[Newsletter 12/5/2011] Euro talks continue

Market Update:

Leaders Piece Together an Effort to Keep the Euro Intact

PARIS — European leaders are working overtime on a tentative deal to try to save the euro, which they hope to complete at a crucial summit meeting in Brussels this week. But rather than one transformative leap, the deal will have several moving parts, together meant to show resolve to protect Italy and Spain, revise the economic governance of the euro zone and prevent further debt crises, officials involved in the talks say…Read the full article at the New York Times

Major Media Headlines:

  • Samsung shares rise after its victory in the U.S. against Apple’s (NASDAQ: AAPL) attempt to block its Galaxy tablet from the U.S. market. (Reuters) – Media Digest
  • HSBC data show that China’s PMI slowed considerably. (Reuters)- Media Digest
  • U.S. Treasury Secretary Tim Geithner lobbies European Union finance ministers to slow the sovereign debt crisis. (Reuters)- Media Digest
  • Olympus hid as much as $1.7 billion. (Reuters)- Media Digest
  • Online gaming firm Nexon fixes the price for its $1.2 billion initial public offering, the largest in Japan this year. (Reuters)- Media Diges
  • JPMorgan (NYSE: JPM) sets up a loan to help SAP (NYSE: SAP) buy SuccessFactors (NASDAQ: SFSF). (Reuters)- Media Digest
  • Estimates of the U.S. corn crop have been flawed. (WSJ)- Media Digest
  • Yahoo! (NASDAQ: YHOO) may lose some of its key employees after year-end bonuses are paid. (WSJ)- Media Digest
  • General Motors’ (NYSE: GM) Chevy Volt sales were slow ahead of problems with the car. (WSJ)- Media Digest
  • Italy’s government produces new austerity plans. (WSJ)- Media Digest
  • Japan’s Fukushima Daiichi nuclear complex has a new leak. (WSJ)- Media Digest
  • Western Digital (NYSE: WDC) restarts its Thailand plants, key suppliers for the company’s products. (WSJ)- Media Digest
  • Boeing (NYSE: BA) will circle the globe in its new 787 Dreamliner to get more business; however, a key Japanese customer has just cut orders. (WSJ)- Media Digest
  • A Tulane University Freeman School of Business study shows that large severance packages may encourage CEOs to take more risks. (WSJ)- Media Digest
  • Futures firms may face new rules about how they treat customer accounts. (WSJ)- Media Digest
  • Microsoft (NASDAQ: MSFT) creates new features for its Xbox Live product that allow it to compete with set-top boxes. (NYT)- Media Digest
  • Italy’s shopping season is the worst since World War II. (Bloomberg)- Media Digest
  •  


 

 

Oil Today:

China may open up oil to U.S. companies, report says

China will likely consider moves to seek more partnerships with U.S. companies to access its huge domestic oil and gas assets, a new study asserts.

The study released Dec. 2 by the James A. Baker III Institute for Public Policy at Houston’s Rice University notes that, despite China’s efforts to centralize energy policy to stimulate domestic production, the country is increasing its state investment in North American oil and gas plays.

The study, titled “The Rise of China and Its Energy Implications,” said the U.S. system of open and competitive private sector investment is stimulating more innovation in the American energy sector than in the Chinese energy industry, especially in the area of unconventional oil and gas.

China, like the U.S., has substantial potential shale gas resources but faces technical, regulatory and market infrastructure challenges that will likely delay development. If China can mobilize investments in shale plays, the study said, it could greatly reduce the country’s expected large import needs for liquefied natural gas (LNG) and contribute to a future glut in global natural gas markets.

The study noted that China’s “going abroad” strategy has also encountered recent difficulties in light of global political risks in oil-producing regions.

“China is learning that owning equity oil in risky regions may not be as effective an energy security strategy as it had previously imagined,” said Amy Myers Jaffe, an author of the study and the Wallace S. Wilson Fellow for Energy Studies at the Baker Institute. “China is now finding itself mired in more energy-related foreign diplomacy than it bargained for.”

China has tried to offset some of this risk by increasing investments in oil and gas assets in the U.S. and Canada. In turn, that gives the U.S. more leverage in seeking China’s collaboration in international diplomatic matters, the study said.

The study also predicts that China’s oil consumption could easily reach levels comparable to today’s U.S. levels by 2040 when as many as 700 million vehicles are in use…read the full article

 

 


Weather Updates

Hurricane Season is over until 2012. There are no Tropical waves or developments to watch at this time.

Weather updates will be streamed on Sun Coast’s Facebook Page if there are any changes.

Contact Sun Coast Resources to find out how we can keep you going during and after the storm with 24/7 Emergency Fueling Services!

Email or call toll-free at 800-677-3835 *490! Get ready for the incoming storms!

National Weather Conditions

National Weather Hazards. Weekly Weather and Energy Newsletter - 12/5/2011

National Weather Service

New Mexico is being pounded by winter weather and there is a storm front moving East across the US.

Click on the map to take a closer look at your area to see what you should be watching out for.

Subscribe to this blog on the right and get the Daily Weather and Energy Newsletter instantly in your inbox!

[Newsletter 11/28/2011] Facebook plans $10 Billion IPO

 

Market Update:

Facebook Said to Plan $10 Billion IPO

Facebook Inc. is considering raising about $10 billion in an initial public offering that would value the social-networking site at more than $100 billion, a person with knowledge of the matter said.

Facebook may file for an IPO before the end of the year, said the person, who asked not to be identified because the deliberations are private. Exact timing for the filing hasn’t been determined, the person said.

At $10 billion, the offering would raise more money than any other technology IPO, a sign investors are eager to get a piece of the top social-networking company. The amount would dwarf that of the previous record holder, Infineon Technologies AG, which generated $5.23 billion in its 1999 debut. Agere Systems Inc. raised $4.14 billion in 2000, putting it second.

Facebook’s $100 billion valuation would be twice as high as it was in January, when the company announced a $1.5 billion investment from Goldman Sachs Group Inc. (GS) and other backers at a worth of $50 billion. Facebook is currently pegged at $66.6 billion on SharesPost Inc., which handles trading of closely held companies.

Facebook expects to be required by U.S. regulators to disclose financial results by April 30, 2012, if it doesn’t go public by then, the company said in January. The social- networking company decided to wait until 2012 for its IPO to give Chief Executive Officer Mark Zuckerberg more time to gain users and boost sales, three people said last year.

Jonathan Thaw, a spokesman for Palo Alto, California-based Facebook, declined to comment.

The Wall Street Journal reported earlier today that Facebook is discussing a $10 billion IPO with a valuation of more than $100 billion. The company aims to go public between April and June, the Journal said…read the full article


 

Major Media Headlines:

  • Moody’s says the EU debt crisis threatens the sovereign ratings of all nations in the region. (Reuters)- Media Digest
  • Wall St. pay could drop 30% from last year. (WSJ)- Media Digest
  • The U.S. labor market is exhibiting more signs that it is like Europe’s. (WSJ)- Media Digest
  • Microsoft’s (NASDAQ: MSFT) interest in Yahoo! (NASDAQ: YHOO) may be only to protect the search alliance between the two. (FT)- Media Digest
  • Central banks substantially ease monetary policy to prevent contagion. (Bloomberg)- Media Digest
  • Fitch keeps AAA US credit rating but dims outlook

 


 

Oil Today:

Venezuela and Colombia presidents look to build oil pipeline to Pacific, boost trade

CARACAS, Venezuela — The presidents of Venezuela and Colombia say they plan to boost trade and are looking to build a pipeline to carry Venezuelan oil to Colombia’s Pacific coast.

Colombian President Juan Manuel Santos says the countries now have an agreement to form joint companies that the governments plan to use to build a pipeline from Venezuela’s oil fields across Colombia.
Venezuelan President Hugo Chavez says he hopes to increase trade with Colombia to as much as $7 billion a year. Trade between the neighbors last year stood at about $1.5 billion.

The two leaders are touting several joint projects as examples of cooperation, including plans to build a small power plant to supply towns along their border.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed…Read the full article


Weather Updates

There are no Tropical waves or developments to watch at this time.

Weather updates will be streamed on Sun Coast’s Facebook Page if there are any changes.

Contact Sun Coast Resources to find out how we can keep you going during and after the storm with 24/7 Emergency Fueling Services!

Email or call toll-free at 800-677-3835 *490! Get ready for the incoming storms!

National Weather Conditions

National Weather Hazards. Weekly Weather and Energy Newsletter - 11/28/2011

National Weather Service

In the East and West we have winter storms throughout. High winds and winter weather and creating some cold situations as we move closer to the winter season. Fire weather warnings are pretty widespread.

Click on the map to take a closer look at your area to see what you should be watching out for.

Subscribe to this blog on the right and get the Daily Weather and Energy Newsletter instantly in your inbox!

[Newsletter 11/17/2011] Protesters lost there camp in NY and are moving to the NYSE

 

Market Update:

 

Protesters Head to NYSE as Police Stand Guard

 

New York police stood prepared for tens of thousands of Occupy Wall Street demonstrators to descend on the Financial District, and ringed the area with metal barricades to deter crowds from reaching their goal of surrounding the New York Stock Exchange. At least 1,000 protesters filled the streets near the NYSE and Zuccotti Park, the symbolic home of the movement. Police this week cleared the park of tents and other gear, which protesters had used to camp for two months. By 7 a.m. today, police had blocked access to Wall Street and Broad Street, home of the NYSE, and workers were being asked to show identification to enter the area. Helicopters hovered overhead. “It’s a huge waste of taxpayer money to pay all these police overtime for two months,” Ken Polcari, a floor trader and managing director at ICAP Corporates, said by telephone from the NYSE, where he’s worked for 28 years. “The Big Board isn’t going to succumb to a bunch of kids with no message. I expect it’s going to be an annoyance.” At one point, police wrestled with protesters outside 60 Wall St. as office workers waiting to get through filmed the action with smart phones. Several protesters were arrested and hauled away in vans. One protester’s sign read: “Debt — the only thing still made in the U.S.” NYSE Euronext is planning “business as usual,” Rich Adamonis, a spokesman for the exchange, wrote in an e-mail. He declined to comment on the company’s security measures.

‘Raise a Ruckus’

Following the morning’s activities to “raise a ruckus and clog up the works” in Lower Manhattan, protesters plan to take their protest against economic inequality into the subway system, said Mark Bray, a spokesman for Occupy Wall Street. They plan to fan out on trains throughout the five boroughs, ending with a 5 p.m. rally at Foley Squareand march across the Brooklyn Bridge. Howard Wolfson, Mayor Michael Bloomberg’s deputy for government relations, said at a City Hall briefing yesterday that officials were anticipating tens of thousands of people protesting “aimed at significant disruption.” Forces would be deployed accordingly, he said. “It’s time we put an end to Wall Street’s reign of terror and begin building an economy that works for all,” the group said on its website. Demonstrators will “confront Wall Street with the stories of people on the front lines of economic injustice. There, before the stock exchange, we will exchange stories rather than stocks.”

‘The 99 Percent’

The Occupy Wall Street protests, which began in New York Sept. 17, have spread to cities on four continents, including London, Sydney, Toronto, Rome and Tokyo. The demonstrators refer to themselves as “the 99 percent,” a reference to Nobel Prize- winning economist Joseph Stiglitz’s study showing the richest 1 percent control 40 percent of U.S. wealth. The events today follow the group’s loss of its two-month campsite at Zuccotti Park in Lower Manhattan on Nov. 15, when New York City police in riot gear swept into the privately owned public park beginning around 1 a.m. About 200 people were arrested, police said. Among them were journalists and Councilman Ydanis Rodriguez, a north Manhattan Democrat, who said he was thrown to the ground while attending as an observer.

‘Remain Open’

After the raid, lawyers for the demonstrators failed to persuade a judge to reverse the eviction. “The court’s ruling vindicates our position that First Amendment rights do not include the right to endanger the public or infringe on the rights of others by taking over a public space,” Bloomberg said in a statement. “Zuccotti Park will remain open to all who want to enjoy it, as long as they abide by the park’s rules.” The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP. Camps have also been shut down by officials in cities including Oakland, California, andPortland, Oregon. A judge yesterday ordered Boston to refrain from removing protesters from Dewey Square until Dec. 1. Protesters in New York said they remained unbowed by the city’s move to ban sleeping bags, tarps and tents. More than 150 had regrouped in the park with umbrellas yesterday as rain blanketed the city. “We’ve all realized that the movement’s a lot more than just a physical occupation,” Julien Harrison, a former college teaching assistant from Georgia, said by telephone. He said he’s camped at the park sporadically since the occupation began.

‘The Best Thing’

Expulsion from the park “was the best thing that could have happened to us strategically” because “it looks bad for a system that continually uses violence against non-violence,” said Daniel Zetah, 35, from Minnesota, who’s slept in the park most nights. “It’s going to galvanize people” and inspire large numbers to attend today’s events, he said in a telephone interview. Last month, police halted a march over the Brooklyn Bridge and took hundreds of activists into custody for blocking traffic. The city has spent $6 million on protest-related costs, excluding the Nov. 15 raid, said Wolfson and Caswell Holloway, deputy mayor for operations. Protesters won’t be allowed to camp at any other city parks, Wolfson said. “Our goal is to ensure that the city continues to run, that essential services get provided to get to and from work,” Holloway said yesterday at the briefing. “Public safety is first and foremost.”

Nationwide Protest

New York’s demonstrators will be joined by advocacy groups, the Service Employees International Union and the AFL-CIO in a “nationwide ‘We Are The 99%’ day of action,” Daniel Mintz, campaign director of MoveOn.org, said in an e-mailed statement. The online organization was started in opposition to President Bill Clinton’s impeachment and became an advocate for overhauling health care. Protests in almost every state will call on members of a congressional supercommittee looking for spending reductions “to protect vital programs like Medicare and Social Security, and finally make the super-rich pay their fair share instead of supporting a deal chock full of job-killing cuts,” Mintz said… See the full article at Blomberg

Major Media Headlines:

  • The super committee makes no significant decisions on the budget deficit. (Reuters)- Media Digest
  • Google (NASDAQ: GOOG) launches its new music service. (Reuters)Media Digest
  • Greece starts talks with private bondholders. (Reuters)Media Digest
  • AT&T (NYSE: T) may sell the Nokia (NYSE: NOK) Microsoft (NASDAQ: MSFT) Windows smartphone. (Bloomberg)Media Digest
  • A number of alternatives to oil may be lost if the Keystone XL pipeline loses support. (NYT)Media Digest

 


 

 

Oil Today:

The 10 Largest Known Natural Gas Fields In The World

Natural Gas is increasingly becoming an important fuel in meeting the global energy needs. In this post, let us take a quick look at the largest natural gas fields in the world.

Eastern Europe and Eurasia have the largest known natural gas resources, which are concentrated in the countries of the former Soviet Union. The Middle East also holds large volumes of natural gas due to the presence of oil. More than half of the world’s proven reserves are concentrated in Russia, Iran and Qatar in large conventional fields.

The following chart shows the world’s ten largest known natural gas fields:

Worlds Largest Natural Gas Fields

Source: Are we entering a Golden Age of Gas?, Special Report, IEA

Based on assumptions of recovery and extent of deposits, Marcellus and Haynesville, two of the largest identified fields in the United States, rank respectively as the the third and fifth-largest fields gas fields in the world.

The world’s other largest fields are located in Qatar (North Field), Iran (South Pars), Russia (Urengoy, Yamburg and Bovanenkovskoye), China (Ordos basin), Turkmenistan (South Yolotan) and Saudi Arabia (Ghawar, which is also the world’s largest oil field).

Article Source: seekingalpha.com

Info Source: Are we entering a Golden Age of Gas?, Special Report, IEA

 

 

 


Weather Updates

There are no Tropical waves or developments to watch at this time.

Weather updates will be streamed on Sun Coast’s Facebook Page if there are any changes.

Contact Sun Coast Resources to find out how we can keep you going during and after the storm with 24/7 Emergency Fueling Services!

Email or call toll-free at 800-677-3835 *490! Get ready for the incoming storms!

National Weather Conditions

National Weather Hazards. Weekly Weather and Energy Newsletter - 11/17/2011

National Weather Service

In the West we have winter storms throughout. High winds and winter weather and creating some cold situations as we move closer to the winter season.

Click on the map to take a closer look at your area to see what you should be watching out for.

Subscribe to this blog on the right and get the Daily Weather and Energy Newsletter instantly in your inbox!

[Newsletter 11/08/2011] All Eyes on Europe

 

Market Update:

All eyes are watching Europe this week as Greece and Italy work our debt issues. The outcome will certainly affect the world.

Support for Berlusconi Ebbs Before Crucial Vote

 

As Italy’s 10-year borrowing costs, a measurement of investor anxiety over its future, reached a new record of 6.71 percent, and as Mr. Berlusconi readied to face a vote in the lower house that would clarify his remaining support, Mr. Bossi asked the prime minister to relinquish his post in favor of Angelino Alfano, the secretary of Mr. Berlusconi’s Peoples of Liberty Party.Mr. Berlusconi said earlier that he would decide his future moves after the vote, a routine verification of the 2010 budget that has taken on immense political import for the prime minister after the defection in recent days of a number of lawmakers in his party.

Italian news media reported Tuesday that Mr. Berlusconi had been feverishly at work contacting the dissenters from the majority to change their minds. The prime minister has reiterated repeatedly in recent days that the coalition must stick together to pass a series of austerity measures that will placate the financial markets that have targeted Italy’s financial vulnerabilities. No less than the future of the euro and Europe is at risk, he has said, playing on a national sense of responsibility to rein in his detractors.

But critics counter that Mr. Berlusconi is among the chief reasons for the financial attacks on Italy. The scandal-plagued prime minister, who is on trial for corruption, tax fraud and paying for sex with a minor, has worn away what had been left of his international credibility, they say. And after months of parliamentary deadlock, Mr. Berlusconi has shown that he does not have the political backing to push through the measures that are required of Italy to remedy its financial ills.

Italy has been under the watchful eye of its European counterparts and international organizations since the summer, when the government pushed through two sets of austerity measures that financial markets nonetheless deemed insufficient to boost the country’s economy and make a dent in its huge public debt of 1.9 trillion euros. At 120 percent of gross domestic product, Italy’s debt level is second only to Greece’s in the euro zone.

Last month, Mr. Berlusconi pledged to the European Union that he would approve a new round of restructuring, including the privatization of state assets, liberalizations of the labor market and a modest pension change, but his promises did little to quell market anxieties. The borrowing cost on Italian bonds, the price that investors demand from Italy for loaning it money, have soared.

Even the decision taken at the Group of 20 Summit last week to allow the International Monetary Fund to monitor Italy’s implementation of the pledged reforms did little to boost investor confidence.

On Tuesday morning, opposition parties said they would abstain from the vote, which means that Mr. Berlusconi does not need to reach an absolute majority to pass the measure. But even so, the numbers will be closely watched to see whether Mr. Berlusconi has been able to muster a healthy majority that would ensure at least a measure of stability in the short-run.

President Giorgio Napolitano, who is constitutionally required to manage a political crisis, has a number of options open to him.

Mr. Berlusconi and his coalition allies are pressing for new elections, though recent polls indicate that they would not win the numbers to return to power.

Some opposition leaders, numerically empowered by the poll predictions, are also tempted by a return to the polls 18 months ahead of the scheduled end of the legislature.

But neither the current majority or any of the opposition parties are likely to garner a solid majority on their own, and it is probable that a multi-party coalition with conflicting vested interests would not have the political cohesion necessary to pass unpopular measures.

Another option is to appoint a technocrat – Mario Monti, a former European commissioner, is commonly mentioned – as head of the government for a fixed period of time that would allow for reforms to be enacted.

Despite the crisis, it remains to be seen whether a government led by someone such as Mr. Monti would actually come up with the unity to govern.

The country’s political crisis has been exacerbated by coalition partners in both the majority and the opposition that are openly hostile to Europe, remaining “at the margin of the European political network,” and making it more difficult to push through reforms demanded by Europe, said Sergio Fabbrini, Director of the School of Government at Rome-based LUISS University. In this situation, a changeover in government is unlikely to make much of a difference, he said…Read the full article

By 

 

Major Media Headlines:

  • The crisis in Europe prompts a tightening of bank lending in the U.S. (FT)- Media Digest
  • Barnes & Noble (NYSE: BKS) launches a new version of its NOOK e-reader. (Reuters)- Media Digest
  • Google’s (NASDAQ: GOOG) chairman says his company will not favor Motorola Mobility (NYSE: MMI) as its develops new software. (Reuters)- Media Digest
  • New Census Bureau data shows 49 million people in the U.S. live in poverty. (Reuters)- Media Digest
  • Italy’s sovereign debt interest rates rise sharply. (Reuters)- Media Digest
  • Greece cannot decide on its new prime minister. (Reuters)- Media Digest

 

 


 

Oil Today:

Evidence of oil off Greenland coast

Find comes after drill last year indicated presence of natural gas Greenland has taken one step closer to an oil rush after Edinburgh-based Cairn Energy today announced it had found signs of hydrocarbons in two wells drilled there this summer….

Greenland has taken one step closer to an oil rush after Edinburgh-based Cairn Energy today announced it had found signs of hydrocarbons in two wells drilled there this summer.

The wells, drilled at a depth of nearly a kilometre about 200 km off the coast of the capital city of Nuuk, reportedly hit “reservoir quality sands” that could hold oil and gas deposits.

This is the second time in two years the company has found evidence of oil or natural gas.

Cairn drilled a total of five wells this summer, but the first three were abandoned after they showed no evidence of oil or gas.

According to the company, it found signs of oil and natural gas in mud that had been forced up through its test well.

The discovery of the hydrocarbons in a 50-metre thick layer of sand is significant, since it means that any oil or gas trapped there would easily be forced to the surface.

Cairn will now attempt to obtain fluid samples from the wells.

This was the second drilling season Cairn has been active off the coast of Greenland. Last year’s drills also returned evidence of natural gas. Cairn had initially expected to invest 5.5 billion kroner in its Greenlandic drilling activities through 2014, but as of this summer it had already reached that amount. The company, however, said it remained committed to the search for oil in Greenlandic waters.

Both this year and last Cairn was forced to temporarily halt its drilling when activists from Greenpeace borded drilling rigs. The company received a court order banning the organisation’s activists from approaching its vessels.

Studies show that the Arctic contains roughly 30 percent of the world’s unproven gas reserves and 10 percent of its unproven oil reserves…Read the full article

 


Weather Updates

There is a small tropical storm, Sean, out in the Atlantic moving towards Bermuda. There is no threat to the US at this time.

Tropical Storm Sean. Weekly Weather and Energy Newsletter - 11/08/2011

National Hurricane Center

Weather updates will be streamed on Sun Coast’s Facebook Page if there are any changes.

Contact Sun Coast Resources to find out how we can keep you going during and after the storm with 24/7 Emergency Fueling Services!

Email or call toll-free at 800-677-3835 *490! Get ready for the incoming storms!

 

National Weather Conditions

 

 

National Weather Hazards. Weekly Weather and Energy Newsletter - 11/08/2011

The country has a variety of issues this week. There are winter storm warnings and watches around the Great Lakes and around the southern Rockies. Alaska is facing blizzards on its west coast that are causing havoc. In parts of California and Arizona there are freeze warnings.

Click on the map to take a closer look at your area.

Subscribe to this blog on the right and get the Daily Weather and Energy Newsletter instantly in your inbox!

[Newsletter 10/31/2011] Oil prices mellow out along with the global economy after last weeks rally

 

Market Update:

NY Fed suspends MF Global, deal on future nears

 

(Reuters) – MF Global Holdings Ltd (MF.N) was suspended from conducting new business with the New York Fed on Monday, and its shares were halted, as the troubled brokerage run by former Goldman executive Jon Corzine neared a deal on its future. MF Global scrambled through the weekend to find buyers for all or part of the company, and it hired restructuring and bankruptcy advisers, according to sources familiar with the situation.

The tentative plan calls for MF Global’s holding company to file for bankruptcy protection and derivatives trader Interactive Brokers Group Inc (IBKR.O) to buy the assets, The Wall Street Journal and The Financial Times reported.

The company, which under Corzine ramped up more risky proprietary trading, is suffering because of low interest rates and bets it made on European sovereign debt, making it possibly the most prominent U.S. casualty yet from the eurozone debt crisis. “The Federal Reserve Bank of New York has informed MF Global Inc that it has been suspended from conducting new business with the New York Fed,” the Fed said. “This suspension will continue until MF Global establishes, to the satisfaction of the New York Fed, that MF Global is fully capable of discharging the responsibilities set out in the New York Fed’s policy.” The company’s shares were suspended before trading opened in New York, pending a statement.

Its 6.25 percent notes due 2016 were last trading at about 35 cents on the dollar, a deeply distressed level, after touching a morning low of 15. They were offered at par in August. The company has declined to comment, even as its shares and bonds plunged in recent days.

In the past week, MF Global posted a quarterly loss, its shares fell by two-thirds and its credit ratings were cut to junk. Interactive Brokers, am electronic broker-dealer and market maker run by industry veteran Thomas Peterffy, would likely make an initial bid of about $1 billion during a court-supervised auction for the brokerage, the WSJ said. Outside MF Global’s headquarters in midtown Manhattan on Monday, TV cameras were lined up but few people were entering or leaving the building.

In London, MF Global clients said the company was not taking on new business and they were closing out positions. “It was quite difficult to get our money out on Friday, because they had a lot of redemption calls,” said a trader, whose firm used MF Global as a brokerage. “The company is not initiating any new position. They are trying to close down positions that they already have with clients that are open,” the trader said.

MF Global was added in February by the New York Fed to the list of financial firms that work directly with the U.S. government to help manage monetary policy and sell U.S. debt, known as primary dealers.

BANKRUPTCY ADVISERS MF Global was in talks on Sunday with possible buyers, aiming “squarely” to do a deal, though all options remained on the table as the firm hired restructuring and bankruptcy advisers, sources familiar with the situation told Reuters. The New York Times reported in its electronic edition that by Sunday evening, the talks had narrowed to one bidder, Interactive Brokers.

Sullivan & Cromwell’s restructuring and mergers teams have joined the long roster of those advising MF Global, one source familiar with the situation said. Weil, Gotshal & Manges was also hired to prepare potential restructuring options, a second source familiar with the situation said. The sources could not be identified by name because the talks were not public.

Weil would focus on MF Global’s UK subsidiary if it needed to pursue a formal restructuring overseas, the Journal reported in its electronic edition. The securities company also has hired firm Skadden, Arps, Slate, Meagher & Flom, the newspaper said.

A number of interested parties were considering several possible deals on Sunday, including buying all or parts of MF Global, said one source briefed on the matter. “The goal is squarely for some sort of M&A transaction,” the source said, adding the situation was “fluid.” Corzine, who became CEO in March last year after a term as New Jersey’s governor, has been trying to transform MF Global from a brokerage that mainly places customers’ trades on exchanges into an investment bank that bets with its own capital.

MF Global has given potential buyers limited information about its financials and has not set up a data room for bidders to conduct due diligence, a buy-side source said earlier. The source, who is looking in to deals both for the whole company and for its parts, said the company’s positions are big and hard to value, especially the firm’s sovereign risk exposure. “How do you put a price on that? How do you get a deal done when the right side of the balance sheet keeps moving so dramatically?” the source said. The company hired boutique investment bank Evercore Partners Inc (EVR.N) to help find a buyer, separate sources said this past week…Read the full article

 

Major Media Headlines:

  • Many EU-based businesses have cut earnings forecasts as trouble in the region hurts the economy. (WSJ) - Media Digest
  • Gamestop (NYSE: GME) to sell PCs. (WSJ) – Media Digest
  • Google (NASDAQ: GOOG) has a new product to compete with Groupon. (WSJ) Media Digest
  • Natural gas shale drilling  in Pennsylvania  prompts fight over who owns rights and land. (WSJ) Media Digest
  • Federal Reserve members are at odds about whether the central bank should do more to help the economy. (WSJ) Media Digest
  • Nebraska may try to block the construction of a huge pipeline that would run from Canada to the southern U.S. (WSJ) Media Digest
  • Microsoft (NASDAQ: MSFT) will begin to use Xbox Kinect to deliver more than game services. New software may create medical devices. (FT) Media Digest
  •  

 


 

Oil Today:

After a big rally in the past couple weeks, oil has receded some to below $92/barrel as the world economy slows.

Suspected suicide bomber attacks Kazakh oil city

ALMATY: Two blasts ripped through the oil hub city of Atyrau in western Kazakhstan on Monday, prosecutors said, killing one man described by media as a suicide bomber.

No one else was hurt in the attacks, which began just before 9 a.m. local time (0400 GMT) with a blast near an administrative building in the Caspian port city, about 2,500 km (1,553 miles) west of the Kazakh capital Astana.

An hour later there was a large blast near the offices of the city’s prosecutors, police and national safety committee, regional prosecutors said.

“An unidentified man used an explosive device, making him die on the spot and breaking the windows of a nearby apartment building,” they said in a statement.

Kazakhstan’s huge Kashagan oilfield is 80 km southeast of Atyrau, in which U.S. major ExxonMobil Corp and Italy’s ENI have stakes, and several foreign oil majors have regional offices in the city.

Kazakh news site Tengrinews.kz, citing a source in the security forces, said the bomber’s body parts were scattered around the site of the blast and that he was a suicide bomber.

The blasts are the latest to befall oil-rich Kazakhstan, a normally peaceful majority Muslim former Soviet country in Central Asia. In May two fatal blasts killed several people.

They also come a week after a previously unknown Islamist group threatened Kazakhstan in a video with violence unless it abolished a new law banning prayer rooms in state buildings.

President Nursultan Nazarbayev, who has run Kazakhstan for 20 years, this month signed a new religion law which bans prayer rooms in state buildings and requires all missionaries to register with authorities every year.

Analysts have warned that the brewing violence could signal an intensifying power struggle among security forces or a spillover of violence from neighbouring states.

Tajikistan, which borders Afghanistan to its south, is struggling with violence linked to Islamist jihadist ideology… See the full article

 

 


Weather Updates

There are currently no storms or tropical waves around the Americas.

Weather updates will be streamed on Sun Coast’s Facebook Page if there are any changes.

Contact Sun Coast Resources to find out how we can keep you going during and after the storm with 24/7 Emergency Fueling Services!

Email or call toll-free at 800-677-3835 *490! Get ready for the incoming storms!

National Weather Conditions

National Weather Hazards. Weekly Weather and Energy Newsletter - 10/31/2011

National Weather Service

The country is pretty clear. There is a winter storm watch in Northern Colorado and Southern Wyoming. There is also a fire weather watch along the west coast and in the mid-west.

Click on the map to take a closer look at your area.

Subscribe to this blog on the right and get the Daily Weather and Energy Newsletter instantly in your inbox!

[Newsletter 10/25/11] World holds breath as EU summit approaches

 

Market Update:

Stocks are down today on worries over the fate of Europe’s economy.

Wall Street opens down on euro zone concerns

(Reuters) – Stocks opened lower on Tuesday following comments from Germany’s Chancellor that the country is opposed to phrase in a final draft for the region’s summit.

Some weak corporate results, including from 3M Co (MMM.N) and Netflix Inc (NFLX.O), added to the cautious tone.

The Dow Jones industrial average .DJI was down 52.72 points, or 0.44 percent, at 11,860.90. The Standard & Poor’s 500 Index .SPX was down 8.54 points, or 0.68 percent, at 1,245.65. The Nasdaq Composite Index.IXIC was down 19.19 points, or 0.71 percent, at 2,680.25…Read the full article

 

Major Media Headlines:

  • The Obama administration announces a new plan to help underwater mortgage holders. (Reuters) – Media Digest
  • Amazon.com’s (NASADQ: AMZN) results could be hurt by the expense of the Kindle Fire. (Reuters) - Media Digest
  • More worries arise about an EU region recession. (WSJ) - Media Digest
  • Banks in Italy and Spain may take the largest hits in an EU rescue plan. (Bloomberg) - Media Digest
  • U.S. mortgage bonds hit a six-month low on Obama’s home refinance program plans. (FT) - Media Digest

 

 

Oil Today:

Oil continues to recover month-long lows as it hovers around $93-94/barrel.

Oil prices mixed on eve of European summit

World oil prices were mixed on Tuesday as traders awaited a midweek European summit on resolving the region’s debt crisis while upbeat Chinese economic data provided support, analysts said.

New York’s main contract, light sweet crude for December delivery, gained 97 cents to $92.24 per barrel.

Brent North Sea crude for December fell 21 cents to $111.24 in early afternoon deals.

Traders were on the sidelines ahead of Wednesday’s emergency European Union debt rescue summit, said Nick Trevethan, senior commodities strategist for ANZ Research in Singapore.

“There is a degree of fence-sitting ahead of the EU summit tomorrow. If they make progress, it will be highly positive for the market, though they have the tendency to disappoint somewhat,” he told AFP.

Market sentiment heading into the summit had been positive following a weekend meeting of EU leaders who seemed to put aside differences and make progress in finding a salve to the region’s debt woes.

However, persistent worries that Italy could need a bailout on the lines of debt straddled Greece as well as negotiations centered on a big debt write-off for Athens cast a shadow.

For the moment, crude markets were being supported by stellar manufacturing data from China, Trevethan stated.

“We have some decent data out of China, which helped lift sentiment not just in oil but in other commodities,” he said.

Manufacturing activity in China hit a five-month high in October, HSBC said Monday, easing fears of a hard landing in the world’s second-largest economy and greatest energy consumer…Read the full article

 

 


Weather Updates

Hurricane Rina. Weekly Weather and Energy Newsletter - 10/25/2011

National Hurricane Center

In the Gulf we have Hurricane Rina approaching Cancun, Mexico. Rina will then move northeast, potentially towards Florida. We will continue to update this storms progress via the Sun Coast Facebook Page.

Weather updates will be streamed on Sun Coast’s Facebook Page.

Contact Sun Coast Resources to find out how we can keep you going during and after the storm with 24/7 Emergency Fueling Services!

Email or call toll-free at 800-677-3835 *490! Get ready for the incoming storms!

National Weather Conditions

National Weather Hazards. Weekly Weather and Energy Newsletter - 10/25/2011

National Weather Service

Colorado is looking at severe winter weather this week. There are freeze warnings throughout the northwestern states and small patches of red flag warnings in Florida and California.

Click on the map to take a closer look at your area.

Subscribe to this blog on the right and get the Daily Weather and Energy Newsletter instantly in your inbox!

[Newsletter 10/17/2011] An interesting earnings week ahead

 

Market Update:

Stock Market Story: Oct. 17

NEW YORK (TheStreet) — Stocks slipped at Monday’s open as investors digested mixed messages from European policymakers regarding the region’s debt crisis and better-than-expected earnings from Citigroup.

The Dow Jones Industrial Average was down 61 points, or 0.5%, at 11,583. The S&P 500 was slipping 8 points, or 0.7%, at 1216 and the Nasdaq was shedding 15 points, or 0.6%, at 2653.

The Group of 20 finance ministers meeting in Paris over the weekend pledged to support capital needs of eurozone banks, while the European Union vowed to make sure the bailout fund is used in a way that maximizes its effectiveness. However, a spokesperson for German leader Angela Merkel warned on Monday that progress would be slow. Banks of indicated much reluctance i

During the talks, eurozone financial ministers outlined to other G20 officials their plan to stabilize the region, according to the Associated Press. That plan is expected to be revealed to the public at the Oct. 23 EU summit in Brussels.

European stocks turned mixed after climbing earlier. London’s FTSE was gaining 0.13% while Germany’s DAX was down 0.13%. Japan’s Nikkei Average finished up 1.5%, and Hong Kong’s Hang Seng jumped by 2%.

If Europe fails to deliver a credible plan as promised, global stocks and the euro in particular would likely face immediate pressure. The stakes are particularly high because stocks have staged a blistering rally since the start of October. As of Friday’s close, the Dow was up more than 9% after bottoming out on Oct. 3. The CBOE Volatility Index, or the Vix, plunged 8% on Friday, suggesting that investors had more appetite for risk.

In addition to Europe, investors were also weighing U.S. earnings news, economic data and the announcement of the largest energy merger this year. Citigroup(C_) beat analyst estimates before Monday’s open, reporting revenue of $20.83 billion after $20.73 billion a year ago. Analysts had expected revenue of $19.24 billion. Shares were rising 1.3% to $28.71. Meanwhile, Well Fargo(WFC_) missed estimates even the bank was thought to be stronger than Citigroup. Shares were sinking 5%.

Kinder Morgan(KMI_) agreed to buy El Paso(EP_) in a cash and stockThe merger would create the largest network of natural gas pipelines in the U.S. El Paso shares were surging 24.81% to $24.42, while Kinder Morgan shares was surging 8.3% to $29.03.

In another merger, Anadarko Petroleum (APC_) agreed to pay BP(BP_) $4 billion tosettle all claims from the Gulf of Mexico oil spill in April 2010. Anadarko shares were jumping 5.5% to $74.44 and BP shares were gaining 1.6% to $40.50.

Oil services company Halliburton(HAL_) reported third-quarter earnings of 94 cents a share, beating the average analyst estimate of 92 cents a share. Shares were up 0.6% to $37.67.

On Monday, the euro was rising to nearly a one-month high. The dollar index, a measure of the dollar’s value against a basket of currencies, was gaining 0.45%. The benchmark 10-year Treasury was last gaining 5/32, diluting the yield to 2.23%.

Gold for December delivery was gaining $2.50 to trade at $1685.50 an ounce. In other commodities, the November crude oil contract was slipping 34 cents cents to trade at $86.46 a barrel.

Most Recent Quotes fromwww.kitco.com

A read on manufacturing activity in the New York region showed little change in October. The Empire State manufacturing index continued to contract at -8.48, less than consensus estimate for -4.0according to ThomsonONE Analytics.

Also before the open, capacity utilization in the U.S. came in at 77.4% in September, about in line with estimates, after a revised 77.3% in August. Industrial output for September edged up by 0.2% as expected after August’s output was downwardly revised to zero growth.

Expectations for third-quarter earnings to help lift sentiment is high given that this week is the heart of earnings season. However, corporate news is still expected to take a backseat to European headlines. Some of the notable companies to report their results are Goldman Sachs(GS_), Bank of America(BAC_) and Apple(AAPL_)…Read the full Article

 

Major Media Headlines:

  • Kinder Morgan (NYSE: KMI) to buy El Paso (NYSE: EP) for $21 billion and will save $250 million in the merger. (Reuters) – Media Digest
  • EU officials say they will have a plan in place by October 22 to handle the region’s financial crisis. (WSJ) - Media Digest
  • Anadarko Petroleum (NYSE: APC) to pay BP (NYSE: BP) $4 billion for issues related to Deepwater Horizon. (WSJ) - Media Digest
  • Walmart (NYSE: WMT) China CEO to leave as the firm faces strict regulation in the People’s Republic. (WSJ) - Media Digest
  • Amazon.com (NASDAQ: AMZN) begins to sign authors and cut out publishers. (NYT) - Media Digest

 


 

Oil Today:

China ups pressure over India’s Vietnam oil deal

Stepping up pressure on India to scrap oil deals with Vietnam, China has indicated that these agreements in South China Sea could potentially strain bilateral ties.

Liu Weimin, a spokesman for China’s foreign ministry, Friday reiterated in Beijing that China has ‘indisputable sovereignty’ over the South China Sea.

In a veiled warning to India, Liu said that New Delhi and Hanoi should “instead take positive steps to ensure peace and stability in the South China Sea”, a thorny issue that is set to shadow bilateral ties and will be discussed in the forthcoming boundary talks.

New Delhi is not ready to be intimidated by what some here see as Chinese bullying.

India has defended the deal ONGC Videsh Ltd (OVL) signed for oil exploration with PetroVietnam in South China sea during the recent visit of Vietnam President Truong Tan Sang to India, saying the drilling was meant to be in Vietnamese waters.

Well-placed sources said the project was important for India’s energy ecurity and it was doing nothing violative of international law.

But this hasn’t stopped threatening statements from the state-controlled Chinese media, asking New Delhi to stay away from troubled waters.

Is there a Chinese strategy? Well-placed sources said Beijing’s maximalist plan was to force India to dump the oil project as China wants to control South China Sea, a disputed sea over which ir claims full sovereignty.

Last year, the Chinese drove out British Petroleum from drilling in South China Sea. But Beijing does not have an issue with companies which venture into South China Sea with Chinese blessing like Husky Energy of Canada.

“It’s coercive diplomacy. They want to drive out OVL. But it does not like they will succeed,” Srikanth Kondapally, a China expert at New Delhi’s Jawaharlal Nehru University, told IANS.

“If the Chinese Navy attack ONGC facility, it could spark a war. I don’t think China will physically evict OVL. They will continue the pressure,” he said.

“One can expect Beijing to continue this war of words,” said Kondapalli.

The issue of oil deal will figure in talks between special representatives of the two countries who meet here for the 15th round of boundary talks in a few weeks’ time, said informed sources.

For now, the Chinese media is leading the charge to pressure India to back out of the deal it feels has a larger strategic design behind it.

“Both countries (India and Vietnam) clearly know what this means for China. China may consider taking actions to show its stance and prevent more reckless attempts in confronting China,” state-run English language Global Times said in a commentary.

It said India was willing to fish in the troubled waters of South China Sea so as to ‘accumulate bargaining chips on other issues with China’.

China needs to respond with ‘firm retaliatory measures’, it said. A Chinese trade magazine, published by the Communist party mouthpiece the People’s Daily, warned that India was risking its energy security by going ahead with the oil deals.

“Challenging the core interests of a large, rising country for unknown oil at the bottom of the sea will not only lead to a crushing defeat for the Indian oil company, but will also most likely seriously harm India’s whole energy security and interrupt its economic development,” said China Energy News… Read the full article

 


Weather Updates

National Weather Hazards. Weekly Weather and Energy Newsletter - 10/10/2011 from Fueling the Future by Sun Coast Resources.

National Hurricane Center

In the Gulf we have a storm system with a high chance of cyclone development in the next 48 hours. The system is just off the Yucatan peninsula and is moving north. We will continue to update this storms progress via the Sun Coast Facebook Page.

Weather updates will be streamed on Sun Coast’s Facebook Page.

Contact Sun Coast Resources to find out how we can keep you going during and after the storm with 24/7 Emergency Fueling Services!

Email or call toll-free at 800-677-3835 *490! Get ready for the incoming storms!

National Weather Conditions

National Weather Hazards. Weekly Weather and Energy Newsletter - 10/17/2011

National Weather Service

Florida is looking at high wind and flood watches as the low in the Gulf is developing and moving north. In the states around Colorado we have winter weather and freeze warning. In West Texas and New Mexico we have a large red flag warning.

Throughout Texas we continue to have fire watches.

Click on the map to take a closer look at your area.

Subscribe to this blog on the right and get the Daily Weather and Energy Newsletter instantly in your inbox!

[Newsletter 10/10/2011] Wall Street continues to recover on a hopeful Euro zone

 

Market Update:

Stock Market Story: Oct. 10

NEW YORK (TheStreet) — Stocks opened 2% higher Monday as investors cheered reports that European officials have committed to unveiling a plan to resolve the region’s chronic debt issues by the end of the month.

The Dow Jones Industrial Average was rising 202 points, or 1.8%, at 11,305. The S&P 500 was up 24 points, or 2.1%, at 1180, and the Nasdaq was climbing 46 points, or 1.9%, at 2525.

Over the weekend, French and German leaders pledged to announce a “comprehensive package” in three weeks to recapitalize banks and to keep Greece in the eurozone. German Chancellor Angela Merkel has said that policy makers will do “everything necessary” to provide enough capital to banks to stem a debt crisis.

Investors had already speculated last week that officials were talking about ways to inject capital into eurozone lenders. Comments from Merkel and and French President Nicolas Sarkozy gave reassurance that such a plan would be unveiled but details are not available.

Earlier Monday, Belgian and French lender Dexia agreed to sell its Belgian unit to the Belgian government for 4 billion euros, giving further clarity on the lender’s future as well as setting a precedent for other eurozone governments to shore up their own banks.

The yen and dollar fell, while the euro was gaining. The dollar index, a measure of the dollar’s value against a basket of currencies, was losing 1.19%.

Gold for December delivery was gaining $30.40 to trade at $1666.20 an ounce. In other commodities, the November crude oil contract was edging up $1.66 to trade at $84.64 a barrel…Read the Full Article

 

Major Media Headlines:

  • Germany and France agree to crisis plans for the region’s banks. (Reuters) – Media Digest
  • A huge growth of debt in China could cause a hard landing by its economy. (Reuters) - Media Digest
  • Yahoo! (NASDAQ: YHOO) founder Jerry Yang and private equity interests may make an offer for the company he cofounded. (Reuters) Media Digest
  • As the federal government steps out of the mortgage market, more private lenders worry about the downside results. (WSJ) - Media Digest
  • UK prime minister says the eurozone only has weeks to get its financial house in order before a systemic collapse. (FT) - Media Digest
  • Forecasters think the U.S. will barely dodge a recession. (Bloomberg) - Media Digest
  •  


 

 

Oil Today:

Oil above $84 on better than expected US jobs data

Oil prices climbed above $84 a barrel Monday after better than expected U.S. jobs data and a vow from European leaders to support the region’s bank sector hampered by the sovereign debt crisis.

By early afternoon in Europe, benchmark crude for November delivery was up $1.42 at $84.40 a barrel in electronic trading on the New York Mercantile Exchange. The contract climbed 39 cents to settle at $82.98 in New York on Friday.

In London, Brent crude was up $1.02 to $106.90 a barrel on the ICE Futures exchange.

The Labor Department said Friday that the U.S. economy added 103,000 jobs last month, more than economists had forecast. Analysts have been concerned in recent months that a sluggish job market could portend a recession in the second half.

A debt crisis in Europe and its possible impact on global economic growth has undermined investor confidence, sending crude to a 12-month low last week at $75.

But prices have bounced back amid hopes European Union leaders will soon implement a major recapitalization of the region’s banks to safeguard them against a possible default by some member states such as Greece.

German Chancellor Angela Merkel said Sunday that she and French President Nicolas Sarkozy “are determined to do the necessary to ensure the recapitalization of Europe’s banks.”

Merkel spoke after talks with Sarkozy at Berlin’s chancellery aimed at forging an agreement ahead of a summit of the European Union’s 27 leaders later this month…Read the full article

 

 


Weather Updates

Major Hurricane Jova. Weekly Weather and Energy Newsletter - 10/10/2011 from Fueling the Future by Sun Coast Resources.

National Hurricane Center

 

Hurricane Jova will be hitting the Mexican coastline hard by about 11pm on Tuesday. This will be a major hurricane and as such will do significant damage.

 

The American coastlines look clear for now… weather updates will be streamed on Sun Coast’s Facebook Page.

Contact Sun Coast Resources to find out how we can keep you going during and after the storm with 24/7 Emergency Fueling Services!

Email or call toll-free at 800-677-3835 *490! Get ready for the incoming storms!

National Weather Conditions

National Weather Hazards. Weekly Weather and Energy Newsletter - 10/10/2011

National Weather Service

There will be quite a bit of rain around the country this week. The two area that will be hit the hardest will probably be the Northeast and the Northwest. Arizona and surrounding states will mostly be left out.

There are tornado warnings currently in South Carolina where a storm is pummeling the area. There are also frost advisories in Colorado and freeze warnings in New Mexico.

Click on the map to take a closer look at your area.

Subscribe to this blog on the right and get the Daily Weather and Energy Newsletter instantly in your inbox!

[Newsletter 10/03/2011] World economy hit hard by EU crisis

 

Market Update:

The Dow is down 65 points just after opening and continues to drop fast. The European financial crisis is rocking the world this week and will be in the spotlight.

Stocks start new quarter on back foot

Markets have started the new quarter as they finished the last: in distinctly bearish mode, ravaged by their old nemesis the eurozone fiscal crisis as worries about Greece’s ability to avoid default continue to hit sentiment.

There is a clear, though not overly aggressive, “risk off” trend, with the FTSE All-World index down 1.5 per cent, the dollar up 0.1 per cent on a trade-weighted basis and yields on US Treasury benchmarks dipping as bolt-holes are sought. Commodities are weak with Brent crude down 0.5 per cent to $102.25 a barrel, while gold is up 2.1 per cent to $1,658 an ounce…Read the full article

 

 

Major Media Headlines:

  • The only way to fix the U.S. economy may be massive debt reductions for individuals and governments. (Reuters) – Media Digest
  • Greece misses GDP targets. (Reuters) - Media Digest
  • IMF’s concerns grow about any global expansion. (WSJ) - Media Digest
  • Apple’s (NASDAQ: AAPL) new iPhone faces the risk that there are not many phones like it. (WSJ) - Media Digest
  • Drought batters Texas cattle industry. (FT) - Media Digest
  • Greece to cut another $8.8 billion to bring its budget closer to 2012 goals. (Bloomberg) - Media Digest
  • Euro hits a multimonth low against the dollar. (Bloomberg) - Media Digest

 


 

Oil Today:

Oil falls to near $78 on prospect of weak demand

Oil prices extended losses on Monday, falling to near $78 a barrel, as Europe’s debt crisis roiled markets and falling personal incomes in the U.S. suggested slack demand for fuel.

By early afternoon in Europe, benchmark oil for November delivery was down 91 cents to $78.29 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, benchmark crude dropped $2.94, or 3.6 percent, to settle at $79.20 per barrel in New York. Prices haven’t finished that low since Sept. 29, 2010.

In London, Brent crude was down 50 cents to $102.26 per barrel on the ICE Futures exchange.

Oil prices have swung up and down in the last few weeks as the European financial crisis spooked markets.

Greece is waiting for a group of international lenders to approve an installment of a multibillion euro (dollar) loan to keep the country from defaulting on its debts. It has announced that it will fail to meet its 2011 and 2012 deficit targets despite new austerity measures.

Without the bailout installment, Greece will start to run out of money in two weeks. A default on its debts could trigger economic crises in other European countries and upend banks that are heavily invested.

Asian and European stock markets slumped, with London’s FTSE 100 index down 2 percent on Monday and Tokyo’s Nikkei 225 closing 1.8 percent lower.

“Once again, oil prices have nose-dived as economic gloom takes over from supply tightness in driving the market,” said a report from KBC Energy Economics in London.

A stronger dollar also weighed on oil prices. Commodities such as crude are generally traded in dollars, so when the dollar rises it makes oil more expensive for buyers with other currencies, reducing demand. The euro fell to $1.3364 from $1.3424 late Friday in New York.

In the U.S., data pointed to further economic troubles heading into a traditionally weak time for petroleum demand. The Commerce Department said that Americans are earning less money, which could affect consumer spending and demand for oil.

Analyst Stephen Schork, editor of the Schork Report, said U.S. data showing a decline in personal incomes suggests that oil prices could continue to fall. Americans earning less money are likely to curb spending on consumer items and fuel.

October is usually a slow month in the oil business. The North American summer driving season is over, and it will be a couple of months before heating demand perks up and travelers set out for winter holidays.

In other Nymex trading in November contracts, heating oil fell was down 0.92 cent to $2.7701 per gallon and gasoline futures dropped 0.74 cent to $2.5307 per gallon. Natural gas gained 2.8 cents to $3.694 per 1,000 cubic feet. Source

 

 


Weather Updates

Tropical Activity

Atlantic:

What to watch out for this week:

Tropical storm Ophelia resurfaced last week and has since darted up to Newfoundland. Tropical storm Philippe is forecast to spin northeast and fizzle out.

This week looks clear for American coastlines.. Storm updates will be streamed as necessary on Sun Coast’s Facebook page.

Tropical Storm Philippe, Tropical Storm Ophelia. Weekly Weather and Energy Newsletter - 10/03/2011

National Hurricane Center

Contact Sun Coast Resources to find out how we can keep you going during and after the storm with 24/7 Emergency Fueling Services!

 

Email or call toll-free at 800-677-3835 *490! Get ready for the incoming storms!

National Weather Conditions

National Weather Hazards. Weekly Weather and Energy Newsletter - 10/03/2011

National Weather Service

Oklahoma and North Texas are facing red flag and extreme fire danger this week. From the Midwest to the West Coast there are fire weather watches throughout the states.

In California there is a winter storm watch and in Tennessee/the Virginias there is a frost warning.

Click on the map to take a closer look at your area.

Subscribe to this blog on the right and get the Daily Weather and Energy Newsletter instantly in your inbox!

[Newsletter 9/26/2011 - 9/30/2011] Watch out for the European debt talks to continue and for the effects of Libya oil production resuming

 

Market Update:

Wall Street gets a healthy start to the week as the Dow is up ~100 points after 15 minutes of trading.

Euro zone damps talk of rapid debt crisis steps

(Reuters) – Euro zone officials played down reports on Monday of emerging plans to halve Greece’s debts and recapitalize European banks to cope with the fallout, stressing that no such scheme is yet on the table.

Europe came under fierce pressure from the United States and other major economies at weekend talks in Washington to take swift, decisive action to stop the Greek debt crisis engulfing bigger euro zone states and derailing world economic recovery.

But officials said media reports that planning was already in place for a 50 percent writedown in Greek debt and a vast increase in the euro zone rescue fund, the EFSF, were highly premature.

“There is no change to the framework we are working on,” said a euro zone official who is involved in decision-making on financial assistance to Greece, Ireland and Portugal.

“All this talk of a specific haircut for Greece or an enlargement of the EFSF, it is all just speculation. We are not working along those lines,” said the official.

German Chancellor Angela Merkel, struggling to convince her fractious center-right coalition to back a strengthening of the EFSF in a crucial vote on Thursday, said on Sunday that letting Greece default would destroy investor confidence in the euro zone.

Diplomats said any talk of a fallback plan for Greece that would raise the cost to German taxpayers could only make her task more difficult in parliament this week.

Private economists and Brussels think-tanks are forecasting a Greek debt default within months or sooner, coupled with a capital injection for European banks and a ‘leveraging up’ of the EFSF so that it can handle fallout in Italy and Spain.

Euro zone officials acknowledge that such policy ideas are circulating and some could constitute a longer-term response to the 20-month debt crisis. But they insist no specific plans are yet in the works.

Instead, planning continues on the basis that Greece’s debt burden, which is close to 160 percent of GDP, can be sustained as long as the government fully implements austerity measures demanded by the European Commission, the European Central Bank and the IMF, the so-called troika.

U.S. Treasury Secretary Timothy Geithner highlighted global concerns about deficient European crisis management, saying on Saturday: “The threat of cascading default, bank runs and catastrophic risk must be taken off the table.”

IMF Chief Christine Lagarde, the former French finance minister who until four months ago was tackling the crisis from the European side, also made it the euro zone needs to act more decisively, notably to recapitalize banks on a large scale.

Quietly, euro zone policymakers accept that a combination of a much deeper Greek debt restructuring allied to coordinated bank recapitalizations and a bolstered rescue fund would make sense and might help the euro zone get on top of the crisis.

But such a plan would require support from all 17 euro zone countries, and it takes time in the EU’s decision-making structures to bring so many moving parts together at once.

“The ideas are all there, but it’s not as straightforward as just sitting down and deciding it,” said another euro zone financial official involved in handling the crisis.

“Many of us can agree privately that anything less than a 50 percent haircut for Greece would just be cosmetic, but getting that decided by all and implementing it is not so easy.”

PROPOSAL SOUP

Instead, the next step is expected to be a decision by the EU, ECB and IMF to sign off on the next tranche of support for Greece — the sixth payment from the original 110 billion euro emergency package agreed in May last year.

The timing will depend on when the troika completes a review of Athens’ progress on implementing deeper budget cuts and tax-raising measures. Without that 8 billion euros, Greece will run out of money to pay October wages and pensions.

Olli Rehn, the EU’s economic and monetary affairs commissioner, has said he hopes a decision can be taken by mid-October. It’s unlikely to come any sooner.

Germany’s deputy finance minister, Joerg Asmussen, said there was no chance euro zone finance ministers would be able to sign off on Greece’s next aid tranche when they meet next week.

“Given the delay of the troika mission, I do not see that the upcoming Eurogroup on October 3 will decide on the sixth tranche,” he said in a speech in Washington on Sunday.

Financial markets and the private sector seem to be moving more rapidly than policymakers to prepare themselves for the likelihood of a Greek default.

Safe-haven German government bonds fell on Monday and shares rallied partly due to a belief that European policymakers were working on more decisive action to tackle the debt crisis. Such hopes could be quickly dashed.

J.P. Morgan Securities said it expected euro zone governments to ease the funding crisis among European banks via a capital injection of up to 150 billion euros, an initiative that would be similar to the U.S. TARP program.

“Euro-TARP is in our view the best risk-reward medicine for opening the Eurobank funding market,” J.P. Morgan analyst Kian Abouhossein write in a note to clients.

In a separate report, UBS analysts said they expected some form of intervention from the European Central Bank and a euro zone guarantee scheme for bank term debt, or a Euro-TARP initiative, to provide “sticking plasters” for the system.

But there are no signs that any such plans are formally in preparation at this stage, again underlining that policymakers may be behind the curve in tackling the crisis.

Euro zone officials acknowledge that the EFSF, which will soon have an effective capacity of 440 billion euros, is not big enough to handle a potential bailout of Italy or Spain, the region’s third and fourth largest economies. But there is no clarity on how the fund could be raised without more guarantees.

One idea is for the fund to act as an insurer, guaranteeing the first portion of losses on Italian or Spanish debt. That could “leverage” its capacity four or five times, but the legality of such a scheme remains to be established and nothing has been put to euro zone finance ministers.

Another proposal would be to turn the EFSF into a bank, which would allow it to access ECB funds, meaning that it would effectively have unlimited capacity. But the ECB has raised concerns about such a step, which would politicize ECB operations and put it on the line for massive liabilities. Source

 

Major Media Headlines:

  • Europe begins to more aggressively look for problems to its debt crisis as pressure from the rest of the world grows. (Reuters) – Media Digest
  • China says it will not help a EU bailout. (WSJ) - Media Digest
  • A rising dollar could hurt U.S. economic growth. (WSJ) - Media Digest
  • Several oil and gas companies prepare IPOs. (WSJ) - Media Digest
  • Large U.S. and international banks, including Goldman Sachs (NYSE: GS), JPMorgan (NYSE: JPM) and Morgan Stanley (NYSE: MS), differed on how to address the EU crisis as they met on the subject last week. (Bloomberg) - Media Digest

 

Oil Today:

Oil is below $80/barrel as the week starts up in the US, production resuming in Libya will only help these prices continue down.

Italy’s Eni: Oil production resumes in Libya

ROME — Libya has resumed oil production for the first time since the civil war, tapping 15 wells and producing some 31,900 barrels per day, Italian energy giant Eni said Monday.

Eni said production had resumed at the Abu-Attifel fields, about 300 kilometers south of the city of Benghazi. Other wells would be reactivated soon to reach the “required volumes to fill the pipeline” between the Abu-Attifel field and the Zuetina port.

The operations are being conducted by Mellitah Oil & Gas, a partnership between Eni and Libya’s state-run National Oil Corp.

Before the protests against Libyan strongman Moammar Gadhafi in mid-February morphed into a full-scale civil war, Eni was producing 273,000 barrels of oil equivalent per day in Libya. The country sits atop Africa’s largest proven reserves of conventional crude.

With a small population of only 6 million, Libya raked in $40 billion last year from oil and gas exports. Experts say it could take about a year or more to get back to its pre-war production of 1.6 million barrels a day.

Earlier this month, Eni CEO Paolo Scaroni visited Tripoli to lay the groundwork for relaunching gas exports to Italy via the Greenstream pipeline, which can carry roughly 10 billion cubic meters of natural gas per year. It hasn’t been operational since late February.

Scaroni has set Oct. 15 as an optimistic deadline to restart the gas flow. Source

 

 


Weather Updates

Tropical Activity

Atlantic:

What to watch out for this week:

Really the only thing to look out for right now is a return to power by Ophelia, who has weakened into a tropical wave. Tropical Storm Philippe will turn north into the mid-Atlantic and fade away.

So, unless another storm comes up, things are looking pretty clear for the Atlantic. Storm updates will be streamed daily on Sun Coast’s Facebook page.

Tropical Storm Philippe and Ophelia remnant. Weekly Weather and Energy Newsletter - 9/26/2011

National Hurricane Center

Contact Sun Coast Resources to find out how we can keep you going during and after the storm with 24/7 Emergency Fueling Services!

 

Email or call toll-free at 800-677-3835 *490! Get ready for the incoming storms!

National Weather Conditions

National Weather Hazards. Weekly Weather and Energy Newsletter - 9/26/2011

National Weather Service

 

We are looking at quite a bit of rainfall across the country today. Some areas will be sad to get more rain, but other areas like Texas are in desperate need of rain, and they should get some later this week.

As far as alerts for today, there are tornado warnings in Eastern Kentucky and some freeze watches in Southern Oregon.

Click on the map to take a closer look at your area.

Subscribe to this blog on the right and get the Daily Weather and Energy Newsletter instantly in your inbox!