TXCO Resources Inc. (fka TXCOQ)

[MWM]

I have not kept up with it...

[airbus300]

How did this one turn out?
1) Was an equity committee ever appointed?
2) Common shares just cancelled? End of story?

Article on TXCO
http://www.recoverypartners.biz/newsroom/Business_Week_jun09.pdf

[mkinhaw]

Stop trading today

http://www.otcbb.com/asp/dailylist_detail.asp?d=02/11/2010&mkt_ctg=NON-OTCBB

MK

[momentum74]

Guys does TXCOQ have an equitee commitee in place?

[shakerzzz]

hod close .33 > very strong!!!!!!!!

[OHMYGOD]

Anadarko To Pay $310 Million For TXCO Assets;Outbids Newfield

Jan 5, 2010 17:02:23 (ET)


HOUSTON (Dow Jones)--Anadarko Petroleum Corp. (APC) has agreed to pay $310 million in cash for most of bankrupt TXCO Resources Inc.'s assets, outbidding Newfield Exploration Co. (NFX), according to a filing with the U.S. Securities and Exchange Commission.

The price is 39% higher than the $223 million that Houston-based Newfield agreed to pay Nov. 6 for the same assets, according to the document filed by TXCO Jan. 1.

Oil and gas exploration company TXCO has been operating in bankruptcy. The deal with Anadarko, which is expected to close before Feb. 28, is subject to the bankruptcy court's approval.

The deal gives Anadarko, based in The Woodlands, Texas, a larger position in the Eagle Ford shale in South Texas, according to analysts from Tudor Pickering Holt & Co.

-By Isabel Ordonez; at Dow Jones Newswires; 713.547.9207; [e-mail]

[taraniterror]

MRNJ ~ TXCOQ / Nutz ............... Good Day !

[MWM]

Pump? Yep it's my pump that has created the 2 million in volume, I wish i was that good...

[taraniterror]

Nice pump here guys ~ be cautious, but it could be the real deal ! I'm still holding ~

[MWM]

Post over on yahoo board says there could be other bidders as well and that they have until Jan 6th to submit bids...

[learning as I go]

yea, think somebody knows something....its holding well.

[MWM]

bidders still lining up here, i think this move has legs...

[learning as I go]

I called direct to the company, the guys name is Jim, the operator put me thru, but was answered by VM

[learning as I go]

324k shares short int.

http://shortsqueeze.com/?symbol=txcoq&submit=Short+Quote%99

[MWM]

11:13:18 178300 0.28 + OTCEQ_NBB

[MWM]

I tried calling the IR number on the website but it was no more...

[learning as I go]

Called the company, waiting for a return call

[MWM]

http://www.txco.com/

[MWM]

Common Shares Outstanding: 38.55 million at November 9, 2009

[MWM]

Need some BK experts over here, I sure don't know how they can liquidate the company after paying of all their debts and still have remaining assets...

very strange to me...

[learning as I go]

Sounds to me like they are planning to exit BK, "starting over" as a smaller company.

[MWM]

Something is goofy here but clearly money is coming in on this news...

[MWM]

Under the terms of the Agreement, certain assets are excluded from the assets being purchased by Anadarko and will be retained by TXCO, including, among others, TXCO’s drilling rigs, offshore properties, Oklahoma properties, non-operated properties within the Williston Basin, non-operated properties in south Texas outside of Maverick, LaSalle, Zavala and Dimmit Counties, and its interests in the “Dexter Waterflood Unit”, the “Forrest WM B1U” and the “Vinton Dome.”

[MWM]

entered into a definitive Purchase and Sale Agreement (the “Agreement”) to sell a substantial portion of TXCO’s assets to Anadarko E&P Company LP for total consideration of the lesser of (i) $1 million more than the sum of the amounts sufficient to (a) repay TXCO’s lenders (including TXCO’s debtor-in-possession financing and revolver or term loan credit facilities), (b) pay all other creditors of TXCO in full, including interest thereon, and (c) pay any cure amounts of executory contracts to be assumed by Anadarko (other than Anadarko’s claims which will be waived at closing), or (ii) $310 million in cash, subject to customary purchase price adjustments.

[learning as I go]

If they have assets left, they cant cancel the commons, right?

[MWM]

Hmm if they can repay their debts and still have property leftover, then why would the commons get canceled...

Sounds odd to me...


Under the terms of the Agreement, certain assets are excluded from the assets being purchased by Anadarko and will be retained by TXCO, including, among others, TXCO’s drilling rigs, offshore properties, Oklahoma properties, non-operated properties within the Williston Basin, non-operated properties in south Texas outside of Maverick, LaSalle, Zavala and Dimmit Counties, and its interests in the “Dexter Waterflood Unit”, the “Forrest WM B1U” and the “Vinton Dome.”

[MWM]

Under the terms of the Agreement, certain assets are excluded from the assets being purchased by Anadarko and will be retained by TXCO, including, among others, TXCO’s drilling rigs, offshore properties, Oklahoma properties, non-operated properties within the Williston Basin, non-operated properties in south Texas outside of Maverick, LaSalle, Zavala and Dimmit Counties, and its interests in the “Dexter Waterflood Unit”, the “Forrest WM B1U” and the “Vinton Dome.”

[MWM]

nice Move

[MWM]

On December 31, 2009, TXCO Resources Inc. (the “Company”) and its subsidiaries TXCO Energy Corp., Texas Tar Sands Inc., Output Acquisition Corp., Opex Energy, LLC, Charro Energy, Inc., TXCO Drilling Corp., Eagle Pass Well Service, L.L.C., PPL Operating, Inc., Maverick Gas Marketing, Ltd., and Maverick-Dimmit Pipeline, Ltd. (collectively, “TXCO”), entered into a definitive Purchase and Sale Agreement (the “Agreement”) to sell a substantial portion of TXCO’s assets to Anadarko E&P Company LP for total consideration of the lesser of (i) $1 million more than the sum of the amounts sufficient to (a) repay TXCO’s lenders (including TXCO’s debtor-in-possession financing and revolver or term loan credit facilities), (b) pay all other creditors of TXCO in full, including interest thereon, and (c) pay any cure amounts of executory contracts to be assumed by Anadarko (other than Anadarko’s claims which will be waived at closing), or (ii) $310 million in cash, subject to customary purchase price adjustments. The sale is expected to close before February 28, 2010, but the economic effective date of the sale will be January 1, 2010.


Under the terms of the Agreement, certain assets are excluded from the assets being purchased by Anadarko and will be retained by TXCO, including, among others, TXCO’s drilling rigs, offshore properties, Oklahoma properties, non-operated properties within the Williston Basin, non-operated properties in south Texas outside of Maverick, LaSalle, Zavala and Dimmit Counties, and its interests in the “Dexter Waterflood Unit”, the “Forrest WM B1U” and the “Vinton Dome.”


TXCO previously entered into a definitive Purchase and Sale Agreement (the “Newfield PSA”) on November 6, 2009, to sell the same assets covered by the Agreement to Newfield Exploration Company for total consideration of $223 million. The board of directors of TXCO has determined that the Agreement constitutes a superior proposal to the Newfield PSA. Accordingly, TXCO intends to seek the entry of an order of the Bankruptcy Court authorizing the transactions contemplated by the Agreement. If the Bankruptcy Court authorizes the transactions contemplated by the Agreement, the Newfield PSA will be terminated.


TXCO filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Western District of Texas (the “Bankruptcy Court”) on May 17, 2009. TXCO continues to operate its business as debtor-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. As debtors-in-possession, TXCO may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Accordingly, the consummation of the sale of assets to Anadarko contemplated by the Agreement is subject to the entry of a final order of the Bankruptcy Court authorizing the sale. TXCO’s currently proposed Plan of Reorganization contemplated the potential submission of superior proposals to that contained in the Newfield PSA and TXCO intends to file a proposed amended plan of reorganization, to the extent necessary, incorporating the terms of the Agreement with the Bankruptcy Court. The Company currently does not expect that holders of the Company’s equity securities will receive any cash or other property in respect of such securities, and it is likely that such securities will be cancelled under the plan of reorganization. Accordingly, the Company urges that extreme caution be exercised with respect to existing and future investments in any Company equity securities.




2
--------------------------------------------------------------------------------


The Agreement contains customary representations, warranties, covenants, and indemnities of TXCO and Anadarko. In addition to having to obtain the Bankruptcy Court’s approval, the completion of the sale of assets to Anadarko is subject to various customary conditions, including, among others, (i) subject to certain materiality qualifications, the accuracy of the representations and warranties made by Anadarko and TXCO, respectively, and compliance by Anadarko and TXCO with their respective obligations under the Agreement, (ii) the absence of any pending lawsuit, action, or other proceeding seeking to restrain or prohibit the consummation of the sale transaction, and (iii) the aggregate sum of all casualty and condemnation losses not exceeding 10% of the unadjusted purchase price.


TXCO has agreed not to solicit proposals relating to alternative acquisition transactions, provided, however, that TXCO may still (i) respond to inquiries and provide access to information to persons that TXCO determines may submit a superior proposal, and (ii) engage in negotiations or discussions with any person who makes an unsolicited acquisition proposal that is, or is reasonably likely to be, a superior proposal if TXCO determines that such negotiations or discussions are necessary in order to comply with applicable law. The deadline for any person to submit an alternative acquisition proposal is 5:00 p.m. central time on January 6, 2010. TXCO is required to provide Anadarko with notice by no later than January 13, 2010, if TXCO intends to pursue a superior proposal or alternative plan of reorganization. Additionally, if TXCO elects to pursue a superior proposal or alternative plan of reorganization that is not ultimately consummated, TXCO has agreed to offer Anadarko a back-up bid option following the failure of the superior proposal or alternative plan of reorganization giving Anadarko the right to consummate the purchase of assets on substantially the same terms and conditions contemplated by the Agreement. However, the back-up bid option offered to Anadarko is subordinate to the existing back-up bid option offered to Newfield under the terms of the Newfield PSA.


The Agreement also contains certain termination rights for each of Anadarko and TXCO, including, among others, the right of either party to terminate the Agreement if TXCO enters into or seeks Bankruptcy Court approval of a superior proposal or alternative plan of reorganization, and Anadarko’s right to terminate (i) if the Bankruptcy Court has not entered an order on or before January 31, 2010 authorizing the sale of the assets to Anadarko, and (ii) if an order of the Bankruptcy Court authorizing the sale of the assets to Anadarko is not final by February 15, 2010. In addition, the Agreement will be deemed terminated upon the consummation of any superior proposal or alternative plan of reorganization.


The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.


The Agreement has been included to provide investors and security holders with information regarding its terms. It is not intended to provide any other factual or financial information about TXCO or its subsidiaries and affiliates. The representations, warranties, and covenants contained in the Agreement were made only for purposes of that agreement and as of specific dates; were solely for the benefit of the parties to the Agreement; may be subject to limitations agreed upon by the parties, including being qualified by confidential disclosures made for the purposes of allocating contractual risk between the parties to the Agreement instead of establishing these matters as facts; and may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors. Investors should not rely on the representations, warranties and covenants or any description thereof as characterizations of the actual state of facts or condition of TXCO or any of its subsidiaries or affiliates. Moreover, information concerning the subject matter of the representations, warranties, and covenants may change after the date of the Agreement, which subsequent information may or may not be fully reflected in public disclosures by TXCO. The Agreement should not be read alone, but should instead be read in conjunction with the other information regarding TXCO that will be contained in, or incorporated by reference into, other filings that TXCO makes with the SEC.

[taraniterror]

ya, I know the DCB all to well ~ Maybe it has some substance.

[The Godfather]

ever heard of a dead cat bounce? This is it.. MMs manipulating the market to find more buyers for the worthless shares.. Utmost would probably explain this better..

[taraniterror]

Why the bounce today ?

[The Godfather]

hmmm.. was still holding some shares but looks like it might be done for now eh? It sucks when it drops so much so quick.. Not even enough time to realize whats happening. Oh well, such is the way of life..

[GreenTea]

That sucks!

[headnorthw]

sucks!

[taraniterror]

Yup , CEMJQ & SSCCQ been very good to me ~ TXCOQ & OSCIQ not so good . CEMJQ in at .03 , sitting near a buck now !!! Yikes I'm almost there ~ TXCOQ just announced today that their commons will be worthless. Crap !

[the cork]

Right. what a bunch of A.holes. Bastards are asset positive and they still stiffed us.

I think I'll send them an email with my regards.

GLTA !!

[faust357]

Ay! Que Phuqued!!! Such is the nature of trading Q's....

[taraniterror]

Bastards

[utmostbastard]

8K filing and key verbiage :(

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6590866

The Company currently does not expect that holders of the Company’s equity securities will receive any cash or other property in respect of such securities, and it is likely that such securities will be cancelled under the plan of reorganization. Accordingly, the Company urges that extreme caution be exercised with respect to existing and future investments in any Company equity securities.

[faust357]

Lookis like they are selluing out to Neufield Exploration Resources and fucking the commons-got it off Yahoo Finance,but can't cut and paste.

[taraniterror]

poop ~ Not good. Thanks utmost

[utmostbastard]

The 8K out this AM was pretty much stating commons will more than likely not get anything from asset sales.

[taraniterror]

Whats is going on >?????????????

[the cork]

.161 x .169 You guys seeing this?

Wow, what a take down.

GLTA !!

[manny t]

What's going on?

Stock trading at .17

Manny

[the cork]

Friday - Crude Turns Down - Crude Oil Tumbles as U.S. Jobless Rate Climbs to 26-Year High

Nov. 6 (Bloomberg) -- Crude oil tumbled after the Labor Department reported that the U.S. unemployment rate surged to a 26-year high, undermining speculation that fuel consumption will rebound next year.

Oil dropped 2.8 percent after the report showed that payrolls fell by 190,000 workers in October, sending the unemployment rate to 10.2 percent. Total U.S. fuel demand over the four weeks ended Oct. 30 was 4.5 percent lower than a year earlier, the Energy Department said on Nov. 4.

“The unemployment report raises fears that there will be a double dip to the recession,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “This doesn’t bode well for consumption of commodities such as oil.”

Crude oil for December delivery fell $2.19 to $77.43 a barrel on the New York Mercantile Exchange, the lowest settlement since Oct. 30. Oil is up 74 percent this year.

Gasoline for December delivery declined 6.34 cents, or 3.2 percent, to end the session at $1.9243 a gallon in New York. It was the lowest settlement price since Oct. 14. Heating oil for December delivery dropped 5.41 cents, or 2.6 percent, to settle at $2.0035 a gallon.

“This market was looking for a direction and the unemployment numbers, which were a little bit of a surprise, gave it one,” said Sarah Emerson, managing director of Energy Security Analysis Inc. in Wakefield, Massachusetts. “The stock market may move higher but oil demand will be hurt. If people aren’t working, they aren’t going to consume more fuel.”

Unemployment Rate

The jobless rate grew from 9.8 percent in September. Revisions added 91,000 to payroll figures previously reported for September and August. Payrolls were forecast to drop 175,000 after an initially reported 263,000 decline for September, according to the median estimate of 84 economists surveyed by Bloomberg News.

“Seeing the rate rise above 10 percent has taken some of the air out the bubble, and raises questions about the recovery,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut.

The U.S. economy has lost 7.3 million jobs since the recession began in December 2007, when the unemployment rate stood at 4.9 percent.

“We are in a jam,” said Adam Sieminski, the chief energy economist at Deutsche Bank AG in Washington. “Any corrective action that can be taken to improve the economy will have consequences, not all of them positive.”

Oil futures gained of 0.6 percent this week. The contract had been pushed higher earlier this week by an Energy Department report showing crude-oil supplies unexpectedly dropped last week.

Lagging Demand

“Demand in the U.S. is still lagging,” said Olivier Jakob, managing director of Zug, Switzerland-based Petromatrix GmbH. “It’s difficult to find fundamental justification for these prices. The big move from $65 to $80 was due to a lot of buying from very large speculators, linked to the dollar and equities.”

U.S. inventories of crude oil fell 3.94 million barrels to 335.9 million in the week ended Oct. 30, according to the Energy Department. The drop left supplies 7.2 percent higher than the five-year average for the period. Stockpiles of gasoline and distillate fuel are also higher than average.

Oil fell 1 percent yesterday as U.S. equities surged. It was the first time since Oct. 27 that oil had not moved in the same direction as the Standard & Poor’s 500 Index.

Discerning Investors

“We may be starting to see a discernment among investors when it comes to commodities,” said Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis. “Commodities had been closely tracking equities, but that’s not been the case the last two days. There’s a growing realization that a weak U.S. economy isn’t good for commodity demand.”

The Reuters/Jefferies CRB Index of 19 commodities declined 1.6 percent to 269.81.

Brent crude oil for December settlement declined $2.14 or 2.7 percent, to $75.85 a barrel on the London-based ICE Futures Europe exchange.

Oil volume in electronic trading on the Nymex was 540,588 contracts as of 3:01 p.m. in New York. Volume totaled 411,506 contracts yesterday, the least since Sept. 28 and 27 percent lower than the average over the past three months. Open interest was 1.23 million contracts.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=arrU2xf4fzJo

[the cork]

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NYMEX-Crude ends down on economic, oil demand woes
Thu Nov 5, 2009 3:30pm EST

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NEW YORK, Nov 5 (Reuters) - U.S. crude oil futures ended
lower on Thursday, snapping a three-day rally, on worries about
weak oil demand as the economic outlook remained cautious
despite a decline in new claims for jobless benefits.

"Economic indicators continue to show an economy on the
mend, but we are not seeing any real signs of that in energy
demand," said Peter Beutel, president of Cameron Hanover in New
Canaan, Connecticut.

"There were still 500,000 new (jobless) claims and the
economy is still muddled. While the EIA data had crude supply
lower, product supplies weren't very much lower, even though
refinery use fell 1.2 percentage points," said Gene McGillian,
analyst at Tradition Energy in Stamford, Connecticut.

Oil traders brushed aside a rally on Wall Street, where
investors were encouraged after data showed an expansion in
business productivity and a fall in jobless claims. [.N]

The dollar edged up against major currencies, recovering
from recent losses as investors booked profits before a key
government jobs report expected to shed more light on the
health of the U.S. economy. [USD/]

The U.S. Labor Department reported that the number of
workers filing new claims for jobless insurance fell more than
expected last week to 512,000, a 10-month low, with continuing
claims dropping to the lowest since March. [ID:nN05106320]

U.S. non-farm productivity in the third quarter rose at its
fastest pace in six years, the government said.[ID:nN05106320]

Domestic crude oil inventories fell 4.0 million barrels
last week, Wednesday's data from the U.S. Energy Administration
showed, surprising oil traders. But U.S. total oil product
demand over the past four weeks was down 4.5 percent from a
year ago, the EIA said. [EIA/S]

PRICES

* On the New York Mercantile Exchange, December crude
CLZ9 settled down 78 cents, or 0.97 percent, at $79.62 a
barrel, trading from $79.34 to $80.52. It was an inside day,
with the day's high and low playing within the previous
session's range.

* In London, December Brent crude LCOZ9 ended down 90
cents, or 1.14 percent, at $77.99 a barrel, trading from $77.80
to $78.95.

* NYMEX December RBOB RBZ9 finished 2.50 cents lower, or
1.24 percent, at $1.9877 a gallon, trading from $1.9802 to
$2.0230.

* NYMEX December heating oil HOZ9 ended down 3.26 cents,
or 1.56 percent, at $2.0576 a gallon, trading from $2.0501 to
$2.0920.

* The December/December RBOB crack spread <0#RB-CL=R> ended
at $3.86, contracting from at $4.13 on Wednesday. The
December/December heating oil crack spread <0#CL-HO=R> ended at
$6.80, narrowing from $7.39 on Wednesday.

* The spread between the current front month and the
five-year forward crude contract CLc61 ended at $12.37,
narrowing from $12.52 on Wednesday. The December 2014 contract
settled on Thursday at $91.99, down 93 cents, or 1 percent.

TECHNICALS

NYMEX crude 10-day/20-day moving average: $79.16/$78.17

Technical support/resistance:

NYMEX crude: $78.16/$82.00

NYMEX heating oil: $1.9650/$2.1289

NYMEX RBOB: $1.9330/$2.0751

For a full report on technicals, click on [ID:nL5040502]

MARKET NEWS

* Hurricane Ida made landfall in Nicaragua's Caribbean
coast on Thursday. The storm was moving slowly and the National
Hurricane Center forecast it passing over Central America and
regaining strength by Monday off Mexico's Yucatan peninsula,
which could take it into the Gulf of Mexico. [ID:nN0599086]

* To see Ida's projected path, here's a graphics link:
here

* Major oil exporters in Latin America and the Middle East
have expressed "strong interest" in switching the basis of
their oil prices to Argus's U.S. Sour Crude Index following
Saudi Arabia's adoption of the index, an Argus executive said
on Thursday. [ID:5126374]

* Mexico's Coatzacoalcos oil terminal, closed due to bad
weather since Tuesday afternoon, reopened on Thursday morning,
while the nearby Dos Bocas oil port remained closed due to high
waves, the government said. [ID:nN05125301]

http://www.reuters.com/article/etfNews/idUSN0513541620091105

[the cork]

Tuesday, Oil Is Little Changed After Climbing on Manufacturing Data

Nov. 3 (Bloomberg) -- Crude oil traded little changed in New York after rising from a two-week low as growth in manufacturing spurred hopes of an economic recovery.

U.S. stocks gained, with the Dow Jones Industrial Average gaining 76.71 points, or 0.8 percent, to 9,789.44 after the Institute for Supply Management said manufacturing grew at the fastest pace in more than three years. Manufacturing also expanded in China and Europe.

“The price of oil went up and down based on the equities market,” Mike Sander, an investment adviser at Seattle-based Sander Capital Advisors, wrote in an e-mail report.

Crude oil for December delivery was up 1 cent, or 0.1 percent, at $78.14 a barrel on the New York Mercantile Exchange at 11:22 a.m. Sydney time. Crude has risen 75 percent this year.

Futures lost 4.4 percent last week, the first pullback in a month, after U.S. crude oil and gasoline stockpiles rose, equities declined and the dollar’s rebound reduced the investment appeal of commodities. Prices dropped 3.6 percent on Oct. 30 after a report showed U.S. consumer spending in September fell for the first time in five months.

Reports on U.S. home sales and construction also beat expectations in another sign of an improving economy.

The number of contracts to buy previously owned homes in the U.S. rose in September for an eighth straight month as Americans rushed to meet a deadline for a home-buyer credit, according to a report today from the National Association of Realtors in Washington. Construction spending climbed the most since September 2008.

Dollar Weakness

The dollar traded at $1.4799 per euro, compared with $1.4775 in New York yesterday, and may fall for a second day amid speculation the Federal Reserve this week will keep interest rates low.

Volatility has increased amid “unease in the investment world” and uncertainty about banks’ ability to repay the money they owe, the investment adviser Sander wrote in his note. “With added volatility can also come pressure for the market to pull back.”

Output from the Organization of Petroleum Exporting Countries expanded to its highest level in 10 months, a Bloomberg News survey showed.

“We do think there will be more OPEC oil in the market as OPEC tries to keep oil below $80 a barrel,” said Phil Flynn, vice president of research at PFGBest in Chicago. The OPEC estimate is acting as a counterweight to the bullish economic news, he said.

OPEC Output

OPEC output averaged 28.76 million barrels a day in October, up 80,000 barrels from September, according to a Bloomberg survey of oil companies, producers and analysts. The entire gain came from the OPEC members with quotas, all except Iraq. The 11 countries pumped 26.31 million barrels a day, 1.465 million barrels above their target. Iraqi output was unchanged.

“It doesn’t help OPEC’s cause if, as reports indicate, they decide to increase production at a time when demand is still not very robust,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “It may be some time before there’s another test of $80.”

U.S. oil inventories probably rose 1.5 million barrels last week from 339.9 million in the week ended Oct. 23, based on the average estimate of eight analysts surveyed by Bloomberg News. It would be the fourth consecutive weekly increase. All eight analysts forecast an increase.

Distillate supplies probably fell 600,000 barrels from 167.8 million. Five analysts said stockpiles dropped and three said they rose. U.S. gasoline inventories probably climbed 830,000 barrels last week from 208.6 million the week before, according to the survey. Six analysts forecast an increase and two a decline.

Oil Bets

Hedge-fund managers and other large speculators increased their bets on rising oil prices to a 19-month high last week, according to U.S. Commodity Futures Trading Commission data.

Speculative net-long positions, the difference between orders to buy and sell the commodity, climbed 47 percent to 109,619 contracts in the week ended Oct. 27, the commission said Oct. 30. That’s the highest since March 14, 2008.

Brent crude for December settlement climbed $1.35, or 1.8 percent, to $76.55 a barrel on the London-based ICE Futures Europe exchange.

Oil volume in electronic trading on the Nymex was 497,787 contracts as of 3:18 p.m. in New York. Volume totaled 628,446 contracts Oct. 30, 10 percent higher than the average over the past three months. Open interest was 1.24 million contracts. The exchange has a one-business-day delay in reporting open interest and full volume data.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3x1FxV9Nv9E

[the cork]

Looks like oil is headed back up.

Oil Rises From a 2-Week Low as U.S., China Manufacturing Expand

Nov. 2 (Bloomberg) -- Crude oil rose from a two-week low as manufacturing expanded in the U.S. and China in October, signaling energy demand is increasing in the world’s two biggest oil-consuming countries.

Oil gained as the Institute for Supply Management said U.S. manufacturing grew at the fastest pace in more than three years. Chinese manufacturing climbed to the highest level in 18 months, according to a purchasing managers’ index from HSBC Holdings Plc today and a government-backed index issued yesterday.

“It’s a great indication that the industrial component of these economies, which is the energy-intensive component, is doing better than it was,” said Brad Samples, a commodity analyst for Summit Energy Inc. in Louisville, Kentucky. “As opposed to the trend last year when it was falling, now it’s rising.”

Crude oil for December delivery climbed $1.12, or 1.5 percent, to $78.12 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Earlier, it touched $78.66 a barrel. Crude has risen 75 percent this year.

Futures lost 4.4 percent last week, the first pullback in a month, after U.S. crude oil and gasoline stockpiles rose, equities declined and the dollar’s rebound reduced the investment appeal of commodities. Prices dropped 3.6 percent on Oct. 30 after a report showed U.S. consumer spending in September fell for the first time in five months.

Reports on U.S. home sales and construction also topped projections, in the latest signs that the economy is improving.

The number of contracts to buy previously owned homes in the U.S. rose in September for an eighth straight month as Americans rushed to meet a deadline for a home-buyer credit, according to a report today from the National Association of Realtors in Washington. Construction spending climbed the most since September 2008.

Equities Steady

U.S. equities fluctuated, erasing earlier gains, as a Federal Reserve official said the banking system is still “far from robust.” The comment by Jon Greenlee, associate director of the Fed division that regulates banks, triggered a slide in financials that wiped out an earlier rally from the economic reports.

The Standard & Poor’s 500 lost 0.2 percent to 1,033.75 at 2:18 p.m. in New York. The Dow Jones Industrial Average fell 6.88 points to 9,705.85.

The dollar was down 0.2 percent at $1.4743 per euro, compared with $1.4719 on Oct. 30. A weaker dollar prompts investors to buy commodities as an inflation hedge.

OPEC Output

Output from the Organization of Petroleum Exporting Countries expanded to its highest level in 10 months, a Bloomberg survey showed.

“We do think there will be more OPEC oil in the market as OPEC tries to keep oil below $80 a barrel,” said Phil Flynn, vice president of research at PFGBest in Chicago. The OPEC estimate is acting as a counterweight to the bullish economic news, he said.

OPEC output averaged 28.76 million barrels a day in October, up 80,000 barrels from September, according to a Bloomberg survey of oil companies, producers and analysts. The entire gain came from the OPEC members with quotas, all except Iraq. The 11 countries pumped 26.31 million barrels a day, 1.465 million barrels above their target. Iraqi output was unchanged.

Demand ‘Not Robust’

“It doesn’t help OPEC’s cause if, as reports indicate, they decide to increase production at a time when demand is still not very robust,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London. “It may be some time before there’s another test of $80.”

Hedge-fund managers and other large speculators increased their bets on rising oil prices to a 19-month high last week, according to U.S. Commodity Futures Trading Commission data.

Speculative net-long positions, the difference between orders to buy and sell the commodity, climbed 47 percent to 109,619 contracts in the week ended Oct. 27, the commission said Oct. 30. That’s the highest since March 14, 2008.

Brent crude for December settlement climbed $1.36, or 1.8 percent, to $76.56 a barrel on the London-based ICE Futures Europe exchange.

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