China / Russia Energy Update - recapping last two weeks as of Sept 17th

Gazprom, CNPC agree basic terms of long-awaited gas deal | Reuters Russia's top gas producer Gazprom (GAZP.MM) and China's CNPC agreed on Thursday on basic terms of long-awaited gas supplies to China, paving the way for the final deal, which would cement Moscow's footing in the world's second largest economy. The pressure on Gazprom to venture into the Chinese market is rising as its Russian rivals, such as Novatek (NVTK.MM), have already secured deals to supply China with gas from yet-to-build liquefied gas plants and are lobbying for limiting Gazprom's export monopoly. ...The basic terms, signed by heads of Gazprom and CNPC in the presence of presidents Vladimir Putin and Xi Jinping "define the volumes, start of deliveries, payments, 'take-or-pay' amendment" and other issues, Gazprom said in a statement. It gave no further details. Gazprom first signed a memorandum of understanding with China in 2006 to ship up to 68 billion cubic meters of gas per year via two routes to the Asian country, later prioritizing the route which would take 38 bcm per year. However, talks on finalizing a deal have been repeatedly delayed over numerous differences, including pricing. Gazprom has said it aims to supply China with 38 bcm per year from its fields in East Siberia. That compares with 152 bcm it aims to supply to Europe this year.

Gazprom Refuses to Use U.S. Benchmark in China Gas Deal - Emerging Europe Real Time - WSJ Russian state gas firm OAO Gazprom said Thursday it had moved a step closer to making China its largest customer by persuading Beijing that prices shouldn't be linked to a hub based thousands of miles away in Louisiana. In a sign of the global reach of the shale-gas revolution that has propelled the U.S. ahead of Russia as the world's largest gas producer, China National Petroleum Corporation had wanted to link the price for the potential deal to the U.S. benchmark Henry Hub. New techniques have allowed producers in the U.S. to tap gas trapped in rock, creating a surge in volumes and driving the price lower at the Louisiana-based hub. Russia has been in negotiations with China for years on supplying gas, but talks have been hamstrung by disagreements over price. Gazprom and CNPC signed an agreement Thursday that set out almost all conditions for the deal, including the pipeline route and volumes for deliveries—just not the price.

China, Russia a Step Closer on Gas Supply-Caijing "The signing of the document, when price remains the only problem, signals the possibility of a breakthrough on the price negotiations." China and Russia's energy giants signed a framework agreement on Thursday on the Russian gas supply to China, making a leap forward in the decadelong gas negotiations. The agreement to export gas to China through the eastern pipeline was signed between China National Petroleum Corp and Russia's Gazprom in the Russian city of St. Petersburg. President Xi Jinping, who is there to attend the Group of 20 meeting, witnessed the signing ceremony with his Russian counterpart, Vladimir Putin, after meeting together....Under a memorandum of understanding the two energy giants signed in March, Russia will supply 38 billion cubic meters of gas to China annually from 2018. The volume is expected to increase to 60 billion cubic meters in following years. An energy expert who declined to be named said that although the framework agreement is not legally binding, "the signing of the document, when price remains the only problem, signals the possibility of a breakthrough on the price negotiations."

North American Coal Export Update Sept 17th

U.S. Coal Companies Scale Back Export Goals - NYTimes.com
...  when the federal government tried to auction off a two-square-mile tract of land in Wyoming's Powder River basin, a region once poised to grow with exports to Asia, not a single coal company made a bid. ..."Global coal prices right now are not supportive of large-scale U.S. coal exports," said Anthony Yuen, a Citigroup energy analyst. ..."We are in a dip," said Colin Marshall, chief executive of Cloud Peak Energy, a major United States coal company. But he added in an interview, "If history means anything, the world in a few years will need more commodities, both metals and energy including coal." Several export terminals in the Pacific Northwest are still being proposed, but local political opposition and years of regulatory hurdles put their future in doubt. "It's understandable that lenders would be getting a little bit nervous about those projects," said Trevor Houser, head of energy and natural resources research at the Rhodium Group. "I don't expect coal prices to return to the frothy levels of over the past decade." But it is China, experts say, that most defines coal's future. Energy experts project that China, with its increasingly restrictive policies, may no longer be a net importer by 2015. This year is a "watershed year for global coal markets," a Goldman Sachs report said. "The window for thermal coal investment is closing."

Big hearing planned Tuesday on Longview coal export terminal - Portland Tribune The proposed Millennium Bulk Terminals coal terminal in Longview — one of the three surviving coal export projects proposed in the Northwest — gets its first big public airing Tuesday, Sept. 17. The Washington Department of Ecology will hold an all-day session at the Cowlitz Expo Center in Longview, and supporters and opponents are expected to be out in force. Ambre Energy North America and Arch Coal submitted an application to convert the former Reynolds Aluminum smelter into a coal export facility capable of handling 44 million metric tons of coal annually

Cowlitz tribe announces opposition to coal terminals - TDN Cowlitz Indian tribal officials announced Monday they are opposing proposed Pacific Northwest coal docks, specifically the Millennium Bulk Terminals project west of Longview. ... "We don't see anything good for us or for our future generations with the proposed coal terminals," William Iyall, chairman of Longview-based Cowlitz Tribe, said in a written statement.

When Coal Comes To Town: Western Communities Brace For Coal Export Explosion | ThinkProgress BILLINGS, MONTANA —  ...Today, Minnesota Avenue and Montana Avenue are the heart of a small but thriving retail, entertainment and residential loft district, part of a spreading urban transformation that has brought new vitality to Billings — a revitalization that some residents fear may be in jeopardy as coal mines operating in the Powder River Basin of northeastern Wyoming and southeastern Montana could in the near future begin shipping massive quantities of coal to export terminals in the Pacific Northwest.

Billions to be spent on crude-by-rail facilities in Western Canada: report - Oil | Platts News Article & Story Capital spending on new oil rail terminals and tanker cars in Western Canada will total about C$6 billion ($5.7 billion) over the next two years, Calgary-based investment dealer Petersand Co. has predicted. In a report issued Tuesday, the firm said investments in terminals are tagged at C$1 billion, with up to C$5 billion earmarked for new cars as rail capacity out of Western Canada is expected to increase this year to 500,000 b/d from 200,000 b/d

Gazprom - China deal takes a step forward - 4 articles

Gazprom, CNPC agree basic terms of long-awaited gas deal | Reuters Russia's top gas producer Gazprom (GAZP.MM) and China's CNPC agreed on Thursday on basic terms of long-awaited gas supplies to China, paving the way for the final deal, which would cement Moscow's footing in the world's second largest economy. The pressure on Gazprom to venture into the Chinese market is rising as its Russian rivals, such as Novatek (NVTK.MM), have already secured deals to supply China with gas from yet-to-build liquefied gas plants and are lobbying for limiting Gazprom's export monopoly. ...The basic terms, signed by heads of Gazprom and CNPC in the presence of presidents Vladimir Putin and Xi Jinping "define the volumes, start of deliveries, payments, 'take-or-pay' amendment" and other issues, Gazprom said in a statement. It gave no further details. Gazprom first signed a memorandum of understanding with China in 2006 to ship up to 68 billion cubic meters of gas per year via two routes to the Asian country, later prioritizing the route which would take 38 bcm per year. However, talks on finalizing a deal have been repeatedly delayed over numerous differences, including pricing. Gazprom has said it aims to supply China with 38 bcm per year from its fields in East Siberia. That compares with 152 bcm it aims to supply to Europe this year.

Gazprom Refuses to Use U.S. Benchmark in China Gas Deal - Emerging Europe Real Time - WSJ | Russian state gas firm OAO Gazprom said Thursday it had moved a step closer to making China its largest customer by persuading Beijing that prices shouldn't be linked to a hub based thousands of miles away in Louisiana. In a sign of the global reach of the shale-gas revolution that has propelled the U.S. ahead of Russia as the world's largest gas producer, China National Petroleum Corporation had wanted to link the price for the potential deal to the U.S. benchmark Henry Hub. New techniques have allowed producers in the U.S. to tap gas trapped in rock, creating a surge in volumes and driving the price lower at the Louisiana-based hub. Russia has been in negotiations with China for years on supplying gas, but talks have been hamstrung by disagreements over price. Gazprom and CNPC signed an agreement Thursday that set out almost all conditions for the deal, including the pipeline route and volumes for deliveries—just not the price.

Gazprom hopeful as CNPC ramps up foreign activity - Interfax | China National Petroleum Corp. (CNPC) signed a series of agreements with Russia and Turkmenistan this week as part of ongoing efforts to secure gas supplies. The state-owned company signed a heads of agreement with Gazprom for the long-debated Russia-China gas pipeline deal in St. Petersburg on Thursday, as well as a sales-purchase contract with Russian independent Novatek for shares in Yamal LNG. Also in St. Petersburg, Rosneft President Igor Sechin announced the Russian oil major and CNPC will sign a new exploration and production agreement. The news comes a few days after CNPC agreed to increase gas purchases from Turkmenistan by 25 billion cubic metres per year, raising planned Chinese imports from the Central Asian country to 65 bcm/y by 2020. ...The most definitive of Thursday's St. Petersburg deals was the Novatek agreement. Novatek Chief Executive Leonid Mikhelson told reporters 20% of Yamal LNG's shares would be sold to CNPC. He did not specify the cost of the deal. "The transfer of title to the equity share is subject to receipt of necessary regulatory approvals and expected to be completed by 1 December. Following completion of the deal, the shareholder structure of Yamal LNG will be as follows: Novatek (60%), Total (20%), and CNPC (20%)," Novatek said in a statement.

Gazprom postpones China natural gas pipeline construction - energy global | Russia's state-owned gas producer, Gazprom, has postponed the planned construction of its gas pipeline to China until next year. The pipeline, known in Russia as the Power of Siberia, was designed to carry gas to Russia's Pacific coast in order to feed a new liquefaction plant at Vladivostok. Vedomosti, the Russian business daily newspaper, said "Gazprom delayed the start of the construction of its Power of Siberia gas pipeline to transport gas to China from November 2013 to the first quarter of 2014". A spokesman for Gazprom has declined to comment on the report.

Turkmenistan to increase gas imports to China - 65BCF in 2020

Turkmenistan to increase gas imports to China - AP / NZ Herald News | Turkmenistan plans to more than double exports of natural gas to China in the coming years, according to deals signed by the two countries' energy officials. President Gurbanguli Berdymukhamedov and Chinese counterpart Xi Jinping on Tuesday presided over the signing of several deals, under which Turkmenistan is set to boost its natural gas exports to China to 65 billion cubic meters per year by 2020, up from 25 billion cubic meters this year, according to Turkmen energy officials. The deals also envisage developing a giant gas field and building another natural gas pipeline to China. The energy-rich ex-Soviet Central Asian republics of Turkmenistan and Kazakhstan are China's key energy suppliers.

Sinopec buys into Egypt for $3.1 bln

China oil giant Sinopec buys into Egypt for $3.1 bln - AFP | Chinese oil giant Sinopec will pay $3.1 billion for a one-third stake in the Egyptian oil and gas business of US firm Apache Corp. it said on Friday, as China builds up its access to global energy reserves. The deal, which is still subject to regulatory approval, marks Sinopec's first entry into Egypt's upstream oil and gas sector, according to a company statement. It is the latest major Chinese resources acquisition abroad and comes after CNOOC, another Chinese state-owned energy giant, bought Canada's Nexen in a $15 billion deal last year despite political opposition in that country.

China's Lofty Goals for Shale Gas Development Just Pipe Dreams, Experts Say - Caixin

China's Lofty Goals for Shale Gas Development Just Pipe Dreams, Experts Say - Caixin | So many obstacles including property rights (gov't owns the mineral rights), industrial structure (no ecosystem of small service companies), technical skills (cost to drill well is almost 3x US cost) - China wants to reap the benefits of a shale gas revolution similar to the one in the United States, but there are many obstacles to this happening, experts say. In the first half of 2013, 56 shale gas wells were in the exploratory phase in the country, but only 24 were producing gas. Only six wells, all dug by either China Petrochemical Corp. (Sinopec Group) or China National Petroleum Corp. (CNPC),had daily output capacity of 10,000 cubic meters or more. And all the shale gas blocks sold in the most recent round of auctioning were in the early phases of prospecting, meaning they had not produced a drop.

Mongolia pins coal export ranking hopes on railway - SCMP

Mongolia pins coal export ranking hopes on railway - SCMP The landlocked country aims to regain the top position it lost in the first half by 2015 when transport link to major China market is completed The share of Mongolia's coal exports to the Chinese market has dropped to 17pc in the first half of this year from 35.7pc for the whole of last year. "Competitiveness of Mongolian coal is strongest in the China market due to its geographical proximity, but it has been hampered by the major obstacle of transportation," said Battsengel Gotov. "With the expected completion of a railway by the end of 2015, Mongolia will make a comeback."

Turkmenistan to increase gas imports to China - World - NZ Herald News / AP

Turkmenistan to increase gas imports to China - World - NZ Herald News / AP | Turkmenistan plans to more than double exports of natural gas to China in the coming years, according to deals signed by the two countries' energy officials. President Gurbanguli Berdymukhamedov and Chinese counterpart Xi Jinping on Tuesday presided over the signing of several deals, under which Turkmenistan is set to boost its natural gas exports to China to 65 billion cubic meters per year by 2020, up from 25 billion cubic meters this year, according to Turkmen energy officials. The deals also envisage developing a giant gas field and building another natural gas pipeline to China.

China customs announced a 3% tax on imported brown coal (& other coal link backlog)

China customs announced a 3% tax on imported brown coal beginning Aug. 30 but China's largest supplier, Indonesia, will probably be exempted due to China's FTA with the ASEAN. Prices of coal in China continued decreasing over the last two weeks (down 14% so far this year).

The import tax will add about $1.30 per tonne to cost of coal imported from Australia, Russia and Mongolia (and US and North Korea). Indonesia has supplied 97% of the lignite that China has imported so far this year, it is hard to see what impact the tax will really have in terms of propping up domestic producers or cutting down on imports to China -- but it could push several tens of millions of tonnes of alternative supply towards Korea and Japan.

China sets tax on low-grade coal imports; Indonesia unaffected | Reuters

* 3 pct tax set on lignite imports from some countries

* Lignite exempted from import tariffs under China-ASEAN FTA

* Indonesia accounted for 97 pct of China's lignite imports in Jan-July

China has announced a 3 percent tax on imports of steam coal with low calorific value but the move will have no impact on top supplier Indonesia as a trade deal with Southeast Asian nations will ensure that those shipments continue to enjoy zero tariff.

China Thermal Coal Imports Will Drop

Chinese coal price war to dampen coal imports - Reuters | China's major coal producers have been slashing domestic prices since July to gain market share, in a move likely to slow import growth for the rest of the year as overseas shipments become less attractive in the top buyer and producer of the fuel. Local coal prices have already dropped 14% so far this year and could drop further . . . Although plans to increase infrastructure investment could also lift coal consumption, efforts to shut plants in sprawling power-intensive industries, such as cement, steel and aluminium, could also partly offset any demand growth, they said. "The industry is still in a phase where major producers are cutting costs to displace marginal producers and that will keep driving down coal prices," Laban Yu, an analyst at investment bank Jefferies, said in a note this week. "The market is calling a bottom. We are not," Yu said. Jefferies says prices will not hit bottom for another year. . . .China's spot coal prices have dropped 9.3% since June to hit a four-year low of 546 yuan ($89.19) this week, even though a record hot summer pushed July power consumption growth to its highest this year. About 10% of China's thermal coal producers have a break-even cost of around 500 yuan a tonne, analysts said, giving major miners plenty of room to keep cutting prices. . . .But with inventories of around 300-million tonnes piled up across the country, about 11% higher than a year ago, analysts at Japanese investment bank Nomura have said China's output needs to fall 8% to 10% to restore market balance

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China Rail Investment Fund 80 bn rmb next year - Public / Private Investors

Plan for Railroad Fund 'to Come by Year's End - Caixin |The fund is expected to launch next year . . . On August 19, the State Council, China's cabinet, called for faster reform of the country's system of financing railroads. This would be done by issuing bonds and setting up a development fund that would involve government funding and private investors. The former Ministry of Railways, National Development and Reform Commission, Ministry of Finance and other departments have discussed such a fund for years, but no consensus has been reached. . . .The central government plans to allocate 60 billion yuan for railroad development and attract another 20 billion yuan from other investors, the banking source said. The CRC source confirmed these figures. The banking source also said the government hopes to raise 200 billion yuan to 300 billion yuan for the development fund in the 2014-15 period, and 100 billion yuan of this would come from the central government's budget. To attract other investors, the CRC source said, the fund will offer yields higher than banks' interest rates.

Coal sales, output fall as demand falters

Coal sales, output fall as demand falters - China Daily | China's coal output and sales contracted in the first seven months amid weak demand, adding pressure on the industry to undertake structural adjustments, the China National Coal Association said. Coal output fell 3.5 percent year-on-year to 2.13 billion tons, with sales down 3.9 percent to 2.07 billion tons, the CNCA said. Due to more competitive prices, coal imports grew 14.1 percent to 187 million tons, while exports sank 22 percent to 4.9 million tons. Jiang Zhimin, the body's vice-president, was quoted by the Xinhua News Agency as saying that domestic coal demand growth is expected to keep slowing for the rest of the year, amid decelerating economic expansion. ... Increasing imports and soft demand have left many domestic coal miners with rising stockpiles, exacerbating their difficulties. Economists said weak foreign and domestic demand, compounded by oversupply, has had widespread financial implications for producers. . . .Shanxi is waiving environmental protection fees and industrial transformation development fees for coal mines. It has also cut coal trading service fees by 50 percent. The measures run from August to December.

Coal-to-gas production costs exceed natural gas production costs, but not gas market PRICES

煤制气开采成本高于天然气 - 国家石油和化工网 | Coal-to-gas production (CTG) costs higher than natural gas production costs, but lower than natural gas selling prices, especially LNG - according to gas analyst Li Lingxuan. Coal is greater than 40% of the cost of CTG, every cubic meter of gas takes about 3 tonnes of coal and 10 tons of water. CTG production cost is 1.6 rmb per m3, natural production gas cost 1 rmb per m3, but gas prices on market range from 2-4 rmb per m3; Eurasian gas to Xinjiang is 2.5 rmb and LNG price is 4 yuan or more per cubic meter.　　在天然气需求与日俱增的态势下，煤制气能否成为继天然气之后，满足居民及企业用气需求的有力支点？相对天然气，煤制气生产成本是否占据优势？昨日，天然气资深分析师李祾譞在接受记者电话采访时表示，煤制气生产成本高于天然气，但售价比天然气更具优势。　煤制天然气成本主要受煤炭价格影响，原料煤成本占比40%以上，每千立方米天然气耗煤3吨左右，耗水10吨左右。按照煤制天然气出厂价格1.6元/立方米计算，原料煤价格在160元/吨以下就有利可图。　伊犁州新型工业化建设协调领导小组办公室重点项目负责人万方说，自治区有关部门根据成本测算，庆华煤制天然气生产成本价为1.6元/立方米，加上自治区给予每立方米0.2元补贴，出厂价为1.8元/立方米。　"与煤制气1.6元/立方米的生产成本价格相比，每立方米天然气的开采成本在1元以内，煤制气生产成本高于天然气。"李祾譞说，但在售价方面，目前我国的天然气价格大概在每立方米2-4元之间，我国从中亚进口的天然气到新疆地区的成本价格就在每立方米2.5元，这还不包括其他费用，而我国进口的LNG(液化天然气)价格达到每立方米4元以上。

China July coal imports rebound as Australia top gainer

China July coal imports rebound as Australia top gainer - coalguru / Reuters | Reuters reported that China's coal imports, excluding lignite, rose 26% in July from the previous month after two months of falls in shipments, as a drop in overseas prices led end users to ramp up orders of Australian coal and restock for peak summer demand. Robust steel production has also led mills to import more coking coal, which jumped 25 percent from the preceding month to 5.88 million tonnes. Customs data showed that China's imports in July, excluding lignite, were at 22.77 million tonnes, compared with 18.04 million tonnes in June. Total shipments in the first seven months were up 13.7% from last year. The strength in July imports, which came after June shipments fell to an 8 month low was a surprise to market participants, as falling domestic prices had narrowed the price advantage of overseas supplies. Analysts said that the jump in the July shipments was in part buoyed by a slump in regional coal prices which saw the benchmark globalCOAL Newcastle index drop AUD 10 within a month to about AUD 77 per tonne its lowest since June 2009. Mr Li Ting a coal analyst with Chang An Energy Research said that "It was a lot of opportunistic buying and end users were taking the opportunity to restock for the peak summer consumption season."

PetroChina's 1st half profit was 65.5 billion rmb; natural gas losses 23.5 billion

中石油上半年净利润655亿 天然气业务报亏235亿 - 网易财经 | PetroChina's 1st half profit was 65.5 billion rmb; natural gas business reported losses 23.5 billion 中石油今晚发布上半年业绩显示，报告期内公司实现营收达到11010.96亿元，比上年同期上升5.2%，实现归属于母公司股东净利润人民币655.22亿元，比上年同期上升5.6%；实现每股基本盈利人民币0.36元，比上年同期增加人民币0.02元。

Argentina + China Shale Deal

Argentina Prepares China Shale Deal to Boost Gas Reserves - Bloomberg | YPF SA, Argentina's state-owned energy company, said its next shale oil and gas partnership will be with a group including China's Cnooc Ltd. (883) China's biggest offshore energy explorer probably will sign next month a definitive deal to explore and develop deposits in the Vaca Muerta formation, either as part of its Bridas Corp. joint venture with the billionaire Bulgheroni brothers or with the Bridas-run Pan American Energy LLC, YPF board member Hector Valle said in an interview. An agreement with Cnooc and Bridas would be YPF's second binding shale partnership in the 16 months since President Cristina Fernandez de Kirchner seized control of the company from Spain's Repsol SA. (REP) Argentina is counting on companies including Chevron Corp. (CVX), which signed the first YPF shale deal last month, to help develop Vaca Muerta and boost gas reserves that now stand at just six years of consumption, Valle said.

The world’s longest burning fires: China's unseen story | Audrey Wozniak - China Dialogue

The world's longest burning fires: China's unseen story - China Dialogue Audrey Wozniak | They are monstrous, centuries-old infernos that issue thick billows of ash and smoke, and generate sinkholes that consume roads and homes without warning. Yet in spite of the dangers they pose, underground coal fires are some of the least known environmental disasters. China, the world's largest miner and consumer of coal, has consistently downplayed the fires in its coalfields, considered the most severe on earth. ..."Every country that is coal-producing has coal fires," says Anupma Prakash, a geologist at the University of Alaska who has conducted extensive research on coal fires. So it comes as no surprise that China, which accounted for 49.5% of last year's global coal production, also has the world's worst coal fires. Hundreds of fires proliferate the nearly 3,000-mile coal belt running across north China.

Shanxi province: saving the coal industry, but sacrificing the environment | Luna Lin - China Dialogue

Shanxi province: saving the coal industry, but sacrificing the environment - China Dialogue Luna Lin | Environmentalists warn that Shanxi's fight to save its ailing coal industry by handing out tax cuts will increase pollution. Shanxi province, in northern China, has long relied on its natural coal resources, but is now suffering from a drop in domestic demand amid China's economic downturn. Coal prices have plunged to their lowest level in four years....Shanxi has responded to the slump with a stimulus package. Shanxi officials have been tasked with promoting the sales of local coal, a measure rarely seen since the late 1990s. As well as mobilising local officials to become salespersons for the ailing coal industry, the provincial government announced 20 measures aimed at stabilising the coal market. This included temporarily scrapping the environmental protection fees and industrial transformation development charges for coal mines. ...While this may be an industry-saving initiative, there are concerns about its environmental cost. Feng Yongfeng, the founder of Nature University, a Beijing-based Green NGO, said the government's move was "yet another example of sacrificing the environment for the sake of the economy." The stimulus package could "cause severe harm to...the country's goal of reducing emission and conserving energy." Li Gan, founder of the legal website, Public Interest Litigation, echoed Feng's concerns when he asked on Weibo: "When saving the coal industry, can we really afford to sacrifice the environment?"

North China LNG plants cut prices for first time since May

North China LNG plants cut prices for first time since May - Interfax Tang Tian | LNG suppliers in central Chinese provinces have cut prices for the first time in three months, under pressure from bloated inventories caused by weak demand and competition from imported LNG, a domestic energy consultancy said on Wednesday.

China oil demand up 6.6% vs PY

China oil demand up 6.6% vs. year ago: Platts - MarketWatch | China's apparent oil demand climbed by 6.6% to average 9.82 million barrels per day in July compared with a year earlier, according to a Platts analysis of Chinese government data released Thursday. Refinery runs rose 7.1% compared to a year earlier, Platts said, citing data released this month from China's National Bureau of Statistics. "The data in July seemed to be supported by positive aspects of China's economy," said Song Yen Ling, Platts senior writer for China. Oil prices reclaimed the $104-a-barrel level Thursday after better-than-expected Chinese manufacturing data. October crude CLV3 +0.11% traded at $104.27 a barrel, up 42 cents, or 0.4%, on the New York Mercantile Exchange.