Newspaper says CNOOC dropping Unocal bid, but CNOOC says offer still effective

HONG KONG (AP) - A Hong Kong newspaper reported Friday that CNOOC Ltd., China's third-largest oil producer, plans to scuttle its bid for Unocal Corp. as early as next week because political pressure from Washington has made the deal impossible, but CNOOC dismissed the report as speculation. 

The South China Morning Post quoted an unidentified source "familiar with the deal'' as saying: "There is literally no point to pursue this any further. The dirty Washington politics has basically killed the deal.''