Top Oil News

World market prices for oil on July 22, 2008 at the leading oil exchanges declined significantly. Official oil futures prices coming month deliveries were: at the InterContinental Exchange Futures - 129,55 US$/bbl. (IPE Brent Crude); at the New York Mercantile Exchange - 127,95 US$/bbl (Light, Sweet Crude Oil).

The price of oil began the session mildly lower on expectations that Tropical Storm Dolly wouldn’t disrupt oil operations in the Gulf of Mexico. The advance increased after comments from a Federal Reserve official sent the dollar higher against major currencies, a trend that in turn sends commodities lower.

Lower oil prices are diverting attention from earnings for the moment. There’s no questions about some negative earnings reports coming out, but we’re starting to think some of them might be company specific and not broader.

The Brazilian oil company Petrobras announced the reduction of the volume of oil production by 7% due to the strike of the company. Strike started July 14 and led to a stop 2 oil platforms in the basin Campos Basin off the coast of the State of Rio de Janeiro and to reduce production at 136 000 bbl./day.

On the application of trade union work was suspended for 12 out of 33 oil platforms, reducing production by 400 000 bbl./day. Participants sought strike giving them an additional day off at the end of each two-week shifts on the platform. As claimed in the press, the strike will last for 5 days.

Concern Brazilian Petrobras produces about 1.6 billion barrels oil per day and is the world’s sixth oil company in terms of market capitalization. At the Campos Basin field produced more than 80% of Brazilian petroleum.

Russian Vice-Premier Igor Sechin offers to build a new refinery in Russia with capacity of 12 million tons. The project cost is estimated at 8 billion dollars.

In Russia no such plants built since USSR times. Usually, major oil companies only modernized the old refinery. The State will participate in the construction of new refineries for processing of Russian oil and petroleum products supply the domestic market. As experts note, such a project would reduce the growth of prices for gasoline.

The volume of processed oil in 2007 (Russia)