Naftogaz Ukrainy has apparently released a statement admitting that a 'dire economic situation' means that the company is struggling to pay its October gas bill.  The Moscow Times reports however that Ukrainian Energy Minister Yury Prodan has assured Russia that it will pay its $470 million bill on time - although there are hints that it will have to borrow the money - possibly from Moscow.  According to Reuters, the new gas deal between Polish and Russian companies will be approved within weeks.  Total and Statoil have both recorded a steep decline in third-quarter profits.  Lukoil will expand its trading business in the Asian zone, especially in naphtha and fuel oil, in the first six months of 2010.  A factbox on the buying and selling of European refineries here.  Gazprom has apparently made a ...

According to ITAR-TASS, Prime Minister Vladimir Putin has commented that Russia does not object to selling energy resources using domestic currencies.  How done is the Russia-China gas deal? wonders the the FT.  Gazprom will buy 500 million cubic meters of gas from Azerbaijan next year.  The Times has a piece on the 'take-and-pay' system which is now causing friction between suppliers and buyers.  Norway's Aladdin has signed a five-year contract to provide gas from a field in the Komi republic to a Gapzrom subsidiary.  ConocoPhillips is apparently 'non-committal' on a possible sale of its 20% stake in Lukoil.  Serbia expects as much as $13.4 billion to be invested in modernizing its energy sector by 2015, and is working with Gazprom.  Iraq has given a consortium led by Eni the right to develop its ...

TNK-BP is on the lookout for oil and gas production projects in Iraq as the country builds up to its second round of international bidding.  A piece in the New York Times examines how the Nord Stream pipeline could reinforce Russia's dominance over its neighbors and re-establish a divide between eastern and western Europe.  EDF has denied claims that it is dispatching radioactive waste to Russia, but rather is sending 'spent nuclear fuel that needs to be reprocessed'.  A gas deal with China would be good news for Gazprom shares, says Bloomberg.  Beijing may look to invest in oil in the Western African states of Ghana and Guinea to help build up its economy and increase energy security.  The Moscow Times reports that the government intends to begin operating a long-term power capacity market in 2011.  ...

Naftogaz Ukrainy apparently intends to pay the interest due on its debts, to avoid default on its eurobonds which mature today.  'With its debt considered quasi-sovereign, a default by Naftogaz would be a first for a sovereign company in eastern Europe this year' says the FT.  Ukraine will break its bailout promise to the IMF and not raise natural gas prices for households.  Lukoil and Rosneft may consider buying more assets from Total.  Poland says that Russia canceled this month's talks regarding gas; the EU member hopes to reach a gas deal soon for 2010 and beyond.  A candidate to the post of the Greek prime minister has said that were he elected he would seek better terms for the Burgas-Alexandroupolis oil pipeline project, particularly in regards to 'environmental protection'.  Gazprom is apparently planning ...

Recent deals such as this one seem to paint a clear picture: China isnt as trapped into USD as the financial talking heads would like you to believe. A China that is not trapped into the USD is very bearish for the dollar. Why? I have heard many who simply refuse to accept the truth, that China has been loaning the US Government (by buying US paper) over $18 billion a day just to keep the lights on. When China refuses to buy US paper, then the Federal Reserve has to step to the plate and do so (by buying through their pet banks, JP Morgan and Government Sachs etc…or is it the Fed is the pet of the banks?) The problem with this is that any government that buys its own debt because ...

Oil prices have soared to their highest since October at $72 a barrel, amid talk of an economic recovery and International Energy Agency predictions of an increase in global demand.  A BP reports calculates that there is enough oil to last for 42 years at current production rates.   Ukrainian President Viktor Yushchenko has appealed to the government to take urgent steps to stabilize the national energy company Naftogaz which is in a 'critical' state.  The President has reiterated concerns about the gas deal agreed with Russia, as the Kremlin could demand a $5 billion fine if Kiev buys less gas in the first two quarters than agreed.  Russia will keep foreign investment in the oil and gas industry to 25% of the total to help domestic companies remain profitable.  Russia, Iran and Qatar will discuss the ...

Firm investment demand outweighs weak jewelery buying… Euro weakens on euro zone outlook… Oil prices tumble nearly 10 percent…

Gold swung into the black on Tuesday, rising more than 2 percent to a one-week high of $855.75 an ounce, amid market talk of a large order.

Firm investment demand for gold as a haven from risk is fueling buying of the precious metal, analysts said.

Spot gold was quoted at $853.00/855.00 an ounce at 1228 GMT, up from $834.55 late on Monday. Earlier it touched a low of $822.90, down more than 1 percent.

Standard Chartered analyst Daniel Smith said strong investor flows into products such as exchange-traded funds as investors sought more secure assets were offsetting weaker jewelery demand.

“People are slowly building long positions in gold and commodities more generally,” he said.

Gold managed shrugged off early weakness linked to a

...

Russian gas deal, Gaza ceasefire ease supply concerns… World oil demand expected to fall in 2009… U.S. holiday leads to low trading volumes…

Oil fell more than $2 towards $34 a barrel on Monday after Russia and Ukraine signed a 10-year gas deal clearing the way for the resumption of supplies to a freezing Europe.

Implementation of a ceasefire between Israel and Hamas in Gaza also eased supply concerns as the market remained under pressure from expectations that the weakening global economy would erode oil demand.

“Right now the economy is dominating,” said Harry Tchilinguirian, analyst at BNP Paribas. “The market is very volatile and the signs are that demand is weakening.”

U.S. crude oil futures for February delivery dipped to a low of $33.89, down $2.62, before recovering to trade at $34.53 by 1800 GMT.

Traders said the February U.S. crude oil futures

...

The government is to lend its four major energy companies up to $9 billion to help them survive the financial crisis. Gazprom has announced that it has offered to help Alaska develop its natural resources, and has accordingly sent a group of senior executives to anchorage. ‘The timing is as interesting as the visit itself,’ noted one analyst. Stroitransgaz, which is part-owned by Gazprom, plans to extend a gas link from Syria to Turkey with a view to supplying a European project. Syria and Russia signed a €52 million gas deal earlier in the week. New research indicates that the Gulf could deliver an extra 10 million barrels of crude oil per day by 2015. TNK-BP has started commercial oil production at its Verkhnechonsk field.