Energy Update

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CALGARY, Alberta, May 16 (Reuters) - Junior oil sands
producer Connacher Oil and Gas Ltd filed for protection
from creditors at an Alberta court on Monday, making it the
latest Canadian victim of the two-year slump in global crude
prices.

SAO PAULO May 16 (Reuters) - Brazil's interim president,
Michel Temer, on Monday said he would continue a tradition of
nominating a prosecutor general who comes recommended by peers,
allaying concerns about judicial independence.

HOUSTON, May 16 (Reuters) - A coking unit at LyondellBasell
Industries' Houston refinery is expected to restart
between late May and mid-June for the first time since being
damaged in an April 8 fire, Gulf Coast market sources said on
Monday.

ALGIERS, May 16 (Reuters) - A subsidiary of Algerian state
energy company Sonatrach has awarded two Chinese firms a $40
million deal to deliver a liquefied petroleum gas (LPG) carrier
and an option to provide a second vessel, according to a
Sonatrach document seen by Reuters.

NEW YORK, May 16 (Reuters) - U.S. shale oil output is
expected to fall in June for the eighth consecutive month,
according to a U.S. government forecast on Monday, as the
squeeze from a two-year rout in crude prices worsens.

* Chaos has benefited Islamic State, people smugglers

(Adds detail on oil exports, unity government statement)

CALGARY, Alberta, May 16 (Reuters) - A massive wildfire
burning around the oil sands hub of Fort McMurray, Alberta is
about 1 km (1,094 yards) away from Enbridge Inc's
Cheecham crude oil tank farm, but is under control for now,
emergency officials said on Monday.

Smaller US refiners unable to blend their own gasoline are facing higher RIN costs which are eating into refinery operating costs.

SAO PAULO May 16 (Reuters) - Brazil's interim president,
Michel Temer, on Monday said he would continue a tradition of
nominating a prosecutor general who is recommended by a group of
the candidate's peers, calming fears the position's autonomy
would be compromised.

ABUJA, May 16 (Reuters) - Nigeria's oil production has
fallen by almost 40 percent to 1.4 million barrels a day due to
militant attacks on facilities in the Delta region, its oil
minister said on Monday.

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