Problems reported at two Texas plants as gasoline supplies remain low; prices rebound despite strike resolution in Nigeria.
June 25 2007: 4:20 PM EDT
NEW YORK (Reuters) — Oil rose Monday as a string of U.S. refining outages again sparked concerns of a supply shortfall in the midst of the top consumer’s peak driving season.
Prices had fallen more than a dollar in earlier activity as Nigerian oil export fears eased after a production-threatening strike ended and Royal Dutch Shell (Charts) said it was preparing to restart shipments from a shuttered field.
U.S. crude for August delivery rose 4 cents to settle at $69.18 a barrel on the New York Mercantile Exchange.
Support came from news of maintenance at Total’s (Charts) Port Arthur, Texas, refinery and problems at Exxon Mobil’s (Charts, Fortune 500) plant in Baytown, Texas, adding to concerns that lagging U.S. refinery output cannot keep up with demand.
The outages helped retrace losses earlier in the trading session after Royal Dutch Shell said it was preparing to resume exports from a Nigerian oilfield abandoned over a year ago because of militant attacks.
The news came two days after Nigerian unions ended a strike that had threatened to halt shipments from Africa’s biggest oil producer. It could mark an easing of tension in the oil-rich delta where violence has shut a quarter of Nigeria’s output.
Oil had touched a 10-month high early last week on concern the Nigerian strike might disrupt oil exports.
Nigeria’s biggest foreign operator Royal Dutch Shell said its Forcados oil export terminal may resume operations in July. A restart would add to supply of Nigerian crude, prized by refiners as it is easy to process into fuels.
“This is good news and it has taken some of the concern away from the market,” said Chip Hodge, energy portfolio manager with John Hancock Financial Services in Boston.
“There is not a lot of excess production capacity and the potential loss of Nigerian supplies had put upward pressure on prices, especially given the high quality of Nigerian crude.”
Product concerns
Below-normal stocks of gasoline and heating oil in top consumer the United States continued to underpin the market, however. U.S. crude stocks are at a nine-year high but refiners have been struggling to churn out refined oil products.
“[We] believe that the continued stress on the U.S. refining system from the adjustment to more stringent product specifications could lead to further refinery outages, posing a downward risk to U.S. refinery runs,” said Goldman Sachs.
Signs OPEC output is creeping higher to take advantage of high prices also helped tip the market lower early.
The 10 OPEC members subject to oil production limits are expected to pump 26.8 million barrels per day in June, up from 26.7 million bpd the previous month, said Conrad Gerber, head of Petrologistics, which tracks tanker shipments.
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
