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OIL AND GAS
Oil markets end week on down note
by Daniel J. Graeber
New York (UPI) May 22, 2015


Gas prices no deterrent to holiday travel
Washington (UPI) May 22, 2015 - Ahead of the long holiday weekend, the U.S. average retail price for a gallon of regular unleaded gasoline is up nearly 2 percent from last week, AAA finds.

AAA reports a national average price of $2.74 per gallon, up about 1.5 percent from the start of the week and close to 2 percent more than one week ago. The motor club attributed much of the increase to a rally in crude oil prices, Oil prices, which represent more than half the price at the pump, are up more than 30 percent since the start of the year.

Some U.S. states on the West Coast have passed the $3 per gallon threshold in recent days, though the rate of increase has largely mirrored the national average. South Carolina had the lowest state average in the nation at $2.43 per gallon.

More than half of all U.S. states reported an average price below the $2 per gallon mark in late 2014. Both AAA and analysts at the price watchdog group GasBuddy said higher gasoline prices won't keep travelers off the road during the long Memorial Day weekend.

More than 33 million travelers are expected to hit the roads for Memorial Day, the highest in 10 years and up 5.3 percent from last year, AAA said. In a survey of more than 150,000 members, GasBuddy said Memorial Day is the top holiday weekend for road travel.

AAA, however, finds drivers are experiencing "significant" savings at the pump when compared with last year. Today's average price is nearly $1 less than this date in 2014.

"Even with the current uptick in gas prices, we predict most U.S. travelers will pay the cheapest Memorial Day gas prices since at least 2009," Patrick DeHaan, senior petroleum analyst for GasBuddy, said.

In a short-term market report for May, the U.S. Energy Information Administration said it expected the national average price for full-year 2015 to level out at around $2.43 per gallon. The full-year 2014 average was $3.36 per gallon.

This week's rally in crude oil prices came to an abrupt end Friday with key indices down more than 1 percent on small gains in demand.

West Texas Intermediate, the U.S. benchmark, slipped back below the $60 mark after Thursday's gains to fall 1.6 percent in early Friday trading to $59.72 per barrel. WTI prices started May at $59.19.

Data from the American Petroleum Institute show total U.S. petroleum deliveries, a measure of demand, gained 0.7 percent year-on-year in April. Demand for some petroleum products like gasoline and other ground transportation fuels declined.

"As has been the case for some time, the market's primary themes in April were strong supply and moderate demand growth," API Chief Economist John Felmy said in a statement.

Oil field services company Baker Hughes reported activity in the North American exploration and production sector was recovering. The total number of rigs actively exploring for or producing reserves in the United States dropped six from the week ending May 8, while Canada added two more rigs.

The U.S. Energy Information Administration reported total U.S. oil production at 9.26 million barrels per day for the week ending May 15, down 1.2 percent from the previous week.

Internationally, the rig count dropped 49, or nearly 4 percent, Baker Hughes reported. The price for Brent crude oil, the global benchmark, dropped 1.8 percent to $65.54. Brent started May at $66.16 per barrel.

Oil prices were supported during mid-week trading by signs of forward momentum in Asian economies.


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OIL AND GAS
Statoil comes up dry in Norwegian Sea
Oslo, Norway (UPI) May 22, 2015
The Norwegian government said Friday energy company Statoil came up empty-handed when drilling in a frontier prospect near the Helm field in the Norwegian Sea. The Norwegian Petroleum Directorate said Statoil is finishing drilling operations at wildcat wells, those drilled in an area not previously known to contain oil or gas reserves, about three miles north of the Hyme field. " ... read more


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