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UPDATE 3-French fishermen widen protest over fuel costs

Reuters: [2008-05-19 21:11:00]

(Adds Royal unblocking regional aid)

By Muriel Boselli

PARIS, May 19 (Reuters) - French fishermen on Monday widened their protest against rising fuel costs, with the blockade of the country's largest oil port of Fos-Lavera near Marseille.

Fishermen, who are meeting the country's agriculture minister, Michel Barnier, on Wednesday, are demanding help to cushion the effects of rising marine diesel fuel prices, driven higher by record oil prices above $125 a barrel.

"The fishermen are blocking the entrances of the Fos-Lavera oil port but the rest of the Marseille port is not affected," a port spokeswoman said.

"The order is to ensure no ships enter the port," one port source said, adding that at least two oil tankers were lining up to enter the port and other ships were at sea.

"A total of 10 loadings and unloadings have been cancelled since Sunday at 2100 (1900 GMT)," the port spokeswoman said.

Fishermen forced French President Nicolas Sarkozy to increase aid to the fishing industry last November after blocking off various ports and oil depots during a six-day strike.

Segolene Royal, the Socialist who ran against Sarkozy in the 2007 elections and who is the president of the Poitou-Charentes region in southwest France, on Monday announced emergency aid worth 500,000 euros would be made available to help fisherman in the region.

Fishermen in western France have also been blocking access to the oil terminal in the port of La Rochelle since Sunday at 1700 GMT.

Protesting fishermen said they would only lift their blockade at the oil hub if there is a positive outcome at the meeting with Barnier, who has said the state has already handed over 30 million euros ($46.4 million) of aid to the fishing industry this year, with another 23 million on the way.

In a gesture of goodwill, the fishermen lifted their blockade of the town's Chef de Baie fishing port, the Minimes boating port and the old town's port but said they would block those ports again if the negotiations were not satisfactory.

Since last week, fishermen have also cut off access to the nearby Atlantic ports at Ile d'Oleron and La Cotiniere.

Some 20 fishermen are also blocking BP's <BP.L> fuel stocks at the southern city of Frontignan.

Operations at the Fos-Lavera oil hub had already been disrupted by a rolling strike since mid-April against government plans to privatise loading activities at state-run ports.

Fos-Lavera supplies crude to eight refineries in southeast France with a total production capacity of around 800,000 barrels per day. (Additional reporting by Claude Canellas and Nicolas Fichot, editing by Matthew Lewis) ((muriel.boselli@reuters.com; + 33 1 4949 5270; Reuters Messaging: muriel.boselli.reuters.com@reuters.net)) Keywords: FRANCE PORT/BLOCKADE

NYMEX crude choppy with dollar, approaching expiry

Reuters: [2008-05-19 19:12:00]

NEW YORK, May 19 (Reuters) - U.S. crude oil and product futures seesawed Monday, buffeted by a rebounding dollar and trade a day before the June crude contract expires.

"Market is still in bull mode technically, leading to additional upside follow-through," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc, commenting on the early strength above $127.

But Bentz and other sources noted spread plays in the market, with June/July contract spreads under pressure ahead of the NYMEX June contract's expiration Tuesday and out months showing more strength the near months on Monday.

On the New York Mercantile Exchange at 12:40 p.m. (1640 GMT), June crude <CLM8> was down 26 cents, or 0.21 percent, at $126.03 per barrel, trading from $125.56 to $127.77. It moved past technical resistance at $127 in early dealings, closing in on Friday's $127.82 record and resistance charted at $128.

In London, July Brent crude <LCON8> fell 66 cents, or 0.53 percent, to $124.33 a barrel, trading from $123.66 to $126.

The dollar strengthened against the euro <EUR=>, rebounding from a 2-1/2 week low as equities rallied and an forecasting gauge showed the U.S. has so far avoided recession. [USD/]

NYMEX refined products seesawed with crude.

The RBOB contract reached a record high as oil markets head to the upcoming Memorial Day holiday weekend, the traditional launch of the summer driving season.

June RBOB <RBM8> was up only 0.07 cent, or 0.33 percent, at $3.2242 a gallon, trading from $3.2040 to a record $3.2540.

June heating oil <HOM8> fell 2.41 cents, or 0.65 percent, to $3.6787 per gallon, trading from $3.6590 to $3.7195. Heating oil hit a record $3.7228 May 14.

The heating oil crack spread <0#CL-HO=R> was at $28.34, versus Friday's $29.22 finish. The RBOB crack spread <0#RB-CL=R> was at $9.32, after finishing Friday at $9.09.

French port workers will hold a 24-hour strike at the oil port of Fos-Lavera on Tuesday in a series of protests against the privatization of the loading activities of state-run ports, the port said on Monday. [ID:nL19632982]

Chinese demand for June West African crude cargoes fell for a second straight month to the lowest level in 10 months, traders said on Monday. [ID:nL19234861]

OPEC will not meet before its September scheduled gathering and is unlikely to boost output then, OPEC President Chakib Khelil said on Monday.

President Hugo Chavez must explain documents found on Colombian rebel computers that Washington says show deep ties between Venezuela and the rebels, White House drug czar John Walters told Colombian newspaper El Tiempo. [ID:nN18473784]

Colombian authorities on Sunday rejected Venezuelan charges that their troops had crossed the frontier. [ID:nN18498003] (Reporting by Robert Gibbons; Editing by Marguerita Choy) ((Email: robert.gibbons@thomsonreuters.com; + 1 646 223 6059; Reuters Messaging: robert.gibbons.reuters.com@reuters.net)) Keywords: MARKETS ENERGY NYMEX

NYMEX crude up, choppy on looming expiry, dollar

Reuters: [2008-05-19 15:58:00]

NEW YORK, May 19 (Reuters) - U.S. crude oil and product futures seesawed Monday, a day before the June crude contract expires and after nearing a record high near $128 a barrel.

"Market is still in bull mode technically, leading to additional upside follow-through," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc.

Bentz noted June/July contract spreads under pressure ahead of the the NYMEX June contract's expiration Tuesday.

The weak dollar, OPEC's refusal to raise output and the small increase announced by Saudi Arabia last week were cited as supportive factors.

Traders also eyed the simmering dispute between OPEC-member Venezuela and its Andean neighbor Colombia.

On the New York Mercantile Exchange at 9:39 a.m. (1339 GMT), June crude <CLM8> was up 51 cents, or 0.4 percent, at $126.80 per barrel, trading from $125.56 to $127.77. It moved above technical resistance charted at $127 in early dealings, closing in on Friday's $127.82 record peak.

In London, July Brent crude <LCON8> rose 46 cents, or 0.37 percent, to $125.45 a barrel, trading from $123.66 to $126.

The dollar slipped to a 2-1/2 week low against a basket of major currencies on Monday. [ID:nL19172930]

OPEC will not meet before its September scheduled gathering and is unlikely to boost output then, OPEC President Chakib Khelil said on Monday.

Saudi Oil Minister Ali al-Naimi said Friday the kingdom has boosted oil output by 300,000 barrels per day to meet demand and offset other producers' lower output. [ID:nDXB000258]

Crude futures jumped Friday on news that investment bank Goldman Sachs <GS.N> raised its forecast for average second half 2008 oil prices to $141 a barrel. [ID:nL16867930]

NYMEX crude oil speculators hiked net long positions in the week to May 13, according to data from the Commodity Futures Trading Commission released on Friday. [ID:nN16583283]

President Hugo Chavez must explain documents found on Colombian rebel computers that Washington says show deep ties between Venezuela and the rebels, White House drug czar John Walters told Colombian newspaper El Tiempo. [ID:nN18473784]

Walters said the U.S. had not taken a decision on including Venezuela in its list of state sponsors of terrorism.

Colombian authorities on Sunday rejected Venezuelan charges that their troops had crossed the frontier. [ID:nN18498003]

NYMEX June heating oil <HOM8> rose 0.77 cent, or 0.21 percent, to $3.7105 per gallon, trading from $3.6590 to $3.7195. Heating oil hit a record $3.7228 May 14.

June RBOB <RBM8> was up 1.06 cents, or 0.33 percent, to $3.2341 a gallon, trading from $3.2040 to a record $3.25.

The heating oil crack spread <0#CL-HO=R> was at $29.00, versus Friday's $29.22 finish. The RBOB crack spread <0#RB-CL=R> was at $9.10, after finishing Friday at $9.09. (Reporting by Robert Gibbons; editing by Jim Marshall) ((Email: robert.gibbons@thomsonreuters.com; + 1 646 223 6059; Reuters Messaging: robert.gibbons.reuters.com@reuters.net)) Keywords: MARKETS ENERGY NYMEX

U.S. WCoast - Demand lifts gasoline

Reuters: [2008-05-17 00:19:00]

    HOUSTON, May 16 (Reuters) - Gasoline differentials rose 
0.75 cent on Friday as demand was picking up in the last period 
for scheduling pipeline shipments in May, traders said. 
    In the Los Angeles market, May ethanol-blend, unleaded 
CARBOB gasoline sold at 5 cents over NYMEX June RBOB gasoline, 
which climbed 5.77 cents to $3.2235 a gallon. 
    San Francisco Bay CARBOB for May sold at 4 cents over NYMEX 
June RBOB. 
    May CARB diesel in L.A. remained unchanged in a sale at 19 
cents over NYMEX June heating oil, which rose 8.04 cents to 
$3.7028 a gallon. 
    San Francisco Bay CARB diesel was notionally pegged even 
with L.A. 
    May L.A. ultra-low sulfur diesel was priced at 1.5 cents 
under CARB diesel. 
    L.A. jet fuel was down a penny in a sale at 24.25 cents 
over June NYMEX heating oil. 
    In the Portland, Oregon, market gasoline was in a bid-offer 
spread at 3 cents/5 cents over NYMEX RBOB and diesel up 3 cents 
at 21 cents/23 cents over NYMEX heating oil. 
* * * * * * For price chains double click on:  * * * * * * 
    <0#CL:> <0#LCO:> <0#HO:> <0#LGO:> <0#HU:> 
 + + + + For more news on energy, double click on - + + + + 
    [O]......   headlines 
    [OPEC]...   OPEC               [NSEA] North Sea 
    [CRU]....   crude oil          [PROD] oil products 
    [TOP/] News by topic           [DRV]....   derivatives 
    [SHG]  shipping news 
++++++++++++++For market news, double click on- +++++++++++++ 
    [O/R]....   Energy market reports index 
    [CRU/]...   Latest crude       [CRU/E] European Crude 
    [PRO/E]..   European products 
    [O/L]....   Latest IPE         [O/N]  Latest NYMEX 
    For energy speed guide page, click on <ENERGY> 
 (Reporting by Erwin Seba; Editing by Christian Wiessner) 
 ((erwin.seba@reuters.com; +1 713 210 8508; Reuters Messaging: 
erwin.seba.reuters.com@reuters.net)) 
Keywords: MARKETS PRODUCTS WESTCOAST 
    

UPDATE 3-U.S. Energy Dept to stop adding oil to reserve

Reuters: [2008-05-16 22:40:00]

(Adds comment from senator, government selling oil)

By Tom Doggett

WASHINGTON, May 16 (Reuters) - The U.S. Energy Department said on Friday it will not add millions of barrels of oil to the Strategic Petroleum Reserve, a move sought by Congress to battle record fuel costs that in the end will likely have little impact on lowering prices.

The department's decision comes after Congress this week approved legislation ordering the Bush administration to stop putting oil into the emergency stockpile until crude prices fall below $75 per barrel, far lower than current levels.

On the New York Mercantile Exchange, crude oil for delivery in June hit a record high of near $128 on Friday.

Many energy analysts believe stopping the reserve's oil shipments will have little, if any, effect on lowering fuel costs.

Michael Greenberger, director of the Center for Health and Homeland Security at the University of Maryland, said the extra supplies may provide some short-term relief at the pump.

"In the long term, gasoline prices will soon continue their rapid rise because those prices have little relationship to supply/demand factors (and) are being manipulated upward by energy traders," he said.

Republican Sen. Kay Bailey Hutchison of Texas said the department's decision was encouraging. "This is a small step, but an important one," she said.

The oil stockpile is already 97 percent full, holding almost 703 million barrels of crude at four underground storage sites in Texas and Louisiana. The reserve was created by Congress after the 1973-74 Arab oil embargo to ensure the United States has a cushion of crude to handle major supply disruptions.

The department said it would not sign contracts with energy companies to deliver up to 13 million barrels of crude oil to the reserve.

It had received bids this week to exchange millions of barrels of oil that was turned over to the government as royalties for drilling on federal leases for better qualities of crude from firms that would have gone into the reserve.

Those contracts would have delivered oil to the reserve at a rate of 76,000 barrels a day from August through December.

Separately, the department said it would not go into the market this year and buy $584 million worth of oil for the stockpile if the legislation becomes law, as is expected.

Those oil purchases would have helped to replace some of the crude the government sold from the reserve to refineries after Hurricane Katrina disrupted supplies along the Gulf Coast and flooded New Orleans in late August 2005.

The department also said it will defer some 4.2 million barrels of oil scheduled to be delivered to the stockpile from late May through July, if the legislation becomes law. About 3.7 million barrels of oil is already in route this month to the stockpile and won't be stopped.

The White House has said it will not veto the legislation, though the Bush administration had fought against halting oil shipments to the stockpile.

Congress wants the oil earmarked for the reserve to instead be put in the market to help lower record oil and gasoline prices. The administration for months had rejected calls from lawmakers to stop oil deliveries to the stockpile, saying the volumes were too small to affect prices.

In a related matter, the Interior Department said on Friday it sold 16.1 million barrels of oil worth $1.9 billion to four energy companies, boosting available supplies in the market.

The crude came from companies that turned over to the government a portion of the oil they drilled on federal lands as royalties, instead of paying cash royalties. That oil will be delivered to the companies over 6 months starting July 1. (Additional reporting by Chris Baltimore; editing by Jim Marshall) ((tom.doggett@thomsonreuters.com; + 1 202 898-8320; Reuters Messaging: tom.doggett.reuters.com@reuters.net)) Keywords: USA OIL/STOCKPILE

Next: NYMEX crude ends above $126, extending record run