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10:48 am

WTI and Brent crude futures are trading lower ahead of the US open, with a stronger USD index weighing on prices and Iranian nuclear talks over the weekend proving “constructive and useful”, according to EU’s Ashton. 

Oil & Gas News: 

•   The South Korean finance minister has sent a letter to his counterparts ahead of the G-20 meeting calling for stronger action to address rising oil prices, adding that oil producing nations should ensure an adequate supply. The minister added that regulations to stem speculative oil trades should be implemented. 

•   Oil speculators cut their net long positions to the lowest level since December in the week up to April 10th, according to data released from the CFTC. 

•   The MT Tour tanker carrying Syrian crude dropped anchor in the Strait of Hormuz near the Iranian port of Bandar Abbas over the weekend, according to AIS Live ship tracking data. 

•   Japanese power providers said they used record amounts of LNG last year to replace nuclear generation. 

•   Citigroup have said that an SPR release is already factored into current oil prices, and any sell-off would be short-lived.  

Geopolitical News: 

•   Iran agrees to extend nuclear talks. At the conclusion of Saturday’s talks, western diplomats made clear there had not been any concession by Iran over any aspect of its nuclear program, which many states believe is aimed at building a bomb. All sides agreed to meet in Baghdad on May 23 to try and forge a confidence building agreement that could prevent an Israeli or US attack on Tehran. Additionally, according to a source Iran rejected the US request for bilateral nuclear talks on the sidelines of the diplomatic meetings. US President Obama has commented that there would be more sanctions imposed on Iran if there is no breakthrough in the talks. 

•   EU’s Ashton described the P5+1 talks held in Turkey as "constructive and useful", saying that the next meeting, due to be held on May 23rd, should lead to a “negotiated solution with Iran which restores international confidence in the exclusively peaceful nature of the Iranian nuclear programme”. 

•   Kim Jong-un, North Korea’s leader, has used his first publicly televised speech to dismiss US suggestions that Pyongyang should stop wasting money on weapons, even though its latest long-range rocket disintegrated shortly after blast-off on Friday.  

•   South Sudan have accused Sudan of bombing a disputed major oil field “to rubble” on Sunday, but Sudan have denied the claims. 

Corporate News:

•   Rosneft is expected to finalise a groundbreaking joint venture with ExxonMobil today that will grant the US oil major access to vast Russian Arctic reserves in exchange for the Russian state oil champion winning entry to resources in North America. The deal will grant Exxon access to joint development of deposits in Russia’s Kara Sea, which could hold 36bln barrels of oil, while Exxon will offer Rosneft access to projects developing unconventional hydrocarbon resources in North America.

•   BP had a release of around 100 gallons of diesel fuel onto a gravel pad and partially into a secondary containment area in Alaska, according to filings. 

•   Total has said that all operations currently being conducted to end the Elgin gas leak are progressing as planned. In other news, Total’s Nigerian unit is investigating a leak at one of its gas plants in Nigeria’s southern delta.

•   Wintershall has made a light oil find at its highly touted Skarfjell prospect in the north-east North Sea off Norway, with Cairn Energy also hitting the jackpot as it is set to acquire a partner in the discovery well. 

Weather News:

The latest Weather Derivatives update forecasts temperatures in the US for the next 6-10 days to be 1.5% higher than normal for this time of year with the South-central region experiencing the most unseasonably warm weather. Using data accurate on the 13th April. 

Source: http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFsaskHuJYTWwlzxmsUbwfRH4rp8A&url=http://www.proactiveinvestors.co.uk/columns/ransquawk/9010/energy-markets-report-including-south-sudan-have-accused-sudan-of-bombing-a-disputed-major-oil-field-9010.html