January 2012 Archives

Canadians dislike it when the American political system pays Canada no attention. This election season, Canada may face an alternative: too much attention.

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The Northern Gateway pipeline does not terminate in Vancouver, but close enough, let it pass. The real news here is that Gingrich is hitting a theme that will be repeated and enlarged between now and November. Republicans see in Keystone a powerful political weapon against Barack Obama. The weapon cuts especially sharp because it divides Democrats from each other. The pipeline - and the oil sands that will supply the pipeline - are anathema to Obama's wealthy environmentalist donors. However, the highly paid construction and refinery jobs that will be created by the pipeline are dearly desired by blue-collar Democrats whose votes Obama will need.

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To keep the internal Democratic divide fresh, congressional Republicans are attaching pro-Keystone amendments to a succession of important administration measures: first, a payroll tax cut; next up, perhaps a big multiyear highway bill. Meanwhile, the presidential candidates will talk Keystone on the campaign trail as one more reason to defeat Barack Obama in November.

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How our oil became a US campaign issue - National Post

Escalating retaliatory threats over the West’s nuclear sanctions, Iran warned on Friday that it could terminate oil sales to Europe as early as next week, and it bluntly advised Arab oil producers that any attempt by them to replace Iranian exports would be considered unfriendly.

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The threats came as Iranian officials repeated their willingness to re-engage in negotiations with the Western powers over Iran’s uranium enrichment program, although the prospects for such a resumption appeared to grow more uncertain. Iran also was preparing to play host this weekend to a team of inspectors from the International Atomic Energy Agency , the United Nations nuclear monitor, which issued an incriminating report about Iran’s uranium enrichment program two months ago. That report elevated Western suspicions that Iran was laying the groundwork to build an atomic weapon despite Iran’s repeated assertions that its uranium enrichment program is for peaceful ends.

Iran Says It Could Terminate European Oil Sales Next Week - New York Times

Chevron Corp., which has spent more than $20 billion a year since 2007 scouring the globe for new resources, said Friday that it is struggling to produce more oil and natural gas. Production levels last year were the lowest since 2008.

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The company still expects to supply more oil in the future, but its troubles last year highlight the many hurdles the industry faces as industrial and developing nations crave more oil to grow their economies.

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The U.S. predicts that oil producers will fall behind as global demand ratchets up. The Energy Information Administration estimated that the world used 88.1 million barrels of oil per day in 2011 while producing only 87.6 million barrels per day. It sees the trend continuing this year and next. Oil and gasoline prices are expected to rise as countries dip into stockpiles to cover shortfalls.

Chevron Corp.'s production drop shows challenges oil companies face to meet ... - Washington Post

LONDON - Climate change and rapid urbanization play an ever-greater role in shaping humanitarian crises and aid agencies will need to invest more in disaster prevention and learn a trick or two from the private sector. according to an AlertNet poll.

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Use the Reuters Breakingviews stress test calculator to calculate how the Target core Tier 1 capital ratio and sovereign haircut levels affect the amount of capital banks need to pass the stress test. A speed boat passes by oil docks at the port of Kalantari in the city of Chabahar, 300km (186 miles) east of the Strait of Hormuz January 17, 2012.

Iran could ban EU oil exports next week: lawmaker - Reuters

TEHRAN, Jan 26 (Reuters) - The European Union rather than Iran will lose out under new EU sanctions banning Iranian oil, President Mahmoud Ahmadinejad said on Thursday as lawmakers said they might cut supplies to EU countries ahead of a July 1 deadline.

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TEHRAN, Jan 26 (Reuters) - The European Union rather than Iran will lose out under new EU sanctions banning Iranian oil, President Mahmoud Ahmadinejad said on Thursday as lawmakers said they might cut supplies to EU countries ahead of a July 1 deadline. "It is the West that needs Iran and the Iranian nation will not lose from the sanctions," Ahmadinejad said in his first public comments on the issue since the EU's 27 member states agreed the ban on Monday. TEHRAN, Jan 26 (Reuters) - The European Union rather than Iran will lose out under new EU sanctions banning Iranian oil, President Mahmoud Ahmadinejad said on Thursday as lawmakers said they might cut supplies to EU countries ahead of a July 1 deadline. "It is the West that needs Iran and the Iranian nation will not lose from the sanctions," Ahmadinejad said in his first public comments on the issue since the EU's 27 member states agreed the ban on Monday. "There was a time when 90 percent of our trade was with the Europeans. It has now dropped to 10 percent. We didn't call for this. Cut it (trade) and let's see who will incur the loss," he said in excerpts of a speech broadcast on state radio.

Iran may cut oil sales to EU before July - Reuters

Jan. 26 (Bloomberg) -- Oil rose for a second day in New York on speculation that Federal Reserve plans to keep U.S. interest rates near a record-low will bolster economic growth and stoke fuel demand in the world’s biggest crude consumer.

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Futures advanced as much as 0.9 percent to trade above $100 a barrel and extend yesterday’s 0.5 percent gain. The Federal Open Market Committee said it expects its benchmark interest rate to stay at “exceptionally low levels” at least through late 2014. U.S. fuel consumption climbed 7.5 percent to 19.2 million barrels a day in the week ended Jan. 20, the largest increase since Nov. 4, Energy Department data showed. Crude for March delivery rose as much as 84 cents to $100.24 a barrel on the New York Mercantile Exchange and was at $99.82 at 3:56 p.m. Singapore time. The contract closed 45 cents higher at $99.40 yesterday. Prices are up 14 percent in the past year.

Oil Gains on Speculation US Rates Near Zero to Boost Fuel Use - BusinessWeek

ADDIS ABABA/JUBA, Jan 25 (Reuters) - South Sudan's oil output is on track to be more than halved as it moves toward a full shutdown, an official said on Wednesday, one day after the country signed a deal to build a new export pipeline through Kenya rather than its old civil war foe Sudan.

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Landlocked South Sudan - which seceded from Sudan last July under a 2005 peace accord - has long sought an export route through East Africa but analysts say the project faces security and financial challenges that could prove difficult to overcome.

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The announcement of the pipeline agreement late on Tuesday comes amid an increasingly bitter row with Sudan over how much South Sudan should pay to use Khartoum's pipeline and Red Sea port which the new nation depends on to export its oil.

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S.Sudan halves oil output, signs pipeline deal - Reuters

Jan. 25 (Bloomberg) -- Oil traded near $100 a barrel in New York as signs of rising U.S. crude stockpiles capped gains after a report showed gasoline demand rose last week and Iran criticized a European embargo on its crude.

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Futures were little changed after dropping 0.6 percent yesterday. Inventories increased 7.33 million barrels last week, the biggest gain in four weeks, figures from the American Petroleum Institute showed. U.S. gasoline demand rose for a second week, according to data from MasterCard Inc. The European Union embargo on Iranian oil imports will “bear bitter fruit,” Iran’s Foreign Affairs Ministry said this week. Crude for March delivery was at $99.09 a barrel, up 14 cents, in electronic trading on the New York Mercantile Exchange at 2:48 p.m. Sydney time. The contract yesterday fell 63 cents to $98.95, the lowest since Jan. 20. Front-month prices are 15 percent higher the past year.

Oil Trades Near $100 as Rising US Crude Supplies Counter Iran - BusinessWeek

The big news, of course, was President Obama’s decision not to approve the Keystone XL tar sands pipeline. It was politically brave on the president’s part, but it’s also a huge symbol of the growing recognition that what’s good for Big Oil has nothing to do with what’s good for America and that the sooner we can separate oil and state, the better.

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It’s not just environmentalists who understand this — it’s everyone from labor (the United Steelworkers, United Auto Workers, and Transport Workers unions were just some of those that opposed the pipeline) to Nebraska ranchers to young people concerned about reckless climate-disrupting carbon pollution.

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It’s fantastic that we’ve stopped what once looked like an unstoppable pipeline, but let’s not forget that if we really want to move our country beyond oil, we need to do more than just stop bad things — we have to move forward on good things, too. Fortunately, this year the Obama administration also plans to make one particularly good thing happen: setting a new average fuel-economy standard of 54.5 mpg for cars and trucks by 2030.

Join me Tuesday for moving beyond oil - San Francisco Chronicle (blog)

SAN FRANCISCO (MarketWatch) — Crude futures fell by nearly $2 a barrel Friday, pressured by concerns over Greece’s debt crisis, Chinese manufacturing and weak U.S. gasoline demand.

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CL2G -2.27%  lost $1.93, or 1.9%, to settle at $98.46 a barrel on the New York Mercantile Exchange. That was the lowest settlement price for a most-active contract since Dec. 20. Prices lost 0.2% lower for the week. Greece is likely to enter into a technical default following a deal with private-sector investors, But this may result in its credit rating being upgraded. Dow Jones's Costas Paris explains why.

Oil futures fall nearly $2 to log loss on week - MarketWatch

For now, the history books will say Mitt Romney won on caucus night and on New Hampshire primary night, and that Rick Santorum won the certified Iowa tally and was fifth in the corrected New...

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Balloons and a "Welcome Home" sign joined a fountain that Phoukham Tran built and installed by hand in his front yard for the Des Moines police officer's arrival Thursday afternoon. See the new lists: The Iowa High School Athletic Association Tuesday revealed its divisional assignments as the state revamps its biggest football classification.

Our addiction to oil makes Keystone a must - DesMoinesRegister.com


New York Times

OIL FUTURES: Crude Settles -20c At $100.39/Bbl After US Oil Data
Wall Street Journal
By David Bird Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Crude oil futures eased Thursday, settling modestly above $100 a barrel after US data showed oil demand in the last four weeks fell to a 15-year low. Prices had topped $102 early in the session ...
Brent crude oil climbs above $111 on growth hopesReuters
Oil prices move lower while signs point to improving US economy and Europe ...Washington Post

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OIL FUTURES: Crude Settles -20c At $100.39/Bbl After US Oil Data - Wall Street Journal

WASHINGTON (AP) — President Barack Obama and Congress are back where they were before Christmas, locked in an election-season tussle over a proposed 1,700-mile oil pipeline from Canada to Texas.

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Republicans hope to again force Obama to make a politically risky decision, while he is seeking to put it off until after the November election.

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Obama blocked the $7 billion Keystone XL pipeline on Wednesday, at least temporarily, but Republicans immediately signaled their intention to try again to force the issue. Rep. Fred Upton, R-Mich., chairman of the House Energy and Commerce Committee, said he will call Secretary of State Hillary Rodham Clinton, who recommended Obama's rejection, to testify at a hearing as early as next Wednesday, the day after Obama gives his State of the Union address before a joint session of Congress.

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Obama, GOP back in tussle over oil pipeline - The Associated Press

The Obama administration has decided that it will not issue a permit before Feb. 21 for the controversial Keystone XL oil pipeline, according to people with knowledge of the decision.

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The announcement, which could come as early as Wednesday, comes in response to a 60-day deadline Congress imposed in late December on the decision-making process for the permit as part of a deal to extend a payroll-tax break and unemployment benefits for two months. State Department , would make official what the administration has said from the outset: that under current law, it cannot accelerate the permitting process, especially in light of the need for additional environmental reviews of an alternate route for Keystone XL through Nebraska.

Obama administration to deny Keystone XL oil pipeline permit - Los Angeles Times

Oil climbed above $100 a barrel Tuesday in Asia after Saudi Arabia, the world's largest exporter of the commodity, indicated it thinks prices should be maintained around that level.

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Oil climbed above $100 a barrel Tuesday in Asia after Saudi Arabia, the world's largest exporter of the commodity, indicated it thinks prices should be maintained around that level.

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Benchmark crude for February delivery was up $1.94 at $100.63 a barrel at midday Kuala Lumpur time in electronic trading on the New York Mercantile Exchange. The oil market in the U.S. was closed on Monday for a holiday.

Oil climbs above $100 in Asia amid Iran tensions - Boston.com

LONDON (Reuters) - Oil futures rose on Monday on growing tension between Saudi Arabia and Iran, after the Islamic state told its Gulf Arab neighbours not to make up any shortfall caused by an embargo on its crude oil exports.

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Saudi Arabia, the world's top exporter, said on Monday that could lift its production the United States pressures nations to stop importing oil from the Islamic Republic. Saudi Arabia, the world's top exporter, said on Monday that could lift its production the United States pressures nations to stop importing oil from the Islamic Republic. "Iran is the main topic still by some 2 million barrels per day 'almost immediately'.

Oil prices gain after Iran warning - Reuters

Jan. 16 (Bloomberg) -- Oil climbed from the lowest price in almost four weeks as Iran said that a disruption to crude supplies through the Strait of Hormuz would cause a shock to markets that “no country” could manage.

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Futures rose as much as 0.6 percent after sliding 2.8 percent last week. Iran has threatened to shut the strait, a transit route for about a fifth of global oil trade, in response to international sanctions on its exports. Any disruption will harm the world’s crude markets, Iran’s governor to OPEC said, according to the state-run Mehr news agency. Crude for February delivery rose as much as 60 cents to $99.30 a barrel in electronic trading on the New York Mercantile Exchange and was at $99.19 at 4:03 p.m. Singapore time. The contract fell 0.4 percent to $98.70 on Jan. 13, the lowest close since Dec. 21. There will be no floor trading in New York today because of the Martin Luther King Jr. holiday.

Oil Trades Near 4-Week Low as Europe Counters Iran Supply Threat - BusinessWeek

The price of crude oil and growing tensions with Iran are bubbling to the top of economists’ and policymakers’ worry lists for 2012, as U.S. and European Union sanctions threaten to reduce the sales of Iranian oil and put pressure on one of the world’s largest petroleum exporters.

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Gallery  The arrest of a former U.S. Marine in Iran is among the latest in a string of volatile incidents between the two countries in the past few months. The push for tighter sanctions on Iranian oil exports comes at a time when oil prices are already high. Last year was a record-shattering year for oil prices, which averaged $107 a barrel, about 14 percent more than in the previous record year of 2008, according to figures from the Organization of Petroleum Exporting Countries.

Oil prices, Iran are increasingly sources of concern - Washington Post

Nigerian oil workers threaten to cut off oil supplies; US gasoline prices could rise (Sunday Alamba/Associated Press) - Angry youths protest in front of the National television station on fourth day of the nationwide strike on the removal of a fuel subsidy by the government in Lagos, Nigeria, Thursday, Jan. 12, 2012. A union representing 20,000 oil and gas workers in Nigeria threatened Thursday it would shut down all production starting Sunday to take part in the crippling nationwide strike over spiraling fuel prices.

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NEW YORK — One of the biggest suppliers of oil to the United States may shut off the spigot this weekend, pushing crude and gasoline prices higher for Americans.

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Nigeria, which supplies 8 percent of U.S. oil imports, could see production halted if striking workers walk off the job Sunday. Workers are demanding the return of a vital government fuel subsidy that has kept gasoline prices low in that impoverished and restive nation of 160 million people.

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Nigerian oil workers threaten to cut off oil supplies; US gasoline prices ... - Washington Post

Benchmark crude fell by 49 cents to $98.61 per barrel in New York at midday. Brent crude, which is used to price foreign oil that’s imported by U.S. refineries, fell by 67 cents to $110.38 per barrel in London.

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Prices dipped on reports that credit ratings agency Standard & Poor’s will downgrade France and Austria. The Financial Times reported that those countries will drop a notch from triple-A to AA+. A downgrade could make it harder for the European Union to raise money and overcome massive government debts. A recession already is expected in the eurozone, and huge spending cuts will likely cut European energy demand this year.

Benchmark oil price falls below $99 on possible credit downgrades for France ... - Washington Post

A European Union embargo on imports of Iranian (OPCRIRAN) oil will probably be delayed for six months to let countries such as Greece, Italy and Spain find alternative supplies, an EU official with knowledge of the talks said.

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A ban on petrochemical products would start sooner, about three months after EU ministers agree to the measure, the official said. Crude oil prices dropped on the news, falling $1.77, or 1.8 percent, to $99.10 a barrel yesterday on the New York Mercantile Exchange , the lowest settlement since Dec. 30.

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A ban on petrochemical products would start sooner, about three months after EU ministers agree to the measure, the official said. Crude oil prices dropped on the news, falling $1.77, or 1.8 percent, to $99.10 a barrel yesterday on the New York Mercantile Exchange , the lowest settlement since Dec. 30. “Work by experts from the 27 member states is in a very intensive phase,” Maja Kocijancic, a spokeswoman for the European Commission, said by phone yesterday from Brussels. “They are looking into different options for restrictive measures with a view to adoption on Jan. 23.” She declined to comment on possible phase-in periods or exemptions.

EU Iran Oil Embargo Over Nuclear Work Said Likely to Be Delayed Six Months - Bloomberg

Let’s just say Iran makes good on its recent threats to shut down the Strait of Hormuz. And let’s say that with one-fifth of the world’s oil supply bottled up, the price of a barrel of oil then almost doubles, as some analysts predict, to more than $200.

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Pipelines that circumvent the strait could carry to market at least 7 million of the 17 million barrels of tanker-borne oil that passes through the strait each day. The U.S. could, for the third time since the Gulf War in 1991, release oil from its 700 million-barrel Strategic Petroleum Reserve ; other members of the International Energy Agency (set up after the 1973-74 oil crisis) could also tap the 90-day supply stocks that they are required to maintain. The IEA has already prepared a plan to release as many as 14 million barrels a day in the event of a Gulf closure. Saudi Arabia, long the self-appointed swing man of the Organization of the Petroleum Exporting Countries, has a spare production capacity -- on paper, at least -- of about 3 million barrels per day; everyone else is producing almost flat out.

An Oil Strategy in Case Iran Shuts Down Strait of Hormuz: View - Bloomberg

Jan. 8 (Bloomberg) -- A pipeline that would allow oil from the United Arab Emirates to bypass the Strait of Hormuz separating it from Iran has been delayed because of construction difficulties, two people with knowledge of the matter said.

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As many as 270 construction issues have pushed back the completion date, said the two people, declining to be identified because they’re not allowed to speak publicly on the matter. The $3.3 billion project won’t be ready until at least April, one of them said. Abu Dhabi, holder of most of the U.A.E.’s oil reserves, had planned to start exports in January 2011 through the pipeline to a port outside the strait, Dieter Blauberg, the project’s former director, said in May 2009. The 1.5 million barrel-a-day link would ensure the U.A.E. can export crude without risking a blockade at Hormuz, where fully laden tankers exit the Persian Gulf with one-fifth of the world’s traded oil. The chance that Iran might try to close the waterway has intensified as Europe prepares to follow tougher U.S. sanctions on the country.

Hormuz Bypass Oil Pipeline Said Delayed Amid Iran Tensions - BusinessWeek

LAGOS, Nigeria — For decades, Nigerians have expected low gasoline prices, one of the few perks seen by residents of an oil-rich nation where corruption siphons billions. Now, that long-cherished benefit has ended, more than doubling prices and fueling a planned nationwide strike by angry labor unions.

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The strike scheduled for Monday already bears echoes to a similar nationwide strike in 2003 that saw the country almost entirely shut down by angry laborers and residents. And while analysts say the subsidy’s end frees up $8 billion a year that is needed to help the country, they warn the way it was carried out only alienates those living in a nation of more than 160 million people where only the wealthy elite benefit from oil. Gas prices have risen from $1.70 per gallon (45 cents per liter) to at least $3.50 per gallon (94 cents per liter) since the subsidy ended Sunday at the order of President Goodluck Jonathan. That also spurred a spike in prices for food and transportation across Nigeria, a nation where most live on less than $2 a day.

Planned national protest in Nigeria could grind oil-rich nation to halt over ... - Washington Post

Benchmark crude fell by 53 cents to $101.31 per barrel in New York. Brent crude, which is used to price foreign oil varieties that are imported by American refineries, lost 24 cents at $112.50 per barrel in London.

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Prices dropped as traders focused on European economic reports that showed weaker factory orders in Germany and soft European retail sales elsewhere in November.

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Prices dropped as traders focused on European economic reports that showed weaker factory orders in Germany and soft European retail sales elsewhere in November. "They threw a little bit of cold water onto the market," said Gene McGillian, a broker and analyst at Tradition Energy.

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Oil prices fall on concerns about European economy - BusinessWeek

A huge picture of Iranian supreme leader Ayatollah Ali Khamenei is erected next to a Qader-F missile, displayed at a square in southern Tehran, Sept. 26, 2011.

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While Iran and the U.S. talk tough over naval activity in the Persian Gulf, European Union leaders have decided to join the U.S. in imposing increasingly harsh sanctions against the Islamic republic over what many assume is a rapidly-developing nuclear weapons program there. At an E.U. ministers meeting in late January, diplomats are expected to announce plans for an embargo against Iranian crude oil, according to the BBC.

Europe moves toward oil embargo against Iran - CBS News

BRUSSELS/TEHRAN (Reuters) - European governments have agreed in principle to ban imports of Iranian oil, EU diplomats said Wednesday, dealing a potentially heavy blow to Tehran that crowns new Western economic sanctions imposing real pain just months before an Iranian election.

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The prospective embargo from the European Union, along with tough U.S. financial measures signed into law by President Barack Obama on New Year's Eve, form a concerted Western campaign to impose sanctions over Iran's nuclear program.

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Iran says its nuclear program is strictly peaceful, but Western countries say a November U.N. report shows it has sought to build an atomic bomb. Talks between Tehran and major powers broke down a year ago.

Exclusive: In major blow, EU agrees embargo on Iranian crude - Reuters

LONDON (Reuters) - Crude oil rose above $110 a barrel on Tuesday as tension between Iran and the United States stirred fear of a possible disruption to oil supplies from the Middle East and as Chinese data showed economic activity increasing.

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Oil was one of the best performing assets in 2011, with North Sea Brent posting an annual gain of 13 percent, to a record average of nearly $111 a barrel, as unrest in North Africa and the Middle East disrupted supply. ICE Brent crude futures climbed $2.97 to a high of $110.35 a barrel by 1145 GMT on Tuesday, the first day of trading for 2012. U.S. crude futures were up $2.70 at $101.53 a barrel after hitting an intraday high of $101.68.

Oil above $110 on Iran, China data - Reuters

You'll know the U.S. energy industry is really on the rebound when North Dakota's newfangled Bakken oil field starts pumping more crude than Alaska's stalwart Prudhoe Bay. Energy experts expect it to happen in 2012.

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Dwindling production from the once-mighty Alaskan field has been a symbol of what was once seen as the slow, inexorable decline of U.S. oil. But new technologies have turned that overall decline into an increase, led by the Bakken shale, which in July produced 424,000 barrels a day, to Alaska's 453,000. You'll know the U.S. energy industry is really on the rebound when North Dakota's newfangled Bakken oil field starts pumping more crude than Alaska's stalwart Prudhoe Bay. Energy experts expect it to happen in 2012.

Oil and Gas Bubble Up All Over - Wall Street Journal

The International Chamber of Commerce (ICC) in Paris set the award, ruling that Venezuela's state oil company, PDVSA, did have liability to Exxon after its assets were nationalised.

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Exxon had reportedly sought $10bn in compensation for the nationalisation of its heavy crude upgrading project in Venezuela's oil rich Orinoco belt. It is one of many arbitration cases currently under consideration after Venezuelan President Hugo Chavez ordered the nationalisation of the assets of some oil companies including Exxon and Conoco Phillips.

Exxon wins $908m from Venezuela in oil dispute - BBC News

TEHRAN, Jan 1 (Reuters) - - Iran announced a nuclear fuel breakthrough and test-fired a new radar-evading medium-range missile in the Gulf on Sunday, moves that could further antagonise the West at a time when Tehran is trying to avert harsh new sanctions on its oil industry.

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U.S. President Barack Obama signed a law on Saturday imposing tougher financial sanctions to penalise Iran for a nuclear research programme that the West suspects is aimed at developing nuclear weapons.

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As tensions have risen, Iran threatened last week to close the Strait of Hormuz, a narrow Gulf shipping lane through which 40 percent of world oil flows, if sanctions hit its oil exports.

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Iran reports nuclear progress as sanctions loom - Reuters