Daily Archives: July 2, 2009

Carola Hoyos

On Energy Source:

Chevron may have last laugh in Iraq Read more

Oil fell on Thursday as the market continued to digest US government data showing a large increase in petrol stocks, increasing worries that consumer demand was flagging and the energy markets had been overbought.

Crude sagged as investors across most asset classes adopted defensive stances after closely-watched US non-farm payrolls data showed unemployment in the world’s leading economy fell more than expected. Read more

London-based oil brokerage PVM Oil Associates is understood to have parted company with one of its senior long-standing derivatives brokers after allegedly detecting a large unauthorised Brent ICE position on his book.

While the oil market in London was abuzz with the story on Thursday, hard details were still thin on the ground.  However, the wayward trade is thought to have involved anywhere between 1,800 and 9,000 lots of Brent ICE futures, which at the top end would be equal to as much as $630m or 9m barrels of oil.

To put that in context, the world’s top exporter Saudi Arabia has the ability to produce some 11m barrels a day at maximum capacity.

The huge position is said to have been amassed in the early hours of Tuesday morning, around 2am.  Sources said PVM, the world’s biggest independent oil broker, began to unwind the position as soon as it was detected when the firm formally opened for business on Tuesday, minimising losses to the privately-owned company to around $10m. Read more

Sheila McNulty

A BP-led consortium may have won a deal to develop Iraq’s largest oilfield, but Chevron could have the last laugh.

The US oil company did not even bid for one of the highly touted contracts. While Chevron is not saying anything about what kept it out of the race, an industry source says the world’s third biggest oil company decided the terms being offered were too unfavorable for the company to make money. Read more

- Areva plans to raise €10bn through disposals
Chief declares end to years of uncertainty (FT)

- Indian fuel prices raised by 10%
Increase is first this year (FT) Read more