>>> EIA Short-Term Energy Outlook; lowers 2016 WTI and Brent crude price estimat

EIA Short-Term Energy Outlook; lowers 2016 WTI and Brent crude price estimate 

- Brent crude oil prices are forecast to average $38/b in 2016 and $50/b in 2017. Forecast West Texas Intermediate (WTI) crude oil prices are expected to average the same as Brent in both years. However, the current values of futures and options contracts continue to suggest high uncertainty in the price outlook.
- U.S. crude oil production averaged an estimated 9.4 million b/d in 2015, and it is forecast to average 8.7 million b/d in 2016 and 8.5 million b/d in 2017. EIA estimates that crude oil production in January was 70,000 b/d below the December level, which was 9.2 million b/d
- Natural gas working inventories were 2,934 billion cubic feet (Bcf) on January 29, 20% higher than during the same week last year and 18% higher than the previous five-year average (2011-15) for that week. EIA forecasts that inventories will end the winter heating season (March 31) at 2,096 Bcf, which would be 41% above the level at the same time last year
- EIA estimates that global oil inventories increased by 1.8 million b/d in 2015, marking the second consecutive year of strong inventory builds. Persistent oversupply has contributed to oil prices dropping further in January and reaching the lowest monthly average level since the end of 2003. Global oil inventories are forecast to increase by an annual average of 1.0 million b/d in 2016 and by an additional 0.3 million b/d in 2017


>>> Peers circle Volkswagen's large engines unit -sources - RTRS

Peers circle Volkswagen's large engines unit -sources - RTRS

FRANKFURT, Feb 9 (Reuters) - Volkswagen VOWG_p.DE has received expressions of interest for a unit making engines used in ships or small power stations, as rivals sense an opportunity to get their hands on the asset as a result of the car maker's emissions scandal, several sources familiar with the matter said.

Peers from China, Europe and the United States have recently told Volkswagen they would fancy buying the operations of MAN MANG.DE that are not central to its trucks business, they said, adding that the unit may be valued at up to 4-5 billion euros ($4.51-$5.6 billion).

Volkswagen has so far stuck to its line that the business, which made operating profit of 206 million euros on sales of 3.3 billion euros in 2014, is not up for sale.

Volkswagen was not immediately available for comment on Tuesday.

>>> DUH lobby says excess emissions found in eight tests--> FCA

DUH lobby says excess emissions found in eight tests
Model came close to EU limit in two tests with cold engine
FCA declined to comment
(Adds FCA statement from Feb. 2 on its diesel cars)


BERLIN, Feb 9 (Reuters) - German environmental lobby group DUH stepped up its campaign against auto industry pollution on Tuesday, accusing Fiat Chrysler Automobiles' FCHA.MI 500X compact sport-utility vehicle of releasing excessive levels of toxic diesel emissions.

DUH has already accused General Motors' GM.N Opel division, Renault RENA.PA and Daimler's DAIGn.DE Mercedes-Benz brand of violating emissions levels. At a press conference in Berlin, DUH turned to Fiat Chrysler Automobiles (FCA).

"The extreme overruns of NOx emissions that have meanwhile been detected with an Opel Zafira, a Renault Espace, a Mercedes C-Class and now a Fiat SUV are technically not plausible and point towards defeat devices," campaigner Axel Friedrich said.

FCA declined comment.

The carmakers deny they are acting illegally but acknowledge that some models produce higher levels of pollution when tested in conditions more akin to real-world driving than the norms set out in a specific test regime prescribed by regulators.

European lawmakers this month backed more stringent testing methods, which cut overall emissions but under some circumstances still allow a 50 percent overshoot of the legal ceiling for nitrogen oxide of 80 milligrams/kilometre. (Full Story).

European regulators and authorities are investigating various carmakers. But so far only Volkswagen VOWG_p.DE has been accused of illegal behaviour after it admitted to using software to manipulate emissions test results in a laboratory.

FCA said on Feb. 2 that its diesel vehicles do not carry defeat devices and that while emissions levels can vary depending on driving conditions, the cars' control systems operate in the same way under the same conditions, whether in a laboratory or on the road.

The carmaker added at the time that its diesel vehicles performed within the regulatory limits when inspected using the testing cycle prescribed by European law.

On Tuesday, citing tests carried out by the University of Applied Sciences in Bern, Switzerland, DUH Managing Director Juergen Resch told a news conference that a Fiat 500X, a 2015 model of the latest Euro 6 diesel generation, had released nitrogen oxide emissions that were between 11 and 22 times the legal European limits when tested with a warm engine.

The Fiat 500X released excessive emissions in all eight tests carried out with a warm engine on the dynamometer, DUH said.

The model exceeded the statutory 80 milligram limit only during two tests with a cold engine after "specific pre-conditioning", the group said.

Friedrich is a co-founder of the Washington-based International Council on Clean Transportation (ICCT), which commissioned the original investigation that eventually led to the exposure of VW's test-rigging.

>>> US Gapping up


Gapping up
In reaction to strong earnings/guidance: SSNI +22.2%, CBM +5.5%, MXL +5.3%, OI +4.5%, MODN +2.9%, MAS +2.3%, CDW +1.4%, AGTC +1.3%,GPS +1.1%, (Gap reports Jan same store sales -8% vs -3.9% Retail Metrics consensus; sees Q4 EPS of $0.56-0.57 vs. $0.53 Capital IQ Consensus Estimate on prelim sales of $4.39 bln vs. $4.47 bln Capital IQ Consensus Estimate )


Other news: CTIC +25% (rebounding following yday's declines), CERS +10.7% (announces that the American Red Cross has signed a multi-year purchase agreement for the INTERCEPT Blood System for platelets and plasma), BSX +3.3% (confirms it will receive CMS coverage for WATCHMAN LAAC Device)

Analyst comments: N/A

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: ONVO -12.1%, PSDV -9.4%, REGN -6.5%, QLYS -6.3%, ASEI -4.9%, OTTR -4.7%, CMP -4%, FOXA-3.6%, SHLD -3.4%, ALLT -3%, RDY -2.9%, BRS -2.6%, HCP -2.3%, SNY -2%, PAA -1.7%, CVS -1.5%, RBC -1.3%, GIG -1.1%, ALSN -0.7%

Select EU financial related names showing weakness: CS -7%, BCS -4.8%, ING -4.6%, SAN -3.6%

Select oil/gas related names showing early weakness: RDS.A -3.4%, TOT -2.9%, BP -2.4%

Other news: RACE -4.9% (cont weakness), TSLA -4.7% (cont weakness), SIEN -3.1% (pulling back following yday's strength), FCX -2.5% (trading lower with copper futures), NVS -1.3% (still checking), PYPL -1.3% (CTO resigns), NVO -1.1% (trading lower in symp with peer SNY), MDT -0.9% (still checking), AZN -0.8% (trading lower in symp with peer SNY)

Analyst comments: MT -8.2% (downgraded to Neutral at JP Morgan), RIO -5.4% (initiated with a Underperform at RBC Capital Mkts)