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Organization of the Petroleum Exporting Countries officials have indicated that OPEC will maintain the formal production target it has kept since March 2010 and throughout 2009. Since oil prices have been impacted mainly from stock market and currency factors, rather than crude inventory surplus, OPEC officials do not believe current prices will continue. Oil was trading at $81.79 a barrel, a decrease of 42 cents.

To avoid possible sanctions from the U.S. government for violating trade restrictions, LyondellBasell Industries N.V. will end operations in Iran. Iranian petrochemical companies will be barred from using LyondellBasell's proprietary technology and services.

According to the International Energy Agency, oil demand in 2011 will grow slower in China and most other parts of the world, possibly affecting oil prices. Demand is expected to grow 1.6%, 1.3 million barrels a day.

The Organization of Petroleum Exporting Countries expects emerging markets to absorb any surplus production, allowing OPEC to maintain current production levels while steadying oil prices.

Royal Dutch Shell PLC announced it will stop gasoline sales to Iran as part of U.S. efforts to force that country to abandon its nuclear program. Other international firms - including Ingersoll-Rand PLC, Caterpillar Inc., General Electric Co. and Siemens AG - have halted trade with Iran. Despite being a major oil producer, Iran imports up to 40% of its refined petroleum products.

Turkmenistan awarded natural-gas contracts to several foreign energy companies including UK's Petrofac Ltd., China National Petroleum Corp., and Gulf Oil & Gas FZE of the United Arab Emirates. The contracts are worth a combined $9.7 billion.

After years of being the target of rebel attacks, Royal Dutch Shell PLC announced it will sell 10 of its onshore petroleum assets in Nigeria. The assets have a value of $4 billion to $5 billion with proven reserves of about 100 million barrels.

Despite threats to petroleum production in Iraq and Nigeria, oil supply continues to grow boosted by capacity increases in Saudi Arabia and Qatar. The OPEC's spare capacity next year is expected to reach record levels of 7.5 million barrels a day.

The government of Libya blocked China National Petroleum Corp.'s $460-million buyout of Verenex Energy Inc., a Canadian oil explorer with substantial assets in Libya. The termination caused Verenex shares to plummet 19% to 6.18 Canadian dollars in Toronto trading. Libya now intends to purchase Verenex at a discounted price. China Petroleum had offered C$10.00 for each Verenex share.

Canadian oil-exploration firm Verenex Energy Inc., with substantial assets in Libya, planned to sell itself to the China National Petroleum Corp. for an estimated $430 million, but the Libyan government halted the transaction while deciding whether to allow the sale. Libya is expected to reach a decision soon, possibly resulting in the acquisition of Verenex by the Libyan government.

A report by the International Energy Agency says that global oil demand by 2013 will average 87.90 million barrels a day, a 3.7% drop from a December forecast and a 7% drop from a July forecast. As of 2010, oil consumption is expected to grow between 0.5% and 1.4% a year over the next five years. Article also discusses the effects of the global recession and energy-saving efforts on future oil prices.

Oil-exploration company Heritage Oil Ltd. will buy Turkey's Genel Enerji AS in an all-stock deal valued at $2.5 billion. The acquisition will allow both companies to pool their resources to develop and expand operations in oil-rich northern Iraq.

ENERGY 'Plunging' investment sets stage for oil spikes LONDON -- Energy investment is "plunging" because of the recession, paving the way for oil-price surges within three years, the International Energy [...]

In response to weak oil prices and demand, Saudi Aramco announced it will cut its budget for drilling and refining projects to $60 billion for the period 2009 to 2014.

Byline: SPENCER SWARTZ AND GUY CHAZAN LONDON -- Oil bulls are betting that OPEC production cuts over the past two months have paved the way for buoyant oil prices. But [...]

Byline: SPENCER SWARTZ; Dow Jones Newswires ORAN, ALGERIA -- Saudi Arabia's oil minister, Ali Naimi, said that OPEC will cut output by a hefty two million barrels a day at [...]

Representatives from the Organization of Petroleum Exporting Countries will meet in Algeria to design measures to buoy plummeting oil prices which have dropped 68% since record highs in July. It is speculated that the group may further reduce daily production by as much as two million barrels. Article discusses the effects of the global economic downturn on petroleum demand, and prospects for the oil sector's recovery.

Government-owned Libyan Energy Fund is planning the acquisition of a minority interest of as much as 10% in Italian energy firm Eni S.p.A. Eni's shares would be bought on the open market. If the stake acquired is large enough, Libyan Energy may seek a seat on Eni's board of directors.

Byline: SPENCER SWARTZ AND NEIL KING JR. CAIRO and WASHINGTON -- As the world's big oil exporters struggle to trim production enough to boost prices as demand plummets, Saudi Arabia [...]

Citing financial losses and production interruptions caused by rebel attacks against its oil and natural gas facilities in Nigeria, Royal Dutch Shell PLC cautions the company's earnings will be affected. Its Nigerian operations contributed $1 billion to Shell's $25-billion net profit in 2007. Shell's shares rose 3.5% to close at $28.94 on the London Stock Exchange.

In spite of rising demand and skyrocketing prices, petroleum exports fell 2.5% last year to an estimated 38.7 million barrels a day, a trend that is expected to continue in the near future. Article discusses oil production and how increased oil demand in the Middle East affects petroleum exports.

Rising to a record $121.84 a barrel on the New York Mercantile Exchange, petroleum prices are expected to climb as high as $200 over the next two years. Article discusses oil shortages caused by increased demand in developing nations and interruptions in petroleum production, expected rise in gasoline prices, and effects of high fuel costs on other industries.

Byline: NEIL KING JR. AND SPENCER SWARTZ Oil consumers riled by soaring fuel costs may face far worse this summer as factors ranging from unrest in Nigeria to slumping production [...]

Labor disputes in Scotland and Nigeria are expected to greatly disrupt the international supply of petroleum. Article discusses BP PLC's negotiations with refinery workers at Grangemouth, Scotland, and Exxon Mobil Corp's conflicts with petroleum workers and affiliated oil companies in Nigeria.

Byline: SPENCER SWARTZ LONDON -- The International Energy Agency slashed its 2008 forecast for oil demand due to slowing world economic activity, saying energy demand is likely to turn 'even [...]

The Nigerian government is overhauling its petroleum industry, targeting a more balanced relationship between itself and foreign energy firms. Changes include the formation of a national oil firm to improve management of oil and gas resources and increasing Nigeria's share of its oil profits.

Austrian gas company OMV AG faces possible US sanctions due to its Iranian investments. OMV, already drilling for both gas and oil in the country, has antagonized US officials by signing a $18 bil gas agreement with Iran. Potential sanctions include a ban on borrowing from US financial companies by OMV.

Royal Dutch-Shell PLC plans to reduce spending for operations in Nigeria by $100 mil over the next few years due to security concerns that are compromising production. The reductions include cutting some 200 jobs. Shell is currently Nigeria's largest foreign oil company.

Five Somali men accused of piracy have been given sentences of five years imprisonment each by a Dutch court after they were found guilty of hijacking a ship that was Dutch Antilles-flagged in 2009. The ruling is the first of its type in Europe.