Energy Update

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Ana-Maria Tolbaru talks on the likely impact on France of it increasing the operating costs for coal generators with the introduction of a new carbon price floor or a coal tax starting in 2017.

* U.S. crude inventories expected to have dropped last week

(Updates prices, adds quote paragraph 10)

LONDON, Aug 9 (Reuters) - The enormous concentration of
bearish short positions in U.S. crude oil futures and options
contracts by hedge funds and other money managers left the
market ripe for a short-covering rally.

The Tesla-SolarCity merger talks have been dominating headlines of late. While Elon Musk’s demagoguery is a welcome reprieve from the political demagoguery that is otherwise competing for space above the fold — at Navigant Research, we aren’t exactly surprised by the move.

LONDON, Aug 9 (Reuters) - The volume of crude held in
floating storage off Britain's coast has grown this year due to
excess supply, trade sources say, helping to put a cap on some
parts of the Brent market which helps set global prices.

With speculation swirling over possible production freeze talks, OPEC on August 8 appeared to throw cold water on the idea, sounding an optimistic tone about the oil market.

* PM May's adviser had raised concerns

(Adds UK position, details on talks with China)

LONDON, Aug 9 (Reuters) - Britain on Tuesday defended its
decision to review a planned $24 billion nuclear power project
after criticism from China which is helping to fund the deal.

MUMBAI, Aug 9 (Reuters) - Hindustan Zinc Ltd, a
subsidiary of billionaire Anil Agarwal's mining conglomerate
Vedanta Ltd, aims to double silver output in five
years due to rising prices and increased demand from solar panel
makers.

FRANKFURT, Aug 9 (Reuters) - European prompt power prices
fell on Tuesday on forecasts of higher solar and wind power
output in Germany, more nuclear reactor capacity in France, and
lower demand.

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