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January 10, 2012

Energy Data Highlights

Retail gasoline price 1/9/2012: $3.382/gal up$0.083 from week earlier up$0.293 from year earlier Retail diesel price 1/9/2012: $3.828/gal down$0.045 from week earlier up$0.495 from year earlier Crude oil futures price 1/6/2012: $101.56/bbl up$2.73 from week earlier up$13.18 from year earlier Natural gas futures price 1/6/2012: $3.062/mmBtu up$0.073 from week earlier down$1.372 from year earlier Weekly coal production 12/31/2011: 19.194 million tons down1.097 million tons from week earlier up0.167 million tons from year earlier

Crude, Gold, Copper, Aluminum Advance: Commodities at Close CRUDE OIL -- Futures rose in New York for the first time in four days as Venezuela said OPEC shouldnt intervene to offset sanctions against Iran, and European leaders were scheduled to discuss strategies for resolving their debt crisis. Brent oil for February settlement on the London-based ICE Futures Europe exchange climbed as much as 81 cents, or 0.7 percent, to $113.26 a barrel. The European benchmark contract was at a $10.92 premium NATURAL GAS -- Futures were little changed in New York. Gas for February delivery rose 0.1 percent to $3.013 per million British thermal units on the New York Mercantile Exchange. Prices are 31 percent lower than a year ago OIL PRODUCTS -- Gasoils premium to Dubai crude rose 18 cents, or 1 percent, to $18.93 a barrel, PVM data showed. This crack spread is at the widest since Dec. 7. PRECIOUS METALS -- Spot gold gained as much as 0.7 percent to $1,623.28 an ounce before trading at $1,617.45 an ounce at 3:57 p.m. Singapore time. It fell 0.4 percent yesterday and dropped 0.3 percent on Jan. 6. February-delivery bullion advanced 0.6 percent to $1,617.90 an ounce on the Comex in New York. GRAINS, SOFT COMMODITIES -- March-delivery corn advanced as much as 0.6 percent to $6.56 a bushel on the Chicago Board of Trade, extending yesterdays 1.3 percent rise. It traded at $6.54 a bushel at 3:14 p.m. Singapore time. Wheat for March delivery was little changed at $6.4125 a bushel, after a 2.7 percent gain yesterday. Soybeans for delivery in the same month were also little changed at $12.32 a bushel, after a 3.1 percent rise yesterday http://www.businessweek.com/news/2012-01-10/crude-gold-copperaluminum-advance-commodities-at-close.html

Nat Gas: Ready for $1/MMBtu? BofA Merrill Lynch Global Commodity Research has sharply lowered their US natural gas price forecasts. While the strength in shale gas output has upset the supply demand balance in the US natural gas market for some time now, abnormally low heating demand this winter has further contributed to exacerbate the surplus - with November and December seeing the warmest winter weather in over 30 years http://www.commodities-now.com/commodities-now-news/power-andenergy/9561-nat-gas-ready-for-1mmbtu.html Fracking Moratorium Urged by U.S. Doctors Until Health Studies Conducted The U.S. should declare a moratorium on hydraulic fracturing for natural gas in populated areas until the health effects are better understood, doctors said at a conference on the drilling process http://www.bloomberg.com/news/2012-01-09/fracking-moratorium-urged-by-u-sdoctors-until-health-studies-conducted.html Green/ Alternative Energy News Florida bills seek renewable-energy overhaul

Florida's energy future is expected to be controversial once again this year as the legislature begins its session Tuesday. Some bills propose allowing property owners who produce electricity from renewable sources to sell it directly to tenants, bypassing the utility company. http://www.palmbeachpost.com/money/real-estate/florida-bills-seek-renewableenergy-overhaul-2089828.html Renewable energy outpaces fossil fuel and nuclear growth Renewable energy sources continue to expand rapidly while substantially outpacing the growth rates of fossil fuels and nuclear power, according to the Monthly Energy Review by the US Energy Information Administration (EIA). http://www.renewableenergyfocus.com/view/23051/renewable-energyoutpaces-fossil-fuel-and-nuclear-growth/

Crude Oil News OPEC Daily Basket Price 1/9/2012 112.51 (OPEC Daily Basket Price 1/6/2012 112.23) Oil rises to $113 on Iran tension Oil rose to around $113 a barrel on Tuesday as tension over Iran's nuclear program and unrest in Nigeria outweighed persistent concerns about the strength of Europe's economy. http://www.reuters.com/article/2012/01/10/us-markets-oilidUSTRE7AD06820120110 Oil Advances for First Day in Four on Iranian Dispute, Euro Debt Meeting Oil rose in New York for the first time in four days on growing concern that the dispute between Iran and western governments may lead to a disruption in Middle East crude exports. http://www.bloomberg.com/news/2012-01-10/oil-advances-for-first-day-in-four-oniranian-dispute-euro-debt-meeting.html OPEC Cant Be Involved in Iran Sanctions Dispute, Venezuelas Ramirez Says The Organization of Petroleum Exporting Countries cant get involved in the dispute over Western sanctions against Iran, Venezuelas oil minister Rafael Ramirez said. http://www.bloomberg.com/news/2012-01-10/opec-can-t-be-involved-in-iransanctions-dispute-venezuela-s-ramirez-says.html Iran Tension Will Keep Oil Prices High The tensions over Iran and threats from the West to apply sanctions on Iranian oil will see crude prices facing more of an upside risk in the near future, a commodities analyst told CNBC http://www.cnbc.com/id/45939219 Oil Prices Could Soar 80% If Iran Shut Hormuz: Analyst

If Iran were to shut down the Strait of Hormuz, a key oil transportation route where millions of barrels travel out of the Persian Gulf every day, Brent crude would surge to between $150 and $200 a barrel, according to an oil analyst with Societe Generale.We believe it would be relatively easy for Iran to shut down the Straits of Hormuz, wrote Michael Wittner, in a report late Friday to clients. A credible threat from missiles, mines, or fast attack boats is all it would take for tanker insurers to stop coverage, which would halt tanker traffic. However, we believe that Iran would not be able to keep the Straits shut for longer than two weeks, due to a US-led military response. http://www.cnbc.com/id/45929942 Toyota's Lentz Sees Gasoline Above $4 in 2012 Toyota USA President Jim Lentz forecasts retail gasoline prices surpassing $4 a gallon in 2012. "I think so," Lentz says. "The chances of it going substantially higher than that are pretty great." http://www.cnbc.com/id/45928927 How Microbes Teamed to Clean Gulf A fortuitous combination of ravenous bacteria, ocean currents and local topography helped to rapidly purge the Gulf of Mexico of much of the oil and gas released in the Deepwater Horizon disaster of 2010, researchers reported on Monday. After spewing oil and gas for nearly three months, the BP PLC well was finally capped in mid-July 2010. Some 200,000 tons of methane gas and about 4.4 million barrels of petroleum spilled into the ocean. Given the enormity of the spill, many scientists predicted that a significant amount of the resulting chemical pollutants would likely persist in the region's waterways for years. http://online.wsj.com/article/SB1000142405297020343690457715091002559178 8.html BOEM to hold public hearing in Houston The Bureau of Ocean Energy Management will hold a public hearing Tuesday in Houston to give the public the opportunity to comment on a proposed environmental-impact statement for the outer continental shelf oil and gas lease sale. http://fuelfix.com/blog/2012/01/09/boem-to-hold-public-hearing-in-houston/ Keppel agrees to $150 million U.S. rig deal Keppel AmFELS inked a deal today with Houston-based Diamond Offshore for $150 million to construct and upgrade a moored semisubmersible rig. http://fuelfix.com/blog/2012/01/09/keppel-agrees-to-150-million-u-s-rigdeal/ Recent Rig Counts Date of Prior Count 29 Dec 11 Change from Last Year +307 Date of Last Year's Count 7 Jan 11

Area U.S.

Last Count

Cou Change from nt Prior Count Unchanged

6 Jan 12 2007

Canada

6 Jan 12 361

140 -5

29 Dec 11 Novembe r 2011

-61 +62

7 Jan 11 December 2010

Internatio Decemb 1180 nal er 2011

http://investor.shareholder.com/bhi/rig_counts/rc_index.cfm Natural Gas/ Power News EIA Storage Release 1/5/12 (Actual): -76 Previous Week: -81 Bcf +11.4 % Change from 1 Year Ago +15.2% Change 5-year Average Natural gas tumbles as U.S. east coast to remain warm this week Natural gas prices were down sharply on Monday, trading close to a 28month low as sentiment on the heating fuel was dampened after forecasts called for warmer-than-normal weather across the U.S. east coast in the coming week. http://www.moneycontrol.com/news/commodities/natural-gas-tumblesas-us-east-coast-to-remain-warm-this-week_647836.html Weather 6 to 10 Day Outlooks Temperature

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8 to 14 Day Outlooks Temperature

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