Following is a summary of top stories in the energy sector Tuesday afternoon.
Crude on the Rise Again
Oil prices pushed higher again on worries about tight supplies and mounting tension in the Middle East.
Light, sweet crude for August delivery rose 97 cents to settle at $140.97 a barrel on the New York Mercantile Exchange, after spending much of the session above $142 a barrel.
In other Nymex trading, heating oil futures added 3.35 cents to settle at $3.9435 a gallon, while gasoline futures gained 1.43 cents to settle at $3.5134 a gallon. Natural gas futures jumped 15.2 cents to settle at $13.505 per 1,000 cubic feet.
Pump Demand Still Trails Last Year
Gasoline demand at the pump last week fell 2.1 percent compared with the same week a year ago, according to a survey by MasterCard SpendingPulse.
The average retail price for a gallon of regular gasoline fell by a penny, but is 36.2 percent higher than one year ago.
Michael McNamara, vice president research and analysis for MasterCard Advisors said the regional year-over-year view shows all regions but the Midwest are consuming less gasoline when compared to a similar week in 2007.
"It is worth noting that the Midwest has some the cheapest gasoline prices," said McNamara.
Year-to-date gasoline assumption is down about 2 percent compared with the same period in 2007, according to the survey.
A macro-economic indicator, SpendingPulse reports on national retail sales and is based on aggregate sales activity in the MasterCard payments network, coupled with estimates for all other payment forms, including cash and check. MasterCard SpendingPulse does not represent MasterCard financial performance.
Citi Starts Oil Services Coverage
Citi Investment Research initiated coverage of oil services and equipment companies, saying that the industry's upturn is far from over.
"We believe that the industry upturn is still in its early-to-middle stages," analyst Robin Shoemaker said in a note to clients.
Shoemaker put "Buy" ratings on Schlumberger Ltd., Halliburton Co., Cameron International Corp. and National Oilwell Varco Inc., saying they "are likely to achieve above-average earnings growth through innovative technologies, focused acquisition strategies, and targeted expansions into new geographic markets.
Shoemaker rates BJ Services Co., Smith International Inc., Baker Hughes Inc. and Weatherford International Ltd. at "Hold."
IEA Sees Oil Supplies Barely Ahead of Demand
Oil supplies will remain tight despite record prices that have trimmed demand, according to the International Energy Agency.
Downsizing its estimate of how much oil will reach the market, the IEA predicted supply will exceed projected demand only by 2 million barrels a day.
The IEA is the energy watchdog for the Organization for Economic Cooperation and Development, a grouping of the world's most industrialized countries.
In its annual Medium Term Report, it said the world's estimated daily oil needs will rise from 86.87 million barrels this year to 94.14 million barrels in 2013 _ less than it anticipated last year, because of skyrocketing prices. The agency said there will be 1.4 percent less demand this year and 3.4 percent less in 2012, the last year for which the report gave figures.
As Western nations cut back on crude, China and other emerging economies will consume more, the IEA said.
Iraqis Wait in Long Gas Lines
Iraqis trying to gas up their cars sat in lines that stretched for miles through downtown Baghdad, as the government prepared to accept bids on its petroleum fields.
The country's fragile oil distribution system means that periodic shortages appear from time to time. But this week's crunch seemed among the worst.
Iraq announced Monday that it will open six major oil fields and two natural gas fields to development by foreign firms, which could lead to the biggest outside stake in Iraq's oil industry since it was nationalized more than 30 years ago.
The government hopes these contracts will boost oil production by 60 percent from levels that are already the highest since the U.S.-led invasion in 2003.
Pacific Gas & Electric Buying More Wind Energy
Pacific Gas and Electric Co. signed a long-term agreement to purchase wind energy from the Arlington Wind Power Project LLC, a subsidiary of Horizon Wind Energy LLC. Horizon will deliver 240 gigawatt hours of renewable wind energy annually to PG&E customers in northern and central California.
The Rattlesnake Road Wind Power Project is currently under construction in Oregon and is expected to begin operation in the first quarter of 2009. PG&E now has more than 1,213 megawatts of wind energy under contract or delivered.
--Compiled by AP Business Writer Greg Stec. Questions or comments can be directed to gstec@ap.org.
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