Here are Monday’s oil news updates:
American Gas Prices Continue Escalating: According to Reuters, American gasoline has just hit a national average of $3.93 per gallon. Anxiety around the rising cost of gasoline has been steadily mounting, and is only bolstered by the fact that the Western diplomatic standoff with Iran has been a major contributor to climbing prices. While America is rich in fossil fuels and more capable of commanding power in the natural gas market, similar negotiating power in the oil market is currently outside our grasp. Considering the factors shaping the global fuel economy, there are no signs pointing to an immediate halt in price escalation.
BP Auctioning North Sea Holdings: According to Bloomberg, BP (NYSE:BP) has just announced an upcoming auction of $3.2 billion of its North Sea oil fields assets. BP began auctioning off its North Sea holdings after the U.K. offered tax break incentives to major players in the British oil industry — but this holding is the largest BP has yet put to market.
CNOOC Looking to Invest in U.S. Shale Developments: Major Chinese oil conglomerate CNOOC (NYSE:CEO) has just announced plans to expand its reserves through purchasing U.S. shale developments. While CNOOC is known as China’s largest developer of offshore drilling projects, Bloomberg reports that the company has made clear future plans to purchase shale projects located throughout the continental United States. While the company has yet to identify partners or locations, CNOOC Chairman Wang Yilin laid out the company’s intentions during an interview Saturday evening, “The U.S. has advanced shale oil and gas technology and rich resources… We are interested in U.S. shale projects.” CNOOC has undergone a period of aggressive expansion since the beginning of last year — having bid for no less than $4.5 billion in foreign energy holdings since January 2011.
Adam Patterson is an Assistant Editor of InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities. For more oil news, check out our previous Daily Oil News stories.