Oil futures slipped after a breakdown of budget talks in U.S. Congress

(Reuters) - Oil futures slipped below USD 118 a barrel after a breakdown of budget talks in the Congress over the weekend helped drive investors away from volatile and risky assets on Monday.

Worries about a U.S. credit rating downgrade or even default curbed optimism about global economic growth, after last week's preliminary solution to the euro zone debt crisis helped propel Brent to as high as USD 118.80 a barrel on Friday.

Brent crude for September was 80 cents lower at USD 117.87 a barrel at 0940 GMT, after falling by more that USD 1 earlier in the session.

U.S. oil was 57 cents lower at USD 99.30, paring losses of more than USD 1 but off a six-week high of USD 99.87 on Friday.

MRC

(Reuters) -- Japan's naphtha imports for the petrochemical sector fell 11% in June from the same month a year earlier, government figures showed on Friday. Imports of naphtha for ethylene production amounted to 1,713,009 kilolitres (1,168,908 tonnes) last month, the Ministry
of Economy, Trade and Industry said in a statement.

That compared with 1,928,831 kl (1,332,042 tonnes) in the same month last year and 1,619,287 kl (1,115,771 tonnes) in May. June imports cost USD 1.189.683.994, compared with USD 1.132.898.318 in May, the data showed.

MRC

(Plastemart) -- The Andhra Pradesh Chief Minister has sought speedy implementation of the naphtha cracker at the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in the coastal region of the State. Gas Authority of India Ltd. (Gail) has proposed to set up this naphtha cracker. Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is working closely with Gail for creating the required infrastructure for the project. The proposed plant would be crucial for the development of PCPIR and would also make this PCPIR as hub of the entire East Coast of the country.

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(Plastemart) -- By 2013, Braskem will have yet another alternative feedstock source besides sugarcane ethanol. The company will begin using naphtha made from post-consumption recycled plastic, to be supplied by Novaenergia, a company from the Wastech group located in Bahia state. Novaenergie is to build its first advanced recycling plant along in Salvador, Bahia.

Braskem is expected to initially source 1.4 mln ltrs pa of naphtha made from plastic waste, which will be processed at its Basic Petrochemicals Unit in the Camacari Complex. Installation of Novaenergia's recycling unit in Bahia will require investment of some R$ 25 mln, with startup expected by end of 2012.

MRC

(Arabian Oil and Gas) -- National Oilwell Varco (NOV), the largest US oilfield equipment maker, has announced it's purchase of Singaporean firm STSA for an undisclosed sum. STSA services subsea blowout preventers and related pressure control equipment for offshore drilling rigs in the Asia Pacific region. The company has 160 employees, and has two main manufacturing locations in Singapore and India.

In a company statement, NOV chairman Pete Miller said: ⌠We are pleased to add this fine organisation to NOV, and believe STSA will enhance the level of service and technology we can provide our customers in the BOP and pressure control equipment market, especially in the Asia Pacific. Earlier this month NOV purchased fiberglass pipe provider Ameron USD 772 mln.

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