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NEW YORK (Reuters) - Oil prices jumped almost 2 percent to a six-week high on Wednesday after a U.S. report showed a bigger weekly draw than forecast in crude and gasoline stocks along with a surprise drop in distillate inventories.

The Energy Information Administration (EIA) said U.S. crude stocks fell 4.7 million barrels during the week ended July 14. ENERGYUSA, exceeding estimates for a 3.2 million draw in a Reuters poll.

Brent LCOc1 futures for September delivery settled up 86 cents, or 1.8 percent, at $49.70, while U.S. West Texas Intermediate crude CLc1 for August settled up 72 cents, or 1.6 percent, at $47.12 on its second to last day as the front month.

That is the highest close for both contracts since June 6.

"The report was more good news for the oil industry as inventories declined across the board for crude and products by over 10 million barrels," Andrew Lipow, president of Lipow Oil Associates in Houston, said.

EIA said distillate stocks decreased 2.1 million barrels and gasoline stocks declined 4.4 million barrels. Analysts polled by Reuters had forecast a 1.2 million barrel build in distillates and a 0.7 million barrel draw in gasoline.

U.S. distillates HOc1 and gasoline RBc1 futures both gained more than 2 percent, briefly boosting the products crack spread CL321-1=R, a measure of refinery margins, to its highest since November 2016.

The drawdown occurred even as EIA said U.S. production climbed to 9.43 million barrels per day (bpd), its highest since July 2015. Analysts said rising U.S. production has made it harder for OPEC and other producing nations to support prices with their own output cuts.

"The continued rise in U.S. crude oil production to a 2-year high ... increases pressure on OPEC to come up with some counteracting measures. Otherwise, the rebalancing of the oil market will remain painfully slow," said Carsten Fritsch, oil analyst at Commerzbank AG in Frankfurt, Germany.

Supplies from the Organization of the Petroleum Exporting Countries (OPEC) remain high. Rising output from member states Nigeria and Libya have cast doubt on efforts to reduce the crude glut.

The head of Libya's National Oil Corp said the country aims to produce 1.25 million bpd by the end of the year and 1.5 million bpd by the end of 2018.

Nigeria and Libya are exempt from a deal between OPEC and other producers, including Russia, to cut production by 1.8 million bpd.

A Russian energy source said the country is ready to keep working with OPEC to rebalance oil markets.

Additional reporting by Ahmad Ghaddar in London and Henning Gloystein in Singapore; Editing by David Gregorio and Cynthia Osterman

Iran needs EU’s modern oil technology

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Baku, Azerbaijan, July 18

By Dalga Khatinoglu, Trend:

Iran has defined $200 billion worth of projects in up/mid/downstream oil and gas sector. They will partly be carried out by foreign companies.

However, Iranian government says the share of local companies in the projects would be high, especially, in upstream projects, where each foreign company must choose a local partner and transfer the modern technology and investment into the projects.

Saeed Ahangaran, secretary of the Society of Iranian Petroleum Industry Equipment Manufacturers (SIPIEM) told Trend that currently Iranian local companies have capacity to take some 70-percent share in downstream and 50-percent in upstream projects, in case modern technology is transferred into the country.

Recently, Iran signed a 20-year contract with a consortium, headed by French Total, to develop South Pars gas field’s 11th phase, projected to cost $4.8 billion.

Total has a 50.1-percent share, while Chinese CNPC and local Petro Pars have each 30 percent and 19.9 percent stakes respectively.

According to newly designed oil contracts, called Iran Petroleum Contract (IPC), foreign companies should select a local company, bring investment and transfer technology to the projects, while the project operatorship would be changed between partners periodically.

The ownership of all investments and technology, brought by foreign companies and shared with Iranian oil companies, belong to National Iranian Oil Company.

Iran has introduced 49 upstream oil and gas projects for foreign companies to take part in.

Ahangaran said that about 70 percent of the needed equipment for refineries can be built domestically, but it depends on the government policy and usage of domestic might as well as technology transfer from abroad.

"Iranian companies can participate massively in piping or drilling operations, including construction of on/offshore rigs," he said.

Recently, Iran said that about $25-30 billion worth of investment is needed for construction of 20,000-ton platforms and mega compressors in South Pars phases to prevent production fall after 2023, when the field reaches dew point and faces pressure decrease.

Iran currently uses ordinary 1500-ton platforms there, and Oil Minister Bijan Zanganeh announced recently that neither Iran nor regional countries possesses the needed technology for construction of 20,000-ton platforms.

However, Ahangaran said that local companies can participate partly as contractors in these projects as well.

The first mega platform with $2.5 billion worth would be constructed in 60 months by Total-led consortium for South Pars phase 11.

He added that currently Iranian companies are negotiating with French, Italian, German, Norwegian and Dutch companies on modern technology transferring into the country.

"The negotiations are focused from a range of issues including wellhead and well-in equipment, corrosion-resistant alloy (CRA) pipelines production, other type of especial pipelines, progressive pumps, compressors, etc," he added.

Recently, Iran signed an agreement with Spanish Tubacex to produce CRA pipelines.

NIOC signed a $630 million deal for a 50-50 joint venture between Mobarakeh Steel Company and Tubacex on May 24 to purchase 600 km CRA pipes, needed for the giant South Pars project.

Iran’s MAPNA also has signed deals with Europeans, especially Siemens for manufacturing turbo compressors.

Ahangaran said that there are great hopes for taking extra share by local companies in the oil and gas projects with getting western technology and investments.

Czech Republic keen for co-op with GUAM countries

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Baku, Azerbaijan, July 19

By Elena Kosolapova – Trend:

The Czech Republic is interested in cooperating with countries of the GUAM Organization for Democracy and Economic Development, particularly with Azerbaijan, Czech Ambassador to Azerbaijan Vitezslav Pivonka told a press conference in Baku July 19.

“We have taken steps for cooperation with the GUAM countries and hope that we will organize joint projects with the countries participating in this organization in the future,” the envoy said.

Pivonka noted that the Visegrad Group and GUAM countries actively cooperate at the level of embassies.

The parties are also interested in cooperating at other levels – at the level of foreign ministers and state institutions, according to him.

GUAM includes Georgia, Ukraine, Azerbaijan and Moldova.

The Visegrad Group (V4) consists of Hungary, the Czech Republic, Poland and Slovakia.

U.S. leaves out N. Korea from terrorism sponsors list

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WASHINGTON, July 19 (Yonhap) -- The United States left North Korea off its latest list of state sponsors of terrorism Wednesday, but noted the communist country's lack of cooperation in counterterrorism efforts.

The State Department's Country Reports on Terrorism 2016 said the U.S. removed North Korea from the list in 2008 based on certification that the country had not supported international terrorism in the preceding six-month period and assurances it would not support terrorist acts in the future.

The North had been put on the list in 1988 for an airliner bombing that killed all 115 people aboard. In 2008, the designation was rescinded in exchange for progress in denuclearization talks.

Still, the U.S. redesignated North Korea in May as a country "not cooperating fully" with U.S. counterterrorism efforts, the report said.

"In making this annual determination, the Department of State reviewed the DPRK's overall level of cooperation with U.S. efforts to counterterrorism, taking into account U.S. counterterrorism objectives with the DPRK and a realistic assessment of DPRK capabilities," it said. DPRK is the acronym of North Korea's official name, the Democratic People's Republic of Korea.

The report also noted the North's failure to "demonstrate meaningful progress in strengthening" its infrastructure for anti-money laundering and countering the financing of terrorism. It recalled that the U.S. Department of the Treasury designated the North as a jurisdiction of "primary money laundering concern" in June 2016 and announced measures to further protect the U.S. financial system from abuse.

Calls have been persistent to put North Korea back on the list since it was found responsible for the cyber-attack on Sony Pictures in 2014.

The State Department has said redesignation would only be symbolic without big practical effects.

For the second year in a row, the report listed Iran, Syria and Sudan as the only three state sponsors of terrorism.

hague@yna.co.kr

German Cabinet voices concern over ban on Jehovah’s Witnesses activities in Russia

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BERLIN, July 19. /TASS/. The German government will keep a close eye on the situation around Jehovah’s Witnesses in light of the ruling by the Russian Supreme Court to uphold a ban on its activities, the Cabinet’s Coordinator for Intersocietal Cooperation with Russia Gernot Erler said on Wednesday.

"I am very much concerned about the decision to uphold the ban on Jehovah’s Witnesses’ activities," he noted. "That means that, despite our calls at all levels, they could face charges due to their religious beliefs and individual philosophy." According to Erler, the ban "paves the way to criminal prosecution of the organization’s members."

"Being a member of the Council of Europe, Russia violates its international obligations," he said. "We will be closely following the developments and the consequences of this decision for Jehovah’s Witnesses’ members. I proceed from the assumption that the ban will be considered by the European Court of Human Rights," Erler concluded.

On July 17, the Russian Supreme Court upheld the court’s April 20 ruling to qualify Jehovah’s Witnesses as an extremist organization, disband it and ban its activities throughout the country. The defense attorneys of Jehovah’s Witnesses immediately stated they would appeal the ruling at the European Court of Human Rights (ECHR).

More:
http://tass.com/world/956888

Russia to offer MiG-35 planes at India’s tender for light fighter jets

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MiG-35 plane

ZHUKOVSKY, July 19. /TASS/. Russia is ready to take part in India’s tender for the supply of light fighter jets with its Mikoyan MiG-35 plane, Director of Russia’s Federal Service for Military and Technical Cooperation Dmitry Shugayev told TASS on Wednesday.

"Principally, Russia is ready to participate in future aviation tenders in India. However, as of now, we do not have information on the opening of a tender and, correspondingly, on the plane’s technical requirements set by the Indian side," he said.

The MiG-35 is Russia’s most advanced 4++ generation multipurpose fighter jet developed on the basis of the serial-produced MiG-29K/KUB and MiG-29M/M2 combat aircraft.

The fighter jet features improved flight and technical characteristics, the most advanced onboard radio-electronic equipment and a wide arsenal of air-to-air and air-to-surface missiles. The plane can develop a speed of 2.23 Mach and its operational radius exceeds the range of its predecessor MiG-29 by 50%

The flight tests of MiG-35 fighter aircraft began on January 26 and the plane’s international presentation was held in the Moscow Region on the following day.

The United Aircraft Corporation announced in early February it had signed a contract with Russia’s Defense Ministry on the delivery of two such fighters in 2017-2018. According to a TASS source in the defense sector, a contract for more than 30 MiG-35 for the Defense Ministry may be signed in 2018.

More:
http://tass.com/defense/956886

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