Asia Energy Day Ahead: Oil Gains; British Energy May Be Sold

By Barbara Powell

July 25 (Bloomberg) -- Crude oil rose from a seven-week low as some traders purchased contracts on speculation prices fell too far in the past two weeks.

British Energy Group Plc said it's in ``advanced discussions'' regarding a takeover offer after a report that Electricite de France SA and Centrica Plc are close to approving a deal to buy the U.K.'s biggest power producer for more than 12 billion pounds ($24 billion).

MOST READ MARKETS STORIES

Oil Rises From Seven-Week Low on Signs Price Drop Was Excessive

Crude oil rose from a seven-week low as some traders purchased contracts on speculation prices fell too far in the past two weeks.

Natural Gas Declines After Supplies Expand More Than Expected

Natural gas in New York declined to a five-month low after a government report showed supplies increased more than analysts expected.

Light Louisiana Oil Weakens on Supply Gain, Lower Refinery Use

Light Louisiana Sweet crude oil weakened against benchmark West Texas Intermediate to its lowest premium in four weeks after a government report yesterday showed Gulf Coast oil supplies rose and refinery demand declined.

CFTC Alleges Dutch Trading Firm Manipulated Nymex Energy Market

The U.S. Commodity Futures Trading Commission, under pressure from Congress to police markets in the wake of record energy prices, accused Optiver Holding BV of manipulating U.S. energy markets.

Galveston Ship Pilots Suspend Work on Bad Weather

Galveston ship pilots suspended operations at 9:40 p.m. yesterday because of bad weather, the U.S. Coast Guard said.

Oil Slump May Have Started on SemGroup's Losses, Analyst Says

Crude oil's 16 percent drop from a record may have been triggered by Tulsa, Oklahoma-based energy trader SemGroup LP that declared bankruptcy this week, an oil analyst said.

TOP ENERGY COMPANY STORIES

British Energy Is in `Advanced' Takeover Talks

British Energy Group Plc said it's in ``advanced discussions'' regarding a takeover offer after a report that Electricite de France SA and Centrica Plc are close to agreeing a deal to buy the U.K.'s biggest power producer for more than 12 billion pounds ($24 billion).

Occidental Profit Jumps 63% as Oil Climbs to Record

Ocidental Petroleum Corp., the fourth-largest U.S. oil company by market value, said second-quarter profit rose 63 percent as crude prices climbed above $140 a barrel for the first time and production increased.

BG Profit Rises to a Record on LNG Prices, Output

BG Group Plc, the U.K.'s third-largest oil and gas producer, said earnings surged 59 percent to a record in the second quarter because of higher prices for liquefied natural gas and increased production.

Reliance Net Profit Beats Estimates on Refining Oil

India's Reliance Industries Ltd., owner of the world's third-biggest refinery, said first-quarter net income rose 13 percent, beating analysts' estimates, after earning more from selling fuel at higher prices.

Suncor Net Rises 12%, Again Reduces Output Forecast

Suncor Energy Inc., the world's second-largest oil-sands producer, said second-quarter profit increased 12 percent on higher oil and natural-gas prices. The company cut its output forecast for a second time this year.

Petro-Canada's Profit Advances 77% on Oil Prices

Petro-Canada, the country's second-largest refiner, said second-quarter profit surged 77 percent on higher oil and natural-gas prices. The company increased its spending forecast and dividend.

EnCana Profit Drops on Lower Value for Contracts

EnCana Corp., Canada's largest natural-gas producer, said second-quarter profit fell 16 percent on lower values for contracts used to lock in commodity prices.

Smith International Profit Rises as Oil Prices Soar

Smith International Inc., the world's fourth-largest oilfield-services provider, said second-quarter net income rose 20 percent as oil jumped to an all-time high, prompting increased spending across the industry.

TNK-BP Billionaires Demand Dudley Cut $900 Million of Spending

BP Plc's billionaire partners in TNK-BP, Russia's third- largest oil producer, told Chief Executive Officer Robert Dudley to cut spending by about $900 million or ``personally'' face demands for compensation.

Diamond Offshore Reports Rig Deals, Jump in Earnings

Diamond Offshore Drilling Inc., the world's second-largest deepwater oil driller by market value, reported $900 million in rig deals and a jump in second-quarter profit that exceeded analysts estimates as record crude prices spur exploration for new reserves.

Enterprise Profit, Distributable Cash Flow Increase

Enterprise Products Partners LP, the second-biggest U.S. pipeline partnership by market value, posted gains in second- quarter profit and cash flow for investor payouts amid increased gas shipments and processing margins.

Animal Waste May Supply Cleaner Power to U.S. Homes

Cows, pigs and chickens in the U.S. produce enough manure to supply 2.4 percent of the nation's electricity if the waste were converted into burnable gas, an energy option overlooked by the government, researchers said.

HIGHLIGHTS FROM NEWSPAPERS

U.S., India to Push Forward Nuclear Energy Deal, AFP Reports

U.S. President George W. Bush telephoned Indian Prime Minister Manmohan Singh to discuss plans to push forward a nuclear-energy agreement they signed in 2005, Agence France- Presse said.

Cosan Plans Fast Expansion of Esso Stations, Ometto Tells Valor

Cosan SA Industria e Comercio, Brazil's biggest sugar and ethanol company, plans to expand Esso Brasileira de Petroleo Ltda. share in Brazil's fuel distribution market to 10 percent from 5.9 percent in the short term, Valor reported, citing controlling shareholder Rubens Ometto.

Nigeria Oil Workers May Resume Strike Over Fuel Costs, AFP Says

Nigeria's main blue-collar oil workers' union may resume a strike it suspended earlier this month to protest the rising cost of diesel and kerosene, Agence France-Presse reported.

Russia Rejects Deadline in Iran Nuclear Talks, Interfax Says

Russian Foreign Minister Sergei Lavrov rejected the imposition of a deadline on Iran in talks between that country and the six nations negotiating the future of its nuclear program, Interfax reported.

To contact the reporter on this story: Barbara Powell in Dallas at Bpowell4@bloomberg.net.