By Duncan Sutherland – Exclusive to Crude Investing News

Market and international news

The past weeks have certainly been exciting for oil traders. A huge bite has been taken from oil prices, with barrel price dropping below US$110, and looking to approach the $100 mark. The ramifications will be variegated, but expect two important news pieces to come out this week.

First, the Gulf platforms and refineries that escaped Gustav’s wrath will largely remain shut or on reduced operations as now, Hurricane Ike threatens to sweep through the area. If Ike spares the fields, and oil continues to hover around US$100, a delayed or phased resumption of production and refining could bolster the bottom line for companies.

Second, OPEC’s meeting tomorrow will almost certainly result in talk of cutting production, but not much in the way of concerted action. Member nations’ motivations are not synchronized, so consensus is exceedingly unlikely. Iran wants to impose OPEC-wide decreases, but the UAE thinks current levels are appropriate. Although OPEC will not move together on this issue, some countries (notably Saudi Arabia) are likely to retrench significant volumes.

The Iraq Government is saying that an energy deal (natural gas) with Shell (NYSE:RDS.A) could be completed by mid-October. Rebuilding the energy sector of the country will be difficult, politically problematic and fraught with insecurities. However, the shape of the first few such deals will offer important clues as to how Iraq plans to work with foreign firms. It appears that joint ventures are de rigeur, and the government wants to work with state-owned and publicly-traded companies from around the world. The first post-invasion deal was signed with a Chinese energy firm, so political balancing may factor into the government’s decisions.

Company news

The US Department of Energy has confirmed that it will pull one quarter of a million barrels from the Strategic Petroleum Reserve for delivery to Marathon Oil’s (NYSE:MRO) refineries after hurricane-related supply problems.

Devon Energy (NYSE:DVN) received approval for its Jackfish 2 oil sands project in Canada. Expected to come on line by 2012, the project will maximize its production at around 35,000 bpd.

TransGlobe Energy Corporation (TSX:TGL) has issued a mid-quarter update for Q3, and the overall picture is not particularly good for the company. The company’s oil production averaged just under seven thousand barrels per day in August, with 45 per cent coming from its West Gharib project in Egypt and 55 per cent from fields TransGlobe operates in Yemen.

Cooper Energy (ASX:COE) is on a mission to buy fellow Australian energy company Incremental Petroleum, (ASX:IPM) the Sidney Morning Herald reports. Combined, the two companies would be better placed to break out of the junior strata and into the tier of mid-sized companies.

First Calgary Petroleum (TSX:FCP) is weighing an offer of CD$923 from Italy’s Eni SPA (NYSE:E). A nice premium is offered on FCP’s share price, so the deal should go through unless another company is willing to make a better offer.