Russia starts building major Asian gas pipeline

MOSCOW9 (AFP) – Russia on Friday started construction of a major gas pipeline supplying its Pacific Ocean port city of Vladivostok, which could eventually be used to feed exports of gas to Japan.

The pipeline is due to be completed before Vladivostok hosts the summit of the Asia-Pacific Economic Cooperation (APEC) group in 2012, Gazprom said in a statement announcing the start of construction.

Prime Minister Vladimir Putin attended the inauguration ceremony in Russia's far eastern Khabarovsk region and pushed a button to start welding of a section of pipe, television pictures showed.

"The priority for gas in East Siberia and the Far East is above all to serve the domestic market," Putin said.

However, Russia's state-controlled gas giant Gazprom has said the pipeline could eventually be used to feed exports of gas to East Asian countries, including energy-hungry Japan.

Earlier this year, Gazprom head Alexei Miller said during a visit toTokyo that gas exports to Japan through Vladivostok would be possible once Russia's own needs were met.

Oil hovers near $67 as US, Asian stocks jump

SINGAPORE – Oil prices hovered near $67 a barrel Friday in Asia after investor optimism about the economy fueled rallies in crude and stocks.

Benchmark crude for September delivery was down 20 cents to $66.74 a barrel by late afternoon Singapore time in electronic trading on theNew York Mercantile Exchange. On Thursday, the contract rose $3.59, or 5.6 percent, to settle at $66.94.

Traders have gotten whiplash this week as prices jerked up and down on investor uncertainty about the strength of the global economic recovery.

"Sentiment is very fragile," said David Moore, commodity strategist atCommonwealth Bank of Australia in Sydney. "Going forward, we're going to be looking at a seesawing market."

Crude investors were cheered by a jump in U.S. stocks on Wednesday and Asian stocks on Thursday. The Dow Jones industrial average rose 0.9 percent.

Oil holds above $67 amid improving US economy

Oil prices held above $67 a barrel Friday, adding to gains made overnight, as world stock markets rallied on signs of improvement in the U.S. economy.

In Europe, benchmark crude for September delivery was up 11 cents to $67.27 a barrel in afternoon electronic trading on the New York Mercantile Exchange. On Thursday, the contract added $1.76 to settle at $67.16.

Evidence that the recession-hit U.S. economy is strengthening has bolstered investor optimism and triggered a rally from $58.78 a barrel two weeks ago. While crude demand hasn't rebounded yet, traders have begun to have more faith that consumption will eventually pick up.

"We haven't seen demand increase yet, but all the good news about the economy seems to be adding fuel to the fire," said Gerard Rigby, an energy analyst with Fuel First Consulting in Sydney. "Just the fact that things are improving is enough to change the sentiment of a lot of people."

Investors were cheered by a National Association of Realtors report Thursday that said sales of previously occupied homes rose for the third month in a row. The last time that happened was in the middle of the housing boom in early 2004.

Oil lingers near $65 as US crude supplies rise

SINGAPORE – Oil prices lingered near $65 a barrel Wednesday in Asia as rising U.S. crude inventories suggested consumer demand remains sluggish in the world's biggest economy.

Benchmark crude for September delivery was down 51 cents to $65.07 a barrel by afternoon Singapore time in electronic trading on the New York Mercantile Exchange. On Tuesday, the August contract expired, rising 74 cents to settle at $64.72.

U.S. crude inventories rose 3.1 million barrels last week while gasoline supplies gained 1.3 million, the American Petroleum Institute said late Tuesday. Analysts expected the API numbers to fall 2.0 million barrels, according to a survey by Platts, the energy information arm ofMcGraw-Hill Cos.

Investors will be watching for inventory data from the Energy Department's Energy Information Administration on Wednesday for more signs crude demand may be waning.

Liquid gas customers counting the cost

It's not just mains gas customers who have been on the receiving end of large increases over recent months - those living in rural areas and relying on liquid gas delivered by tanker have also seen big price rises.

Barbara Bonnette contacted Jobs & Money after noticing her gas bill had shot up 22% in the last nine months. She, along with around 200,000 households in the UK, has no access to mains gas even though she lives in a village just two miles from Malmesbury in Wiltshire.

"There is a misconception that most users of liquid gas live half way up a mountain or on a farm, but that's not true. There are more than 100 houses in our hamlet of Milbourne and although we are less than two miles from the town centre, British Gas isn't interested in extending the mains supply unless we all pay over £1,000."

Crude falls as gasoline prices continue slide

Retail gasoline prices continued to trickle down in California and nationwide in the last week as worries about the economy kept many people close to home over the Fourth of July weekend. Investors sharing those concerns sent the price of crude oil down Monday for a fourth straight trading day.

The average price of a gallon of self-serve regular gasoline in California fell 3.2 cents to $2.952 a gallon Monday, according to the Energy Department's weekly survey of filling stations. The nationwide average fell 3 cents to $2.612 a gallon.