GAS SUPPLIES: POSSIBLE TO UKRAINE
German utility RWE said on Friday that it has discussed with Ukraine's Naftogas possible gas deliveries to Ukraine in a move to help secure supply to the country.
The discussions between its subsidiary RWE Supply & Trading and Naftogas come as Russian gas exporter Gazprom warns it might cut supplies over Kiev's refusal to pay prices Moscow now demands.
The price, timing and duration of possible deliveries would still have to be negotiated, RWE said in an e-mailed statement in response to a Reuters query.
If an agreement was reached, RWE was ready to "supply Naftogas of Ukraine with gas in reverse flow from its pan-European portfolio within a very few days," it said.
Under a framework agreement signed between the two parties in May 2012 and lasting until May 2017, RWE could deliver up to 10 billion cubic metres (bcm) a year, it said.
Ukraine consumed around 55 bcm of gas last year.
Chief Financial Officer Bernhard Guenther said last month that RWE had options to deliver gas into Ukraine via Poland and Slovakia.
A Gazprom spokesman in Moscow said: "If it's our gas, for which they have rights, then it's fine. If these are machinations with the transit volumes we will investigate it."
The European Union said it would help Ukraine after Russian President Vladimir Putin wrote to the EU warning supplies could be disrupted if Ukraine failed to cover its bills.
Russia has nearly doubled the price it charges Ukraine for gas, tearing up a discount agreed under ousted pro-Moscow President Viktor Yanukovich.
Gazprom says Ukraine owes $2.2 billion for gas it has received, rekindling fears of the "gas wars" of 2006 and 2009, when Russia stopped supplies to Ukraine, disrupting shipments to Europe.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.