors will also look to Washington, where finance ministers and central bankers from the Group of Seven major industrial nations will meet amid expectations that the group will present a united front on policy to contain the crisis.
The International Energy Agency (IEA) releases its monthly report on the oil market at 0900 GMT, and investors are expecting another cut in demand expectations for this year and next.
The slumping economy has already prompted analysts to revise downwards their global oil demand growth target, with the US Energy Information Administration this week dropping its 2009 projection by 140,000 barrels per day.
Thursday, September 25, 2008
ONGC eyes oil assets in Latam, CIS, Africa
NEW DELHI (Reuters) - Oil and Natural Gas Corp is eyeing oil and gas assets in Latin America, the Commonwealth of Independent States and west Africa, Chairman R.S. Sharma said on Thursday.
He said ONGC had a big budget for the plan, but did say how much it was willing to spend.
"If you look at India's energy scenario, appetite is huge. When you have resources, you look for growth," Sharma told reporters on the sidelines of a conference.
He said ONGC had a big budget for the plan, but did say how much it was willing to spend.
"If you look at India's energy scenario, appetite is huge. When you have resources, you look for growth," Sharma told reporters on the sidelines of a conference.
Tuesday, September 23, 2008
Oil prices make biggest single-day price jump ever on bailout unease, contract expiration
NEW YORK (AP) -- Oil prices briefly spiked more than $25 a barrel Monday, shattering the record for the biggest one-day gain as unease about the government's $700 billion bailout plan pummeled the dollar and spurred investors to buy safe-haven assets. An expiring crude contract added fuel to the frenzied rally.
Light, sweet crude for October delivery jumped as much as $25.45 to $130 a barrel on the New York Mercantile Exchange before falling back to settle at $120.92, up $16.37. The contract expired at the end of the day, adding to the volatility as traders rushed to cover positions; the October price began accelerating sharply in the last hour of regular trading, a common occurrence when a contract is about to go off the board.
Still, the rally, which shattered crude's previous one-day price jump of $10.75, set June 6, showed the intensity of emotion in the market. The Nymex temporarily halted electronic crude oil trading after prices breached the $10 daily trading limit. Trading resumed seconds later after the daily limit was increased.
The November crude contract, which became the front-month contract at the end of Monday's session, settled at $109.37, up $6.62, still a very sharp gain.
The severity of the price move shocked veteran market participants and prompted the U.S. Commodity Futures Trading Commission to launch an investigation into whether illegal manipulation was to blame.
Acting CFTC Chairman Walter Lukken said the agency's surveillance and enforcement staff was analyzing the price spike "to ensure that no one is taking advantage of the current stresses facing our financial marketplace for their own manipulative gain."
Phil Flynn, analyst and oil trader with Alaron Trading Corp. in Chicago, said the late-session surge in oil appeared to be the result of a large investment fund scrambling to cover their short positions, or bets that prices would fall.
"When people sense that someone is short, it's like blood on the streets. It just accelerates the rally," Flynn said.
In other trading, gold prices shot up more than $44.30 to settle at $909 an ounce, and other safe-haven commodities also rallied, underscoring investors' uncertainly about the direction of the economy and their fear of more turmoil ahead.
"We're off to the races again," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill. "There's a renewed scramble for commodities because of a general weakness in the dollar."
Crude has gained about $30 in a dramatic four-day rally that has at least temporarily halted oil's steep two-month slide below $100. At this rate, crude is within striking distance of its all-time record of $147.27, reached in July.
The rally came as energy traders grappled with the implications of the government's proposed initiative to stem the U.S. financial crisis by absorbing billions of dollars of banks' bad mortgage-related securities. Anxiety over the plan also sent stocks sharply lower Monday; the credit markets were calmer than they were last week, but still showing the effects of investors' nervousness.
Investors fear that the government will have to dramatically ramp up borrowing to pay for the mammoth rescue effort, an inflationary move that could further devalue the dollar and trigger another wave of safe-haven buying in investments like commodities.
"They're going to have to continue auctioning off a whole lot of Treasurys to finance these projects, so the dollar is going to suffer," said Matt Zeman, head trader at LaSalle Futures in Chicago. "Right now it's fear and anxiety driving people who want tangible assets."
The 15-nation euro rose to $1.4796 in afternoon trading, up from the $1.4470 on Friday. A weak greenback was a catalyst for the commodities boom of the past year, and analysts said large investment funds were expected to pour money back into the sector.
"That trade was very successful in past so if the dollar keeps weakening, a lot people are going to want to own hard assets like crude," said Andrew Lebow, senior vice president and broker at MF Global in New York.
Crude's resurgence could halt steadily sliding pump prices. A gallon a regular shed 1.8 cents overnight to a new national average of $3.739, according to auto club AAA, the Oil Price Information Service and Wright Express.
But there is still much uncertainty about what impact the U.S. rescue plan will have on energy demand. Oil's run-up near $150 a barrel in July and a weak U.S. economy has forced Americans to cut back on their driving and led business to scale down operations. Though pump prices have eased from record levels above $4 a gallon, they remain expensive, and more softening in the economy would likely further curtail energy use in the world's thirstiest consumer.
Given the dire economic outlook, some analysts questioned whether oil prices would keep rising.
"We've already seen that the world can't afford oil at these prices. If it keeps going up, demand will drop off again," Flynn said.
However, he cautioned that oil's future direction hinged on the outcome of the government bailout plan and its effect on the U.S. economy.
"If the dollar keeps getting whacked and everybody panics, then we are going up again," he said.
U.S. congressional leaders endorsed the plan's main thrust, saying passage might occur in a matter of days. But they also want independent oversight, protections for homeowners and constraints on excessive executive compensation, House Speaker Nancy Pelosi said Sunday.
Treasury Secretary Henry Paulson pushed lawmakers, who received the package on Saturday, to approve the proposal as soon as possible.
The Federal Reserve also announced late Sunday it granted a request by investment banks Goldman Sachs and Morgan Stanley to change their status to bank holding companies, a move that will allow the two institutions to open commercial banking subsidiaries, greatly bolstering their resources.
In other Nymex trading, heating oil futures rose 14.52 cents to settle at $3.043 a gallon, while gasoline futures rose 10.41 cents to settle at $2.7038 a gallon. Natural gas futures rose 9.5 cents to settle at $7.943 per 1,000 cubic feet.
In London, November Brent crude rose $6.43 to settle at $106.04 a barrel on the ICE Futures exchange.
Light, sweet crude for October delivery jumped as much as $25.45 to $130 a barrel on the New York Mercantile Exchange before falling back to settle at $120.92, up $16.37. The contract expired at the end of the day, adding to the volatility as traders rushed to cover positions; the October price began accelerating sharply in the last hour of regular trading, a common occurrence when a contract is about to go off the board.
Still, the rally, which shattered crude's previous one-day price jump of $10.75, set June 6, showed the intensity of emotion in the market. The Nymex temporarily halted electronic crude oil trading after prices breached the $10 daily trading limit. Trading resumed seconds later after the daily limit was increased.
The November crude contract, which became the front-month contract at the end of Monday's session, settled at $109.37, up $6.62, still a very sharp gain.
The severity of the price move shocked veteran market participants and prompted the U.S. Commodity Futures Trading Commission to launch an investigation into whether illegal manipulation was to blame.
Acting CFTC Chairman Walter Lukken said the agency's surveillance and enforcement staff was analyzing the price spike "to ensure that no one is taking advantage of the current stresses facing our financial marketplace for their own manipulative gain."
Phil Flynn, analyst and oil trader with Alaron Trading Corp. in Chicago, said the late-session surge in oil appeared to be the result of a large investment fund scrambling to cover their short positions, or bets that prices would fall.
"When people sense that someone is short, it's like blood on the streets. It just accelerates the rally," Flynn said.
In other trading, gold prices shot up more than $44.30 to settle at $909 an ounce, and other safe-haven commodities also rallied, underscoring investors' uncertainly about the direction of the economy and their fear of more turmoil ahead.
"We're off to the races again," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill. "There's a renewed scramble for commodities because of a general weakness in the dollar."
Crude has gained about $30 in a dramatic four-day rally that has at least temporarily halted oil's steep two-month slide below $100. At this rate, crude is within striking distance of its all-time record of $147.27, reached in July.
The rally came as energy traders grappled with the implications of the government's proposed initiative to stem the U.S. financial crisis by absorbing billions of dollars of banks' bad mortgage-related securities. Anxiety over the plan also sent stocks sharply lower Monday; the credit markets were calmer than they were last week, but still showing the effects of investors' nervousness.
Investors fear that the government will have to dramatically ramp up borrowing to pay for the mammoth rescue effort, an inflationary move that could further devalue the dollar and trigger another wave of safe-haven buying in investments like commodities.
"They're going to have to continue auctioning off a whole lot of Treasurys to finance these projects, so the dollar is going to suffer," said Matt Zeman, head trader at LaSalle Futures in Chicago. "Right now it's fear and anxiety driving people who want tangible assets."
The 15-nation euro rose to $1.4796 in afternoon trading, up from the $1.4470 on Friday. A weak greenback was a catalyst for the commodities boom of the past year, and analysts said large investment funds were expected to pour money back into the sector.
"That trade was very successful in past so if the dollar keeps weakening, a lot people are going to want to own hard assets like crude," said Andrew Lebow, senior vice president and broker at MF Global in New York.
Crude's resurgence could halt steadily sliding pump prices. A gallon a regular shed 1.8 cents overnight to a new national average of $3.739, according to auto club AAA, the Oil Price Information Service and Wright Express.
But there is still much uncertainty about what impact the U.S. rescue plan will have on energy demand. Oil's run-up near $150 a barrel in July and a weak U.S. economy has forced Americans to cut back on their driving and led business to scale down operations. Though pump prices have eased from record levels above $4 a gallon, they remain expensive, and more softening in the economy would likely further curtail energy use in the world's thirstiest consumer.
Given the dire economic outlook, some analysts questioned whether oil prices would keep rising.
"We've already seen that the world can't afford oil at these prices. If it keeps going up, demand will drop off again," Flynn said.
However, he cautioned that oil's future direction hinged on the outcome of the government bailout plan and its effect on the U.S. economy.
"If the dollar keeps getting whacked and everybody panics, then we are going up again," he said.
U.S. congressional leaders endorsed the plan's main thrust, saying passage might occur in a matter of days. But they also want independent oversight, protections for homeowners and constraints on excessive executive compensation, House Speaker Nancy Pelosi said Sunday.
Treasury Secretary Henry Paulson pushed lawmakers, who received the package on Saturday, to approve the proposal as soon as possible.
The Federal Reserve also announced late Sunday it granted a request by investment banks Goldman Sachs and Morgan Stanley to change their status to bank holding companies, a move that will allow the two institutions to open commercial banking subsidiaries, greatly bolstering their resources.
In other Nymex trading, heating oil futures rose 14.52 cents to settle at $3.043 a gallon, while gasoline futures rose 10.41 cents to settle at $2.7038 a gallon. Natural gas futures rose 9.5 cents to settle at $7.943 per 1,000 cubic feet.
In London, November Brent crude rose $6.43 to settle at $106.04 a barrel on the ICE Futures exchange.
Monday, September 22, 2008
US Stocks fall 2 percent on bailout unease, oil
NEW YORK (Reuters) - Stocks extended losses on Monday, sending the benchmark S&P 500 and the Nasdaq down more than 2 percent, as investors worried that passage of a proposed $700 billion bailout to resuscitate financial markets might hit a speed bump in Congress.
Another headwind for the market was a resurgence in the price of crude oil, which shot up $4.40 to $109.11 a barrel as the dollar slid.
Shares of financial services companies led the broader market's decline, which also hit other economically sensitive sectors like retailers and home builders. The S&P financial index dropped 6.3 percent.
Members of Congress have called for changes in the plan. But President Bush said in a statement: "Failure to act would have broad consequences far beyond Wall Street." Delay would threaten small businesses and home owners, Bush said.
The Dow Jones industrial average dropped 220.46 points, or 1.94 percent, to 11,167.98. The Standard & Poor's 500 Index shed 27.84 points, or 2.22 percent, to 1,227.24. The Nasdaq Composite Index lost 48.26 points, or 2.12 percent, to 2,225.64.
Another headwind for the market was a resurgence in the price of crude oil, which shot up $4.40 to $109.11 a barrel as the dollar slid.
Shares of financial services companies led the broader market's decline, which also hit other economically sensitive sectors like retailers and home builders. The S&P financial index dropped 6.3 percent.
Members of Congress have called for changes in the plan. But President Bush said in a statement: "Failure to act would have broad consequences far beyond Wall Street." Delay would threaten small businesses and home owners, Bush said.
The Dow Jones industrial average dropped 220.46 points, or 1.94 percent, to 11,167.98. The Standard & Poor's 500 Index shed 27.84 points, or 2.22 percent, to 1,227.24. The Nasdaq Composite Index lost 48.26 points, or 2.12 percent, to 2,225.64.
Wednesday, September 17, 2008
Oil prices rebound on AIG bailout, weaker dollar
Oil prices bounce higher after government bails out AIG, dollar gains vs euro
NEW YORK (AP) -- Oil prices rebounded Wednesday as a government rescue of American International Group Inc. soothed skittish investors who feared the insurer's collapse could have triggered a wholesale exodus from commodities.
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Light, sweet crude for October delivery rose $1.45 to $92.60 a barrel in early trading on the New York Mercantile Exchange.
Meanwhile at the pump, retail gas prices were virtually flat compared with the previous session as more Gulf Coast refineries began ramping up operations after the passage of Hurricane Ike. A gallon of regular inched up one-tenth of a penny to a new national average of $3.855, according to auto club AAA, the Oil Price Information Service and Wright Express.
Some recovery in crude was expected after the contract dropped $10 in the previous two sessions, bringing prices to their lowest level in seven months and down 8 percent for the year. At one point Tuesday, oil touched $90.51 a barrel, its lowest since Feb. 8, and down 39 percent from a record $147.27 on July 11.
Still, recent rallies often have been followed by sharp selloffs as oil market traders try to wring whatever money they can out of the quickly deflating oil bubble.
Wednesday's oil gain was energized by the bailout of AIG. The Federal Reserve on Tuesday agreed to pump $85 million in taxpayer money into the insurance giant in return for a 79.9 percent ownership stake. The lifeline was aimed at avoiding an AIG collapse due to massive losses tied to the subprime mortgage crisis and the credit crunch.
If AIG had been allowed to fail, investors feared the company would move to unwind positions in energy and other commodities to raise cash, setting in motion another big commodities liquidation. Oil's big two-day price drop this week was due in part to similar concerns that surfaced after Lehman Brothers Holdings Inc. filed for bankruptcy Monday.
"The fear was that if AIG was allowed to go down, we could be looking at a huge exit from financial instruments across the spectrum: equities, oil futures, everything," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill.
A slightly weaker dollar also gave oil prices a boost. A falling greenback encourages investors to shift funds into commodities, which are often bought as safe-haven assets used to hedge against inflation or weakness in the U.S. currency.
With so much uncertainty surrounding the U.S. financial system and fears that slowing economic growth will undermine crude demand, Wednesday's jump in oil prices probably has not broken the recent downward trend.
Events that would usually boost prices -- such as OPEC cutting output by 520,000 barrels a day last week, or damage to oil installations on the Texas coast by Ike last weekend -- haven't done so.
"The OPEC cut didn't have any impact," said Peter McGuire, managing director at investment firm Commodity Warrants Australia in Sydney. "Then Ike didn't slow the market either."
Also Wednesday, the U.S. government reported a bigger-than-expected drop in crude supplies, reflecting the shutdown of virtually all Gulf Coast oil production because of Ike and Hurricane Gustav.
The Energy Information Administration said U.S. crude stocks fell by 6.3 million barrels for the week ending Sept. 12, much bigger than the 3.7 million barrel drop expected by analysts surveyed by energy research firm Platts expected.
Gasoline inventories fell by 3.3 million barrels to 184.6 million barrels. Analysts expected stockpiles of the motor fuel to fall by 3.6 million barrels.
Meanwhile, inventories of distillate fuel, which include diesel and heating oil, fell by 900,000 barrels to 129.6 million barrels for the week ended Sept. 12. Analysts expected distillate stocks to slip by 1.7 million barrels.
Violence continued Wednesday across Nigeria's restive Niger Delta oil region. Nigeria's main militant group said it destroyed an oil-pumping station and a pipeline that crosses southern Nigeria, extending a spate of violence into a fifth day. The Movement for the Emancipation of the Niger Delta also said it attacked an oil pumping station overnight, destroying the flow station run by the local unit of Royal Dutch Shell PLC after battling security forces protecting the site.
In other Nymex trading, heating oil futures fell about half a penny to $2.716 a gallon, while gasoline prices lost 2.3 cents to $2.3775 a gallon. Natural gas for October delivery added 38 cents to $7.939 per 1,000 cubic feet.
In London, November Brent crude rose $1.72 to $90.94 a barrel on the ICE Futures exchange.
Associated Press writers Louise Watt in London and Alex Kennedy contributed to this report from Singapore.
NEW YORK (AP) -- Oil prices rebounded Wednesday as a government rescue of American International Group Inc. soothed skittish investors who feared the insurer's collapse could have triggered a wholesale exodus from commodities.
ADVERTISEMENT
Light, sweet crude for October delivery rose $1.45 to $92.60 a barrel in early trading on the New York Mercantile Exchange.
Meanwhile at the pump, retail gas prices were virtually flat compared with the previous session as more Gulf Coast refineries began ramping up operations after the passage of Hurricane Ike. A gallon of regular inched up one-tenth of a penny to a new national average of $3.855, according to auto club AAA, the Oil Price Information Service and Wright Express.
Some recovery in crude was expected after the contract dropped $10 in the previous two sessions, bringing prices to their lowest level in seven months and down 8 percent for the year. At one point Tuesday, oil touched $90.51 a barrel, its lowest since Feb. 8, and down 39 percent from a record $147.27 on July 11.
Still, recent rallies often have been followed by sharp selloffs as oil market traders try to wring whatever money they can out of the quickly deflating oil bubble.
Wednesday's oil gain was energized by the bailout of AIG. The Federal Reserve on Tuesday agreed to pump $85 million in taxpayer money into the insurance giant in return for a 79.9 percent ownership stake. The lifeline was aimed at avoiding an AIG collapse due to massive losses tied to the subprime mortgage crisis and the credit crunch.
If AIG had been allowed to fail, investors feared the company would move to unwind positions in energy and other commodities to raise cash, setting in motion another big commodities liquidation. Oil's big two-day price drop this week was due in part to similar concerns that surfaced after Lehman Brothers Holdings Inc. filed for bankruptcy Monday.
"The fear was that if AIG was allowed to go down, we could be looking at a huge exit from financial instruments across the spectrum: equities, oil futures, everything," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill.
A slightly weaker dollar also gave oil prices a boost. A falling greenback encourages investors to shift funds into commodities, which are often bought as safe-haven assets used to hedge against inflation or weakness in the U.S. currency.
With so much uncertainty surrounding the U.S. financial system and fears that slowing economic growth will undermine crude demand, Wednesday's jump in oil prices probably has not broken the recent downward trend.
Events that would usually boost prices -- such as OPEC cutting output by 520,000 barrels a day last week, or damage to oil installations on the Texas coast by Ike last weekend -- haven't done so.
"The OPEC cut didn't have any impact," said Peter McGuire, managing director at investment firm Commodity Warrants Australia in Sydney. "Then Ike didn't slow the market either."
Also Wednesday, the U.S. government reported a bigger-than-expected drop in crude supplies, reflecting the shutdown of virtually all Gulf Coast oil production because of Ike and Hurricane Gustav.
The Energy Information Administration said U.S. crude stocks fell by 6.3 million barrels for the week ending Sept. 12, much bigger than the 3.7 million barrel drop expected by analysts surveyed by energy research firm Platts expected.
Gasoline inventories fell by 3.3 million barrels to 184.6 million barrels. Analysts expected stockpiles of the motor fuel to fall by 3.6 million barrels.
Meanwhile, inventories of distillate fuel, which include diesel and heating oil, fell by 900,000 barrels to 129.6 million barrels for the week ended Sept. 12. Analysts expected distillate stocks to slip by 1.7 million barrels.
Violence continued Wednesday across Nigeria's restive Niger Delta oil region. Nigeria's main militant group said it destroyed an oil-pumping station and a pipeline that crosses southern Nigeria, extending a spate of violence into a fifth day. The Movement for the Emancipation of the Niger Delta also said it attacked an oil pumping station overnight, destroying the flow station run by the local unit of Royal Dutch Shell PLC after battling security forces protecting the site.
In other Nymex trading, heating oil futures fell about half a penny to $2.716 a gallon, while gasoline prices lost 2.3 cents to $2.3775 a gallon. Natural gas for October delivery added 38 cents to $7.939 per 1,000 cubic feet.
In London, November Brent crude rose $1.72 to $90.94 a barrel on the ICE Futures exchange.
Associated Press writers Louise Watt in London and Alex Kennedy contributed to this report from Singapore.
Tuesday, September 9, 2008
OIL expects SEBI clearance for IPO by this week
OIL expects SEBI clearance for IPO by this week
State-run Oil India (OIL) on Monday said it expects to receive Sebi clearance for its maiden public offering within this week or the next, a top official told said here.
"After filing the DRHP last December, we have given a letter to Sebi highlighting the recent developments. We expect to get its approval either this week or the next week," OIL Chairman and Managing Dierector M R Pasrija told the media.
The Government owns 98.13 per cent stake in OIL and the remaining is with the employees and others. Post-issue, Government's stake would come down to 78.5 per cent.
The company will dilute 10 per cent stake to public through IPO, 10 per cent again for oil marketing companies like IOC, HPCL and BPCL at IPO price.
State-run Oil India (OIL) on Monday said it expects to receive Sebi clearance for its maiden public offering within this week or the next, a top official told said here.
"After filing the DRHP last December, we have given a letter to Sebi highlighting the recent developments. We expect to get its approval either this week or the next week," OIL Chairman and Managing Dierector M R Pasrija told the media.
The Government owns 98.13 per cent stake in OIL and the remaining is with the employees and others. Post-issue, Government's stake would come down to 78.5 per cent.
The company will dilute 10 per cent stake to public through IPO, 10 per cent again for oil marketing companies like IOC, HPCL and BPCL at IPO price.
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