,body,headline,updatedDate,topic_prediction,topic_verification,negative_score,neutral_score,positive_score,trend_prediction,trend_verification 0," Spanish crude import volumes increased 11% year on year in the first half of 2024 to 1.4 million b/d (33.5 million mt) as imports from the Americas and Africa ousted the Middle East and Eurasian volumes, data published Aug. 8 by reserve corporation CORES showed. The incoming volume for the first half was the highest since 2019, according to CORES data. Spain has a refining capacity of 1.6 million b/d, making it Europe's third-largest market by refining capacity. The US, with 5.7 million mt, and Brazil, with 4.6 million mt, were the two largest suppliers to Spain in the period, followed by Nigeria, with 4.2 million mt and Mexico, with 4.0 million mt. US volume was at a record high, reflecting a pivot in upstream operations of Spain’s principal integrated player Repsol towards the region. Brazilian volume in H1 was also at a record high, beating its previous record of 2.8 million mt from H1 2022, while South American volume overall was also boosted by increased flows from Venezuela after Repsol lifted an increasing number of cargoes as the result of a production agreement with PDVSA signed in Q2. African volume was boosted by steady output from Libya and Nigeria, but both Eurasian and Middle East volumes declined amid lower volumes from Kazakhstan and Iraq, among others. Middle East volume to Spain in H1 was at its lowest on records since 1996 and 62% down from its pre-pandemic 2019 level, the data showed. SPAIN CRUDE IMPORTS BY COUNTRY H1 2024 Volume Volume Y/Y change source (000 mt) (b/d) (%) Total 33,535 1,350,613 11 Africa 10,950 441,008 28 Angola 2,592 104,392 75 Algeria 1,550 62,426 20 Egypt 0 0 -100 Gabon 130 5,236 na Eq. Guinea 293 11,800 -43 Libya 2,156 86,832 6 Nigeria 4,230 170,362 34 North America 10,588 426,429 16 Canada 894 36,006 -40 US 5,656 227,794 54 Mexico 4,037 162,589 1 South America 6,705 270,042 47 Brazil 4,587 184,740 66 Colombia 0 0 -100 Ecuador 0 0 -100 Trinidad & Tob. 0 0 -100 Venezuela 1,363 54,894 229 Others Americas 756 30,448 85 Europe/Eurasia 2,512 101,170 -45 Albania 119 4,793 -45 Azerbaijan 0 0 -100 Italy 269 10,834 58 Kazakhstan 1,332 53,646 -36 Norway 752 30,287 -4 UK 39 1,571 -86 Mid East 2,780 111,964 -18 S. Arabia 1,927 77,609 -3 Iraq 853 34,354 -40 Key NC: No change NA: no % change - previous year was zero source: CORES ",SPAIN DATA: H1 crude imports rise 11% to 1.4 million b/d,2024-08-08 12:11:55+00:00,Crude Oil,Crude Oil,0.9914729407916574,0.0055238240891461,0.5192636406794566,Bearish,Bearish 1," A number of refineries in China have resumed operations over the course of July after completing planned maintenance, refinery sources told S&P Global Commodity Insights. PetroChina’s Dushanzi Petrochemical restarted July 6 following maintenance that started May 15. Sinopec Qilu Petrochemical in eastern Shandong province restarted July 11 following maintenance on a CDU that started May 19. Maoming Petrochemical had been carrying out works on a 100,000 b/d CDU over May 25-July 19. Jinling Petrochemical will carry out works over Nov. 15-Dec. 31. ",REFINERY NEWS: Host of Chinese units back from works; Jinling maintenance in Nov-Dec,2024-08-08 11:51:12+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.417054047310704,0.8455954988128805,0.1806848671208815,Neutral,Neutral 2," Some refineries in the Asia-Pacific region increased throughput in the second quarter of 2024, but runs at other refineries were affected by maintenance. Thai and South Korean refiners have been reluctant to purchase light sweet Mediterranean crude oil as attacks off the Red Sea coast of Yemen persist, leading to less-than-ideal delivery costs and cracking economics for the Kazakh, Libyan and Algerian grades. The ongoing Israel-Iran conflict and Red Sea maritime security risks have diminished East Asian refiners' appetite for Mediterranean crude over the past several trading cycles, as cargoes are now detouring the Suez Canal and Red Sea passage and opting for the longer Cape of Good Hope route, which make logistical costs more expensive. Thai refineries used to actively procure Libyan crude grades including El-Sharara, Mellitah and Amna as well as Algeria's Saharan Blend from the Mediterranean market, while Kazakhstan's CPC Blend crude also featured in their crude slate until 2023. However, Southeast Asia's second biggest economy took zero CPC Blend and Saharan Blend cargoes so far this year, while light sweet Libyan crude imports over January-May tumbled 62% year on year to 15,610 b/d, Thai customs data showed. At least three major South Korean refiners regularly and actively purchased CPC Blend crude. One of the buyers has halted purchasing light sweet Kazakh crude since the third quarter 2023, while another importer stopped purchasing in April, according to refinery sources with direct knowledge of the matter and data from the Korea Petroleum Association. ** Throughput at Reliance Industries Ltd.'s Jamnagar refinery complex in India totaled 19.8 million mt from April through June of its fiscal 2025, up 0.5% from the corresponding FY 2024 quarter, the company said July 19. RIL-operated Jamnagar, located in Gujarat on the west coast of India, is the world's largest refinery complex. ** India's Mangalore Refinery and Petrochemicals Ltd. recorded 4.35 million mt of total throughputs in the April-June period compared with 4.36 million mt a year ago, company officials said July 23. The first quarter throughput, including crude and others, was 5.4% lower compared with the January-March quarter. MRPL recorded a 52% year-on-year decline in its gross refining margin to $4.70/b for the April-June period or Q1, reflecting lower returns from cracks. In Q1, MRPL added three new crude grades for the first time -- Varandey (API 37.63) and Kaliningrad (API 39.43) from Russia and Eocene crude from the Saudi-Kuwait Neutral Zone (API 18.07). ** Gross refining margins at Hindustan Petroleum's Vizag refinery in Andhra Pradesh state is expected to improve by $3/b after the completion of its residual upgrade by the end of the current 2024-25 fiscal year in March 2025, company officials said July 31. The refinery is expected to run at its full expanded capacity of 300,000 b/d after the expansion project. In the October-December period, the Vizag refinery is expected to produce high-value refined products, the officials said. Separately, Hindustan Petroleum Corporation Ltd. posted a 32.8% year-on-year drop in gross refining margin to $5/b in the April-June quarter on lower returns from cracks despite processing the highest-ever quarterly volume, company officials said July 30. HPCL recorded a $7.44/b gross refining margin a year ago. In the first quarter, which runs from April to June, HPCL's two refineries at Mumbai and Vizag processed a record 5.76 million mt, up 6.7% on the year. Widening the company’s crude basket, HPCL's two refineries processed imported crude Khafji and Varandey, and indigenous crude KGDWN for the first time during the quarter. ** Indian refineries processed 5.42 million b/d of crude in June, up from 5.26 million b/d in June 2023, the oil ministry said in its latest update, reflecting a 3% year-on-year increase in processing in Asia's third-largest economy. The combined runs of all types of refineries, state-run and private, were 4.2% above the 5.2 million b/d target for the month. Analysts attributed the year-on-year increase to most of the refineries ramping up processing to meet higher demand for auto fuels. Indian refineries processed 5.24 million b/d in 2023-24 (April-March), up 2.1% year on year, reflecting domestic demand for oil and oil products. ** Thailand’s Bangchak reported July 19 that the utilization rate at its 120,000 b/d Phra Khanong refinery dropped to 63% in the second quarter, from 101% in the first three months of the year, due to a planned turnaround at the plant. The average crude run at Phra Khanong fell to 76,200 b/d in the quarter, from 121,400 b/d in the first quarter, as the refinery was shut down for a planned turnaround between May 7 and June 2. Meanwhile, the utilization rate at Bangchak's other refinery, the 174,000 b/d Sriracha facility, increased to 89% in the second quarter, from 86% in the first quarter. Over April-June, the Sriracha refinery processed 154,200 b/d of crude oil, up from 150,300 b/d in Q1 2024. Bangchak’s combined utilization rate in the second quarter was 78%, with average crude runs of 230,400 b/d. ** Thailand’s IRPC reported a 94% utilization rate in the second quarter of 2024, up from 90% in the same period of 2023 and 85% in the first quarter, the company said in its latest results report Aug. 6. Its utilization in the first half was 89%, down from 91% in H1 2023. The IRPC Rayong refinery processed 201,000 b/d of crude oil in the second quarter, up 3.6% year on year and surging 10.4% from Q1 2024. It processed 192,000 b/d of crude oil between January and June, down from 195,000 b/d in the same period of last year. Its gross refining margin in Q2 was $2.45/b, down from $4.12/b in Q2 of last year and dropping from $6.56/b in Q1, mainly due to lower spreads of diesel and gasoline products compared with the Dubai crude oil price. The company's GRM in the first half was $4.38/b, down from $5.86/b a year earlier. ** Thai Oil reported a slight decrease in the utilization rate at its Sriracha refinery in the second quarter of this year compared with last year due to a planned shutdown at a crude distillation unit (CDU) in May, the company said in its Q2 results report on Aug. 8. The utilization between April and June was 111%, which was lower than 113% in Q2 last year as its CDU-1 and related units had a planned shutdown in 11 days in May this year. However, the Q2 utilization was higher than the 105% in Q1 as its CDU-3 had experienced an unplanned shutdown in 13 days in January due to technical issues. In Q2, the Sriracha refinery processed 306,000 b/d of crude oil, lower than 311,000 b/d in the same period in 2023 but higher than 288,000 b/d in the Q1 of 2024. Thai Oil’s gross refining margin (GRM) in Q2 was at $3.8/b, falling from $4.5/b in Q2 2023 thanks to lower spreads of gasoline and jet fuel/kerosene over Dubai crude oil prices because of oversupply. Thai Oil’s utilization in the first half was 108%, lower than 113% in the first six months of 2023. Its Sriracha refinery processed 297,000 b/d of crude oil in the period, lower than 309,000 b/d in H1 last year. The company's GRM in H1 was $6.3/b, lower than $7.2/b in H1 2023. ** Australia's Ampol said July 25 that production at its Lytton refinery in the first half of 2024 was at 2.802 billion liters (around 95,000 b/d) -- 5.8% lower compared with the year-ago period. Refining margin in H1 was at $10.27/b, largely unchanged from $10.29/b in the year-ago period. However, in Q2 it rose to $8.81/b from $5.66/b in the year-ago quarter when margins were impacted by an unplanned FCC outage. ** South Korea's S-Oil Corp. raised its crude run rate to average 94.6% in the second quarter, from 80.3% a year earlier and 91.9% in the previous Q1, despite weak refining margin. The refinery ran RFCC/hydrocracker at average of 96.1% in Q2, up from 80.9% a year earlier, but down from 97.6% in Q1. The refiner would keep its crude throughput high in the third quarter. ** SK Innovation's crude run rate at Ulsan and Incheon averaged 81% in the second quarter, up from 80% a year earlier but down from 85% in the first quarter. Its crude run rate was still well below the prepandemic level of around 90%, though it has bounced back from 77% in 2022, 66% in 2021 and 75% in 2020. The refiner could slightly raise crude throughput later this year, but would remain cautious due to lingering market uncertainties. SK Innovation operates the Ulsan complex on the southeast coast that runs five CDUs with combined capacity of 840,000 b/d. Its another complex in Incheon on the west coast runs two CDUs with 275,000 b/d, which makes its total refining capacity of 1.115 million b/d in addition to a 100,000 b/d condensate splitter. Meanwhile there have been reports of new products, as well as change of ownership and mergers. ** India's oil refinery at Paradip has developed a high-octane gasoline variant, STORM- X, for racing cars, company officials said July 23. The new fuel variant is developed by the Indian Oil Research and Development Centre in Faridabad and produced at the state-of-the-art Paradip Refinery. The variant blends high-octane gasoline streams with advanced sustainable components, including 2G Ethanol from the Panipat Refinery. ** South Korea's top oil refiner SK Innovation and SK E&S, a major LNG importer and utility, agreed to merge to become “Asia’s biggest private energy entity,” the companies said July 17. SK Innovation and SK E&S held separate board meetings that approved the merger plan as part of their parent SK Group’s restructuring efforts aimed at strengthening its energy business and providing financial support to the struggling electric vehicle battery segment. The merger will be finalized following approval at the companies’ emergency shareholders' meeting slated for Aug. 27, followed by the official launch of a new entity Nov. 1. The merger ratio between SK Innovation and SK E&S was set at 1:1.2. ** Independent commodity trader Gunvor has agreed to purchase TotalEnergies' 50% stake in Total PARCO Pakistan, a fuel marketing company, the companies said Aug. 6. Total PARCO Pakistan is a 50/50 joint venture between TotalEnergies Marketing and Services and Pak-Arab Refinery Limited (PARCO) in Pakistan with a retail network of more than 800 service stations, fuel logistics and lubricants activities. Following the transaction, the new entity will continue its retail business under the existing “Total Parco” brand and its lubricants business under the “Total” brand for five years in Pakistan. In other news, Pakistan’s government has allowed several refineries recently, including Pak Arab Refinery, PARCO, National Refinery and Attock Refinery to export fuel oil to help reduce stockpiles and optimize refinery operations. In May, Pakistani refineries had exported around 150,411 mt of fuel oil, up 59.5% on the year, according to data from the Oil Companies Advisory Council, which compiles data for petroleum products consumption, imports, and exports. New and ongoing maintenance Refinery Capacity b/d Country Owner Unit Duration Balikpapan 260,000 Indonesia Pertamina Part Back Taoyuan 200,000 Taiwan CPC Part June Dalin 400,000 Taiwan CPC Part Aug SRC 290,000 Singapore Joint Part May Onsan 669,000 South Korea S-Oil Part H2 Lytton 109,000 Australia Ampol Full H2 Kochi 310,000 India BPCL Part Sept Port Dickson 88,000 Malaysia Petron Full Back Manali 210,000 India Chennai Full July Bina 156,000 India BPCL Full Aug Upgrades Vizag 166,000 India HPCL Expansion 2023 Mathura 160,000 India IOC Upgrade N/A Paradip 300,000 India IOC Upgrade N/A Panipat 500,000 India IOC Expansion 2024 Gujarat 275,000 India IOC Expansion NA Vadinar 400,000 India Nayara Expansion NA Jamnagar 1,360,000 India Reliance Expansion NA Numaligarh 60,000 India BPCL Expansion 2025 Kochi 310,000 India BPCL Expansion 2025 Haldia 150,000 India IOC Upgrade 2023 Port Dickson 88,000 Malaysia Petron Expansion NA Bataan 180,000 Malaysia Petron Expansion NA Sriracha 275,000 Thailand Thai Oil Expansion 2023 Barauni 120,000 India IOC Expansion NA Balikpapan 260,000 Indonesia Pertamina Expansion 2024 Balongan 125,000 Indonesia Pertamina Upgrade 2026 Tuban 100,000 Indonesia TPPI Upgrade 2024 Byco 155,000 Pakistan Byco Group Upgrade NA Cilacap 348,000 Indonesia Pertamina Upgrade 2023 Plaju 133,700 Indonesia Pertamina Upgrade Pakistan Ref 50,000 Pakistan Pakistan Ref Upgrade NA Hengyi 160,000 Brunei Hengyi Ind Expansion 2024 Dung Quat 130,000 Vietnam Binh Son Expansion 2026 Attock 53,400 Pakistan Attock Upgrade NA National Refinery 70,000 Pakistan National Ref Ltd Part Dec Dumai 170,000 Indonesia Pertamina Expansion NA Bongaigaon 54,000 India IOC Expansion NA Pulau Muara Besar 160,000 Brunei Hengyi Upgrade NA Nagapattinam 180,000 India Chennai Launch NA Ulsan 840,000 South Korea SK Energy Upgrade NA Geelong 120,000 Australia Viva Energy Upgrade 2025 Digboi 13,000 India IOC Expansion 2025 Rayong 215,000 Thailand IRPC Upgrade Completed Launches Barmer 180,000 India HPCL Launch 2024 Maharashtra 1,200,000 India Joint Launch NA Tuban 300,000 Indonesia Joint Launch 2024 Dornogovi 30,000 Mongolia Government Launch 2026 Mumbai 1,200,000 India Ratnagiri Launch 2025 Gwadar 300,000 Pakistan Joint Launch NA Balasore NA India Haldia Launch NA Hambantota NA Sri Lanka Joint Launch NA Bontang 300,000 Indonesia Pertamina Launch NA PARCO 250,000 Pakistan PARCO Launch 2025 Nagapattinam 180,000 India Chennai Launch 2025 Ratnagiri 1,200,000 India Joint Launch 2025 Trans Asia Refinery 120,000 Pakistan Joint Launch NA Long Son 300,000 Vietnam PetroVietnam Launch 2027 New and ongoing maintenance New and revised entries ** There has been no impact on the refinery units at South Korea's S-Oil's Onsan facility following a fire at an aromatics unit. “No other facilities at the complex -- such as crude distillation units and heavy oil upgraders -- were affected,” a company official said July 29. S-Oil shut its No. 2 aromatics unit in Onsan after a fire on July 28 morning. The fire erupted at 4:47 am local time (0747 GMT) July 28 and was completely extinguished about five hours after it started, according to the official. No casualties were reported. The unit can produce 1.05 million mt/year of paraxylene and 300,000 mt/year of benzene. Separately, S-Oil Corp. plans to shut its smallest No. 1 crude distillation unit at Onsan with a capacity of 90,000 b/d for maintenance for several weeks later this year, with cracking margins forecast to rebound in the third quarter, a company official said July 26. However, the official refused to provide details such as exact dates for the maintenance in the second half of 2024. Earlier, the official said shutdown of No. 1 CDU might come in the second quarter, indicating the maintenance seems to have been delayed. The company conducted massive turnaround for the past two years, there would be no maintenance plans for this year, except the No. 1 CDU, according to the official. ** South Korea's SK Innovation has no plans to shut its crude distillation units at Ulsan and Incheon for maintenance in the third quarter as it forecasts solid products crack margins, but has remained cautious in raising crude throughput, a company official said Aug. 1. “The company will not shut down other facilities such as heavy oil upgraders in the third quarter as we conducted massive maintenances so far this year,” the official said. The refiner has restarted its 240,000 b/d No. 4 CDU in the Ulsan complex since June 20 after a month-long maintenance. SK Innovation has also restarted the 260,000 b/d No. 5 CDU since April 15 after a month-long maintenance focused on replacing the preheater for boosting efficiency. The refiner’s No. 1 residue hydrodesulfurization unit with a capacity of 72,000 b/d in the Ulsan complex has restarted since June 20 after a month-long maintenance. The company also restarted two vacuum residue desulfurization units, both in the Ulsan complex and each with a 40,000 b/d capacity, in early April after weeks-long maintenance. On April 15, SK Innovation restarted the 260,000 b/d No. 5 CDU after a month-long maintenance period focused on replacing the pre-heater for boosting efficiency. ** Hindustan Petroleum's officials ruled out any planned turnaround at the Vizag refinery during the remaining period of the current fiscal year. Vizag ran at 114% of capacity in 2023-24 (April-March) against 112% in 2022-23. In June, Vizag ran at 114% while it ran at 102% during the April-March period. ** India's Bharat Petroleum Corporation's refinery at Bina, Madhya Pradesh, is set for a 15-day turnaround over August-September, company officials said July 30. All the four major units at the refinery -- hydrocracking unit, diesel hydro desulphurization unit, diesel hydrotreater unit and sulfur recovery unit -- are expected to undergo maintenance during the turnaround. ** Indian state-owned Bharat Petroleum Corp Ltd plans a 30-day turnaround at its Kochi refinery for primary and secondary units, company officials said. During the turnaround period, most units will be shut for maintenance. The units to be shut down are expected to be CDU-2, the fluid catalytic cracking block, the vacuum distillation unit, the sulfur recovery unit, and the hydrogen sulfide removal unit. The CDU has a 4.5 million mt/year (90,000 b/d) capacity. Officials have previously said the maintenance was planned for September-October when the refinery's usual capacity would be reduced by 29%. During the planned shutdown period, the second CDU with 10.5 million mt/year capacity would function normally. ** Taiwan's CPC has further delayed the restart of its residue fluid catalytic cracking unit in Dalin to Aug. 23, according to company notice seen by S&P Global Commodity Insights. The delay was attributed to further technical issues, with the RFCC unit's catalytic equipment suffering damage following a restart attempt Aug. 2, the notice said. The unit, which can produce 280,000 mt/year of propylene, was initially slated to resume operation July 28 but was postponed to Aug. 1. It was shut July 21 due to technical issues. ** India’s Nayara Energy may undertake maintenance at the Vadinar refinery in the near term as evident from a tender where the refiner offered vacuum gasoil for loading in September, market sources said July 24. The maintenance is expected to take place in September. According to market sources one of the units expected to undergo works is a hydrocracker which processes VGO into diesel. Company officials did not comment on the possible maintenance citing company policy. ** The 360,000 b/d CDU No. 4 at Pertamina's Balikpapan refinery in East Kalimantan, Indonesia, has resumed normal operations as of July 26, sources said July 29. The unit underwent maintenance following a fire incident May 25. The whole refinery is fully back online after completing its maintenance, sources said. Balikpapan has been under maintenance and expansion since the start of the year. This is a key step in integrating existing refinery units with newly-built ones and has resulted in raising capacity by 100,000 b/d to 360,000 b/d and increasing the quality of products to Euro 5 standards from Euro 2. The new capacity includes the revamped 300,000 b/d CDU No. 4 and the 60,000 b/d CDU No. 5, according to the company. ** India’s Bharat Petroleum Corp. Ltd. has no maintenance plans for its Mumbai refinery for 2024 and has not carried out any work in July, company officials said July 31. Earlier, the refiner had planned to shut down one of the crude distillation units for 30 days to coincide with the second quarter, which runs from July to September. The CDU that had been planned to undergo maintenance was of smaller capacity. ** Australia's Ampol in a brief statement to Commodity Insights July 10 said the refinery will be undergoing planned turnaround commencing mid-July to end-August. ""[The turnaround] is for the reformer primarily, although we will take the opportunity to do some other minor maintenance and cleaning,"" the company said in the statement. Ampol said Feb. 19 its Lytton refinery will have a ""scheduled turnaround and inspection"" in H2 2024 and expected to last about seven weeks. Existing entries ** Taiwan's Formosa Petrochemical will enter planned turnaround at Mailiao in mid-September 2024, with both the 180,000 b/d No. 1 CDU unit and the 80,500 b/d No. 1 RDS unit expected to be offline for 40 days, while the 76,000 b/d No. 1 RFCC unit will likely be taken offline for nearly 70 days. ** SRC will carry out planned maintenance at its plant on Jurong Island between mid-August and mid-September, according to market sources. Two of the CDUs were expected to be offline. The refinery has three CDUs. One CDU was due to have maintenance in May, although it has been deferred, according to market sources. An SRC spokesperson said the company does not comment on its facility operations. ** India's Chennai Petroleum Corporation Ltd. plans a month-long maintenance shutdown mid-year, company officials said. The maintenance at Manali refinery was expected to take place over July-August. ** Malaysia's Melaka bigger 200,000 b/d CDU is expected to undergo maintenance in 2026. ** Taiwan's state-run CPC plans to shut the 50,000 b/d residue catalytic cracker at the Taoyuan refinery for scheduled maintenance over June 25 to Sept. 2, a source close to the company said. ** CPC has scheduled to shut the 40,000 b/d catalytic reformer at the Dalin refinery for turnaround over Aug. 30 to Oct. 18. The unit produces the reformate feedstock for the company's No. 3 and No. 6 BTX plants. CPC's No. 6 BTX unit is also scheduled for maintenance from Aug. 30 to Oct. 1. The refiner also plans to shut its residual oil cracking unit at Dalin refinery from Oct. 30 to Dec. 23 for maintenance. The unit can produce 53,000 mt/year of propylene. ** Repair works on the RDS No. 3 unit of Taiwan's state-owned CPC Corp's Dalin refinery -- also known as Talin -- were ongoing, a company spokesperson said in November 2023. The company expected the works to be completed by early 2025, though the timeline will be reviewed on a “rolling basis” as the project progresses, he said. The RDS unit was shut following a fire at the refinery's 40,000 b/d residue hydrotreater No. 3 unit in late October 2022. ** New Zealand's sole refinery Marsden Point converted operations to an import-only fuel terminal in April 2022. ** ExxonMobil Australia integrated the common infrastructure between the Altona refinery in Melbourne and the new fuel import and storage terminal over the course of 2022. The process of shutting down the refinery started at the end of August 2021 and was completed in May 2022. Upgrades New and revised entries ** Hindustan Petroleum's Vizag refinery in Andhra Pradesh state is expected to run at its full expanded capacity of 300,000 b/d after the expansion project, which includes a 3 million mt/year hydrocracker, a sulfur recovery unit and hydrogen unit. Its bottom-of-the-barrel upgrade will be over by the January-March quarter of the current 2024-25 fiscal year. After the fully expanded capacity comes into force, the refinery's overall distillate yields will increase by at least 10% from the current level of 75%. After expansion, Vizag's distillates would reach 60% from 48%-50%, gasoline at 18%, and LPG at 5%. From the next fiscal year (2025-26), there will be no fuel oil production at the Vizag refinery. ** Thailand's IRPC said it put its ultra clean fuel project into commercial operation in April. The UCF project, which includes a new 75,000 b/d diesel hydrotreater, will enhance the efficiency of the refinery plant and improve the quality of its diesel to meet the Euro-5 standard, in alignment with Thai Ministry of Energy's policy that requires diesel distribution to comply with the Euro-5 standard beginning Jan. 1, 2024. This standard reduces the permissible sulfur level to 10 ppm from 50 ppm under Euro 4, IRPC said. ** Thai Oil reported little progress on its delayed clean fuel project (CFP). The company completed 96.8% of work at the project as of Jun. 30, slightly higher than the 96% as of March 31. The CFP will help Thai Oil move from producing low-value products to producing higher value and more environmentally-friendly products. It will also enable the company to process more types of crude oil with higher quantities. Thai Oil initiated the commissioning of the Hydrodesulfurization unit (HDS-4) in February, ahead of schedule. This unit played a vital role in enabling the company to comply with the Euro-5 standard, which was enforced in Thailand this year. Additionally, Thai Oil is working to accelerate the commissioning of the remaining units, it said. Existing entries ** PetroVietnam's Binh Son Refining and Petrochemical was targeting completion of the expansion project at its Dung Quat refinery in the third quarter of 2028, PetroVietnam said in May. The target was announced during the 2024 annual stakeholders meeting that BSR held on May 23. The board of managers of BSR announced in March that it has approved the expansion project, which will raise Dung Quat's capacity to 171,000 b/d from 148,000 b/d. The company hopes it can award the engineering, procurement and construction contract so work to build the expansion project can begin from 2025. The expansion project will add seven new units, including gasoline hydrotreating technology, diesel hydrotreating technology and sulfur recovery unit; and revamp nine existing units. Currently Dung Quat refinery has 15 units. ** Pakistan Refinery Ltd. is aiming to award the EPC contract for the upgrade and expansion of the refinery by the end of 2024 and ""work towards achieving financial close of the project"" by the middle of 2025, it said in a filing to the Pakistan Stock Exchange in May. The announcement was made after senior management visited China and engaged with EPC contractors and financial institutions. Pakistan Refinery Ltd. plans to double its capacity to 100,000 b/d in five years at a total project cost of around $1.7 billion, CEO Zahid Mir said in January. It also reiterated that its refinery expansion and upgrade project involve doubling of the capacity and adopting a deep conversion configuration. The upgraded refinery will produce Euro V products, enhancing the refinery's ""operational efficiency and environmental footprint,"" it also said. Pakistan Refinery has previously said it aims to install bottom-of-the-barrel conversion technology and naphtha processing. That includes a residue fluidized catalytic cracking process, LPG Merox process and a naphtha complex, featuring a naphtha hydrotreater and a CCR platforming unit. ** Indonesia's Pertamina said that its Balikpapan refinery will also produce propylene upon completing its upgrade and expansion which started in February and has largely been completed. The refinery's production capacity will raise to 360,000 b/d from 260,000 b/d and the quality of products will improve from Euro II to Euro V. Upon the completion of the upgrade, the refinery will produce 225,000 mt/year of propylene, which will be used as a feedstock for the polypropylene unit at Balongan. That unit subsequently will be able to substitute imported products. KPI, which runs six refineries, has petrochemical units currently at Balongan, as well as a paraxylene unit at Cilacap and a polypropylene unit at Plaju. ** Indian Oil Corp has selected global technology processing company Lummus' Cumene Technology solution for the 440,000 mt/year cumene unit at its Paradip refinery on India's east coast. The new cumene unit is part of a grassroots petrochemical and polymers expansion at the refinery. ** India's Nayara Energy plans to set up two ethanol plants of 200,000 liters/day capacity each by 2025-26 (April-March), company officials said. One plant will be in Andhra Pradesh while the other unit will be in Madhya Pradesh. Nayara's two plants will help meet the government's 20% ethanol blending target for 2025, the company said. Nayara aims to gradually increase the number of ethanol plants to five with production capacity 1 million l/d in the near future, to ensure the reliability of the blending program. Nayara Energy also plans to expand and modernize existing refining capacity, a company official said Feb. 15, without providing further details. According to Russian media reports, citing an energy ministry source, the refinery looks at more than doubling its capacity. A Rosneft-led consortium owns Nayara in which trading company Trafigura and UCP Investment Group are partners. Nayara is looking to set up a 450,000 mt/year polypropylene plant at the Vadinar refinery as part of the upgrade. The plant is expected to be commissioned in 2024. ** Thai Oil had completed 96.8% of work at the project as of June 30, slightly higher than the 96% as of March 31. The CFP will help Thai Oil move from producing low-value products to producing higher value and more environmentally-friendly products. It will also enable the company to process more types of crude oil with higher quantities. Thai Oil initiated the commissioning of the Hydrodesulfurization unit (HDS-4) in February, ahead of schedule. This unit played a vital role in enabling the company to comply with the Euro-5 standard, which was enforced in Thailand this year. Additionally, Thai Oil is working to accelerate the commissioning of the remaining units, it said. The $4-billion project is expected to increase the refinery's capacity to 400,000 b/d and help Thai Oil move from producing low-value products to producing higher value and more environmentally friendly products. It will also enable the company to process more types of crude oil with higher quantities. Thai Oil initiated the commissioning of the Hydrodesulfurization unit (HDS-4) in February, ahead of schedule. This unit played a vital role in enabling the company to comply with the Euro-5 standard, which was enforced in Thailand this year. Additionally, Thai Oil is working to accelerate the commissioning of the remaining units, it said. ** India's Numaligarh Refinery plans to run at an expanded capacity of 9 million mt/year (180,000 b/d) in December 2025, company officials said. The latest timeline to start the expansion is three months behind an earlier deadline. The refiner is expected to complete installation works related to a new CDU and associated secondary units by September at the latest. Currently, the refinery has a 3 million mt/year (60,000 b/d) capacity. The proposal related to NRL's capacity expansion was approved by the federal government in 2019. The expanded full runs would be sourced 61% through imported crude and the rest via local production, said Ranjit Rath, OIL's chair. The expansion plan will add a second CDU of 6 million mt/year. Details of a new diesel hydrotreating unit to be installed as part of its multiyear expansion have also been finalized. Toyo Engineering Corp. said that its India subsidiary was awarded a contract for the engineering, procurement, construction and commissioning of a 3.55 million mt/year diesel hydrotreating unit. Separately, Axens will provide technical support and license a naphtha hydrotreating unit, continuous catalytic reforming unit, isomerization and fluid catalytic cracker. ** Indian Oil Corp.'s Panipat refinery is set to run its expanded capacity of 500,000 b/d (25 million mt/year) in December 2025 form the current 15 million mt/year, company officials said in February 2024. The setting up of new petrochemical units as part of the expansion project would help the refinery in North India diversify its product portfolio. The project will produce gasoline, diesel, jet fuel and LPG by utilizing indigenous INDMAX technology. The installation of polypropylene and catalytic dewaxing units will help diversify product offerings, strengthening market competitiveness. McDermott has been awarded a project management consultancy (PMC) contract by IOC for the Maleic Anhydride (MAH) unit at the Panipat Refinery and Petrochemical Complex. The contract includes FEED, construction supervision, pre-commissioning and commissioning among other things. ** Indian Oil Corp. owned Barauni refinery revised the completion target for raising capacity by 50% to 180,000 b/d by December 2025, company officials said in February 2024. The expansion includes setting up secondary process units for petrochemical products. The project aims to set up the state's first polypropylene unit. The capacity expansion project was originally scheduled for completion in 2021 but was delayed due to COVID-19. IOC has awarded an engineering, procurement, construction and commissioning contract to Paris-based Technip for its expansion project at the Barauni refinery. The contract involves the installation of a 1 million mt/year ""once-through"" hydrocracker unit, a fuel gas treatment unit and associated facilities. ** A final investment decision on the Lytton Ultra Low Sulfur Fuels Project is expected in Q1 2024, Australia's Ampol said. ** India's Hindustan Petroleum Corp Ltd has selected KBR solvent deasphalting (SDA) technology for its Mumbai plant. ""KBR will provide technology licensing, basic engineering, training, start-up support and proprietary equipment to HPCL,"" it said, adding that the new 850,000 mt/year unit will be integrated with the existing facility. ""This unit will help HPCL enhance refinery economics by upgrading fuel oil into more valuable products while lowering the overall carbon footprint,"" KBR said. ** India's Bharat Petroleum Corporation-owned Kochi refinery in South India would spend around $606 million to install a polypropylene unit. The unit will utilize the abundant propylene feedstock of the refinery and will have a capacity of 400,000 mt/year. ** Expansion plans at Pakistan's Attock refinery will depend on the future availability of domestic crude produced in the Khyber Pakhtunkhwa and Potwar region, currently running at around 41,000 b/d, as importing crude oil is not economically feasible. As a result, the refinery has requested that 5,000 b/d of condensate/crude that is currently exported be redirected to the refinery. A six-year, $500 million upgrade project to produce more Euro-5 gasoline and diesel is planned. Its upgrade plans include a continuous catalyst regeneration complex, the front-end engineering design for which has been completed. The FEED for the revamp of the diesel desulfurization unit has also been completed. Both units will produce products meeting Euro-V specifications. The refinery also plans to install a new 50,000 b/d deep conversion green-field refinery, without providing a time frame. ** Indian Prime Minister Narendra Modi laid the foundation stone of Bina refinery's downstream petrochemical complex and expansion project involving $6 billion investment by 2027-28, company officials said in September 2023. The project includes setting up an ethylene cracker that will produce about 1,200 kt/year of ethylene and propylene. As a result of the expansion, the capacity of the Bina refinery will be raised to 220,000 b/d in 2027-28, up 40% from the current capacity. ** Australia's Viva Energy reported in August 2023 that planning and investment for its ultra-low sulfur gasoline project at Geelong are ""well underway"" with completion expected in the second half of 2025 ""due to delays of critical components."" ** India's Bharat Petroleum Corp Ltd has selected Chevron Lummus Global's Isofinishing technology for a catalytic processing unit at Mumbai refinery. The process unit, with 200,000 mt per annum capacity, will be India's first catalytic process unit to manufacture de-aromatized solvents and white oil. Isofinishing is CLG's proprietary hydrofinishing technology. ** Indian Oil Corp's board has accorded ""Stage 1"" approval to set up a petrochemical complex at Paradip on the east coast, the company said March 2023. The petrochemical complex will include a world-scale cracker unit along with downstream process units for producing several petrochemical products such as polypropylene, high density polyethylene, linear low density polyethylene, polyvinyl chloride. It will facilitate the production of niche chemicals and petrochemicals such as phenol and isopropyl alcohol, a company statement said. The official said the mega petrochemical project would have extensive integration and stream exchange with the Paradip refinery, and not exactly a part of the existing refinery at Paradip. ** The second phase of expansion of Hengyi Brunei's PMB petrochemical complex is expected to be operational in 2027-28, according to a report from The Scoop website citing an official. The second phase is expected to increase the refinery capacity from 160,000 b/d to 280,000 b/d. It will also add a paraxylene unit, an ethylene plant and purified terephthalic acid (PTA) facility, the report said. China's Hengyi plans to start up a new 450,000 mt/year high density polyethylene and 450,000 mt/year linear low density polyethylene plant at its Pulau Muara Besar plant in Brunei at the end of 2024 or in early 2025, Commodity Insights reported. ** Indonesia's Balongan has increased its capacity to 150,000 b/d after completing in 2022 the first phase of its upgrade which involved raising refining capacity from 125,000 b/d. The second and third phases will increase the product yield from the refinery. ** Toyo Engineering has been awarded a contract by India's IOC for EPCC (engineering, procurement, construction and commissioning) of a new 2.5 million mt/year vacuum distillation unit at the Vadodara refinery in Gujarat. The Gujarat refinery is also in the process of expanding its capacity from 13.7 million mt/year to 18 million mt/year, which is due for completion in the first half of financial year 2024, the statement said. Under the expansion project, the smaller capacity atmospheric unit and vacuum units will be replaced by a large atmospheric vacuum unit to raise operational efficiency. ** IOC has approved Digboi refinery's proposal to raise capacity to 20,000 b/d. Digboi, India's oldest refinery, was set up in 1901. Its current capacity stands at 13,000 b/d. ""The project is expected to be commissioned by October 2025,"" the company said in a regulatory filing. ** SK Innovation and Energy has selected Honeywell UOP for a feasibility study to retrofit the hydrogen plant at its Ulsan refinery with carbon capture. SK will ""explore capturing and sequestering 400,000 tons of carbon dioxide"" from the existing hydrogen production assets. From 2026, the CO2 will be reinjected in depleted natural gas reservoirs, Honeywell said. ** Indian Oil Corp. has received environmental clearance for a capacity upgrade project at its Mathura refinery. The capacity expansion project includes residue upgrade and distillate yield improvement programs. The upgraded crude processing capacity will be 11 million mt/year. ** Reliance Industries Ltd. has no investment commitment for any refinery capacity expansion plan at its Jamnagar integrated complex, company officials said. Reliance has two refineries at the world's biggest refinery complex in Gujarat on India's west coast with a combined capacity of 68.2 million mt/year. Reliance has received environmental clearance for a capacity expansion proposal at its export-focused refinery from 35.2 million mt/year to 41 million mt/year. Reliance also applied for regulatory clearance for a capacity expansion proposal at its domestically focused refinery from 33 million mt/year to 40.5 million mt. However, it aborted the proposal after marketing conditions changed. ** State-run Indian Oil Corp. has awarded an engineering, procurement, construction and commissioning contract to Paris-based Technip for its expansion project at the Barauni refinery in the eastern state of Bihar. The contract involves the installation of a 1 million mt/year ""once-through"" hydrocracker unit, a fuel gas treatment unit and associated facilities. The expansion project will raise its capacity by 50% to 180,000 b/d and add petrochemicals such as polypropylene to its product portfolio. The initial plan for completing the capacity project was scheduled for 2021. But the second wave of the coronavirus pandemic may result in this being rescheduled. ** IOC-owned Bongaigaon refinery plans to raise its capacity to 4.5 million mt/year. ** IOC's Haldia refinery will launch a second catalytic dewaxing unit with 270,000 mt/year capacity in 2023. The unit will produce advanced Group III Lubes Oil Base Stock. The unit is expected to be commissioned in January 2023. ** Pakistan's largest refiner, Cnergyico -- formerly Byco -- plans to convert the bulk of its fuel oil output capacity into producing gasoline and diesel meeting international Euro 5 standards, Chair Mohammad Wasi Khan said in September 2021. Byco Petroleum typically produces 30%-40% fuel oil, or furnace oil as it is commonly called in the country, from each barrel of crude oil it refines. The product is mainly used by utilities for power generation. But furnace oil demand has weakened after utilities started using LNG, which is a cleaner alternative, said Khan. ""Byco started development work to modernize its refinery by launching the Upgrade-I project at the start of this year which would be completed by 2025,"" he said. Civil work on the site and the arrival of equipment and machinery are underway, and the company is getting ready to install additional units. ""Byco seeks to install 14 plants altogether, including fluid catalytic cracking and diesel hydro desulfurization units,"" Khan said. By the time it finishes, the company will have 19 plants at its oil refining complex. This equipment will help convert the bulk of Byco's furnace oil output into Euro 5-compliant gasoline and diesel and produce other high-quality fuels like jet fuel and kerosene. Meanwhile, Axens has been selected by Byco to support its upgrade projects Phases I, II and III. The scope of Axens' work includes ""the supply of process design package for integration of three existing units into FCC gasoline hydrotreating configuration"" as well as catalysts and adsorbents for the sulfur recovery unit and distillate hydrotreaters 2 and 3, and distillate hydrotreater 3 reactor internals. The start-up date of the complete Phases I, II and III is expected in Q2, 2024. Currently, Pakistan's Byco refinery is rebranding under the name of Cnergyico Pk Ltd. ** Indonesia's TPPI has laid out the next steps of its upgrading works at its Tuban refinery, setting 2024 as the target for the completion of its new olefin project. TPPI will also continue with its aromatics revamping project. The olefins project is slated for completion by 2024, while the aromatics revamping project will be completed by 2022. ** Petron Malaysia has been considering a plan to more than double capacity at its 88,000 b/d Port Dickson refinery in Malaysia to 178,000 b/d. ** Saudi Aramco and S-Oil signed a memorandum of understanding to collaborate on a $6 billion steam cracker and olefin downstream project at Onsan due for completion in 2024. ** ExxonMobil announced a final investment decision at its Singapore complex. The project includes an expansion aimed at converting ""fuel oil and other bottom-of-the-barrel crude products into higher-value lube base stocks and distillates."" The startup is set for 2023. ** Petron plans to expand and upgrade its Bataan refinery in Limay. There was no timeline for when the expansion will take place. The refinery's capacity will be increased by 100,000 b/d of condensates and light crude oils, from the current capacity of 180,000 b/d. Launches Existing entries ** India's Bharat Petroleum Corp. Ltd. plans to build a 12 million mt/year (241,000 b/d) refinery in the next five years, company officials said June 2024. The refiner is exploring suitable sites in the three states -- Andhra Pradesh in south India, Uttar Pradesh in north India and Gujarat in western India. ""The details of our fourth refinery are being worked out,"" said a company official. The planned refinery would be BPCL's biggest refinery among its existing three at Mumbai, Kochi and Bina. ** India's Hindustan Petroleum Corp. Ltd. said in May that the construction of process units at the new integrated refinery at Barmer has seen 66% of the estimated project cost of $8.3 billion spent. Currently, the key process units Diesel Hydrotreating (DHDT) and Hydrogen Generation Unit (HGU) are in the pre-commissioning stage. The mechanical completion of Cooling Tower1, Raw Water Treatment Plant, Compressed Air & Cryogenic Nitrogen Plant was achieved during the January-March period. The physical progress for the other key process units CDU/VDU, DCU, PFCCU & VGO-HDT was more than 90% complete and progress in all other packages and units was also being sped up to meet the completion deadline of December. The project's mechanical completion was expected to be completed by mid-June. It will have a petrochemical production capacity of 26% with 2.4 million mt/year output. The project has been running almost three years behind schedule due to the impact of COVID-19 and related restrictions. It was originally scheduled for completion by March 2021. ** India's Chennai Petroleum Corp. Ltd.'s 9 million mt/year (180,000 b/d) grassroots refinery project at Nagapattinam is expected to be commissioned by December 2027, company officials said April 30, delayed by two years from an earlier deadline amid fallout from the COVID-19 pandemic. CPCL will develop the refinery with its parent company Indian Oil Corp. as a joint venture. The land for the refinery project has already been acquired after environmental clearance. The project is still waiting for approval from the federal government regarding the new equity structure. Recently, CPCL changed the capital structure of the joint venture developing the project, with its parent company IOC holding a 75% stake and the remainder controlled by itself. The project will require 36 months for physical construction after the government clears the new equity structure and another three months for final commissioning, a company official said. The new refinery will have capacity to produce around 4 million mt/year of diesel, 1.8 million mt/year of gasoline, both Euro 6 grades, and 600,000 mt/year of LPG and 300,000 mt/year of jet fuel. The new refinery's configuration will allow the processing of 50% each of a mix of Basrah Light and Basrah Heavy and also 100% Iranian Light. ** India's Nagapattinam refinery project has received mandatory regulatory clearances, though civil construction activities are yet to start. The configuration of the proposed refinery would be such that it would be able to process 50% each of a mix of Basrah Light and Basrah Heavy and also 100% Iranian Light. It is expected to come on stream by 2028. ** Sri Lanka has awarded a contract for building a new refinery at Hambantota to China's Sinopec, Minister of Power and Energy Kanchana Wijesekera said Nov. 27. ""Cabinet approval was granted today to award the contract to China Petroleum & Chemical Corporation (SINOPEC) of China, to enter into an agreement to establish"" a new refinery in Hambantota, Wijesekera said. Sri Lanka has been looking for potential investors to express interest in building a new refinery in Hambantota. The country previously canceled another project for the construction of a new refinery due to a lack of progress. ** Five state-run companies in Pakistan have joined together to build a greenfield refinery in the country's southwestern province of Baluchistan, with a capacity of 300,000 b/d, Energy Minister Mussadik Malik said July 27. A signing ceremony was held in Islamabad between Pakistan State Oil, Oil and Gas Development Co. Ltd., Pakistan Petroleum Ltd., Pak Arab Refinery and Government Holdings Private Ltd. Pakistan is also looking for foreign partners in the joint venture, the minister said. The refinery, whose construction is expected to take 20 years, will get 20 years tax holiday, an energy ministry official said. ** Indonesia's state-owned oil company Pertamina has said the Ukraine conflict might impact its joint refinery project with Russia's state-owned company Rosneft, according to local media reports. Pertamina wants to add a new partner due to sanctions imposed on the Russian company that could impact the final investment decision for the project, Taufik Aditiyawarman, a senior official of the refinery subsidiary PT Kilang Pertamina Internasional, told reporters. Asked whether Pertamina would like to change its JV with Rosneft, Taufik Aditiyawarman said that there was ""no plan to change"" the JV partner. Rosneft holds a 45% stake and Pertamina a 55% stake in the joint venture to build an oil refinery and petrochemical complex. The JV was set up in October 2016, Commodity Insights reported. Commissioning of the plant in East Java was expected by 2025, but the FID has been delayed. Within the next five years, primary processing design capacity is planned at up to 15 million mt/year, around 300,000 b/d. Planned capacity at the petrochemical complex includes more than 1 million mt/year for ethylene and 1.3 million mt/year for aromatic hydrocarbons. ** India's planned refining and chemicals complex Ratnagiri on its west coast will be split into three refining units, each with 20 million mt of capacity, according to the chair of Indian Oil Corp. ""Now we don't intend to go to 60 million mt at one go; we'll have three of 20 million mt each,"" Shrikant Vaidya told Commodity Insights on the sidelines of the Middle East Petroleum and Gas Conference in Dubai. The Ratnagiri refinery will be co-developed by Abu Dhabi National Oil Co., Saudi Aramco as well as Indian state-backed refiners including, IOC, Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd. The project, which has an estimated $70 billion development cost, has been delayed by issues with land acquisition in the coastal region of Maharashtra state. The first 20 million mt refinery will begin work once soil studies are complete, Vaidya said. The refinery's original proposed site was in Ratnagiri district, 250 km from Mumbai, Commodity Insights reported. A second option that was considered was Raigad district, around 100 km from Mumbai. ** India is confident to complete Mongolia's 1.5 million mt (30,000 b/d) maiden refinery project in 2025, oil ministry officials said March 2023. The latest timeline is nearly three years behind the schedule compared with an earlier completion deadline. The rescheduling of the completion deadline has been done due to two years of disruption in project work on account of COVID-19. The greenfield refinery was expected to reach 70% of installed capacity after two years of operation, while the full run was expected after four years of operation. The proposed Mongolian refinery will have a complexity index of 12. ** PetroVietnam is seeking government approval to build a 300,000 b/d mega refinery and petrochemical complex, as well as a facility to accommodate national crude oil and refined products reserves in Long Son in Ba Ria Vung Tau province, according to local media reports and industry sources with close knowledge of the state-run oil firm's refining business. A feasibility study report will be prepared from June to December 2023 and the final investment decision will be approved in the first quarter of 2024. After that, the EPC contractor will be selected and the project will be built from January 2024 to December 2027, according to the sources close to the company. Vietnam has a total refining capacity of around 350,000 b/d so far, which is only enough to cover about half the country's oil products and chemicals demand. The new complex is expected to nearly double Vietnam's refining capacity, and it will process most of the domestic raw materials of crude oil, gas and condensate. ** Flow Petroleum Ltd, a Pakistan-based oil marketing company, has signed an agreement with Al Ghurair Investments, a large investment group in the UAE, for 100% ownership of a 120,000 b/d refinery named Trans Asia Refinery. It will be set up on 200 acres leased from Port Qasim Authority, Karachi, Pakistan. ** Indonesia's Pertamina has postponed construction of a proposed 300,000 b/d Bontang refinery in East Kalimantan. ** Indian Haldia Petrochemicals Ltd.'s proposal to invest $4.05 billion in an integrated refinery and petrochemicals facility in Balasore has been granted approval by the Odisha state government. ** Pakistan and Saudi Arabia have been in talks to develop a 200,000-300,000 b/d refinery in Balochistan's Gwadar district for $10 billion. ",REFINERY NEWS ROUNDUP: Mixed runs in Asia-Pacific,2024-08-08 11:50:48+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.2687084883299299,0.0445035911456344,0.9920626479922292,Bullish,Bullish 3," The physical low sulfur (1%S) fuel oil Med-North spread widened to a record high Aug. 7, amid a strong pull of demand from within the Mediterranean markets. Platts last assessed the LSFO Med-North spread -- the spread between 1%S FOB Med cargoes and 1%S FOB NWE cargoes -- at $41/mt Aug. 7, marking a record high since the assessment began, S&P Global Commodity Insights data showed. Within the Platts Market on Close assessment process, Alkagesta has consistently been bidding since early August for a 25,000-mt LSFO cargo on a CIF Malta basis, pushing up the Med-North spread in recent days. With the majority of LSFO production occurring within the Northwestern European markets, the 1%S Med-North predominately sees a premium within the Mediterranean markets to incentivize flows to move from the North into the Mediterranean. One trader said the Mediterranean LSFO market has become stronger over the past two weeks “as it needs the arb” from Northwest Europe, adding that they have seen lots of prompt demand for LSFO within the Mediterranean from utility shorts to meet their power generation needs. A second trader said the lack of 1%S production within the European refinery complex means that there is a more limited pool of supply entering the markets. The LSFO market remains thinly traded and therefore more susceptible to larger fluctuations in prices, traders continued to note. ",Physical 1%S fuel oil Med-North spread hits record high on competitive bidding in Platts MOC,2024-08-08 11:28:20+00:00,Middle Distillates,Middle Distillates,0.9519853566650026,0.0096125477347839,0.82290523424995,Bearish,Bearish 4," Bunkering activity in India has experienced significant growth during the first seven months of 2024, with the total number of bunkering and ship-to-ship (STS) calls to Indian ports increasing by 64% year on year. According to S&P Global Commodities at Sea data, the total number of bunkering and STS calls to Indian ports surpassed 6,765 compared with just 4,113 during the same period in 2023. “This year the performance of all ports is better because mostly the demand has increased,” a Gujrat-based trader told Commodity Insights. “We anticipate that volumes could increase significantly, reaching up to 3,000-4,000 mt in the coming months for Hazira and Dahej,” said a Hazira-based trader. This time, the monsoon has had little effect in Mumbai, said market participants. Mumbai, which is one of the major bunkering hubs in the country, saw a 53% rise in total bunkering and STS calls, CAS data showed. “One barge is operating at Mumbai OPL, specifically handling monsoon deliveries,” a Mumbai-based trader said Aug. 8. ""For July, Mumbai's total volume is expected to exceed 60,000 mt. Product availability is strong, with significant HSFO and VLSFO orders at OPL deliveries,"" the trader added. Attacks on shipping in the Red Sea have prompted shipowners to take longer voyages around Africa. This disruption caused a substantial increase in monsoon bunker demand at Indian ports, which is typically lower due to weather disruptions. The growth was further fueled by favorable pricing and consistent supply from domestic refineries since the second quarter of 2024. Platts, part of Commodity Insights, assessed 0.5% marine fuel oil delivered to Mumbai at $641/mt CFR on Aug. 8, down $4/mt week on week, while in Kochi prices were at $647/mt, up $4/mt. Weather disruptions hit bunker volumes at Gujarat-based ports Demand for bunker fuels at West coast India ports took a hit in July as supplies have been impacted by the ongoing monsoon season, traders said. During the Southwest monsoon period from June to September, certain port authorities impose restrictions on barge movement due to unfavorable weather conditions impacting anchorage supplies. “Despite a steady flow of inquiries in July, weather conditions prevented us from fulfilling orders at locations like Vadinar and Sikka,” said a Kandla-based supplier. In June, the total volume of supplies was around 52,000 mt while in July it decreased to 35,000 mt, the supplier added. “Our limitation lies in the lack of barge supply at anchorage, restricting us to tank truck deliveries at berth, which impacts our ability to handle larger volumes,” said a Dahej-based supplier Total Bunkering and STS calls fell to 26% month-over-month to 357 in July 2024 for Gujrat-based ports, CAS data showed. Gujarat ports include Kandla, Sikka, Vadinar Terminal, Port Okha, Bedi Bunder, Navlakhi, and Mundra in the Gulf of Kutch, along with Dahej, Hazira, Jafrabad, Magdalla, and Pipavav in the Gulf of Khambhat. East Coast ports see some product unavailability Haldia market demand remained stable, with consistent supply maintaining market stability. Uncertainty about refinery maintenance has left market participants unsure about its impact on August demand, with some predicting a product shortage and others expecting market stability “In July Haldia's bunker volumes ranged between 15,000 mt-17,000 mt,” said a Visakhapatnam-based trader adding ""Annually, we’re seeing a 16% rise."" “We had a surplus of product in July and we attained volumes of around 16,000 mt. There is no firm date yet for the refinery shutdown, it was planned to take place in July but things got delayed. We’re hearing it might start around mid-August”, a Haldia-based IOCL official told Commodity Insights. Market sources reported increased demand at Visakhapatnam and Kakinada from late Q2 due to Red Sea diversions, while other ports showed no significant change. Pipeline issues at Paradip disrupted VLSFO supplies and reduced inquiries. “In July, we recorded volumes of 36,000 mt at Visakhapatnam, while Kakinada saw volumes of around 32,000 mt,” said another trader. Since January, Paradip has been facing issues with the refinery pipeline, leading to a shortage of VLSFO supply there, the trader added. “New Mangalore and Tuticorin have experienced stable volumes, with no significant increase compared to last year.” Kochi demand stable, volumes shift Market sentiment in Kochi has remained stable, but some suppliers experienced product shortages in July, leading to a decrease in their monthly volumes. However, suppliers who had the product saw increased volumes as customers shifted to them. According to a Kochi-based supplier, the monsoon season has not been favorable, resulting in a decrease in monthly volumes. It could be due to limited options or a diversion of demand to Sri Lanka. An IOCL official in Kochi mentioned a slight dip in VLSFO inquiries but highlighted better performance due to less competition last month. “We have done more than 20,000 mt in July. There hasn’t been much change in the industry volumes, it's basically a shift of volumes from one participant to another,” the official added. An increase in bunker demand at Colombo led to a decline in Kochi. Increased demand led to supply tightness in Sri Lanka, mainly impacting Colombo and Hambantota, while Trincomalee remained unaffected. “But the situation is now easing,” a Sri Lanka-based supplier said. Platts assessed 0.5% marine fuel oil delivered to Kochi at $647/mt CFR on Aug. 7, a $23/mt discount to Marine Fuel 0.5% Bunker Delivered Colombo. ","Indian ports see Jan-July bunker, STS calls up 64% on year, monsoon hits July demand",2024-08-08 11:27:15+00:00,Heavy Distillates,Heavy Distillates,0.0988437517430202,0.0593477252183192,0.9973253307458044,Bullish,Bullish 5," LNG bunker prices in Rotterdam and Barcelona reached their highest level of 2024 amid rising demand and bullishness in the wider LNG market. Platts, part of S&P Global Commodity Insights, assessed LNG bunker Rotterdam and Barcelona at $13.83/MMBtu and $13.93/MMBtu respectively Aug. 7. This is a rise of 0.82 cent/MMBtu and 0.81 cent/MMBtu respectively on the week, placing both assessments at the highest levels since Dec. 7, 2023. Market sources attributed factors such as higher demand, arbitrage economics, and bullish price movements in the physical LNG and gas arenas for the price increase. “We see a healthy port calling with a mixed bag of product tankers, pure car carriers, cruise ships, it' getting better… and it's only going to go up,” said one Atlantic LNG bunker trader. Rising geopolitical tensions in Russia and the Middle East have added to market jitters with increasing uncertainty leading to an uptick in prices, market sources said. Meanwhile, market sources noted that ships are increasingly turning to Europe due to high prices and infrastructure limitations in Asia as ships face long waitlists for bunker slots in Singapore and Malaysia. The spread between LNG bunker Rotterdam and Singapore also narrowed as the latter was assessed Aug. 7 at $14.792/MMBtu, placing the spread between Bunkers Singapore and Rotterdam at 0.959 cent/MMBtu- the lowest since Feb. 29. ",LNG bunker prices in Europe hit 8-month high amid rising demand,2024-08-08 10:51:11+00:00,Light Ends,Light Ends,0.6302283378370089,0.009250900848855,0.9905732837896436,Bullish,Bullish 6," Singapore-based commodities trader Wellbred Trading acquired French refinery La Nivernaise de Raffinage SAS that processes used cooking oil as feedstock, with plans to expand capacity next year by taking advantage of increased demand for renewables-based refined products. The 60,000 mt/year refinery in Premery produces biodiesel and is Wellbred's first refinery, the company said Aug. 8. Wellbred, which has offices in Geneva, Dubai and Lagos, was approved July 20 to buy the plant in an auction held by the commercial court of Nevers, France. The refinery will operate under Wellbred's renewables desk based in Geneva, it said. Wellbred Trading started its renewables desk in 2022 supplying biofuels to Norway and Sweden. Since then, it has added biofuels for the shipping industry. The French refinery allows Wellbred Trading to start trading feedstocks and distributing biodiesel in France, Germany and Spain, the company added. ",REFINERY NEWS: Wellbred Trading acquires La Nivernaise de Raffinage in France,2024-08-08 10:50:54+00:00,Heavy Distillates,Heavy Distillates,0.4592402864793445,0.6912138182208339,0.3285773750510148,Neutral,Neutral 7," Singapore-based commodities trader Wellbred Trading acquired French refinery La Nivernaise de Raffinage SAS that processes used cooking oil as feedstock, with plans to expand capacity next year by taking advantage of increased demand for renewables-based refined products. ""This acquisition gives us the opportunity to engage further with the renewable energy space and reinforces our commitment to growth in this important aspect of Wellbred’s value chain,” CEO Ghazi Abu al-Saud said Aug. 8 in a statement provided first to S&P Global Commodity Insights. The 60,000 mt/year refinery in Premery produces biodiesel and is Wellbred's first refinery, it said. ""The biodiesel produced at our refinery will be suitable for both road and marine applications,"" Simon Lausch, managing director of Wellbred Trading and president of the refinery, told Commodity Insights. ""The marine sector, in particular, is experiencing rapid growth in France with the implementation of B30 fuel standards."" Platts, part of Commodity Insights, assessed the bunker fuel price for B30 -- a blend of 70% 0.5% sulfur fuel oil and 30% used cooking oil methyl ester -- at $774.25/mt in Rotterdam Aug. 7, up from $754.75/mt at the end of last year. Wellbred, which has offices in Geneva, Dubai and Lagos, was approved July 20 to buy the plant in an auction held by the commercial court of Nevers, France. The refinery will operate under Wellbred's renewables desk based in Geneva, it said. Wellbred Trading started its renewables desk in 2022 supplying biofuels to Norway and Sweden. Since then, it has added biofuels for the shipping industry. The French refinery allows Wellbred Trading to start trading feedstocks and distributing biodiesel in France, Germany and Spain, the company added. ",Wellbred Trading buys French diesel refinery that runs on used cooking oil,2024-08-08 10:40:34+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.3940783868884308,0.201348703700934,0.9110638664031572,Bullish,Bullish 8," There is a high probability that 2024 will be the hottest year ever as extreme weather events such as wildfires and heat waves become increasingly commonplace, the EU’s Copernicus Climate Change Service said Aug. 8. This comes as July 2024 was the second-warmest month on record, with the two hottest days ever recorded last month, according to data from EU'c climate monitor. Surface air temperatures averaged 16.91 degrees Celsius in July this year, which was 1.48 C above the estimated July average for 1850-1900, the designated pre-industrial reference period. But July marked the end of 13-month period when each month was the warmest on record for the respective month of the year. July 2023 was the hottest month ever averaging 16.95 C. ""The streak of record-breaking months has come to an end, but only by a whisker. Globally, July 2024 was almost as warm as July 2023, the hottest month on record,"" Samantha Burgess, Deputy Director of the Copernicus Climate Change Service (C3S). ""July 2024 saw the two hottest days on record. The overall context hasn’t changed, our climate continues to warm. The devastating effects of climate change started well before 2023 and will continue until global greenhouse gas emissions reach net-zero."" The UN Framework Convention on Climate Change has repeatedly said phasing out of fossil fuels was urgently needed for the world to meet its Paris Agreement commitments, to limit warming to 1.5 C above pre-industrial levels. Climate change and energy July 22 and July 23 were declared the hottest days on record with temperatures reaching 17.16 C and 17.15 C respectively, data showed. Temperatures were mostly above average in southern and eastern Europe, western Canada, western US, most of Africa, the Middle East and Asia, and eastern Antarctica. Sea surface temperatures also remained at very high levels with temperatures for June averaging 20.88 C over the global extrapolar ocean, from 60 degrees south to 60 degrees north, the second-highest value on record for the month, and only 0.01 C below July 2023. Warmer temperatures are already starting to have an impact on energy demand and renewable energy output, with extreme weather events seen in 2023 and more expected this year. The continuing wildfires in the Western Canadian province of Alberta could impact some 400,000 b/d of crude oil production, with multiple producers being on high alert as 119 fires are currently burning in the province. Alberta is home to some 4 million b/d of heavy and light oil and nearly 16.8 Bcf/d of natural gas production. The likely return of the climate phenomenon La Nina, and the associated shift in global weather patterns and temperature extremes, could also result in a fresh wave of disruption and volatility across key global commodity markets. Climate change caused by a surge in greenhouse gas emissions has been increasing the intensity and frequency of extreme weather events, all of which have a measurable impact on air quality, human health and the environment. Global energy-related CO2 emissions rose to a record high 37.4 gigatonCO2e in 2023, an increase of 410 million mtCO2e from 2022, according to International Energy Agency data. ",EU's climate monitor says 2024 'increasingly likely' to be warmest year on record,2024-08-08 10:29:33+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.1391374768734155,0.0509768061619122,0.9959962398805592,Bullish,Bullish 9," The differential between the European propane and naphtha markets has narrowed consistently over the past three months to near year-on-year lows as the propane market gained steeply while naphtha strength remained marginal. A significant narrowing in the spread between the two commodities could see naphtha preferred in flexible petrochemical steam crackers as the margins for naphtha turn more favorable. Platts, part of S&P Global Commodity Insights, assessed the discount of the front-month CIF NWE propane swap to the equivalent Platts CIF NWE naphtha swap at $79/mt on Aug. 7, which has been narrowing consistently since the highest point of $181.25/mt on April 4. While narrowing differentials could re-incentivize naphtha use at flexible steam crackers, some players remain skeptical of any substantial shift in the market, with the majority of steam crackers still on max LPG due to larger margins. For LPG, butane continues to offer the largest returns, as steam cracker margins stood at $463.54/mt compared with $353.91/mt for propane in Europe. Prices in the European propane market have been buoyed by early month crude oil strength and tightness in the market. Short supply has emerged on the back of reduced US LPG inflows to the continent after Hurricane Beryl disrupted loadings, while stronger netbacks into the Asian market have pulled US product eastward. “The main concern is US exports, with a healthy arbitrage into the East, all the barrels are heading there due to robust demand, leaving US producers with very few spot barrels and keeping the flat price very high,” one source said. According to the source, “Expectations from US producers when selling are based on FEI netbacks, making the economics of importing into Europe very challenging due to extremely high US premiums and terminal fees.” Consequently, European and Mediterranean LPG imports plunged to n ear three-year lows for July as players struggled to locate product. “Propane is strong due to delays in the US and stronger Asian demand, which adds to general strength in gas,” a second Europe-based trader said, adding that although the propane market remains heavily backwardated, petrochemical players “still buy propane, having a baseload of propane they have to take, and potentially need a narrower discount to make a switch to naphtha"". Meanwhile, the naphtha market was relatively backwardated but faced a limited increase on the month, especially as crude oil prices weakened, thus narrowing its premium over propane. Platts, part of Commodity Insights, assessed the front-month CIF NWE naphtha swap at $646/mt and the August-September time spread at $12.50/mt on Aug.7. Another European trader said naphtha market tightness reduced slightly over July, thus explaining the limited rise in naphtha prices. According to this source, the European naphtha market “does not look super short as it seems most blenders and petrochemical companies are covered”, the “situation does not look as intense as last month”. The upcoming refinery turnaround season and recent steepening of naphtha backwardation structure can, however, give much stronger support to naphtha prices looking forward. ","European LPG discount to naphtha narrows, shifting petchem feedstock appetite",2024-08-08 10:22:07+00:00,Light Ends,Light Ends,0.6150866489663008,0.0323423326070167,0.9731147928565976,Bullish,Bullish 10," Thai Oil reported a slight decrease in the utilization rate at its 275,000 b/d Sriracha refinery in the second quarter of this year compared with last year due to a planned shutdown at a crude distillation unit in May, the company said in its Q2 results report Aug. 8. The utilization between April and June was 111%, which was lower than 113% in Q2 last year as its CDU-1 and related units had a planned shutdown for 11 days in May this year. However, the Q2 utilization was higher than 105% in Q1 as its CDU-3 had experienced an unplanned shutdown for 13 days in January due to technical issues. In Q2, the Sriracha refinery processed 306,000 b/d of crude oil, lower than 311,000 b/d over the same period in 2023 but higher than 288,000 b/d in Q1 of 2024. Thai Oil’s gross refining margin in Q2 was at $3.8/b, falling from $4.5/b in Q2 2023 thanks to lower spreads of gasoline and jet fuel/kerosene over Dubai crude oil prices because of oversupply. The GRM between April and June tumbled from $9/b in Q1 largely due to the decline in spreads of almost all refined products, resulting from high supply and elevated inventory levels in the US, the company said. Thai Oil’s utilization in the first half was 108%, lower than 113% in the first six months of 2023. Its Sriracha refinery processed 297,000 b/d of crude oil over this period, lower than 309,000 b/d in H1 last year. The company’s GRM in H1 was $6.3/b, lower than $7.2/b in H1 2023. Meanwhile, Thai Oil reported little progress on its delayed clean fuel project (CFP). The company completed 96.8% of work at the project as of June 30, slightly higher than 96% as of March 31. The CFP will help Thai Oil move from producing low-value products to producing higher value and more environmentally-friendly products. It will also enable the company to process more types of crude oil with higher quantities. Thai Oil initiated the commissioning of the Hydrodesulfurization unit (HDS-4) in February, ahead of schedule. The unit played a vital role in enabling the company to comply with the Euro-5 standard, which was enforced in Thailand this year. Additionally, Thai Oil is working to accelerate the commissioning of the remaining units, it said. The company said the capex for Thai Oil and its subsidiaries over 2024-2027 will be kept at $743 million, comprising $228 million for the CFP. ",REFINERY NEWS: Thai Oil’s Q2 utilization drops on planned CDU shutdown,2024-08-08 09:50:35+00:00,Crude Oil,Crude Oil,0.8199989147182517,0.008586565222714,0.969030066394201,Bullish,Bullish 11," South Korea’s top oil refiner SK Innovation said Aug. 8 that its upstream unit has joined a project to build a submarine carbon storage facility in Australia as part of its strategy to diversify beyond oil and natural gas development. SK Earthon, the exploration and production subsidiary of SK Innovation, has acquired a 20% stake in the project to explore the G-15-AP submarine mining area off the northwest coast of Australia. “The G-15-AP block marks the first mine to be used to store carbon captured from industries in Australia,” SK Innovation said in a press release. The project is 75% owned by InCapture, an Australian carbon capture and storage company, and 5% by CCS technology consulting company CarbonCQ. The three entities will build the undersea facility and sign deals with local companies so as to start the CCS project from 2030, after feasibility studies to confirm the project’s business value, according to SK Earthon. “The CCS project in Australia is expected to generate synergy for SK Earthon’s traditional business of energy development projects and new business of carbon capture and storage,” it said. SK Earthon is currently involved in 13 oil and gas upstream projects across eight countries, including six blocks under production, such as Block 17-03 in China and Block 15-1 in Vietnam. The 13 projects also comprise three LNG ones, such as Oman LNG and Qatar’s Ras Laffan LNG. The company has recently adopted a strategy to concentrate its upstream business efforts in the Asian region, moving away from remote markets like the US and Peru, as part of ""business reorganization strategy focused on decarbonization."" SK Earthon has led a group of South Korean companies for the Shepherd CCS project in Malaysia, which launched in August 2022 in a consortium that also consists of Malaysia's state-run oil company Petronas. The Shepherd project aims to capture CO2 emitted from industrial sites in South Korea and collect it in local carbon capture plants before transporting it to Malaysia for onshore or offshore storage. “SK Earthon aims to secure carbon capture and storage capacity of 2 million mt by 2030, 5 million mt by 2040 and 16 million mt by 2050,” the release said. ",South Korea’s top oil refiner SK Innovation joins carbon storage project in Australia,2024-08-08 09:14:41+00:00,Middle Distillates,Middle Distillates,0.1052294144677151,0.4301426805926679,0.9750732864200452,Bullish,Bullish 12," The Middle East sour crude complex saw cash differentials for key markers jump for a second session to hit month-to-date highs during the Singapore Platts Market on Close assessment process Aug. 8. Platts, part of S&P Global Commodity Insights, assessed October cash Dubai and cash Oman at a premium of $1.07/b to same-month Dubai crude futures at the market close, both up 37 cents/b on the day. October cash Murban was also assessed at a premium of $1.07/b to same-month Dubai futures, up 35 cents/b on the day. During the MOC, 22 October Dubai partials of 25,000 barrels each traded. The sellers were Mitsui, Idemitsu, PetroChina, Unipec, Trafigura, Phillips 66, BP and Reliance and the buyers were Gunvor and Vitol. No convergences were reached during the MOC. A convergence occurs when 20 partials are traded between two counterparties, resulting in a full 500,000-barrel physical cargo being declared from the seller to the buyer. In the broader market, Saudi Aramco's September crude oil allocations have yet to be released, though spot trades were taking place for October-loading ADNOC crudes, traders said. October-loading Murban crude cargoes were heard sold to two South Korean refiners at premiums in the high-60s cents/b to Platts Dubai, FOB, while an October-loading Umm Lulu crude cargo was also heard sold to South Korea, though price levels for the cargo were unclear. Iraq's SOMO was also seen issuing its September crude oil official selling prices late in the Aug. 7 session. ",CRUDE MOC: Middle East sour crude cash differentials hit month-to-date highs,2024-08-08 08:20:14+00:00,Crude Oil,Crude Oil,0.1565051903700403,0.085280409605538,0.9886834722199724,Bullish,Bullish 14," State-owned oil and gas major China National Offshore Oil Corp. has approved more than 100 billion cubic meters of proven natural gas reserves at the Lingshui 36-1 gas field in the South China Sea, the company said in a statement late Aug. 7. Lingshui 36-1 gas field is the first large-size ultra shallow gas field in ultra-deep water in the world, which opens a new area of exploration in deep waters, CNOOC said. Located in the southern portion of the Central Sag, Qiongdongnan Basin, the average water depth of the gas field is approximately 1,500 meters, and the burial depth is 210 meters, CNOOC said, adding that the field has been tested to produce over 10 cu m/day of open flow natural gas. CNOOC has been searching for oil and gas resources in the South China Sea for decades, finding a total of more than 1 trillion cubic meters of proven natural gas reserves, the company said. These include multiple large-size gas fields discovered in Yinggehai, Qiongdongnan and Pearl River Mouth basins, namely Dongfang 1-1, Liwan 3-1, Lingshui 17-2, Baodao 21-1 and now, Lingshui 36-1, the company added. ""The newly discovered ultra-deep-water ultra-shallow gas field is an important composition of the trillion cubic meters gas region in the South China Sea,"" Zhou Xinhuai, CNOOC’s CEO and President said. Apart from the South China Sea, CNOOC is building another two gas production areas in the Bohai Sea and onshore, with current proven natural gas reserves of about 500 Bcm and 400 Bcm, respectively, data from the company showed. The Lingshui 36-1 gas field is situated in the southern part of the Qiongdongnan Basin, south of the LS 17-2 deep-water gas field which was the most significant large-sized gas discovery for CNOOC in the deep-water of the Qiongdongnan Basin when it was discovered in March 2014, according to Linda Wang, Associate Director for Research in Upstream at S&P Global Commodity Insights. “The discovery has proved the exploration potential of structural and lithological trap in the central canyon system of the Lingshui Sag and confirmed the good exploration prospects in the deep-water area of the Qiongdongnan Basin,” Wang said in a note. “The LS 17-2 field was brought onstream in June 2021 and the field is expected to reach a peak output of 328 MMcf/d of gas and 6,751 b/d of condensate in 2022,” Wang added. ",CNOOC approves 100 Bcm of proven reserves at South China Sea gas field,2024-08-08 05:40:35+00:00,Crude Oil,Crude Oil,0.9437827458081414,0.036513212008582,0.6948798907460616,Bearish,Bearish 15," The Singapore government will work with CAPGC, which is buying over Shell’s assets in the city-state, as well as others in the refining and petrochemicals sector to help decarbonize their product slate, Trade and Industry Minister Gan Kim Yong said Aug. 6. Gan, who is also Singapore’s deputy prime minister, was responding to a parliamentary question on how the sale of Shell’s assets would impact the city-state’s emissions levels. “The Government’s commitment to reducing the carbon footprint of the petrochemical sector and creating a Sustainable Jurong Island remains unchanged,” he said in a written reply to the Parliament. Around one-third of Singapore’s total emissions are directly from the refining and petrochemicals sector, which accounts for most of the activities on Pulau Bukom and Jurong Island -- where Shell’s assets are located as well. In May, Shell Singapore had confirmed that it will sell its Energy and Chemicals Park in Singapore to CAPGC -- a joint venture between Chandra Asri Capital and Glencore Asian Holdings -- and the sale is due to be completed by end-2024. The transferred interests from Shell include both physical assets and commercial contracts, including a 237,000 b/d refinery and a 1.1 million mt/year ethylene steam cracker at Pulau Bukom, as well as downstream chemicals assets on Jurong Island. “At this point, it is not yet clear how the buyers of Shell’s refinery and petrochemical assets intend to operate or transform the facilities,” said Gan. “In any case, the Government is not at liberty to disclose company-level emissions data,” he added in response to the parliamentary question. The Singapore complex is Shell's largest petrochemicals production site in Asia and was its biggest ever downstream and petrochemicals investment when completed in 2010. Shell's Singapore chemicals assets, including its share of JVs, produce roughly 1.4 million mt/year of ethylene, or 18% of the company’s present global capacity. Singapore currently charges a carbon tax of S$25/mtCO2e ($18.75/mtCO2e) this year and it remains on track to raise this to S$45/mtCO2e ($33.18/mtCO2e) in 2026, Sustainability and the Environment Minister Grace Fu said in a separate parliamentary written reply on the same day. ","Singapore to work with Shell’s refinery, petrochemicals asset buyers to decarbonize: minister",2024-08-08 04:17:34+00:00,Light Ends,Light Ends,0.3783894871022871,0.0876656706920984,0.9637677576494892,Bullish,Bullish 16," The BLM Montana-Dakotas federal oil and gas lease sale netted nearly $24 million in total high bids in the latest quarterly auction, according to Energynet.com. During the sale, 23 parcels covering 4,819.2 acres received bids, of an original 26 parcels covering 5.569.6 acres offered to industry, the website, a platform for selling petroleum properties both government and privately owned, said Aug. 6. The sale received total high bids of $23.9 million. Parcels in states with predominantly Bakken Shale production received the priciest bids, Energynet.com data showed. The largest bid was $15 million for a 273-acre parcel in Mountrail County, North Dakota -- one of the biggest Bakken producing states. A parcel in that same state's McKenzie County -- another big Bakken producing region -- went for $1.68 million. But a parcel in nearby Richland County, Montana, where the Bakken was originally discovered decades ago, captured $2.34 million, Energynet.com records show, while a second Richland County parcel went for $1.44 million. Those four bids alone accounted for more than $20 million, or nearly 86% of all high bids. Ten of the 26 parcels offered were in North Dakota, while 16 were in Montana. The three parcels that did not receive bids were all in Montana, Eergynet.com records show. The second-quarter 2024 BLM Montana-Dakotas federal oil and gas lease sale, held in late April, received total high bids of $663,524 for 21 parcels covering 4,635.11 acres, according to the website. And the first-quarter BLM Montana-Dakotas federal oil and gas lease sale took in total high bids of $2.4 million for six parcels covering 2,335.6 acres. ",BLM federal Montana-Dakotas oil and gas lease sale nets nearly $24 mil: Energynet.com,2024-08-08 04:13:37+00:00,Middle Distillates,Middle Distillates,0.9922766438937904,0.0819362138333048,0.0435042338030487,Bearish,Bearish 17," Refinery: Sohar, Oman Owner: OQ Overall capacity: 198,000 b/d Units affected: Unclear Duration: Started week of Aug. 5; targeted restart date Aug. 13 Notes: Oman's 198,000 b/d Sohar refinery was heard to have undergone an unplanned shutdown in the week of Aug. 5, trade sources said Aug. 7. Refinery operator OQ could not be immediately reached for comment. The refinery is targeting a restart date of Aug. 13, sources said. The refinery was heard to have released a very prompt August-loading Oman crude cargo into the market due to the shutdown, sources said. Source: Market sources ",REFINERY NEWS: Oman's Sohar undergoes unplanned shutdown: sources,2024-08-08 03:53:50+00:00,Crude Oil,Crude Oil,0.249006418255546,0.6435877141474523,0.6008707686518457,Neutral,Neutral 18," Crude oil futures were higher in midmorning trading Aug. 8, following the sixth consecutive weekly decline in US commercial crude stocks. However, concerns about weakening activity in the world's biggest economies, the US and China, limited the gains. At 11:35 Singapore time (0335 GMT), the October ICE Brent crude oil futures contract increased 21 cents/b, or 0.27%, to $78.54/b, while the September NYMEX light sweet crude contract gained 31 cents/b, or 0.41%, to $75.54/b. US commercial crude stocks fell 3.73 million barrels to 429.32 million barrels in the week ended Aug. 2, data from the Energy Information Administration showed Aug. 7. The draw put stocks about 6% below the five-year average for this time of year. “US crude oil inventories are at their lowest level since February, this suggests demand for physical barrels remains robust, despite concerns about weak economic activity,” said ANZ commodity strategists. US refinery utilization strengthened 0.4 percentage points on the week to 90.5% of capacity, and refinery net crude input increased 250,000 b/d to 16.4 million b/d. Meanwhile, both gasoline and distillate fuel production increased in the week ended Aug. 2. Slower demand and increased production have led to higher oil product stocks. US gasoline stocks climbed 1.34 million barrels to 225.1 million barrels, according to the EIA. The counter-seasonal build narrowed the deficit to the five-year average to 1.7% from 3.2% the week prior. Implied demand for gasoline declined for the second straight week, sliding 3% to 8.97 million b/d and falling nearly 4% below normal for this time of year. Recent weaker-than-expected US employment data and contracting Chinese manufacturing activity have raised concerns about slowing economic growth and its impact on crude oil demand. “The latest trade data from China was relatively bearish, Chinese crude oil imports in July averaged 10.01 million b/d, down 3.1% on the year and 11.8% lower on the month,” ING commodity strategists said. Dubai swaps Dubai crude swaps strengthened, and intermonth spreads were steady in midmorning trading in Asia from the previous close on Aug. 8. The October Dubai swap was pegged at $76.16/b at 10 am Singapore time (0200 GMT), widening $1.36/b, or 1.36%, from the Aug. 7 Asian close. The September-October Dubai swap intermonth spread was pegged at 59 cents/b at 10 am Singapore time, unchanged from Aug. 7, and the October-November intermonth spread was pegged at 46 cents/b, also stable on the session. The October Brent-Dubai exchange of futures for swaps was pegged at $2.19/b, widening 13 cents/b on the day. ","OIL FUTURES: Crude prices higher as US stockpiles extend decline, demand concerns cap gains",2024-08-08 03:38:12+00:00,Crude Oil,Crude Oil,0.7168047722572523,0.0370909288094888,0.9197233484250242,Bullish,Bullish 19," Qatar Petroleum announced the acceptance of September-loading LPG cargoes under term contracts with Asian lifters in line with nominated dates, without any cuts or delays heard, market sources said. ""Heard nothing unusual with Qatar acceptances for September,"" a Singapore-based industry source said. While some market participants cautioned that Asian demand for AG cargoes could fall as the landed cost of Middle East LPG exports could increase on the back of rising tensions in the Middle East, market participants also said the overall impact on landed prices could be quite mild as the market has already priced in regional tensions. ""I believe that the market has already priced in regional tensions in the Middle East such as the recent Houthi attacks on ships,"" an industry source said. Asian demand for LPG was heard stable to weaker, as Chinese PDH demand was heard lackluster with PDH average run rates heard at 73% in the week of Aug. 5, down 1% from the previous week, sources said. However, demand for LPG as a heating fuel is expected to increase moving toward the winter period, sources said. The spread between the month one (September) Saudi Aramco propane contract price swap and the month two (October) Saudi Aramco propane contract price swap was pegged at plus $2/mt Aug. 7, widening from the Platts assessment at flat Aug. 6, while the September butane CP swap was pegged at $10/mt below propane, S&P Global Commodity Insights data showed. ",Qatar announces acceptance of Sep LPG cargoes with no cuts or delays heard,2024-08-08 02:45:55+00:00,Light Ends,Light Ends,0.1394164737078589,0.047296885634784,0.996675106472959,Bullish,Bullish 21," The South Korean government aims to wrap up legal and administrative procedures required to fully implement the free trade agreement with Gulf Cooperation Council members by September, a deal that could allow local refiners to procure Middle Eastern sour crude cheaper and improve their margins. Minister for Trade Dukgeun Ahn and GCC Secretary General Jassim Mohammed Al-Budaiwi had signed a joint preliminary statement for the South Korea-GCC FTA in December 2023. The government is now aiming to complete an economic impact evaluation, seek the National Assembly's ratification agreement and execute other necessary administrative procedures for the FTA's entry into force, public relations managers and officials at state-run Korea Trade Investment Promotion Agency and the Ministry of Trade, Industry and Energy told S&P Global Commodity Insights over Aug. 6-8. ""Although the agreement was signed last year [2023], the treaty still requires various procedures to be cleared ... the ultimate goal is to finalize all necessary domestic procedures by September and to proceed to the formal implementation of the FTA before the end of the year,"" a MOTIE official said. Minister Ahn recently met Saudi Arabia’s Minister of Commerce Majid bin Abdullah Al-Kassabi on July 30 in Seoul to discuss about the FTA's swift entry into force. ""To expedite the legal review process of both parties, we ask for [Saudi Arabia's] support as a member of the GCC,"" Ahn said at the July meeting. Apart from South Korea's top crude supplier Saudi Arabia, the six GCC members include other major crude suppliers such as Kuwait, the UAE, Qatar and Oman, as well as Bahrain. Among major Middle East crude suppliers to South Korea, only Iraq is not a GCC member. Sour crude trading edge Traders, feedstock managers and oil product marketers at major South Korean refiners indicated the formal implementation of FTA with major Middle Eastern crude producers would provide them a significant edge in buying Persian Gulf sour crude cargoes at a lower cost. South Korea currently levies a 3% tariff on imported crude oil, which is abolished or cut for volume from suppliers that have free trade agreements with the nation. In the first half of 2024, South Korea imported 160.6 million barrels from Saudi Arabia and paid on average $86.66/b, Elsewhere, 39.1 million barrels came from Kuwait in the first six months at an average cost of $84.56/b and 74.7 million barrels were imported from the UAE over the same period at an average price of $86.46/b, latest data from state-run Korea National Oil Corp. showed. KNOC's import cost data includes freight, insurance, tax and other administrative and port charges. Platts, part of Commodity Insights, assessed Middle Eastern sour crude physical benchmark Cash Dubai at an average $83.26/b in H1. ""If the FTA with GCC nations can be fully implemented by end of the year, we could restructure and reconfigure our Persian Gulf sour crude procurement plans for 2025 in a positive manner ... every cent saved on taxes and tariffs would all contribute to healthier refining margins,"" said a feedstock and logistics manager at a major South Korean refiner. The South Korea-US FTA, for example, allows cost cuts by up to $2/b for WTI Midland crude purchases, a trade source at a South Korean refiner's feedstock trading team in Singapore said. South Korean refiners combined spent over $40 billion for feedstock crude purchases and procurement in H1, according to Korea Petroleum Association. FTAs with energy producing nations would be strategically essential for the world's fourth biggest crude importer, refinery sources based in Seoul and Ulsan said. Most recently, South Korea separately signed a bilateral FTA with the UAE on May 29, removing the 3% tariff on various Abu Dhabi sour crude grades including Murban, Das Blend and Upper Zakum over the next 10 years. ","South Korea aims for full GCC FTA execution by year-end, refiners hopeful for cheaper sour crude",2024-08-08 02:09:25+00:00,Crude Oil,Crude Oil,0.0224297479963173,0.945160380391862,0.8174167000118822,Neutral,Neutral 22," Indonesia's Ministry of Energy and Mineral Resources set the Minas crude oil price at $84.95/b for July, rising $3.35/b from June, according to its monthly selling price notice seen by S&P Global Commodity Insights on Aug. 8. With the Dated Brent benchmark averaging $85.31/b in July, the Minas alpha, or differential, for the month was at a discount of 36 cents/b. Among Indonesia's other main grades, the July Indonesia crude price for Banyu Urip crude was set $1.36/b higher on the month at $88.31/b. The monthly ICPs are set retroactively. ICPs for main Indonesian crude grades: (Unit: $/b) Grades May June July Change Minas 82.13 81.60 84.95 3.35 Attaka 79.91 79.35 81.91 2.56 Duri 86.67 85.88 86.97 1.09 Belida 80.15 79.54 82.06 2.52 Senipah 70.88 70.93 73.77 2.84 Banyu Urip 87.48 86.95 88.31 1.36 ICP alphas for main Indonesian crude grades: (Unit: $/b) Grades May June July Change Minas 0.08 -1.01 -0.36 0.65 Attaka -2.14 -3.26 -3.40 -0.14 Duri 4.62 3.27 1.66 -1.61 Belida -1.90 -3.07 -3.25 -0.18 Senipah -11.17 -11.68 -11.54 0.14 Banyu Urip 5.43 4.34 3.00 -1.34 Source: Directorate General of Oil and Gas ","Indonesia sets Minas crude price at $84.95/b for July, rising $3.35/b from June",2024-08-08 02:05:13+00:00,Crude Oil,Crude Oil,0.99267343194504,0.042860900065508,0.0789206167316129,Bearish,Bearish 23," Hong Kong’s Cathay Pacific Airways carried a total of 10.7 million passengers over the January-June period, a 36.4% year-on-year increase, while flight capacity -- measured available seat-kilometers -- rose 42.7%, the company reported in its 2024 interim results Aug. 7. Passenger traffic, measured in revenue passenger-kilometers, increased 34.9% on the year in the first half of 2024. This brought passenger load factor to 82.4%, 4.8 percentage points lower compared to the same year-ago period. “Our passenger flights reached 80% of pre-pandemic levels as a Group within the second quarter as planned,"" Cathay Group Chair Patrick Healy said in a statement. ""As more passenger flights have been added to the market, we have seen yields begin to normalize as expected."" “Our strong performance for the first six months of the year was primarily driven by the ongoing robust demand for travel, and the solid performance of our cargo business,” he added. Cathay Pacific carried 719,000 mt of cargo in the first half of the year, an increase of 10.4% compared to the same year-ago period. Cargo revenue tonne kilometers and cargo flight capacity rose 4.6% and 11.4% year on year, respectively. “Demand was robust in the first half of 2024 with solid support from e-commerce and some traditional commodities, especially electronics,"" the company said in its results statement. ""The overall tonnage growth in Hong Kong and the rest of the Greater Bay Area exceeded our capacity growth compared with the same period last year."" Overall, Cathay Pacific’s revenue totaled HK$44,784 million in H1 2024, up 14% on the year. Tracking growth in Cathay Pacific’s air traffic, Hong Kong imported 3.4 million kiloliters (541,107 b/d) of jet fuel/kerosene over January-June, surging 29.75% in the same year-ago period, latest Census and Statistics Department data showed. The data is published in kiloliters, which S&P Global Commodity Insights converts to barrels using a factor of 6.2898. Reflecting improving demand, the Platts-assessed FOB Singapore jet fuel/kerosene cargo flat price averaged $100.48/b in H1 2024, $1.52 higher compared to the same period a year ago, S&P Global Commodity Insights data showed. At the Asian close Aug. 8, the flat price was assessed at $89.89/b. Looking ahead, demand for jet fuel is expected to remain strong for the rest of the year, driving global oil demand alongside gasoline and petrochemicals, Saudi Aramco CEO Amin Nasser told reporters on a media call Aug. 6. According to Nasser, global oil demand is anticipated to grow by 1.6 million b/d to 2 million b/d this year, up from his previous forecast of 1.5 million b/d in March. Asian jet/kerosene demand growth will remain strong on the year at 304,000 b/d in the third quarter, driven by continued strength in the aviation sector due to increased global and regional air travel demand, Commodity Insights analysts said in the latest Asia short-term outlook for refined products. Notably, China and Southeast Asia will continue to lead regional jet/kerosene growth at a rate of 200,000 b/d and 67,000 b/d, respectively. Japan is also experiencing a resurgence in demand, with an anticipated year-on-year increase of 43,000 b/d in the third quarter, the analysts added. ",Cathay Pacific H1 2024 passenger traffic rises 36% on year; Hong Kong’s jet fuel demand bolstered,2024-08-07 23:44:33+00:00,Middle Distillates,Middle Distillates,0.2079047018323387,0.0240653651207375,0.9971198996860868,Bullish,Bullish 24," Ultra-low sulfur diesel inventories in the US continued their upward trend, with notable stock builds in the Gulf Coast, while inventories on the Atlantic Coast dropped slightly, Energy Administration data released Aug. 7 showed. Total US ULSD stocks rose by 684,000 barrels to around 117 million barrels in the week ended Aug. 2, a nearly six-month high, the EIA said in its Weekly Petroleum Status Report. Stocks increased even as demand for ULSD weakened week on week, according to the EIA. ULSD product supplied, which is considered a demand indicator, decreased for the second consecutive week by 256,000 b/d to reach 3.469 million barrels, a four-week low. ULSD inventories in the US Gulf Coast increased 1.16 million barrels, reaching a seven-week high of 39.15 million barrels. On the other hand, inventories in the USAC slid by 576,000 barrels from the previous week's 18-month high. This rise in USGC inventories contributed to a net boost in the nation's supply of ULSD by 684,000 barrels, resulting in a 26-week high of 117.47 million barrels. Meanwhile, US distillate refinery utilization rates, which includes ULSD, rose from a 14-week low by 0.4 percentage point to 90.5%. US production of ULSD increased by 74,000 b/d to 4.92 million b/d, a two-week high, reflecting the refinery utilization rate builds. ULSD imports fell 23,000 b/d to 114,000 b/d in the week ended Aug. 2. In comparison to the same year-ago week, import quantities experienced a 43% increase from 65,000 b/d in Aug. 2023. Total US distillate exports, including ULSD, increased 371,000 b/d, bringing the total exports to 1.55 million b/d, recovering from the previous week’s drop. Platts, part of S&P Global Commodity Insights, assessed the differential for benchmark USGC ULSD minus 0.27 cent weaker Aug. 7 at NYMEX September ULSD futures minus 9.80 cents/gal, while its outright price rose 5.71 cents to $2.2576/gal, as the underlying futures contract settled 0.0598 cent higher at $2.3556/gal. ",US DATA: Total ULSD stocks near a six-month high as demand continues to fall,2024-08-07 22:21:53+00:00,Middle Distillates,Middle Distillates,0.9619306534732024,0.0118182036269854,0.7482169021438791,Bearish,Bearish 106," US product supplied of propane and propylene jumped to a three-month high in the week ending Aug. 2, according to Energy Information Administration data released Aug. 7. The product supplied of propane and propylene rose to 1.032 million b/d from 716,000 b/d in the week ended July 26. EIA data reported that domestic product has fluctuated heavily since the week ending July 12, bouncing between half a million to over one million b/d. The recent data shows more product is being supplied in comparison to this time last year, which closed at 803,000 b/d in the week ending Aug. 4. US refiner, blender and gas plant net production of propane and propylene fell from a three-week high on the week as it dropped 19,000 b/d to 2.629 million b/d. Nationwide stocks of propane and propylene continued the seasonal trend of strengthening for the fall. On the week, US stocks rose 515,000 barrels to 87.909 million barrels. The inventories fell short in comparison last year, which closed at 89.950 million barrels in the week ended Aug. 4, 2023. Data from 2023 showed propane and propylene inventories stockpiled from May until mid-October. “Propane is well supplied so pricing near lows v. crude,” said one NGL broker. Platts assessed US Gulf Coast propane at the Enterprise terminal up 3.375 cents to 75.50 cents/gal, reaching a one-week high. Exports of propane and propylene rise for the second week, strengthening by 7,000 b/d to 1.648 million b/d. The price of LPG Very Large Gas Carrier freight traveling from Houston to Northwest Europe weakened on the day, shedding $2.00/mt to $48/mt, while Houston to Chiba held steady at $90.00/mt. “Expect the price of shipments to Japan to drop into the 80's soon,” said one LPG shipping broker. “East market is much weaker, so owners sending their ships West.” Platts is a part of S&P Global Commodity Insights ",US DATA: Product supplied of propane and propylene reach three-month high,2024-08-07 21:10:18+00:00,Light Ends,Light Ends,0.9911746371555424,0.068216669486304,0.0596786708990352,Bearish,Bearish 107," Tanker operator International Seaways spent the second quarter replacing a portion of its aging fleet, as order books grew to about 11% of its total fleet, with seaborne activity bolstered by increased demand paired with ongoing disruptions to oil markets, the company said Aug. 7. ""Strong tanker market naturally would dictate more ordering and the order book has grown to about 11% of the total fleet,"" CEO Lois Zabrocky said during the company's second quarter earnings call. ""However, ships on order are not enough to replace a fleet that is aging significantly."" Today, the average age of the tanker fleet is over 13 years old and is ""likely to get older with so few newbuilding deliveries."" International Seaways took delivery of six eco MR's while selling three vessels aged 15 years or older, which lowered its average MR age by one year. By mid-July, the tanker operator closed on one out of three of the vessel sales. ""In general, older ships have less efficiency and utilization,"" Zabrocky said. ""With a greater percentage of the fleet in this vintage, the industry needs more shifts to cover the increase in seaborne demand."" Total oil demand is expected to grow by 1.7 million b/d in 2024, with growth focused in China, India and other major Asia oil demand centers, according to analysts at S&P Global Commodity Insights. ""We expect oil demand to continue to grow at a rate above its 30 year average growth, with a good portion of the growth regionally in Asia which has grown slower than expected at the beginning of the year,"" Zabrocky added. The company expects no more than 2 million b/d of oil demand growth in 2024, expecting it to land in a range between 1 million and 1.5 million b/d. Referencing both tanker supply disruptions and geopolitical risks, crude tanker demand is expected to grow by 8%-9% in 2024 and decrease 3.5%-4.5% in 2025, according to BIMCO's Tanker shipping Market Overview and Outlook published in May. According to the report, crude tanker demand is forecast to outpace supply in 2024 but grow slower than supply in 2025 as ships potentially return to the Suez Canal and sailing distances shorten. Product tanker demand is forecast similarly, to increase between 5%-6% in 2024 and decrease 3%-4% in 2025. The company reported 47% of fixtures booked at approximately $373,000/d, with VLCC's averaging $46,400/d during the second quarter while Suezmax and Aframax rates averaged at $45,000/d and $31,500/d, respectively. LR1 and MR spot fixtures averaged at $53,100/d and $35,000/d respectively over the same period. The Platts 70,000 mt US Gulf Coast-UK Continent freight assessment from S&P Global Commodity Insights averaged $50.14/mt in January 2024, up from $43.21/mt in the fourth quarter of 2023 and a $28.21/mt average in the third quarter of 2023. Platts, a part of Commodity Insights, assessed freight for the 70,000 mt US Gulf Coast-UK Continent route for loading Aug. 12-27 at w120 Aug. 7, exclusive of EU Emission Trading Systems costs, reflected at w5 premium, down w0.25 from Aug. 6, for average-lifting tonnage. Platts assessed freight for the 270,000 mt VLCC US Gulf Coast-UK Continent route for the typical loading dates of Aug. 22-Sept. 21, at lump sum $2.69 million Aug. 7. Freight for the 270,000 mt VLCC US Gulf Coast-China route for the typical loading dates of Aug. 22-Sept. 21 were assessed at lump sum $6.85 million Aug. 7. ",Internatonal Seaways focused on replacing aging fleet during second quarter: CEO,2024-08-07 21:07:05+00:00,Crude Oil,Crude Oil,0.0616084137525378,0.1149241836689859,0.9963176968364074,Bullish,Bullish 108," Devon Energy's oil production hit an all-time record level in the second quarter of 2024, driven by the Delaware Basin which remains by far its biggest operation as it prepares to add a sizable Williston Basin acquisition announced in the period, the company's top executive said Aug. 7. Devon's Q2 oil production reached 335,000 b/d, Devon CEO Rick Muncrief said during a company earnings conference call. That figure was up 5% from just three months earlier, and also exceeded guidance by 3% in the quarter, Devon quarterly production figures showed. Of Devon's total Q2 oil volumes, 221,000 b/d, or 66%, came from the Delaware Basin. ""Our business continued to strengthen and build momentum"" in Q2, Muncrief said. Besides the output kick from Delaware oil production, ""we also saw improved cycle times across the entire company, setting multiple drilling and completion records."" Devon's total Q2 oil, gas and NGL output averaged 707,000 b/d of oil equivalent, up about 6.5% from three months ago and nearly 7% more than in the same period in 2023. A ""key driver"" of the record-setting oil result was what Muncrief called a ""superb"" performance from the Delaware Basin where the company benefitted from addition of a temporary fourth hydraulic fracturing crew. ""We were able to bring online 62 new Delaware Basin wells in the quarter,"" he said. ""Well productivity from this batch of wells was ... outstanding with per-well recoveries on track to achieve a greater than 10% uplift compared with last year's program."" Devon's total Delaware Basin output also posted record-high volumes in Q2 of 461,000 boe/d, which represents a 5% growth rate compared with the previous quarter, Clay Gaspar, Devon's executive vice president and chief operating officer, said. 10% uplift from new Delaware wells ""We brought online more than 60 wells during the quarter,"" Gaspar said. ""These wells ... achieved average 30-day rates of more than 2,800 boe/d, with [ultimate] recoveries projected to exceed 1.3 million boe per well."" ""It's no surprise that the Delaware is the driving force behind the company's improved production outlook,"" he said. Total Q2 production spiked after a full year of virtually flat output in the low-to-mid-660,000s/boe/d. But besides the Delaware Basin, the larger quarterly volumes came from two other key Devon spheres of operation – the Eagle Ford Shale and the Anadarko Basin, Gaspar said. ""In the Eagle Ford, production growth was driven by strong redevelopment results in DeWitt County, [Texas] where average 30-day rates from our 15-well program consistently exceeded 3,000 boe per day per well,"" he said. ""In the Anadarko, our capital program driven by our joint venture with Dow delivered both solid returns and double-digit production growth in the quarter."" Eagle Ford volumes grow 13% in Q2 Eagle Ford total volumes of 79,000 boe/d in Q2 grew 13% from Q1, mainly from natural gas which rose to 92,000 Mcf/d, up 16% over Q1, while gas volumes in the Anadarko Basin also rose 9% over Q1 to 244,000 Mcf/d. ""Looking ahead, we expect the benefit of these carried enhanced returns [in the Anadarko Basin] with Dow will support activity through most of next year,"" he added. ""We're evaluating opportunities to expand this mutually beneficial partnership."" Meanwhile, owing to its ""solid"" performance for H1 2024 of better-than-anticipated well results and improved cycle times year-to-date, Devon has raised its guidance for the second time this year, this time 5% higher than its original outlook, to a range of 677,000-688,000 b/d of oil equivalent, Muncrief said. In early July, the company announced it would acquire the Williston Basin assets of Grayson Mill Energy for $5 billion, a purchase which bulks up Devon's portfolio by 100,000 boe/d of production in the basin and 307,000 net acres, making it one of the largest US oil producers at around 375,000 b/d. The acquisition is scheduled to close before the end of September. ""This transaction nearly triples our production and expands our inventory in the Williston Basin,"" Muncrief said. In Q2, Devon produced 61,000 boe/d from the Williston, unchanged from Q1. Although there was a slight pullback in Devon's Q2 Williston oil volumes to 37,000 b/d from 40,000 b/d in Q1, the company made it up on the gas side with 71,000 Mcf/d in Q2, up 13% from Q1. The company maintains its full-year capital budget range of $3.3 billion to $3.6 billion but expects to be in the upper part of the range from efficiency gains that led to bringing activity forward. In the third quarter, Devon expects oil production to average 319,000 b/d to 325,000 b/d. ","Devon Energy's oil output hits all-time record high from Delaware, Eagle Ford operations",2024-08-07 21:01:26+00:00,Crude Oil,Crude Oil,0.516729055667741,0.0111983459782492,0.9942083839830848,Bullish,Bullish 109," Brazilian independent oil and natural gas producer Prio remains in a holding pattern amid plans to develop the offshore Wahoo discovery and carry out maintenance work and interventions at shuttered wells amid ongoing work actions at key regulatory agencies, company executives said Aug. 7. ""We are waiting for the green light and expect to see it in coming weeks,"" Prio Chief Operating Officer Francisco Francilmar Fernandes said during a conference call with analysts and investors. ""We're going to adapt and deliver results in the quickest way possible."" Prio needs two environmental licenses to move forward with development of Wahoo, which is expected to pump 40,000 b/d from four production wells and two water injection wells, company officials said. That includes one license to drill production and injection wells and one license to install submarine equipment, manifolds and production lines that will be tied back to the FPSO Valente floating production, storage and offloading vessel anchored at the nearby Frade Field. The licenses, however, have been held up by work-to-rule actions in place at the Brazilian Institute for the Environment and Natural Resources, or IBAMA, since January, Prio officials noted. In late June and early July, IBAMA workers walked off the job. While a federal judge ordered workers involved in environmental licensing to return to work, the work-to-rule actions have remained in place. ""We're watching for a solution to this impasse very attentively so that we can return to growing production,"" CEO Roberto Monteiro said. The approvals processes for the two licenses are advancing in parallel and will allow Prio to move forward with installation and drilling as soon as they are granted, Monteiro said. Prio will use its company owned Hunter Queen rig to drill the Wahoo wells, which should take about 60-70 days each to complete. Work to install submarine equipment and production lines, meanwhile, will take about 60-90 days to complete once work starts, Monteiro added. Prio has arranged contracts with Sapura that create a window to conduct the work in September-December. But any additional delays into 2025 would require further negotiations to secure a ship to carry out the submarine installations, Monteiro said. First oil could be produced with just a single well, depending on the timing, and will likely take place in the first half of 2024, Monteiro said. So far, Prio has spent about $500 million-$600 million on development of Wahoo, out of an initial investment budget of about $800 million, Monteiro said. Prio expects to spend the remaining $200 million to drill the production wells at the field and install the submarine equipment. Polvo, Albacora Leste wells In addition to the environmental licenses for Wahoo, Prio also needs IBAMA to approve workovers at the Frade field and Polvo-Tubarao Martelo production hub, Monteiro said. In the second quarter of 2024, Prio shuttered the ODP3 production well at Frade as well as the TBMT-8H, TBMT-10H and TBMT-4H wells at Tubarao Martelo. The delays will likely cause average output from Frade to drop to about 42,000-43,000 b/d in 2024, Fernandes said. The Polvo-Tubarao Martelo hub, meanwhile, should return to average output of about 15,000-16,000 b/d after Prio swaps out faulty pumps in the three idled production wells. Prio also plans to drill two new production wells at Polvo in coming months, which could add up to 1,000-1,500 b/d, Fernandes said. A revitalization campaign is also planned for Albacora Leste after Prio completed a 13-day maintenance shutdown in July, Monteiro said. Under the plan, Prio wants to add eight production wells and two-three injection wells at Albacora Leste. Five of the new production wells, which will take about 70 days to drill, should add about 5,000 b/d worth of output. In-fill drilling also will add three wells that could produce about 3,000 b/d. ""Once we get the environmental licenses we need, we have about one year of work ahead of us,"" Monteiro said. Prio also remains on the lookout for mergers and acquisitions opportunities, with about $1.2 billion worth of cash on hand at the end of the second quarter, Monteiro said. ""We are paying attention and are animated about M&A opportunities over the next 12 months,"" Monteiro said. ""Prio doesn't work in pure exploration, so M&A is an important entryway for the company."" Prio is evaluating the potential sale of a stake in the Peregrino heavy oil field, where China's Sinochem has put up its 40% minority stake in the field up for sale, Monteiro said. Equinor owns a 60% operating stake. In addition, Prio also is looking at opportunities in the US Gulf of Mexico, Monteiro said. Recent discoveries could see major oil companies move toward development of deeper, high-pressure deposits in the region. That would open the door for Prio to buy assets that it could use to create a production hub in the region. Prio, however, isn't interested in onshore assets, Monteiro said. ""I think it adds too much complexity. We want to operate offshore,"" Monteiro said ","Brazil's Prio still waiting on IBAMA license approvals to boost oil, gas output",2024-08-07 21:01:25+00:00,Crude Oil,Crude Oil,0.906983577498463,0.0126842473822572,0.9090466665343055,Bullish,Bullish 110," Delek US expects third-quarter refinery utilization rates for its four-refinery system to dip below its record-high Q2 rates, a company executive said Aug. 6. “Bottom line for our second quarter: safe, compliant and reliable operations led the way to record-high throughput of 316,000 b/d and a favorable $5.02 b/d cost structure for our refining system,” Joseph Israel, Delek US’ head of operations, said on the company's Q2 results call. “Our implied system throughput target for the third quarter is in the 301,000-315,000 b/d range,” he added. Delek US has been on a mission to upgrade operations at its four refineries, earmarking $20 million of its 2024 capital spending, with 93% going toward sustaining and regulatory projects and 7% going toward improving reliability and yields as it looks to boost margin capture at all four of its refineries. At Krotz Springs in Louisiana, Q3 planned throughput is expected in a 79,000-83,000 b/d range, compared with 82,000 b/d throughput in Q2, as “the team is in the final stages of preparation for our fourth-quarter turnaround,” Israel said. Delek US previously announced planned work at Krotz Springs on the crude distillation unit and gasoline-making fluid catalytic cracking unit in Q4. Earlier this year, Delek US said the Krotz Springs turnaround will focus on three main issues: improving crude rates and flexibility through the enhancement of crude-unit piping, increasing conversion and yields at the FCCU by putting in a new reactor, and replacing and optimizing reformer catalyst operations. At El Dorado in Arkansas, Q3 throughput is expected in a 79,000-82,000 b/d range. Q2 throughput totaled 85,000 b/d with a production margin of $2.79/b, driven, in part, by a “low-margin environment” where operating expenses averaged $4.12/b. The Q2 Group-3 cracking margin for WTI ex-Cushing averaged $14.45/b, down nearly $1 from Q1. It has rebounded so far in Q3, averaging $15.50/b as of Aug. 7 on refinery outages in the Chicago market. Delek US “successfully demonstrated” to boost the volume of heavier crude at El Dorado to optimize operations by increasing volumes of heavy Canadian crude, Israel said. “The team is pushing forward initiatives on the product side, including product diversification and logistics to support new market optionality."" A brief fire at the plant Aug. 6 was expected to have “minimal impact on production,” Israel added. Delek US is continuing to upgrade its refinery in Big Spring, Texas, successfully completing a benzene stripper project in Q2 that “is well reflected in our results,” Israel said. Big Spring’s Q2 throughput was 74,000 b/d, with production margin of $8.92/b and operating expenses falling to $6.35/b as Delek US moves closer to its targeted $5.50/b range. Estimated Q3 throughput will fall in the 69,000-73,000 b/d range. At Delek US' other Texas refinery, located in Tyler, Q2 throughput was 76,000 b/d with production margins averaging $10.11/b and operating expenses $4.83/b. Q3 throughput is estimated in a 74,000-77,000 b/d range. ",REFINERY NEWS: Delek US sees Q3 refinery utilization dip from record Q2 highs,2024-08-07 20:31:17+00:00,Middle Distillates,Middle Distillates,0.9759244359878272,0.0226027124256303,0.4427927622237365,Bearish,Bearish 111," Crude oil futures settled higher Aug. 7 against a backdrop of tighter US supply, stabilizing global financial markets and brewing Middle East tensions. NYMEX September WTI settled up $2.03 at $75.23/b, and ICE October Brent climbed $1.85 higher to $78.33/b. US commercial crude stocks fell 3.73 million barrels to 429.32 million barrels in the week ended Aug. 2, EIA data showed Aug. 7. The sixth-consecutive weekly draw put stocks 5.5% behind the five-year average for this time of year, opening the widest deficit since October 2023. American Petroleum Institute data released late Aug. 6 showed US oil inventories grew 180,000 barrels in the week to Aug. 2, while analysts surveyed by S&P Global Commodity Insights had forecast a 700,000-barrel decline over the period. NYMEX September RBOB ended the session up3.11 cents at $2.3573/gal, and September ULSD climbed 5.98 cents to $2.3556/gal. Oil futures were trading higher ahead of the EIA release, buoyed by signs of ascendant global financial markets and concerns of rising Middle East tensions. Global financial markets appeared to be stabilizing following a steep selloff early in the week sparked in part by a Bank of Japan interest-rate hike that preceded a rapid strengthening of the Japanese yen. On Aug. 7 BOJ deputy Governor Shinichi Uchida strived to reassure the market, saying ""the central bank will not hike interest rates when financial markets are unstable,"" leading to 1.2% growth in Nikkei average. ""It is still difficult for the market to feel safe after the Nikkei turmoil,"" but the rebound supports the crude futures market at the moment, said Bjarne Schieldrop, chief commodities analyst at Seb Research. Meanwhile, Middle East tensions remain in focus after Hezbollah issued a fresh pledge to respond to Israel's killing of its military commander despite international attempts to pursue a diplomatic solution to the ongoing conflict. ""Any spike in Middle Eastern tensions could drastically heighten the risk of supply disruptions, effectively leaving oil traders feeling as though they're perched precariously on a barrel of dynamite,"" SPI's Innes said. ","OIL FUTURES: Crude rallies as traders eye tighter US supply, global financial market stabilization",2024-08-07 19:56:45+00:00,Crude Oil,Crude Oil,0.1375549224112752,0.2048558225034823,0.9793578965861766,Bullish,Bullish 112," The balance month -- currently August -- Dated to Frontline (DFL) contract gained $1.35/b from the previous close Aug. 7, rallying from a two-month low the day before. The DFL represents the difference between ICE Brent futures and Dated Brent. Platts, part of S&P Global Commodity Insights, assessed the balance month DFL contract at $1.10/b Aug. 7, up from minus 25 cents/b Aug. 6 which marked the lowest value since June 13. The balance month DFL contract particularly strengthened towards the close of the Aug. 7 Platts Market on Close assessment process, trading at $1.10/b at 1626 London time, up from 50 cents/b at 1527. The balance month and month 1 DFL contracts flipped back into backwardation Aug. 7, after being assessed in contango for two days Aug. 5 and Aug. 6 for the first time since June 18. Platts assessed the month 1 -- currently September -- DFL contract at 46 cents/b Aug. 7. Strength at the prompt was a theme for other key Brent complex contracts in the day, with prompt CFDs also making impressive gains. The balance week CFD, currently settling across Aug. 5-9, gained $2.03/b from the previous close Aug 7, reaching its highest level since July 17. ""Front CFDs are certainly much stronger,"" said one derivatives trader. ""The market has put a halt to the recent downtrend; Dated has found some support following improving refinery margins and increasing tension in the Middle East,"" the trader added. The strengthening in these contracts contrasts with the weakness seen across the physical crude markets in recent days. Platts last assessed the global Dated Brent benchmark at $79.91/b, up $3.635/b on the day. ","Prompt DFL, CFD contracts rally",2024-08-07 19:26:57+00:00,Crude Oil,Crude Oil,0.9356057952139974,0.0348524132555172,0.641025570586399,Bearish,Bearish 113," Notes: State oil company Petroperú, which operates four refineries with total capacity for 123,000 b/d, saw total second-quarter fuel sales fall 4.4% to 93,700 b/d. Domestic fuel sales dropped 5.7% to 65,700 b/d from 75,000 b/d a year ago, while exports rose 21.7% to 28,000 b/d, the Lima-based company said Aug. 7 in a statement. The company increased crude purchases by 14% from a year ago to 53,600 b/d from 47,100 b/d, while slashing refined gasoline purchases by 63% to 19,000 b/d from 51,700 b/d. The company's 95,000 b/d Talara oil refinery has been hampered by the closure of its flexicoking unit for the entire quarter, while its 200,000 b/d North Peruvian Oil Pipeline (ONP) was damaged by repeated attacks by local communities during the quarter. The pipeline was brought back online in mid-July, while the flexicoking unit remains halted due to technical problems since late March. Petroperú took over three north coastal oil blocks last year, guaranteeing Talara direct supply of 7,100 b/d of crude and 16,400-Mcf/d of natural gas. Petroperú also holds stakes in northern oil Blocks 10 and 192. Petroperú posted a $268.8 million Q2 loss compared with a $222.3 million loss a year earlier as sales fell 8% to $874.2 million in the quarter from $949.3 million a year ago. Petroperú, which competes in Peru with Repsol's 117,000 b/d La Pampilla refinery, is undergoing restructuring after posting eight straight quarterly losses. Source: Company statements ","REFINERY NEWS: Petroperú sees 2Q refined fuel sales drop 4.4% on year to 93,700 b/d",2024-08-07 19:22:19+00:00,Crude Oil,Crude Oil,0.274952105889816,0.0213389780661036,0.9965162132905556,Bullish,Bullish 116," US Gulf of Mexico pure-play operator W&T Offshore plans to unfurl details of its latest drilling joint venture that would involve other investors in the coming weeks, the company's top executive said Aug. 7. The JV would involve an as-yet undetermined number of wells and expenditures with several participants, which would include institutional investors, E&P oil and gas industry partners and financial players, W&T's CEO Tracy Krohn said during a second-quarter earnings call. However, ""it looks like it will be about six or seven wells"" to be drilled over the multiyear length of the JV, Krohn said. ""We haven’t completely vetted all the wells we want to drill or the exact timing on it,"" he said. ""We're still hunting rigs and there is timing on lifting equipment and whatnot that move platform rigs around."" More JV details to come More information will be provided on the dollar amount of expenditures going forward, ""in pretty short order,"" he added. W&T has had a couple of similar JVs throughout its 40-plus year operating history. Basically, the ventures have allowed W&T to develop a high-return drilling inventory at a faster pace with a greatly reduced outlay of capital. It also maintains flexibility that permit the company to make acquisitions and pay down debt, according to W&T's most recent slide presentation. Most recently W&T undertook a drilling JV in 2018 known as Monza, for 14 US Gulf wells carrying a price tag of $361.4 million. The venture also had potential to upsize the program over time with additional wells. Through the end of Q1 2024, ten wells had been drilled under Monza. The most recent was at two shallow-water tracts off the Louisiana coast at East Cameron Blocks 338/349. That work resulted in a discovery, the Cota well, which came online in March 2022. According to the terms of that venture, W&T initially received 30% of the net revenues from the drilling program, in exchange for contributing 20% of capital expenses plus associated leases and providing access to available infrastructure. After each investor received a certain return threshold, W&T's share of each well's net revenue increased to 38.4%, W&T presentation slides said. W&T total output flat in Q1 In Q2, W&T reported net sales volumes of 34,900 b/d of equivalent oil, essentially flat with Q1 and down nearly 6% from the same quarter a year ago. Production in Q2 included 15,187 b/d of oil, down 1% from Q1 output. Production in Q2 also included 3,670 b/d of NGLs, down nearly 3% from Q1, and 96,400 Mcf/d of natural gas, about flat with Q1. Production in Q2 was largely down owing to a gas processor at its Mobile Bay 916 field offshore Alabama. During the quarter W&T negotiated a new agreement with a gas processor and returned the field to production in late May 2024, Krohn said. ""With the return of that field production, four of the six fields recently acquired from Cox [a US Gulf operator] are now in production,"" he said. Also during Q2, the company continued to integrate assets from the $32 million Cox asset acquisition which closed in January after being announced in September 2023. The assets, chiefly six shallow-water producing fields, are all sited in shallow water depths ranging from 25 feet to 265 feet along the US Gulf Continental Shelf, offshore Louisiana. Krohn said W&T continues to ""make good progress integrating these new assets into W&T."" ",W&T Offshore nears close of new US Gulf of Mexico drilling joint venture,2024-08-07 19:15:23+00:00,Crude Oil,Crude Oil,0.710641392723639,0.0872584366740156,0.8795538083216197,Bullish,Bullish 119," Mergers and acquisitions remain a key part of driller Permian Resources growth strategy following the announcement of the Barilla Draw acquisition from Occidental Petroleum in late July, coasting off strong second-quarter results which were driven by improved drilling and completion efficiencies, top executives said Aug. 7. Production exceeded company expectations during the second quarter due to strong drilling and completion efficiencies, strong run times, and steady well performance, resulting in increased oil production at 153,000 b/d and total production at 339,000 barrels of oil equivalent per day. ""For example, we averaged 1,500 drilled feet per day in over 21 pumping hours per day in Q2, which are both company records for a quarter,"" co-CEO William Hickey said during the company's second-quarter earnings call. ""As a result, we're raising our full year oil guidance for the second consecutive quarter, amounting to a 4,500 barrels of oil per day increase in total when compared to our initial guidance in February."" Current full year oil production guidance is now at 152 million b/d while total production is at 325 million boe/d. That is up more than 60% from its 2023 full-year production of 194,500 boe/d, largely boosted by the previous Earthstone acquisition and additional support from the latest Barilla Draw acquisition. Strength in drilling and completion efficiencies drove a 13% cost improvement per foot during the quarter, resulting in one of the strongest cash cost quarters to date as workover costs were significantly reduced due to ""low failure rates on downhole lift equipment and a reduction in cost per failure,"" Hickey said. The Midland, Texas based company continues to optimize on recently acquired wells, resulting in an increased full-year turning-in-line guidance by around 15 wells. Looking ahead, the company aims to maintain their rig count and frac count to maintain incremental production growth. Just last week, the company announced that it was buying 27,500 net acres on the Texas side of the Delaware Basin and another 2,000 acres on the New Mexico side from Occidental Petroleum for $817.5 million, the latest in a string of M&A activity for the company. ""This acquisition consists of the Barilla Draw assets in Reeves County and approximately 2,000 net acres offset our existing position in Eddy County,"" co-CEO James Walter said. ""These are assets that we have been keeping an eye on for quite a long time that fit extremely well with our existing footprint."" The transaction is expected to close by the end of the third quarter with an effective date of July 1, 2024. The land offers more than 200 potential drilling locations and 15,000 boe/d of production, making it comparable to existing operations in the Permian Basin, the company previously said. The deal also includes a water recycling facility with a capacity of about 25,000 b/d and more than 100 miles of oil and natural gas pipelines, Walter said. ","Imrproved efficiencies, continued M&A activity to drive growth for Permian Resources",2024-08-07 19:07:56+00:00,Middle Distillates,Middle Distillates,0.0510654852128022,0.1289240687736456,0.9966483391763667,Bullish,Bullish 120," Mexico's state oil company Pemex will start exploring an onshore reservoir located only 5 km from Quesqui, one of its most prolific natural gas fields in decades. Quesqui has been one of the main projects that has allowed Pemex to increase its gas output during the current administration of President Andres Manuel Lopez Obrador, who has prioritized quick production at shallow-water and onshore blocks to boost output, neglecting deepwater and unconventional deposits. The Mexican upstream regulator, the National Hydrocarbons Commission, or CNH, on Aug. 6 approved a request from Pemex to drill Ocuapan 401, an exploration well located inside the onshore block operated under contract AE-0143-3M in the Comalcalco region. Ocuapan 401 is located 4.8 km (2.9 miles) from one of the over 30 wells at Quesqui, CNH data shows. The deposits at Ocuapan are divided from the Quesqui reservoir by a salt formation, the CNH said. Pemex expects roughly 6 million barrels of oil equivalent at the site and has committed $53 million to drilling Ocuapan 401, the CNH said. Pemex will begin drilling in early December and it will take roughly 190 days to drill and terminate the well, the CNH said. Quesqui is one of the projects Pemex has identified as a priority to boost its output, key to accomplish its plans to increase its production and stop its reliance on imports from the US. Pemex announced the discovery of Quesqui in 2019 and called it the largest onshore hydrocarbons find in the last 30 years, with roughly 700 million boe. In June, Pemex produced 555 MMcf/d of gas and 159,000 b/d of condensate at the site, CNH data shows. ",Mexico's Pemex to explore deposit adjacent to major onshore gas field Quesqui,2024-08-07 18:43:11+00:00,Middle Distillates,Middle Distillates,0.8578176484139084,0.1807593867832409,0.4574539559329387,Bearish,Bearish 123," Par Pacific expects third-quarter refinery utilization to top that of Q2, following completion of a major overhaul of its 61,500 b/d Billings, Montana, refinery, a company executive said Aug. 7. ""I'm pleased to report that Billings executed one of their largest turnarounds on record, successfully meeting all health, safety and environmental targets and ... finishing on schedule and on budget,"" Richard Creamer, Par Pacific's head of refining and logistics, said on the Q2 earnings call. ""The plant restart went well and has met or exceeded all operational objectives. Given the turnaround downtime in Billings, Q2 throughput and production costs were 38,000 barrels per day and $16.18 per barrel,"" he added. In Q3, Par Pacific has planned work on the 10,000 b/d fluid coker at Billings and expects the refinery's Q3 throughput to range between 55,000 b/d and 59,000 b/d. ""The completion of the Billings maintenance positions us to push utilization rates in Q3 in order to meet market demand. Each of our markets is short refined product demand in the summer months, requiring long-haul imports to balance supply and demand,"" CEO Will Monteleone said on the call. During Q2, the Billings US Gulf Coast index averaged $17.93/b while gross margin capture was 94%, which reflected seasonally strong clean product differentials in the Upper Rockies. ""Looking ahead to the third quarter in Billings, clean product premiums to the Gulf Coast remained strong, trending slightly above Q2 levels quarter-to-date. Cost of crude differentials in the third quarter are expected to increase by approximately $5 per barrel, reflecting tighter heavy and light crude differentials during the second quarter,"" he said. Par Pacific said dynamics in PADD 4 -- the Rockies region -- have largely returned to typical premiums compared with the US Gulf Coast and margins have responded and moved up to mid-cycle levels. ""However, the Southern Rockies has been slightly less attractive, as excess Mid-Continent inventories have pressured markets like Denver and Rapid City,"" he said. Wyoming margin capture falls on increased Midwest barrels At Par Pacific's smaller Rockies refinery -- the 18,000 b/d refinery in Newcastle, Wyoming -- Q2 margin capture to Par's USGC index was 82%, reflecting softer South Rockies' premiums. Q2 refinery throughput was 19,900 b/d with guidance for Q3 throughput slightly lower at 19,000 b/d. ""Local demand continues to strengthen into the third quarter, and clean product spreads to the Gulf Coast have returned to typical summer levels,"" Monteleone said. The Southern Rockies ""has a fair amount of interconnectivity with the Mid-Continent. And I think our observation would be in June and July, while you typically expect to see significant rail-borne imports into the Southern Rockies, ultimately, we didn't see the spreads that you would typically expect in those markets,"" he said. These conditions began to normalize later in July and in August back to higher levels more consistent with ""rail-borne imports into PADD 4 to balance supply and demand during peak season,"" he added. Hawaii moves forward with renewables; Tacoma planned work ends Par Pacific's Hawaii refinery reported Q2 throughput of 81,000 b/d, with expectations for Q3 rates of between 78,000 b/d and 82,000 b/d. Q2 refinery margin capture was exceptional at 135% with utilization at 99% of capacity. ""With Hawaii's consistent throughput and strong catalyst performance, we'll be extending the scheduled 2025 turnaround into 2026,"" Creamer said. Par Pacific's sustainable aviation fuel project at Hawaii remains on track, with expectations the project will come online in the second half of 2025. Par Pacific is converting a diesel hydrotreater to make 61 million gal/year of renewable fuels with the ability to switch yield to produce 60% SAF for Hawaii's significant air travel market. ""We've completed at least two of the feedstock tanks that will be necessary and, again, are working on and have major bids in hand from critical vendors and providers to begin executing that and are awaiting 1 or 2 critical permits, but I think we feel confident on the time line there to receive and move ahead with those items,"" Monteleone said. The renewable cogen project remains viable and negotiations with Hawaiian Electric continue with completion targeted by end of 2024. ""And so I think from there, we'll have firmer estimates on our engineering and, ultimately, the power purchase agreement time line and can make a final investment decision,"" he added. Earlier this year, Par Pacific cancelled a renewables project at its Tacoma site, which would have used green hydrogen to produce SAF and other renewable fuels, citing the policy backdrop and higher risk due to increased production of SAF and RD reducing the economics and value of credits from Washington's Low Carbon Fuel Standard needed to support the project. In Q2, refinery utilization at the Tacoma refinery was 41,000 b/d, which included planned work that started in March and ended in April. In Q3, Par Pacific expects Tacoma throughput to be between 38,000 b/d and 41,000 b/d. ",REFINERY NEWS: Par Pacific reports softer south Rockies results as Midwest barrels spill into region,2024-08-07 18:10:56+00:00,Middle Distillates,Middle Distillates,0.1343335296363257,0.3613411530444795,0.9658518512430788,Bullish,Bullish 124," Suncor Energy is well positioned for a strong second half of the year, as the company has completed major planned turnaround at both its upstream and downstream facilities, CEO Rich Kruger said Aug. 7. “Following a strong first quarter, the second quarter was about execution and momentum,” Kruger said on a webcast to discuss Suncor’s second-quarter 2024 earnings results. “The focus was on high quality execution of major upstream and downstream turnaround activities and maintaining momentum in targeted improvement priorities, including operational reliability and cost management.” The ‘execution’ was of major turnaround activities last quarter of the company’s Base oil sands mine, the Syncrude coker and the Sarnia and Montreal refineries, Kruger said, adding the ‘momentum’ element is of targeted improvement areas. Suncor typically spends about C$1.2 billion ($873 million) each year in planned maintenance of its oil sands assets in Alberta and Eastern Canada. This includes bitumen mines, steam-assisted gravity drainage plants, upgraders, refineries and offshore oil fields. However, last quarter was one of its largest turnarounds, with a total spending of C$800 million. The company was able to complete the turnaround work with a 10% saving -- or 20 days -- on time, he said. The majority of the planned maintenance work last quarter focused on the 350,000 b/d Syncrude coker plant of C$450 million, followed by C$370 million on the 350,000 b/d Base mine plant, Kruger said. “Improving the competitiveness of turnarounds is a major opportunity for us and we are focused on shortening the duration and bring costs down,” Shelley Powell, senior vice president for operational improvement and support services, said on the same webcast. For the current year, Suncor is tracking above the higher end of its guidance of 770,000 b/d to 810,000 b/d. The company also plans to maintain its planned capex of about C$6.3 billion to C$6.5 billion and an overall cash operating costs of C$28/b to C$31/b, Kruger said. “We have a second half to go and will play to the final whistle,” he said. Growth plans, record Q2 output Suncor is targeting “across the board improvements” and an over 100,000 b/d increase in production by 2026, Kruger said, adding: “We will go for growth within the existing assets from a wealth of long-term, internal assets. There will be no significant capital directed towards new bitumen development in the next five years.” The company is also one of Canada’s oldest oil sands operators that uses both mining and SAGD technology to extract raw bitumen from its resources in northern Alberta. This includes its legacy Base Mine plant, Firebag, Fort Hills, MacKay River, North Steepbank and Syncrude facilities. Total upstream production last quarter was 770,600 b/d, up 28,700 b/d, or 3.8%, compared with 741,900 b/d in the same quarter the prior year, CFO Kris Smith said on the same webcast. Total oil sands bitumen production increased to 834,400 b/d in the second quarter of 2024, compared to 814,300 b/d in the prior year quarter, primarily due to increased working interest in Fort Hills, in addition to record second quarter gross bitumen production at Fort Hills and record quarterly production at Firebag, Smith said. The company’s net synthetic crude oil production was 461,700 b/d in the second quarter of 2024, representing combined upgrader utilization of 86%, compared to 505,000 b/d and 92% in the prior year quarter, reflecting higher planned maintenance in the current period and strong upgrader utilizations outside of planned maintenance activities, Smith said. SCO is upgraded raw bitumen that is produced by Syncrude and fetches a premium to the Western Canadian Select heavy crude grade. SCO and WCS prices averaged C$83.65/b and C$67/b last quarter. This is compared with C$76.65/b for SCO and C$58.70/b for WCS in the same quarter of 2023, according to the earnings release. Oil sands operations cash operating cost last quarter was C$28.45/b, compared to C$29.10/b in the prior year quarter, primarily due to increased production volumes, lower operations and maintenance costs, according to the earnings release. Downstream performance Refinery crude throughput increased to 430,500 b/d and refinery utilization was 92% in the second quarter of 2024, compared with 394,400 b/d and 85% in the prior year quarter, reflecting strong utilizations at all refineries outside of planned turnaround activities in the current quarter, Kruger said. “Our money-maker Edmonton refinery had a new quarterly utilization record at 108%,” he said. Suncor also saw improved reliability at its Commerce City refinery compared to the prior year quarter. Following the completion of planned turnaround activities, the company’s refineries finished the quarter strong, with average utilization of over 100% through June and into July. Record quarterly refined product sales were of 594,700 /d in the second quarter of 2024, compared with 547,000 b/d in the prior year quarter, with the increase primarily due to the company leveraging its extensive domestic sales network and export channels in the current quarter, as well as the impacts of restart activities at the company’s Commerce City refinery in the prior year quarter, Kruger said. Suncor's refinery assets are the 135,000 b/d plant in Montreal, 85,000 b/d facility in Sarnia and 146,000 b/d plant in Edmonton, all in Canada and the 98,000 b/d plant in Denver in the US. ","Suncor sees improved H2 oil and gas output, completes major Q2 turnarounds",2024-08-07 17:58:32+00:00,Middle Distillates,Middle Distillates,0.1232397498218518,0.0392202719653595,0.9972613902296744,Bullish,Bullish 126," Brazilian state-led oil company Petrobras signed a letter of intent with Espirito Santo state government and a leading state industrial trade group to study low-carbon hydrogen production and the potential installation of an offshore carbon-capture utilization and storage, or CCUS, hub in the state, according to the company. ""Petrobras owns infrastructure installed in the state that could be used for CCUS projects, as well as holding ample geologic knowledge about the region's sedimentary basin,"" Petrobras said Aug. 6. According to Petrobras, the company has already started initial planning to install equipment to transport carbon dioxide along the Espirito Santo state coastline and at offshore storage reservoirs. Under terms of the memorandum, Petrobras would operate the hub and be responsible for investments in pipelines, compression stations and injection wells. The long-term goal is to reduce carbon emissions across Espirito Santo state industry and manufacturing, helping the state meet its target of net-zero emissions by 2050, Petrobras said. ""We believe that, through this agreement, we can identify commercial opportunities and generate potential partnerships that are aligned with the strategy to diversify the energy matrix and reduce carbon emissions,"" said Paulo Baraona, president of the Espirito State Federation of Industries, or FINDES. The deal with Espirito Santo state represented the latest project involving technologies related to the global energy transition and reduced greenhouse gas emissions, which was part of a strategy shift implemented after President Luiz Inacio Lula da Silva took office in January 2023. Lula and his Workers' Party, or PT, have tasked Petrobras with being the country's lead investor in renewable energy and transition-related technologies as part of Brazil's efforts to meet emissions targets under the Paris Accords. Petrobras is already one of the world's leading carbon-capture companies, accounting for about 25% of capture in 2023, according to the company. Under the company's $102 billion investment plan for 2024-2028, Petrobras planned investments of about $5.5 billion in low-carbon projects. In February, for example, Petrobras announced a $16.0 million investment in a pilot plant to produce sustainable, low-carbon hydrogen using electrolysis and solar power generated at the Alto Rodrigues Solar Plant in Rio Grande do Norte state. The CCUS project, meanwhile, will also help Espirito Santo state and state-based manufacturers to reduce emissions, according to officials. Espirito Santo state committed to reaching net-zero emissions by 2050 earlier in 2024, when the state launched a carbon-reduction plan. Included in the plan's directives were CCUS projects as part of a policy aimed at creating a green industrial hub, state officials said. ""Espirito Santo has been creating this work flow, implementing public policies that promote renewable energies, consolidating solid partnerships and creating economic opportunities,"" said Felipe Rigoni, Espirito Santo state's secretary for the environment and water resources. ","Brazil's Petrobras, Espirito Santo state to study potential CCUS, hydrogen hubs",2024-08-07 17:06:22+00:00,Middle Distillates,Middle Distillates,0.949790560110077,0.0087781213518713,0.8480110918454441,Bearish,Bearish 127," Argentina’s Energy Secretariat said Aug. 7 it authorized hikes in the prices of biodiesel and ethanol for oil refiners to blend into fuels. The price of biodiesel, which is produced mostly from soybean oil, was increased 1.5% to Pesos 965,554/mt ($1,031/mt) in August from the previous price of Pesos 951,285/mt that took effect in June. The price of corn ethanol was raised 1.5% to Pesos 590.73/liter (63 cents/l) from Pesos 582/l, where it had been since February, while the price of sugarcane ethanol was increased 1.5% to Pesos 644.53/l (69 cents/l) from Pesos 635/l over the same period, the secretariat said. Argentina produces all of its own ethanol and biodiesel to meet 12% and 10% blend requirements, respectively. State-backed YPF has a 55% share of diesel and gasoline sales, trailed by Shell-backed Raizen, BP-backed Pan American Energy and Trafigura. ","Argentina raises biodiesel, ethanol prices for blending by 1.5% in August",2024-08-07 16:39:21+00:00,Middle Distillates,Middle Distillates,0.6030685651676022,0.0191919552350614,0.9867801519195588,Bullish,Bullish 128," Bolivian President Luis Arce announced late Aug. 6 tax breaks and other incentives for importing equipment for biodiesel plants and planting feedstock in a bid to increase production and reduce diesel imports after a spate of shortages. The tax breaks and other fiscal and financial incentives are designed to strengthen biodiesel production in the country by spurring private investment, he said in a statement. Arce said a decline in domestic oil production has led to a rise in imports, with the country now reliant on foreign suppliers for 58% of its gasoline and 86% of the diesel. To turn this around, the state-owned oil company YPFB has been stepping up exploration to increase oil production and building new biodiesel production capacity. In March, the company launched operations of a 1,500 b/d biodiesel plant , the first of two planned facilities that will use castor, palm, soy and other vegetable oils to meet an up to 25% blend in diesel. Bolivia’s crude production tumbled 59% to 21,000 b/d in April from a peak of 51,100 b/d in 2014, according to data from the state statistics institute INE. The increased reliance on diesel imports led to shortages in late July and early August because of disruptions in the supply chain. A storm surge delayed the unloading of four ships with a total of 160 million liters of diesel at the Port of Arica in Chile, while low water levels on rivers stalled deliveries from neighboring countries. ",Bolivia offers tax breaks to import equipment for biodiesel plants following fuel shortages,2024-08-07 16:29:59+00:00,Light Ends,Light Ends,0.905180931318426,0.4153744647891071,0.1187489824171139,Bearish,Bearish 130," The US West Coast oil stock inventory reached a six-week low of 4.296 million barrels in the week ended Aug. 2, down 204,000 barrels from the previous week , Energy Information Administration data released Aug. 7 showed. USWC was the only market region whose inventory decreased compared to the US Atlantic and US Gulf Coast markets. The USAC inventory rose 591,000 barrels, totaling 4.821 million barrels on the week. Stocks were last higher July 12, at 5.299 million barrels. Furthermore, USGC stocks reached a four-week high at 16.293 million barrels, up 332,000 barrels from the previous week, EIA data showed. US fuel oil stocks jumped 841,000 barrels to 26.697 million barrels in the week ended Aug. 2. The inventory was last higher July 12, when stocks stood at 27.586 million barrels. US fuel oil product supplied, an indication of demand, decreased a second consecutive week to 262,000 b/d, down 71,000 b/d from the previous week. Platts assessed USGC HSFO at $67.88/b on Aug. 2, down $2.37 from July 26, when Platts assessed it at $70.25/b, S&P Global Commodity Insights data showed. Although the USGC HSFO price has moved down on the week, multiple sources said that HSFO supply tightness was due to less product coming from Mexico the last month. In addition, Platts assessed USGC marine fuel 0.5%S at $527/mt Aug. 2, down $24 from the previous week, Platts data showed. US fuel oil exports stood at 147,000 b/d in the week ended Aug. 2, up from 138,000 b/d the previous week. US fuel oil imports totaled 261,000 b/d, up 172,000 b/d from the previous week. US imports reached a two-year high, as imports reached 373,000 b/d July 8, 2022, EIA data showed. ","US DATA: West Coast fuel oil stocks hit a six-week low, EIA says",2024-08-07 15:59:32+00:00,Middle Distillates,Middle Distillates,0.9693225606122216,0.0078526414094795,0.7681501766596345,Bearish,Bearish 131," Iraq's SOMO announced cuts to its official selling prices for September-loading crude oil bound for Europe, according to a pricing notice seen by S&P Global Commodity Insights August 7. For cargoes loading in September and destined for Europe, the Basrah Medium and Basrah Heavy OSPs were lowered to Dated Brent minus $3.90/b and minus $6.45/b, respectively. This accounts for a $1.50/b decrease to both OSPs compared with August. Kirkuk was set at a discount of $1/b, 10 cents/b below the August price. September’s Basrah Medium and Basrah Heavy OSPs for European buyers dropped to the lowest level since May after reaching a 2024 high in August, reflecting weakening sour crude fundamentals in the region. European sour crudes, including Norway’s Johan Sverdrup and Kazakhstan Export Blend Crude Oil (KEBCO), weakened in July, according to data from Platts, part of Commodity Insights. Platts last assessed Johan Sverdrup on a CIF basis at a $1.09/b premium to Forward Dated Brent Aug. 6, down from a $2.45/b premium on the same day in July. Globally, sour crude supply remains on the tight side as OPEC+ confirmed at their latest ministerial meeting Aug. 1 that production cuts among member countries would remain at their current level until at least October. Flows of Iraqi Kirkuk and Kurdish Blend Test (KBT) crudes into the Mediterranean, via the Turkish port of Ceyhan, remain at a standstill 17 months after the initial suspension of exports. The Iraq-Turkey pipeline was officially closed on March 23, 2023, by Turkey following an international arbitration decision that it had breached a bilateral treaty with Iraq by allowing the KRG to use the pipeline to independently market its crude. The pipeline closure has prevented roughly 450,000 b/d of medium sour crude, most of it produced in the semi-autonomous Kurdistan region of northern Iraq, from reaching the Mediterranean market. Despite a series of talks between Turkey, the Iraqi federal government and the Kurdistan Regional Government, there appears to so far be no progress in the reopening of the pipeline and the resumption of exports. Looking outside of Europe, SOMO set the September OSPs for Asian buyers at the average of Platts Oman/Dubai assessments for Basrah Medium crude, up 10 cents/b from August. The Basrah Heavy OSP was set at a discount of $3/b to the same average, unchanged on the month. For US buyers of Iraqi crude, Basrah Medium was set at a discount of $1.10/b to the Argus Sour Crude Index, 45 cents/b below the August OSP, and Basrah Heavy at a discount of $5.45/b to the benchmark, 50 cents/b down on the month. Kirkuk’s September OSP was set 40 cents/b below August at a premium of $1.25/b. ",Iraq’s SOMO cuts official selling prices for September-loading crude oil for Europe,2024-08-07 15:44:44+00:00,Crude Oil,Crude Oil,0.9872004221608917,0.0067498917779049,0.5485521425814197,Bearish,Bearish 136," Nigeria’s Dangote Group is seeking to divest a 12.75% stake in its new 650,000 b/d refinery as it battles financing concerns, according to Fitch Ratings. Dangote had hoped to secure state backing for the new refinery after starting operations in January, expecting the country’s Nigerian National Petroleum Company to hold a 20% stake in the project. In July, Dangote surprised markets by reporting that NNPC had not provided sufficient funding to secure its 20% stake, and that its ownership would be limited to a 7.2% share. The state oil company was expected to fund its expanded stake through 300,000 b/d of discounted crude, but has delivered closer to 82,000 b/d since the refinery's inauguration, according to S&P Global Commodities at Sea data. In an Aug. 5 report, Fitch Ratings said the refinery was courting alternative investors to take on the stake previously earmarked for NNPC. “Since the [NNPC] option has not been exercised, the group plans to divest a 12.75% stake in [Dangote Oil Refining Company] in 2024,” it said. Dangote intends to repay a loan maturing in August with proceeds from the divestment, the ratings agency said, expressing concern over the refiner's ability to sell the stake promptly. “Significant deterioration in the group’s liquidity” caused Fitch Ratings to downgrade its credit rating for the refining business from AA to B+ and put it on ratings watch negative, a signal of potential future downgrades."" A representative for Dangote was not available for comment on the report Aug. 7. Rapid deterioration in Nigeria's currency has also contributed to a weaker financial position for Dangote, Fitch Ratings said, reporting foreign exchange losses of Naira 2.7 trillion (around $1.7 billion) for the refiner in 2023. Due to its location in the Lekki Free Zone, the refinery has purchased most of its crude oil in US dollars. Dollar-denominated debts have left Dangote particularly exposed to foreign exchange movements, Fitch Ratings said, anticipating a higher rate of devaluation in 2024. Feedstock challenge, ramp-up plans The Nigerian government took measures to alleviate the refinery's foreign exchange burden in July by allowing it to buy its crude oil from NNPC in naira, though foreign suppliers will continue to demand dollars for crude deliveries. To date, Dangote has sourced over 70% of its crude oil from Nigeria and around 30% from the US, according to S&P Global Commodities at Sea data , while NNPC has committed to supplying around a quarter of its feedstock requirements going forward, according to figures shared by presidential spokesperson Bayo Onanuga July 29. Difficulties in accessing foreign exchange had left PetroChina vessels loaded with WTI Midland crude from the US sitting off the refinery for weeks, Commodity insights has reported previously, while Dangote was recently seen reoffering US crude supply to the market in what it called an effort to pivot to Nigerian grades. Faced with challenging economic headwinds, the refinery has continued to pursue ambitious ramp-up timelines for its operations, with a company source saying Aug. 5 that the plant’s first gasoline supplies were expected ""within a fortnight."" The source previously said July 31 that the plant had been operating at over half its capacity, processing around 400,000 b/d. Fitch Ratings said the refinery had operated at around 325,000-375,000 b/d in H1, anticipating levels to remain around 350,000 b/d until September. At around 50% capacity, Fitch Ratings sees the refinery’s operations “barely breaking even” this year. S&P Global Commodity Insights analysts have kept forecasts unchanged for the refinery’s reformer to start up in September, projecting a ramp-up in crude runs after the residue fluid catalytic cracker is expected to start up in 2025. In a July 31 note, Commodity Insights analysts signaled a ""faster-than-anticipated startup"" for the refinery after the recent streaming of its mild hydrocracker, though the plant is not expected to achieve steady state capacity until 2027. ",Nigeria's Dangote refinery plans to divest 12.75% stake: ratings agency,2024-08-07 15:32:53+00:00,Middle Distillates,Middle Distillates,0.9837641909112546,0.1490551462543831,0.0510965723784674,Bearish,Bearish 137," Kazakhstan's Ayrau refinery processed 2.911 million mt crude over January-June and produced 2.632 million mt of oil products, it said late Aug. 6. The output included 671,728 mt of 92 RON gasoline and 115,132 mt of 95 RON; 878,963 mt diesel, 95,296 mt jet fuel, 106,021 mt LPG. Its depth or processing was 86.6% with the light products yield accounting for 68.6%. Platts, part of S&P Global Commodity Insights, assessed CPC Blend at $74.90/b on a CIF Augusta basis on Aug. 6. ",REFINERY NEWS: Kazakhstan's Atyrau processes 2.9 mil mt crude in H1,2024-08-07 13:13:31+00:00,Crude Oil,Crude Oil,0.60618261992618,0.0791779686462084,0.9226895075856404,Bullish,Bullish 138," Thailand’s IRPC reported a 94% utilization rate in the second quarter of 2024, up from 90% in the same period of 2023 and 85% in the first quarter, the company said in its latest results report Aug. 6. Its utilization in the first half was 89%, down from 91% in H1 2023. The IRPC Rayong refinery processed 201,000 b/d of crude oil in the second quarter, up 3.6% year on year and surging 10.4% from the first quarter of 2024. It processed 192,000 b/d of crude oil between January and June, down from 195,000 b/d in the same period of last year. Its gross refining margin in the second quarter was $2.45/b, down from $4.12/b in the second quarter of last year and dropping from $6.56/b in the first quarter, mainly due to lower spreads of diesel and gasoline products compared with the Dubai crude oil price. The company’s GRM in the first half was $4.38/b, down from $5.86/b a year earlier. IRPC’s sales volume for refined products declined to 14.48 million barrels in the second quarter, down 7.7% year on year, mainly due to the lower sales of diesel. The sales volume in the first half also dropped by 8.3% year on year, largely due to the drop in the sales volume of diesel and gasoline IRPC said it put its ultra clean fuel project into commercial operation in April. The UCF project will enhance the efficiency of the refinery plant and improve the quality of its diesel to meet the Euro-5 standard, in alignment with Thai Ministry of Energy's policy that requires diesel distribution to comply with the Euro-5 standard beginning Jan. 1, 2024. This standard reduces the permissible sulfur level to 10 ppm from 50 ppm under Euro 4, IRPC said. ",REFINERY NEWS: Thailand's IRPC reports Q2 utilization of 94%,2024-08-07 12:40:48+00:00,Light Ends,Light Ends,0.9916816258043052,0.0296850928481738,0.1615874242663811,Bearish,Bearish 139," Norwegian oil and gas operator DNO reported in an update on Aug. 6 that the gross operated production for Kurdistan in the second quarter of 2024 was 79,783 b/d, compared with 76,310 b/d in Q1 and 65 b/d in Q2 2023. It also said no production was reported for the North Sea over any of these periods. In terms of net entitlement production, DNO in Kurdistan produced 17,167 b/d in Q2, down from 20,503 b/d in Q1. The levels were 598 b/d in Q2 2023. For the North Sea, net entitlement production was 16,321 b/d in Q2, up from 14,217 b/d in Q1 and 10,841 b/d in Q2 2023. Turkey suspended exports of Iraqi crude on March 25 from the port of Iraq-Turkey Pipeline late in March 2023 in response to an international arbitration ruling on March 23, 2023 that upheld Baghdad's sovereignty over oil produced by the Kurdistan Region. As a result, DNO previously said that its 2023 revenues were negatively impacted by the Iraq-Turkey Pipeline shutdown in Kurdistan resulting in reduced Kurdistan production, with volumes sold in the local market at lower realized oil prices than previously achieved through exports. Moreover, DNO said that lower realized oil and gas prices in the North Sea also contributed to the decrease in 2023 revenues. ",DNO reports higher Q2 crude production in Iraq's Kurdish region,2024-08-07 12:36:54+00:00,Crude Oil,Crude Oil,0.1400632638341941,0.2292700457407589,0.9705266756664216,Bullish,Bullish 140," The tankers market is expected to have a “strong rate environment” this year while dry-bulk and containers are set to record solid rates for 2024, ADNOC L&S said in statement Aug. 7. The company also reported ""weather delays and deferred progress” in the first quarter on its $975 million contract from ADNOC Offshore awarded in June 2023 to build an artificial island for the Lower Zakum offshore field. The project is under the company’s integrated logistics, which it expects to show revenue growth in the “mid-40% range” in 2024 due to jack-up barge fleet growth, utilization and rates, it said. ADNOC L&S said its marine services business will benefit from contracted operations at petroleum ports and oil spill response services. In 2020, ADNOC awarded ADNOC L&S a 25-year contract to oversee all petroleum ports in Abu Dhabi, including the onshore Jebel Dhanna Ruwais petroleum port and the offshore Das Island, Zirku Island and Mubarraz ports. Revenue in marine services is expected to grow by the “mid-single digit” percent in 2024, the company said. Container shipping rates have climbed this year, with the Platts Container Index at $3,734.24/FEU on Aug. 6, up from $2,247/FEU at the end of 2023, according to S&P Global Commodity Insights data. Many crude oil tanker rates have dropped this year to the point that some charterers have said rates can only go higher. Platts, part of Commodity Insights, assessed the Persian Gulf-China VLCC route for a 270,000 mt cargo at $10.11/mt on Aug. 6, down from $12.69/mt at the end of 2023. Tankers as part of its shipping business are “delivering higher-than-expected growth,” ADNOC L&S said in the statement, predicting that overall shipping revenue gains would be in the “low to mid-teens percentage range” this year. Gas carriers will show a “slight reduction” in revenue this year due to sales of older ships but next year through 2027 annual revenue is expected to grow in the “mid 20%s” annually due to the delivery of new LNG carriers, the company said. ","ADNOC L&S expects ‘strong rates’ in tankers, dry-bulk, containers in 2024",2024-08-07 12:18:20+00:00,Crude Oil,Crude Oil,0.4988828730964472,0.0222701645190673,0.985694464478546,Bullish,Bullish 141," Freight rates for dirty tanker voyages loading in West Africa have fallen to their lowest since the start of October, as supply/demand fundamentals remain firmly in favor of charterers, according to sources. Platts, part of S&P Global Commodity Insights, assessed freight on the 130,000 mt WAF-UK/Continent route, exclusive of EU Emissions Trading Scheme charges, at $12.34/mt on Aug. 6 -- its lowest level since Oct. 9. This represents a significant decline from earlier in the year, with rates for this run remaining within a range of $16.50-18.50/mt from late April until the end of June, before beginning to soften in July. “Things have been quiet -- we’re in a very typical summer market now,” a Europe-based shipbroker said. “The US Gulf, which is usually the driving force for the West market, is also weak.” A London-based Suezmax broker agreed with this view, also pointing to a saturated tonnage list as another reason for the decline in rates. “There’s less cargo demand in summer, with countries using their reserves, and barrels have been going unsold recently, so we’re not seeing the demand,” the broker said. According to a second London-based Suezmax broker, although the WAF market may be reaching a bottom, “the US Gulf and Guyana [markets] aren’t in great shape, and until they pick, things up could be rough.” WAF-UKC Suezmax rates are currently near to levels where the market bottomed in August and September of last year, so it is difficult to predict whether rates will continue falling or remain steady in the short term, a third London-based Suezmax broker said. Sluggish VLCC rates Larger ship sizes have also fared poorly recently, with Platts assessing freight on the 260,000 mt WAF-East route at $18.48/mt on Aug. 6 -- near to its lowest level since Oct. 10, and down from its latest high of $26.81/mt on May 21. “It’s an underwhelming market currently -- speaking to owners, they think the floor has been found, but there’s unlikely to be a major recovery in the short term,” a London-based VLCC broker said. A Europe-based shipowner cited tepid cargo demand levels, in part due to OPEC+ production cuts leading to a decrease in monthly shipments loading in the Persian Gulf, as well as a seasonal lull in heating demand in Europe and the US. “[Charterers] are reluctant to come to the market,” the owner said. Nevertheless, WAF VLCC rates have been prevented from falling even further by owners' reluctance to lock in longer eastbound voyages while the market is in a downturn, opting to fix shorter voyages from the Persian Gulf instead, according to sources. Q4 could herald recovery Despite bearish headwinds looking likely to prevail in the short term, market sources generally expect rates to begin to recover as the fourth quarter approaches. “We have another few weeks left I think, hopefully things get better soon,” the first London-based broker said, adding that “earnings for owners aren’t currently horrific.” “Oil stocks are lower everywhere and prices are lower, so we should start to see demand pick up as we approach the winter,” the Europe-based shipowner said. “I don’t think we’re in a catastrophe -- I think the market will settle down.” ",WAF crude tanker rates hit 10-month lows amid sluggish inquiry levels,2024-08-07 12:10:56+00:00,Crude Oil,Crude Oil,0.993454263822648,0.0173390255071714,0.1888790313997469,Bearish,Bearish 142," Senegal's inaugural crude stream Sangomar is scheduled to load four 950,000-barrel cargoes in September, of which three of them are bound for China, according to trading sources, with average loadings for the month set at 126,666 b/d. The West African market is beginning to turn to the shifting of September-loading barrels, despite lingering August barrels struggling for buyers. While markets such as in Nigeria struggle with length, three of the four September-loading Sangomar cargoes have already secured end-users, one WAF trader said, adding that the three were headed to China. The fourth cargo -- scheduled as a cross-month loader between late September and early October -- is yet to be offered to buyers, sources said. Buying interest from China follows Senegal's first two export cargoes, which were headed to Shell's refineries in the Netherlands and Germany , S&P Global Commodity Insights reported earlier. The crude comes from Woodside's 100,000 b/d Sangomar project off the coast of Dakar, Senegal's capital, which saw first oil in June, marking a key milestone for the African country’s economy. The production has been stable since the project startup, sources said. Sangomar crude has an API gravity of 31 degrees and contains 1% sulfur, making it comparable with medium sour grades from Oman and Norway's Johan Sverdrup, a key feedstock for European refiners. Beyond Europe and Asia, African refiners including Nigeria's colossal Dangote development have expressed an interest in processing Sangomar crude. Meanwhile, the director of Senegal's only refinery, Mamadou Abib Diop, said July 23 that his plant hopes to process crude from the Woodside project from September, subject to sample tests. Sangomar September-loading program: Country Crude Loading Volume (barrels) Senagal Sangomar Sept. 1-4 950,000 Senagal Sangomar Sept. 10-14 950,000 Senegal Sangomar Sept. 20-24 950,000 Senegal Sangomar Sept. 29-Oct. 1 950,000 Source: Traders ",Senegal's inaugural crude stream Sangomar to load 3.8 mil barrels in September,2024-08-07 11:55:22+00:00,Crude Oil,Crude Oil,0.9201287759494524,0.013029832207706,0.8797226176889713,Bearish,Bearish 144," China's vegetable oil imports stood at 645,000 mt in July, up 2.9% from 627,000 mt in June, as buyers took advantage of lower prices to replenish domestic inventories, data from China's General Administration of Customs showed Aug. 7. Total vegetable oil imports in the first seven months of 2024 (January-July) were pegged at 4.13 million mt, down 21% from 5.23 million mt in 2023 at the world world's second-largest vegetable oil buyer, the customs data showed. China's vegetable oil imports have dropped in 2024 as economic uncertainties in the country have subdued demand and kept buyers wary, sources told S&P Global Commodity Insights. The country's vegetable oil inventories at ports rose to 1.99 million mt as of Aug. 2, according to shipping data shared by traders, up 22.8% from 1.62 million mt a month before. In oilseeds, China's soybean imports fell to 58.33 million mt during the January-July period, down 1.3% from the same year-ago period, customs data showed. China is the world's largest importer of soybeans and crushes much of it to make soybean meal, an important animal feed ingredient for its hog herd -- also the largest in the world. However, soybean crush margins have been negative since May and the demand for pork has weakened as consumers tighten their belts, prompting breeders to reduce the herd sizes and feed demand. Given the great yield expectations, smooth planting progress and non-threatening weather conditions in the US, Chinese soybean crushers continued to adopt a wait-and-see approach and remained reluctant to place bids in the market, market sources told Commodity Insights. ",China's July vegetable oil imports rise 3% on month as buyers replenish domestic stocks,2024-08-07 11:17:10+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.4219108681139344,0.011928839897891,0.9962945765650544,Bullish,Bullish 145," The Middle East sour crude complex saw cash differentials for key sour crude markers rebound from five-week lows during the Singapore Platts Market on Close assessment process Aug. 7. Platts, part of S&P Global Commodity Insights, assessed October cash Dubai and cash Oman at a premium of 70 cents/b to same-month Dubai futures at the market close, both up 16 cents/b on the day. October cash Murban was assessed at a premium of 72 cents/b to same-month Dubai futures, up 17 cents/b on the day. During the MOC, 50 October Dubai partials of 25,000 barrels each traded. The sellers were Mitsui, Trafigura, PetroChina, Phillips 66, ExxonMobil, BP, Reliance and Unipec, and the buyers were Gunvor, Vitol and Glencore. No convergences were reached during the MOC. A convergence occurs when 20 partials are traded between two counterparties, resulting in a full 500,000-barrel physical cargo being declared from the seller to the buyer. In the broader market, more producer crude oil official selling prices were seen, with Abu Dhabi National Oil Co. and QatarEnergy issuing their September OSPs over the late Aug. 6 to Aug. 7 session. Unplanned shutdowns were also heard in the Middle East, with Omna's 198,000 b/d Sohar refinery heard to have gone into shutdown this week with a targeted restart date of Aug. 13, trade sources said. Refinery operator OQ was not immediately available to comment. ",CRUDE MOC: Middle East sour crude cash differentials rebound,2024-08-07 11:14:34+00:00,Crude Oil,Crude Oil,0.8877111301299875,0.2294640480151518,0.2376313885105102,Bearish,Bearish 146," Crude oil futures were up in the mid-morning London trade Aug. 7 amid improvement in financial markets and as concerns over Middle Eastern supply disruption persisted. At 1103 GMT, the October ICE Brent crude oil futures contract was at $77.34/b, up 86 cents/b from the previous settlement at $76.48/b, while the October WTI Crude Futures contract was at $73.09/b, up 85 cents/b from the previous settlement at $72.34/b. Financial stocks gained with Stoxx Europe 600 Index rising 0.8% and futures on both S&P500 and Nasdaq 100 recovering after the underlying indexes rose by more than 1% at the close on Aug.6. In particular, Bank of Japan (BOJ) strived to reassure the market after the Nikkei rally early in the week with BOJ’s deputy Governor Shinichi Uchida saying that “the central bank will not hike interest rates when financial markets are unstable,” leading to 1.2% growth in Nikkei average. Recovery in wider financial markets, therefore, expanded to the crude oil markets too with a slight increase in crude futures. “It is still difficult for the market to feel safe after the Nikkei turmoil,” but the rebound supports the crude futures market at the moment, said Bjarne Schieldrop, chief commodities analyst at Seb Research. Another factor contributing to the rise in crude futures is a higher threat in the Middle Eastern escalation which could potentially disrupt oil supply thus keeping premiums elevated currently. On Aug. 6, the leader of the Iranian-backed Hezbollah group, Hassan Nasrallah, said in a televised speech to mark one week since Fuad Shukr’s killing that the retaliation would be “strong” and “effective”. This increases the risks of wider conflict in the Middle East which in turn can disrupt oil flows, thereby supporting the crude futures. ",OIL FUTURES: Crude oil recovers as financial markets improve,2024-08-07 10:59:15+00:00,Crude Oil,Crude Oil,0.8591538238466169,0.1638861054198901,0.4421995708247121,Bearish,Bearish 147," Africa-focused Tullow Oil’s hydrocarbons production in the first six months of 2024 rose 4% year on year, while higher crude prices pushed up profits, it said Aug. 7. Oil and gas output was slightly ahead of expectations in the period, averaging 63,100 b/d of oil equivalent across Tullow’s upstream assets in Ghana, Gabon and Ivory Coast, compared with 60,800 boe/d in the same period last year, the London-listed firm said in its half-year results. The company has kept its full-year production guidance at the lower end of its 62,000-68,000 boe/d range, it said in the update, with one well at its Jubilee South East project in Ghana underperforming due to water injection issues. The company’s Ghana drilling program is ending six months ahead of deadline. Meanwhile, the smaller TEN field in Ghana exceeded the company’s expectations, CEO Rahul Dhir told S&P Global Commodity Insights in an interview. On the financial side, Tullow posted a post-tax profit of $196 million in the first six months of the year, up from $70 million in the same period last year. The company benefited from higher average crude prices in the first half, boosted by extensions to 5.8 million b/d of overlapping OPEC+ production cuts and escalation geopolitical tensions in the Middle East following the Israel-Hamas war in October. However, prices have tailed off in recent weeks due to sluggish Chinese demand and sticky inflation. Platts, part of Commodity Insights, last assessed Dated Brent at $76.28/b on July 6, down from a 2024 high of $93.35/b on April 12. Richard Miller, Tullow’s CFO, said profits had been boosted by higher production, higher market prices and fact that the company’s legacy hedge program had “rolled up”. Tullow said its realized oil price after hedging was $77.70/b in H1 2024, up from $73.30/b in H1 2023. The expiration of a number of its legacy hedges will allow the company to benefit from potential oil price increases moving forward, said Dhir, adding that hedges had been a “big constraint” on the business. The company -- which warned of a potential default in 2020 -- continues to chip away at its debts through “sustainable free cash flow generation” and hopes to reach net debt of $1 billion in the near term. In November it signed a $400 million five-year debt deal with trading house Glencore. Tullow’s full-year free cash flow guidance remains unchanged at $200 million-$300 million, the company said, while capex is due to fall in the second half, with an ongoing focus on cost discipline. Business development Dhir said the company is looking to bring its skillset to other parts of West Africa as part of ongoing business development. In April, he made a trip to Equatorial Guinea, meeting with the president’s son and de facto ruler Teodorin Obiang Nguema, according to local media reports. Tullow does not have any assets in the country. “We see opportunities as the majors are exiting a lot of the mid to late life assets,” Dhir said. “With a stronger balance sheet, free cash flow generation, good operating track record and long history in Africa, we are well placed to play there successfully.” The company also remains bullish on Kenya, where it is the sole operator of the South Lokichar basin oil project, having seen partners TotalEnergies and Africa Oil Corp. walk away last year. The field development plan was just pushed back six months, and there is no sign of a strategic partner for the asset. “In my business, patience is a very key skillset,” Dhir said. “It’s a big resource and whenever it gets developed it think it’s going to have a very good impact on the nation...I just think it takes time.” ","Tullow sees rise in crude output, profits on-year in H1 2024",2024-08-07 10:34:18+00:00,Crude Oil,Crude Oil,0.4077150824997836,0.0140213349919284,0.995483298162528,Bullish,Bullish 149," Russia's Black Sea port of Taman handled 1.07 million mt of oil products in June and July, up by 26% from 847,000 mt in the same two-month period in 2023, port operator Oteko said late Aug. 6. For the first half of the year, overall oil products' throughput amounted to more than 3 million mt, the port said, without providing a year-on-year comparison. The main destinations for oil products loaded at Taman over the first half of the year were Turkey, Singapore and Malaysia. In addition oil products were shipped to countries in Africa and the Middle East. The port of Taman is used for exporting oil products, including gasoline, diesel, fuel oil and vacuum gasoil, as well as coal. ",Russia's Taman port June-July oil products throughput up 26% on year,2024-08-07 10:19:20+00:00,Heavy Distillates,Heavy Distillates,0.5753273574647086,0.0229683101149853,0.9848464097916132,Bullish,Bullish 150," Please click on the newswire link either in the subject or body of this alert and the PDF version of the newswire will launch. If you have any issues opening this link,please contact Platts support at support@platts.com. ",Platts North America Short-term Outlook - Refined Product 31JUL24,2024-08-07 10:10:27+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.5732545608373621,0.0836103398000262,0.9042524065200398,Bullish,Bullish 151," Please click on the newswire link either in the subject or body of this alert and the PDF version of the newswire will launch. If you have any issues opening this link,please contact Platts support at support@platts.com. ",Platts North America Short-term Outlook - Refined Product 31JUL24,2024-08-07 10:10:27+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.5732545608373621,0.0836103398000262,0.9042524065200398,Bullish,Bullish 152," Please click on the newswire link either in the subject or body of this alert and the PDF version of the newswire will launch. If you have any issues opening this link,please contact Platts support at support@platts.com. ",Platts North America Short-term Outlook - Refined Product 31JUL24,2024-08-07 10:10:27+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.5732545608373621,0.0836103398000262,0.9042524065200398,Bullish,Bullish 153," Please click on the newswire link either in the subject or body of this alert and the PDF version of the newswire will launch. If you have any issues opening this link,please contact Platts support at support@platts.com. ",Platts North America Short-term Outlook - Refined Product 31JUL24,2024-08-07 10:10:26+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.5732545608373621,0.0836103398000262,0.9042524065200398,Bullish,Bullish 154," Please click on the newswire link either in the subject or body of this alert and the PDF version of the newswire will launch. If you have any issues opening this link,please contact Platts support at support@platts.com. ",Platts North America Short-term Outlook - Refined Product 31JUL24,2024-08-07 10:10:26+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.5732545608373621,0.0836103398000262,0.9042524065200398,Bullish,Bullish 155," Please click on the newswire link either in the subject or body of this alert and the PDF version of the newswire will launch. If you have any issues opening this link,please contact Platts support at support@platts.com. ",Platts North America Short-term Outlook - Refined Product 31JUL24,2024-08-07 10:10:26+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.5732545608373621,0.0836103398000262,0.9042524065200398,Bullish,Bullish 156," Please click on the newswire link either in the subject or body of this alert and the PDF version of the newswire will launch. If you have any issues opening this link,please contact Platts support at support@platts.com. ",Platts North America Short-term Outlook - Refined Product 31JUL24,2024-08-05 14:40:28+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.5732545608373621,0.0836103398000262,0.9042524065200398,Bullish,Bullish 157," Please click on the newswire link either in the subject or body of this alert and the PDF version of the newswire will launch. If you have any issues opening this link,please contact Platts support at support@platts.com. ",Platts North America Short-term Outlook - Refined Product 31JUL24,2024-08-05 14:40:28+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.5732545608373621,0.0836103398000262,0.9042524065200398,Bullish,Bullish 158," Please click on the newswire link either in the subject or body of this alert and the PDF version of the newswire will launch. If you have any issues opening this link,please contact Platts support at support@platts.com. ",Platts North America Short-term Outlook - Refined Product 31JUL24,2024-08-05 14:40:28+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.5732545608373621,0.0836103398000262,0.9042524065200398,Bullish,Bullish 159," Japan's oil products exports rose 4.5% on the week to 2.42 million barrels over July 28-Aug. 3, led by higher outflows of high sulfur fuel oil and kerosene, Petroleum Association of Japan data showed Aug. 7. HSFO exports surged 209.4% on the week to 661,689 barrels over the same period and kerosene exports jumped 86.2% on the week to 240,203 barrels. Meanwhile, gasoline outflows fell 99.7% from the week before to 780 barrels and low sulfur fuel oil exports declined 35.4% to 162,798 barrels. There were no HSFO imports for the 13th straight week and no LSFO inflows for the 18th consecutive week. The PAJ weekly petroleum statistics only cover imports of fuel oil and no other products. Japan oil product exports July 28-Aug 3 Product Kiloliters Barrels Change (W/W) Gasoline 124 780 -99.7% Naphtha 0 0 N/A Jet 138,969 874,115 -12.0% Kerosene 38,188 240,203 86.2% Gasoil (Diesel) 76,434 480,770 14.0% A-fuel oil 0 0 N/A LS fuel oil 25,882 162,798 -35.4% HS fuel oil 105,197 661,689 209.4% Total 384,794 2,420,354 4.5% Source: Petroleum Association of Japan ",JAPAN DATA: Oil product exports rise 4.5% on week to 2.42 mil barrels,2024-08-07 10:05:20+00:00,Crude Oil,Crude Oil,0.9399748687773426,0.0124179478266852,0.8406243662794826,Bearish,Bearish 160," Petro Rabigh’s refinery on the west coast of Saudi Arabia will be upgraded as shareholders Saudi Aramco and Sumitomo Chemical agreed to a phased waiver of their loans to the company totaling $1.5 billion after Petro Rabigh’s accumulated losses reached 53% of capital as of June 30, according to Aug. 7 statements by all three companies. Aramco will also buy some Petro Rabigh shares from Sumitomo Chemical for $702 million, increasing its stake to 60% and leaving Sumitomo with 15%. Moreover, Aramco will provide another $702 million to Petro Rabigh, for a total aggregate injection of $1.4 billion. Petro Rabigh’s accumulated losses as of June 30 were equal to Riyal 8.871 billion ($2.36 billion). Rabigh Refining and Petrochemical Co., known as Petro Rabigh, processes 400,000 b/d of Arabian Light crude and produces refined products including fuel oil, diesel, gasoline, kerosene, naphtha and LPG. Its ethane gas processing capacity of 1.6 million mt/year also produces heavy and light oil, naphtha and kerosene. The refinery, covering 24 million square meters, is located 165 km north of Jeddah on Saudi Arabia’s Red Sea coast. ",REFINERY NEWS: Petro Rabigh to be upgraded after Aramco takes control,2024-08-07 09:36:06+00:00,Crude Oil,Crude Oil,0.0163624307297005,0.9624486733260996,0.829264855226877,Neutral,Neutral 161," Canada's ShaMaran Petroleum Corp. has closed the acquisition of TAQA Atrush B.V. and the subsequent sale of an indirect interest in Atrush to HKN Energy IV Ltd., announced Jan. 22. The company said the two-step transaction increased its indirect 27.6% stake in the Atrush Block to a 50% working interest (66.67% paying interest) following the sale of an indirect 25% working interest (33.33% paying interest) to HKN Energy IV Ltd. It also said that an affiliate of HKN Energy is now operator of the Atrush Block, and the Kurdistan Regional Government's (KRG) 25% working interest in the Atrush Block has been converted to a carried interest. The company was forced to rely on local sales after the closure of the Iraq-Turkey pipeline since March 25, 2023. The pipeline was closed after an international arbitration court in Paris ruled against Kurdish oil exports in a case filed by Iraq against Turkey. So far, talks between Iraq, the KRG and Turkey have failed to resume oil exports. ""The closing of the Atrush transaction with TAQA and HKN advances our consolidation strategy in Kurdistan,"" ShaMaran President and CEO Garrett Soden said. ""We expect to increase production at Atrush and achieve significant synergies between the adjoining Atrush and Sarsang blocks with HKN as operator of both blocks. We thank TAQA, the Kurdistan Regional Government and HKN for their tireless efforts to close this 'win-win' transaction for all parties."" ShaMaran is an independent oil and gas company focused on the Kurdistan region of Iraq and indirectly holds an 18% working interest (22.5% paying interest) in the Sarsang Block and a 50% working interest (66.67% paying interest) in the Atrush Block. On May 8, the company said that in the first quarter of 2024, average gross daily oil production from Atrush and Sarsang combined was 57,400 b/d, down 14% from Q1 2023, while lifting costs were 42% lower than Q1 2023. ",Canada's ShaMaran closes acquisition of Atrush oil field,2024-08-07 08:46:07+00:00,Crude Oil,Crude Oil,0.4724987913487949,0.0411916293159073,0.9837313861012796,Bullish,Bullish 162," China imported 10.86 million mt, or 14.97 Bcm, of natural gas, including piped gas and LNG, in July, up 5.3% on the year and 4.2% on the month, the General Administration of Customs' preliminary data showed Aug. 7. July's natural gas inflows marked the tenth straight month of year-on-year growth since October 2023, historical GAC data showed. The growth, however, fell short of expectations, according to domestic industrial sources. Natural gas demand from gas-fired power plants -- the primary consumer in the summer -- was lower than anticipated largely due to an ample power supply from hydropower, coal and renewables, which has likely capped natural gas growth demand this summer, the sources said. Separately, trade sources expect LNG imports to be weaker than those of pipeline gas, as the former is more expensive and thus discourages buying interest. According to a forecast published by S&P Global Commodity Insights on July 8, Platts JKM spot prices above $11/MMBtu would disincentivize non-national oil company buyers from participating in the spot market. At around $12/MMBtu, domestic trucked LNG remained discounted, and pipeline gas in northern regions is even cheaper. The average cost of natural gas imports was estimated at around $478/mt, or about $8.93/MMBtu, in July, up slightly from $8.89/MMBtu a year earlier but broadly unchanged on the month, Commodity Insights' calculations based on the GAC data showed. Over January-July, China's natural gas imports rose 12.9% on the year to 75.44 million mt, or 104.03 Bcm, the GAC data showed. The average natural gas import cost was estimated at around $489/mt, or about $9.14/MMBtu, in the first seven months of 2024, down 11.4% on the year, according to the data. GAC will release detailed LNG import volumes later in the month. ",CHINA DATA: July natural gas imports rise 5% on year to 10.9 mil mt,2024-08-07 07:01:27+00:00,Light Ends,Light Ends,0.7738986034764759,0.0068022172098404,0.9870694645279536,Bullish,Bullish 163," Crude oil futures were rangebound in midafternoon Asian trade Aug. 7 as prices continued to stabilize from volatility earlier in the week and investors refocused on prevailing market fundamentals. At 2:30 pm Singapore time (0630 GMT), the ICE October Brent futures contract was up 2 cents/b (0.03%) from the previous close at $76.50/b, while the NYMEX September light sweet crude contract rose 6 cents/b (0.08%) at $73.26/b. Following a volatile start to the week for global financial markets, crude prices found a floor as the Relative Strength Index (RSI) reflected oversold conditions. ""The technical traders were back in action, eyeing the recent downward movements in oil prices as a key buying signal,"" explained SPI Asset Management's managing partner, Stephen Innes. ""[The RSI] suggested to many that oil was 'well overcooked' on the downside, sparking a flurry of activity to capitalize on potential corrections,"" he said. Still, the crude oil futures market remains in a precarious position with potential shifts in demand-supply fundamentals potentially triggering a downside move in prices, analysts warned. ""The price finds itself below the June lows at $76.60/b, and also below the February lows. Further declines take the price on to the January low at $74.80/b, and then down to the December low at $72.50/b,"" said Chris Beauchamp, chief market analyst at IG. For now, investors continued to monitor developments in the Middle East and potential support from US purchases aimed at replenishing their Strategic Petroleum Reserve . Hezbollah has issued a fresh pledge to respond to Israel's killing of its military commander despite international attempts to pursue a diplomatic solution to ongoing tensions. ""Any spike in Middle Eastern tensions could drastically heighten the risk of supply disruptions, effectively leaving oil traders feeling as though they’re perched precariously on a barrel of dynamite,"" SPI's Innes said. On demand, the US Department of Energy announced plans to buy 3.5 million barrels of crude for the SPR for January delivery. The purchases are part of the Biden administration's strategy to continue with solicitations when oil prices fall to $79/b or less. However, fresh import data from China confirmed an expected fall in crude oil imports in July amid poor refining margins and soft domestic demand. China’s crude oil imports dropped to 10.01 million b/d (42.34 million mt) in July, the lowest since 9.83 million b/d in September 2022, data from the General Administration of Customs showed Aug. 7. The volume represented a 3.1% year-on-year decline and a 11.8% reduction from June on a barrels-per-day basis. Dubai crude Dubai crude swaps and intermonth spreads were higher in mid-afternoon Asian trading Aug. 7 from the previous close. The October Dubai swap was pegged at $74.61/b at 2 pm Singapore time (0600 GMT), up 11 cents/b (0.15%) from the previous Asian market close. The September-October Dubai swap intermonth spread was pegged at 50 cents/b, up 8 cents/b over the same period, and the October-November intermonth spread was pegged at 40 cents/b, up 10 cents/b. The October Brent-Dubai exchange of futures for swaps was pegged at $2.00/b, up 5 cents/b. ","OIL FUTURES: Crude stabilizes on technical bounce, supply uncertainty",2024-08-07 06:33:24+00:00,Crude Oil,Crude Oil,0.1385332924656185,0.2804804517687694,0.954637766925274,Bullish,Bullish 164," Japan's oil product stocks edged up 0.8% on the week to 55.32 million barrels over July 28-Aug. 3, Petroleum Association of Japan data showed Aug. 7. Light distillate stocks were unchanged at 16.9 million barrels on the week, while middle distillate inventories increased 0.9% to 27.75 million barrels over the same period, the data showed. Japan's oil products stocks July 28-Aug. 3: Product Kiloliters Mil barrels Change (W/W) Change (Y/Y) Gasoline 1,437,094 9.04 -0.3% 0.4% Naphtha 1,249,405 7.86 0.4% -15.9% Jet 711,192 4.47 -2.3% -17.2% Kerosene 1,770,105 11.13 3.8% -10.6% Gasoil 1,251,558 7.87 -0.4% -3.2% LS marine diesel 308,912 1.94 1.5% 1.2% HS marine diesel 370,099 2.33 -1.9% -6.9% LS fuel oil 627,476 3.95 10.1% -4.4% HS fuel oil 1,068,587 6.72 -2.8% -12.1% Total 8,794,428 55.32 0.8% 48.0% Source: Petroleum Association of Japan ",JAPAN DATA: Oil product stocks rise 0.8% on week to 55.32 mil barrels,2024-08-07 06:23:04+00:00,Crude Oil,Crude Oil,0.9569076576472784,0.0097618831777668,0.8034068647163044,Bearish,Bearish 166," Japan cut its fuel subsidy for refiners and oil product importers for the fourth consecutive week to Yen 21.40/liter (14 cents/liter) for the week of Aug. 8-14, from Yen 27.10/liter the previous week, the government said Aug. 7. The government, which reviews the subsidy every week, reduced it as the average price of Nikkei Dubai oil fell 4.1% on the week to $78.74/b over July 30-Aug. 5. The Nikkei Dubai oil price is one of the factors that the government monitors to decide the subsidy. Japanese Prime Minister Fumio Kishida said June 21 that the government has decided to continue its current fuel subsidy policy until the end of 2024 to curb rising retail prices of oil products, including gasoline. In March, the government extended the subsidy program from end-April to support inflation-hit households, without setting a specific deadline. The policy has been extended seven times since its introduction. The national average retail price for regular gasoline fell Yen 0.30/liter on the week to Yen 174.60/liter on Aug. 5, marking four straight weeks of decline, according to the Oil Information Center. The gasoil pump price declined Yen 0.30/liter to Yen 154.30/liter, and the kerosene pump price decreased Yen 0.10/liter to Yen 117.10/liter, according to the center. Without the subsidy, the retail price of gasoline would have risen Yen 27.30/liter to Yen 201.90/liter on Aug. 5, the Ministry of Economy, Trade and Industry said Aug. 7. The subsidy reduced gasoil and kerosene prices by Yen 27.30/liter and Yen 27.10/liter, respectively, the ministry added. Refiners use the subsidy to curb increases in weekly wholesale prices of oil products, while trading houses deduct the subsidy from selling prices of imported oil products. ",Japan cuts Aug 8-14 fuel subsidy by 21% as crude prices drop,2024-08-07 05:48:26+00:00,Middle Distillates,Middle Distillates,0.2671493519433917,0.0267285834693109,0.9960095169819562,Bullish,Bullish 168," Japan's refinery run rates rose to 66.6% in the week to Aug. 3, from 63.6% the previous week, on higher crude throughput, the Petroleum Association of Japan said Aug. 7. The country's crude throughput was up 4.7% over the same period at 2.07 million b/d. Seven refining units, with a total production capacity of 790,200 b/d, were offline across Japan as of Aug. 3 -- four on planned maintenance, two following technical issues and another due to operational adjustments -- based on information compiled by S&P Global Commodity Insights. The refinery capacity outage accounted for 25.4% of the country's total installed refining capacity of 3.11 million b/d, the data showed. The offline capacity increased on the week from 774,200 b/d after ENEOS, Japan's largest refiner, restarted the sole 129,000-b/d crude distillation unit at its Chiba refinery in Tokyo Bay on July 28 after completing unplanned works, while the company shut the sole 145,000-b/d CDU at its Sendai refinery in northeast Japan on Aug. 1 due to technical issues, Commodity Insights previously reported. Japan's crude stocks fell 1% on the week and 16.8% on the year to 66.11 million barrels as of Aug. 3, Commodity Insights data showed. Unfinished oil product stocks, or oil processed at refineries, totaled 36.64 million barrels Aug. 3, down 2.5% on the week and 10.6% on the year. ",JAPAN DATA: Refinery runs rise to 67% over July 28-Aug 3 on higher crude throughput,2024-08-07 05:03:43+00:00,Light Ends,Light Ends,0.9949251612303376,0.0156314280665324,0.1930621781775267,Bearish,Bearish 169," The key Singapore reforming spread -- the difference between Singapore 92 RON gasoline and Singapore naphtha derivative, which is of a particular interest to gasoline blenders -- narrowed to an over two-year low of $12.60/b at the Aug. 5 Asian close, as weakness in gasoline prices outpaced that of naphtha. The spread edged higher to $12.75/b subsequently at the Aug. 6 Asian close. The spread was last lower March 3, 2022 at $9.85/b, S&P Global Commodity Insights data showed. The reforming spread has been on a declining trajectory since May due to weak demand despite the US driving season. More recently, the collapse of the reforming spread was largely attributed to the drop in crude values, which caused the prices of gasoline and naphtha to fall. Crude oil prices are expected to remain subdued due to recession fears, driven by a weaker-than-expected US employment report and steep selloffs in global financial markets, despite geopolitical supply concerns following the assassination of Hamas militant leader on Iranian soil. Meanwhile, the Asian naphtha market is anticipated to remain under pressure due to thin trading activity and slower demand. Tracking lower crude prices, the benchmark C+F Japan naphtha prices fell $16.50.mt on the day to $658/mt at the Aug. 5 Asian close, but marginally rebounded to $664/mt at the Aug. 6 Asian close as crude values remained rangebound, Commodity Insights data showed. ""Gasoline-naphtha [spread] is shrinking; not hearing strong demand from the region,"" an industry source said. Another trader echoed similar sentiments, saying, ""Gasoline demand is dying in Asia."" ""[The] general macroenvironment is not friendly for gasoline blending, although there should be a base demand to be supplied to the market,"" a second trader said, adding that a lower reforming spread suggests lesser profit for blenders. Gasoline demand to remain weak The Asian gasoline complex is expected to remain weak, driven by anticipation of fresh supplies entering the region and the tapering of the driving season in the US, sources said. Platts assessed the front-month September FOB Singapore 92 RON gasoline swap down 5.56% on the week at $83.25/b at the Aug. 6 Asian close, Commodity Insights data showed. Some trade sources indicate a potential bearishness in Asian gasoline prices in the near term, due to refineries returning for better margins and expectations of fresh resupplies heading into the eastern markets alongside China's export quota in the third quarter. There have been reports of cargoes being transported from Europe and the Arab Gulf to Singapore, but market participants were not optimistic about the cargoes being fulfilled. Market participants expect weaker US demand as the driving season winds down, leading to lower gasoline prices, with refinery maintenance anticipated in the post-summer season, a Singapore-based trader said. ",Asian reforming spread hits over two-year low as gasoline prices lag naphtha,2024-08-07 04:07:19+00:00,Light Ends,Light Ends,0.9431916560100432,0.0742248988898982,0.4585118906324904,Bearish,Bearish 170," The FOB Singapore 500 ppm sulfur gasoil cash differential has weakened in August as demand from Indonesia tapers following the resumption of operations at state-owned Pertamina’s Balikpapan refinery No. 4 crude distillation unit in East Kalimantan. Platts, part of S&P Global Commodity Insights, assessed FOB Singapore 500 ppm sulfur gasoil cargoes against the Mean of Platts Singapore gasoil assessment at a 10-week low of minus $1.70/b at the Asian close Aug. 6. The differential was last weaker at minus $1.74/b on May 27. During the Asian Platts Market on Close assessment process Aug. 7, Chevron sold 150,000 barrels of medium sulfur gasoil loading from the Straits over Aug. 21-25. The trade was assessed at a discount of minus $2.49/b against the MOPS gasoil assessment, after accounting for deemed pricing. “[The reason is] less demand from Indonesia. That’s all,” a regional middle distillates trader said. The 360,000 b/d CDU No. 4 at Pertamina's Balikpapan refinery resumed operations July 26 following a fire May 25. Indonesia imported 554,864 mt of gasoil from Singapore in July, rising from 519,933 mt in June and from 345,807 mt in May, Enterprise Singapore data showed. The data does not provide a breakdown by gasoil sulfur grades. “It is not just Pertamina that is buying medium and high sulfur gasoil cargoes. There are other traders in Indonesia that also buy these grades, and once Balikpapan is up, demand from August should be much lower,” a regional gasoil trader said. Pertamina has sought 50,000 barrels of 0.005%S diesel loading from the Straits (Singapore/Malaysia) over Aug. 18-20, or delivery to Plumpang, Jakarta over Aug. 22-24, at the lower end of either the Aug. 9-31 average of MOPS Singapore 0.005%S gasoil assessment or Argus Singapore gasoil 0.005% sulfur assessment, FOB/CFR. The tender closes Aug. 7, with validity until Aug. 8. The annual South China Sea fishing ban imposed by China, from May until Sept. 16 this year, to protect marine resources also leads to lower 500 ppm sulfur gasoil demand as the fuel is used to power motorized fishing boats. Vietnam -- a key importing center of the medium sulfur grade, has denounced China's annual fishing ban, citing violation of the Southeast Asian nation's sovereign rights and jurisdiction in Vietnamese waters, according to local media reports. The Philippines has also protested the ban on similar grounds. “Usually demand for 500 ppm [sulfur gasoil] is weaker during the fishing ban but demand from Indonesia provided support in June and July,” an industry source said. In comparison, the cash differential for benchmark FOB Singapore 10 ppm sulfur gasoil cargoes against the MOPS gasoil assessment strengthened on the day to minus 31 cents/b on Aug. 6, from minus 33 cents/b on Aug. 5. The differential was unchanged on the week and weaker compared with July’s average of minus 27 cents/b. The Platts FOB Singapore 10-500 ppm sulfur gasoil spread widened 22 cents/b on the day to $1.39/b at the Asian close Aug. 6. The spread was last wider at $1.43/b on May 29, Platts data showed. The Asian ultra low sulfur diesel complex has been largely stable, supported by pockets of regional demand, though trade participants have been cautious about a potential downside due to seasonal weakness. ",Asia medium sulfur gasoil differential weakens as Indonesia demand tapers,2024-08-07 03:24:48+00:00,Middle Distillates,Middle Distillates,0.9761277983820752,0.0201945678216615,0.4726347320986234,Bearish,Bearish 171," QatarEnergy raised the September official selling price differentials for its Land and Marine crudes by 45-75 cents/b from August, according to a notice on its website Aug. 7. The September OSP differential for Qatar Marine was set at plus 60 cents/b against the average Platts Dubai crude assessments in the month of loading, increasing from plus 15 cents/b for August. Platts is part of S&P Global Commodity Insights. The September Qatar Land OSP differential was set at plus 35 cents/b against the average Platts Dubai crude assessments in the month of loading, rising from minus 40 cents/b for August. Qatar crude oil official selling prices: (Unit: $/b) Grade Basis July August September Change Qatar Land Platts Dubai 0.35 -0.40 0.35 0.75 Qatar Marine Platts Dubai 1.10 0.15 0.60 0.45 Source: QatarEnergy website ","QatarEnergy raises Sep Land, Marine crude OSPs by 45-75 cents/b from Aug",2024-08-07 02:38:17+00:00,Crude Oil,Crude Oil,0.7457816552842085,0.0060487404417838,0.988758381249611,Bullish,Bullish 172," Abu Dhabi National Oil Co. set the September official selling price for its flagship Murban crude oil $1.28/b higher on the month at $83.80/b, the company said in a late Aug. 6 notice. The September OSP differential for Umm Lulu was set at a premium of 20 cents/b to the Murban OSP, equating to $84.00/b. The September differential for Das Blend crude was set at a discount of 80 cents/b to the Murban OSP, equating to $83.00/b, while the September differential for Upper Zakum crude was set at a premium of 5 cents/b to the Murban OSP, equating to $83.85/b. In May 2021, ADNOC partnered with the Intercontinental Exchange to launch an Abu Dhabi-based exchange called ICE Futures Abu Dhabi, or IFAD, on which the Murban futures contract and related cash-settled derivatives are traded. ADNOC OSPs for its Murban exports are based on the monthly average of IFAD Murban Singapore marker first-line futures, which go to delivery two months ahead of the month of trade. The shipping terms are FOB Abu Dhabi ports and Fujairah loading terminals. ADNOC's crude oil official selling prices: (Unit: $/b) Grade July August September Murban 83.93 82.52 83.80 Umm Lulu 84.13 82.67 84.00 Das Blend 83.28 81.77 83.00 Upper Zakum 84.23 82.52 83.85 Differential to Murban July August September Umm Lulu 0.20 0.15 0.20 Das Blend -0.65 -0.75 -0.80 Upper Zakum 0.30 0.00 0.05 Source: ADNOC ",ADNOC sets Murban Sep OSP $1.28/b higher on month at $83.80/b,2024-08-07 01:26:50+00:00,Crude Oil,Crude Oil,0.9844359960895368,0.0153111417882912,0.3698384492222382,Bearish,Bearish 223," US oil and natural gas company Diamondback Energy is continuing to push its well drilling lengths toward the four-mile mark and performing a greater number of well completions while it awaits the closure of a pending $26 billion merger with Endeavor Energy later this year, the company's top executive said Aug. 6. The Midland, Texas-based company continues to do ""more with less"" and become more operationally efficient each quarter, Diamondback CEO Travis Stice said during its company's second-quarter earnings conference call. ""At the beginning of the year we were anticipating a rig would drill 24 wells a year, and now we are modeling one rig drilling at least 26 wells per year,"" Stice said. Drilled wells 10% faster in Q2 ""On average, we are drilling wells approximately 10% faster than at the beginning of the year, primarily due to bit and bottom hole assembly improvements,"" he said. ""In fact, we set a new record [in Q2] on one of our wells in the Midland Basin, drilling over 20,000 feet with a single drill bit."" The company set the new record on a Midland Basin well in the eastern Permian Basin, drilling a lateral or horizontal well sideways more than 20,000 feet -- or nearly four miles -- with a single bit run, he said. Diamondback achieved a similar efficiency gain on the well completions side; the company previously signaled it would complete 80 wells per year per crew, but currently it is completing 100 wells per crew per year, Stice said. As the fourth-quarter merger close with Endeavor approaches later in the third or fourth quarters, Stice said he ""fully anticipate[s]"" both companies' operations will continue to push efficiencies. When the merger was announced in mid-February, Diamondback executives talked about the ability to apply Diamondback's relatively low drilling and completion costs on a larger asset base, the CEO said. Diamondback and Endeavor -- by the numbers: Diamondback Endeavor Diamondback post-merger Enterprise value $36.2 billion $26 billion $62.2 billion Q4 2023 production 273,000 b/d of oil; 463,000 boe/d 195,000 b/d of oil; 353,000 boe/d 468,000 b/d of oil; 816,000 boe/d Net Midland acreage 350,000 acres 344,000 acres 694,000 acres Total Permian acreage 494,000 acres 344,000 acres 838,000 acres Gross core locations (at sub-$40/boe) 3,800 2,300 6,100 Source: Diamondback Energy Costs now 'significantly below' early 2024 level ""I'm pleased to say today [the company's costs are] significantly below where we were in February,"" he said. ""So that … supercharges the delivery of the synergies that we were talking about."" Those synergies are expected to total $550 million per year and total several billion dollars over the next decade. The efficiency gains already achieved are permanent and are not going to disappear even in the face of inflation or deflation of service costs, but rather will be further refined over time, Diamondback's President and Chief Financial Officer Kaes Van't Hof said. In the second quarter, Diamondback's total oil, gas and NGL production grew 3% to 474,700 b/d of oil equivalent, up 3% from three months earlier, while its oil production grew 1% to 276,100 b/d of oil in the same time frame. Gas output in the second quarter of 2024 averaged 564,000 Mcf/d, up about 1% from three months earlier. In July, the company reduced drilling activity from 12 rigs to 10 and lowered its hydraulic fracturing fleet count from four SimulFrac crews to three, while raising full-year production guidance. SimulFrac is a technique used to complete wells where two wells are simultaneously completed instead of just one. Some companies are also experimenting with TrimulFrac, which allows hydraulic fracturing of three wells at one time. Diamondback's oil production target for 2024 was raised in the second quarter and is now at a range of 273,000 b/d to 276,000 b/d, up from 270,000 b/d to 275,000 b/d, reflecting accelerated first-half 2024 activity and year-to-date positive well performance, Diamondback said in a statement. The new 2024 oil production target would mean growth of 4% to 5% year on year. ","Diamondback Energy keeps pushing well drilling, completion efficiencies in Q2",2024-08-06 21:00:14+00:00,Middle Distillates,Middle Distillates,0.1481064337391911,0.1599359124116498,0.9853790066834762,Bullish,Bullish 224," Anglo-Turkish independent oil and gas company Genel Energy said Aug. 6 that oil production from the Tawke field was 19,510 b/d in the first half of 2024, compared with 13,440 b/d in the first half of 2023. In its first-half results report it also said domestic sale price averaged $34/b for the period compared with $35/b in 2023, with the last two months priced at $37/b. Paul Weir, Chief Executive of Genel, said that cash generative production continues from their flagship Tawke license, where domestic sales demand has shown resilient consistency in the past 6 months and a recent price improvement. Moreover, Genel Energy said they have closed down unprofitable licenses in the Kurdistan Region of Iraq and minimized their in-country footprint. The export of Kurdish crude stopped since Turkey closed the Iraq-Turkey pipeline on March 25 last year after an international arbitration court ruled that Turkey violated a bilateral agreement with Baghdad by allowing independent Kurdish export sales. Genel Energy said that when exports restart, they could deliver over $100 million of entitlement-free cash flow to Genel per year, more than double the current level. However, the company said that so far there is no breakthrough in the political impasse between Baghdad, Erbil and Ankara to resume oil exports. Genel Energy added that it will continue to lobby regional and federal governments to break the current political impasse so that international exports of Kurdistan oil can resume in a manner that properly rewards the international oil companies that have chosen to invest in Kurdistan. In 2021 Genel Energy took the Kurdistan Regional Government (KRG) to an international arbitration court in the UK after years of failure to agree on a plan to develop the Miran and Bina Bawi gas fields. The international arbitration case has now been concluded, with closing submissions exchanged in May and reply reports exchanged in June. Genel Energy said it is now for the panel to deliberate and make an award, likely before the end of the year. ","Genel Energy’s oil production from Tawke field increases to 19,510 b/d in 1H 2024",2024-08-06 20:55:17+00:00,Middle Distillates,Middle Distillates,0.9464704978730556,0.0053485830529859,0.9228474589521624,Bearish,Bearish 225," Record production from the Rocky Mountain and Mid-Continent regions lifted Oneok's natural gas and NGLs volumes during the second quarter, extending a similar trend seen last quarter despite fluctuating rig counts that have declined on average since the start of the year, with growth driven primarily by longer laterals and higher well performance, executives said Aug. 6. The Tulsa-based service provider reported a 9% quarterly increase in natural gas processing volumes in the Rocky Mountain region, with average processed volumes hitting a record 1.63 Bcf/d during the second quarter compared to 1.49 Bcf/d in the first quarter. Year-over-year, volumes increased 10%. Oneok includes Bakken volumes in its Rocky Mountain region data. Looking ahead, the company maintained its full-year guidance for Rocky Mountain processing volumes to rise to 1.52-1.75 Bcf/d in 2024. ""As we look to the remainder of the year, we are reaffirming our volume guidance due to the benefits we're seeing from the drilling of longer laterals and higher well performance on traditional laterals without the need for as many well connects,"" Sheridan Swords, executive vice president of Oneok's commercial liquids and natural gas gathering and processing said during the company's second-quarter earnings call. Bakken production averaged at 2.6 Bcf/d the week to Aug. 5, the producing area's strongest week in four weeks, S&P Global Commodity Insights data showed. Production averaged at 2.5 Bcf/d through July, slightly lower than first quarter averages between 2.7 Bcf/d to 2.8 Bcf/d. The Bakken had 40 rigs by July 24, the highest count seen since late April of this year and three higher than the same week last year, Commodity Insights data shows. In the Mid-continent region, processed natural gas volumes averaged at 701 Bcf/d compared to last quarter’s 702 Bcf/d, with six of 35 rigs currently operating on their acreage. The company connected 24 wells in the second quarter and expects to complete 60 to 70 well connections over the course of the full year. Currently, there are 40 rigs in the Williston Basin with more than 20 on Oneok's dedicated acreage, Swords said. The company connected 106 wells during Q2 in the gas play and expects to connect between 530 to 600 wells in 2024. ""With current commodity prices, we expect producers to continue concentrating activity in the oilier and NGL-rich areas in the region,"" Swords said. ""And as natural gas prices strengthen towards the remainder of the year, we could see rig activity increase in the gassier regions."" Additionally, in what executives called a ""pleasant surprise,"" Oneok's processed volumes have tripled between 2014 and 2023, despite 40% fewer well connections over the same period. The unique relationship is being driven by longer laterals, according to the company, which claims that there are fewer well connections needed per longer lateral. As the company relies more on three-mile laterals, 10% fewer wells are needed to connect the same lateral footage, the company claims. In example, the company had 581 well connections in 2023 while average length per well in miles was at 2.12. In 2024, well connections have decreased to 565, while average length per well has increased to 2.25 miles. It estimates 30% of laterals in 2024 will be three miles, up from 13% in 2023 and 7% in 2022. Ethane recovery Oneok saw a 17% quarterly increase in NGLs throughput in the Rocky Mountain region to 420,000 b/d in the second quarter, driven by increased propane plus volumes. The Midcontinent region increased 16% on the quarter to 556,000 b/d. The company expects modest recovery levels to continue in the Rocky Mountain region throughout 2024 but noted that while the Permian was in ""full recovery,"" the Midcontinent region was in rejection, Swords said. ""Ethane is going to be volatile [and] as we said, it's going to be dependent on natural gas prices. That's why we've always put just a very modest amount of ethane recovery into our guidance as we look forward,"" she added. ""We do see that the petrochemicals are having a very wide spread -- ethane and ethylene, it's very wide right now, so they're wanting to run at high utilization rates,"" Swords said. ""So we anticipate that we will see some recovery in the ethane markets as we finish the remainder of the year."" Oneok will have greater ability to incentivize ethane recovery in the Bakken when the 135,000 b/d Elk Creek expansion begins service, which is on track to be operational by the first quarter of 2025. The project would increase Oneok's total NGL capacity from the basin to 575,000 b/d. Oil and products volumes Oneok shipped 1.5 million b/d of refined products in the first quarter, 13% higher than in the last quarter when volumes shipped were at 1.4 million b/d. Crude oil shipments fell in Q2 to 731,000 b/d from 747,000 b/d in the first quarter. Additionally, the company announced a 230-mile expansion to its refined product system in Kansas to include the Denver International Airport, with a 35,000 b/d increase to total capacity. The expansion is expected to be complete by midyear 2026. Following a ""successful"" open season, the additional capacity is fully subscribed with Oneok to go out for a subsequent open season ""if demand continues to grow,"" Swords said. ",Longer laterals and higher well performance drive Rocky Mountain production: Oneok,2024-08-06 20:48:52+00:00,Light Ends,Light Ends,0.337639777012664,0.0833609975009509,0.9726727632487157,Bullish,Bullish 226," The US Department of Energy plans to buy 3.5 million barrels of crude for the Strategic Petroleum Reserve, executing the Biden administration’s strategy to continue with solicitations when oil prices fall to $79/b or less, the DOE said Aug. 6. The announcement comes just a week after the DOE finalized a purchase of 4.65 million barrels of sour crude that marked the completion of the administration’s promise to return the 180 million barrels released from the emergency crude stockpile in 2022 to combat energy price hikes spurred by Russia’s invasion of Ukraine. “These continued purchases underpin the president’s commitment to safeguard and replenish this critical energy security asset,” the DOE said in a statement announcing two new solicitations. The first solicitation seeks up to 1.5 million barrels of sour crude for delivery in January 2025 to the recently renovated Bayou Choctaw site in Louisiana. Bids of no higher than $79.99/b and of at least 250,000 barrels are due by 11 am CT Aug. 13, and contracts will be awarded no later than Aug. 29, according to the solicitation. The DOE said a second solicitation will be issued Aug. 12 for the purchase of about 2 million barrels. Those barrels will also be for January 2025 delivery but will go to the Bryan Mound site in Texas which is reopening after significant construction tied to the maintenance of the SPR. Bids will be due by 11 am CT Aug. 20. Crude volumes at the SPR stood at 375.1 million barrels the week ended July 26, compared with the 638 million barrels of crude when President Joe Biden took office in January 2021, according to the US Energy Information Administration. The Biden administration’s three-part SPR replenishment strategy has centered on “direct purchases with revenues from emergency sales, exchange returns that include a premium of oil above the volume delivered, and securing legislative solutions that avoid unnecessary sales unrelated to supply disruptions,” the DOE said. Direct purchases The new solicitations build on direct purchases made in 2023 and 2024 totaling more than 43 million barrels for an average price of $77/b. “DOE continues to aim for $79/b or less, significantly lower than the average of about $95/b DOE received for 2022 emergency SPR sales,” the department said. “DOE will continue to evaluate options to refill the SPR while securing a good deal for taxpayers, taking into account planned exchange returns and market developments.” Analysts at ClearView Energy Partners characterized the solicitations as “an opportunistic response to recent WTI price weakness.” NYMEX September WTI settled 58 cents lower at $72.94/b Aug. 5 as traders weighed recession fears and downward pressure from steep selloffs in global financial markets against mounting geopolitical risks to supply. Crude futures edged higher Aug. 6 -- but only to $73.20/b -- on expectations of supply disruptions as Libya’s largest oilfield was taken offline for political reasons and market concerns grew over a possible Iranian retaliatory attack on Israel. “Our suspicion is that the White House has little interest in generating market-moving demand at a time when gasoline prices have been retreating and the presidential campaign of Vice President Kamala Harris has been picking up,” according to a ClearView research note. “That said, to the extent that front-loading the buybacks may push price impacts down the forward curve, we would not be surprised to see further purchase announcements in coming weeks (again, if price weakness persists).” However, continued SPR purchases are likely to run into budgetary constraints that could put an end to them by the second quarter of 2025. ClearView estimates that about $1.38 billion remains in the DOE’s SPR coffers. If the department accepts offers for the full 3.5 million barrels at the threshold price of $79.99/b, the $1.1 billion left in the SPR account would be depleted in roughly four months, assuming 3.5 million barrels/month of purchases. “We do not think the current Congress is likely to provide additional appropriations for SPR procurement,” ClearView said. ",US DOE seeks to buy 3.5 million barrels of crude for delivery to SPR in January 2025,2024-08-06 20:36:55+00:00,Crude Oil,Crude Oil,0.5943146035917538,0.0252453350381951,0.9770875767758676,Bullish,Bullish 227," The FPSO Maria Quiteria floating production, storage and offloading vessel arrived offshore Brazil in recent days amid efforts by state-led oil company Petrobras to accelerate investments and boost oil and natural gas output. The vessel, which has installed capacity to produce 100,000 b/d and process up to 5 million cu m/d, is expected to start production from the Jubarte field in the so-called Parque das Baleias, or Whales Park, complex of offshore fields in the northern portion of the Campos Basin in the second half of 2024, Petrobras said Aug. 5. The FPSO, which can also inject up to 330,000 b/d of water, will be connected to eight production and eight injection wells. Jubarte, which produces from both subsalt wells and wells above the salt layer, pumped 128,080 b/d of oil equivalent in June, according to the latest production report from Brazil's National Petroleum Agency, or ANP. Petrobras CEO Magda Chambriard said in June that Petrobras would bring forward the installation of the FPSO Maria Quiteria amid criticisms by Brazil's government about the company's lackluster investment spending in the first half of 2024. Brazilian President Luiz Inacio Lula da Silva and his Workers' Party, or PT, favor a state-led model for economic development that includes heavy domestic investment by mixed-capital and state-controlled entities such as Petrobras. Under Petrobras' $102 billion investment plan for 2024-2028, the FPSO Maria Quiteria was originally scheduled to start production in the first quarter of 2025. The FPSO Maria Quiteria also represents a significant advance in emissions reduction from floating production units, which should reduce greenhouse gas emissions from Jubarte by about 24%, Petrobras said. The FPSO includes a combined cycle generator capable of producing about 100 MW, which is enough electricity to power a city of 230,000. The installation will be one of two FPSOs scheduled for 2024, which represented a slowdown from the five FPSOs that started production between December 2022-December 2023, according to Petrobras. In addition to the FPSO Maria Quiteria, Petrobras plans to install the FPSO Marechal de Duque de Caxias at the Mero field in the Libra production sharing area in the second half of 2024. The floating production unit will be third to start production at Mero, with the FPSO Sepetiba and FPSO Guanabara already in operation. The FPSO Sepetiba pumped first oil on Dec. 31, 2023, while the FPSO Guanabara started operations in April 2022. Like the FPSO Marechal Duque de Caxias, the two FPSOs also have installed capacity to produce 180,000 b/d and process up to 12 million cu m/d. The FPSO Marechal Duque de Caxias also represents the first major use of Petrobras' HISEP system, which will be used to separate oil, natural gas and carbon dioxide gas on the seabed, according to Petrobras. The carbon dioxide and natural gas will be reinjected into the Mero field reservoirs in addition to other carbon-capture measures aimed at reducing emissions. Petrobras plans to fully implement the HISEP system starting in 2028, the company said. The company plans to install three FPSOs in 2025, according to the Petrobras 2024-2028 investment plan. That includes the FPSO Almirante Tamandare and the FPSO P-78 at the Buzios field, as well as the FPSO Alexandre de Gusmao at the Mero field. The FPSO Almirante Tamandare can pump up to 225,000 b/d, while the FPSOs P-78 and Alexandre de Gusmao will each have installed capacity to produce 180,000 b/d. ","FPSO Maria Quiteria arrives offshore Brazil, to reduce emissions: Petrobras",2024-08-06 19:42:18+00:00,Middle Distillates,Middle Distillates,0.8378940523958974,0.1207546266087028,0.5613222826472157,Bearish,Bearish 229," Crude futures edged higher Aug. 6 on the back of expectations of a disruption in supply from the sudden reduction in Libya’s Sharara oilfield production and concerns of further escalation between Israel and Iran. NYMEX September WTI settled up 26 cents at $73.20/b and ICE October Brent climbed 18 cents higher to settle at $76.48/b. On Aug. 5, Libya’s largest oilfield was taken completely offline on the direction of Saddam Haftar, the son of military strongman Khalifa Haftar, following news of a Spanish arrest warrant being issued against him, according to sources. Output at the Sharara Field, which had been producing roughly 250,000 b/d of oil, initially fell to around 100,000 b/d after protesters against the warrant entered the operations room Aug. 4, sources told S&P Global Commodity Insights, before ceasing by 4 pm Aug. 5. The reduction in Libya’s oil production adds to market concerns about Middle Eastern oil supply caused by the escalation on the Israel-Gaza front. On Aug. 6, the US President met his senior national security team as concerns grew of a possible Iranian retaliatory attack on Israel. A day earlier, US Secretary of State Antony Blinken reportedly told his G7 counterparts that Iran and Hezbollah could attack Israel within 24 to 48 hours. ""Market pricing in energy markets is also pointing to some dislocations, with energy supply risk premia disregarding the substantial and imminent geopolitical risk associated with Iran. An escalation in the conflict can now asymmetrically lead to more upside momentum with CTA short positions now well populated,"" TD Securities Senior Commodity Strategist Daniel Ghali said. NYMEX September RBOB dipped 74 points to $2.3262/gal and September ULSD declined 28 points to $2.2958/gal. Global financial markets, meanwhile, showed signs of stabilizing after a volatile start to the week that saw a broad move away from risk assets such as oil futures. ""It seems we've caught a brief respite as some of the falling knives have finally hit the floor,"" said SPI Asset Management managing partner Stephen Innes. Resilient US services data seen Aug. 5 also offered some support for prices and bolstered a broad-based recovery in risk sentiment, IG market analyst Yeap Jun Rong told Commodity Insights. ""Oil prices have been attempting to stabilize from recent rout,"" Yeap said. ""But that is weighed against geopolitical developments in the Middle East, where initial retaliation from Hezbollah has been more contained than what some expect. ""For now, concerns around US growth risks are eased by resilience in US services activities, but it may have to take more to reassure markets of a stronger global demand outlook for oil,"" he said. ""Until then, gains in oil prices may seem more limited."" ",OIL FUTURES: Crude edges higher as market stabilizes amid Middle Eastern supply concerns,2024-08-06 19:35:14+00:00,Crude Oil,Crude Oil,0.6480644703248327,0.0789502754402211,0.8585442055241113,Bullish,Bullish 230," The US Energy Information Administration Aug. 6 lowered its 2024 crude price forecasts by just less than $2/b, tracking lower daily spot prices driven by signals of a global economic slowdown and the prospect of reduced world liquid fuel consumption in 2025 thanks to reduced China demand. ""Although the monthly average Brent spot price was higher in July, daily spot prices fell toward the end of the month driven in part by signals that global economic conditions may be slowing, which has the potential to reduce global oil demand growth,"" the EIA said in its August Short-Term Energy Outlook. ""Although market concerns about the economy have lowered crude oil prices in recent days, we still expect that the most recent round of OPEC+ production cuts will reduce global oil inventories over the next three quarters in our forecast and push oil prices higher."" The agency predicted the Brent crude spot oil price to increase from current prices in the remainder of 2024, foreseeing $87/b in December 2024 and $89/b in the first quarter of 2025. The EIA decreased its 2024 forecast for Brent crude by $1.93 to $84.44 and its 2025 outlook by $2.67 to $85.71. Similarly, the agency forecast WTI crude down $1.82 from its July estimate for the year, while it lowered its expectation for 2025 by $2.67 to $81.21/b. ""The main source of this upward price pressure is falling global oil inventories resulting from OPEC+ production cuts,"" the EIA said. The agency said it expects global oil inventories to decrease by an average 0.8 million b/d in the second half of 2024, with further declines in the first quarter of 2025, but anticipated the market would ""gradually return to moderate inventory builds"" in the middle of 2025 after the expiration of voluntary OPEC+ supply cuts. The agency forecast the Brent price to fall to $83/b by the end of 2025. Despite OPEC+'s policies limiting world oil production growth, growth outside of OPEC+ is expected to remain strong, with a 1.8 million b/d increase from countries outside OPEC+ offsetting a 1.3 million b/d decline from OPEC+ -- led by growth in the US, Canada, Guyana and Brazil. EIA said it expects global production of liquid fuels to increase by 2.1 million b/d in 2025, as market growth combines with an unwinding of voluntary OPEC+ cuts. China diesel demand Among the highlighted changes in the agency's August report is its revised forecast of global liquid fuel consumption. While the EIA still believes global consumption will increase in 2024 and 2025, it revised its 2025 estimate from 1.8 million b/d to 1.6 million -- largely, it said, as a result of a projected reduction in demand from China. While many non-OECD countries are likely to increase their consumption of liquid fuels in 2024 and 2025, EIA cited weaker-than-expected economic data from China as a reason to expect the world's second-largest economy to slow its consumption of fuel. ""We reduced our forecast of petroleum consumption growth in China for 2024 and 2025 because of slower economic activity as well as updated monthly statistics showing reduced diesel demand, crude oil imports, and crude oil refinery runs in China,"" the EIA said. ""China’s GDP for 2Q24 grew 4.7% from last year, slightly less than the government’s 5% target, reflecting slower investment in the country’s real estate and construction sectors."" EIA's new forecast suggests China's consumption will grow 0.3 million b/d in 2024 and 2025, less than its average rate of growth from 2015-2019. Gasoline prices and jet fuel US retail gasoline prices are expected to average $3.38/gal this year, down 3 cents from the previous estimate. The EIA sees gasoline prices declining to an average of $3.33/gal in 2025, a 14-cent decrease from last month's estimate. The agency also lowered its expectations for retail diesel prices, putting the fuel at $3.84/gal this year, down 5 cents from the prior estimate, and at $3.87/gal in 2025, a 5-cent increase from July's estimate. Those lower estimates are thanks to lower consumption: The EIA estimates the US will consume 4% less gasoline in 2025 than it did in 2019 and 3% less distillate fuel oil. However, jet fuel consumption is rising, thanks to increase in US domestic air travel, with US jet fuel consumption expected to eclipse 2019 levels for the first time since the COVID-19 pandemic. ""We expect more jet fuel will be consumed next year in the United States than before the pandemic in 2019, but we expect gasoline and distillate consumption to remain below 2019 volumes,"" the EIA said. ","US EIA lowers 2024 oil price outlook by $2/b, but still predicts increases",2024-08-06 19:31:44+00:00,Crude Oil,Crude Oil,0.9924973233049784,0.0226199211792329,0.1630019736563789,Bearish,Bearish 232," Shell and BP will spend around $15 million covering operating costs at South Africa's Sapref refinery as it transfers ownership to the state-owned Central Energy Fund (CEF), a representative for the government entity confirmed Aug. 6. News broke May 27 that the 180,000 b/d refinery, which has been shuttered since 2022, would be sold from Shell and BP to the CEF , drawing a line under the companies' involvement in South Africa's ailing refining sector. At the time, South Africa's Department of Mineral Resources and Energy expressed aims to address energy security concerns through the acquisition, which covers the refinery and its associated assets, including pipeline and import infrastructure, yet declined to specify plans for the site. Speaking to S&P Global Commodity Insights Aug. 6, a representative for CEF said that it had secured $15 million from Shell and BP's South African units to support the refinery's operations. Final investment decisions are due to be finalized soon, without providing specifics on funding plans. Neither Shell nor BP were available for comment on the funding or specifics of the deal when contacted for comment Aug. 6. First established in 1963, the Sapref refinery was once South Africa's largest, accounting for 35% of its refining capacity when operational, and still employs 48 permanent staff, Shell said in May. The plant had previously been earmarked by BP for a $250 million upgrade in 2018, however flood damage in 2022 saw plans shelved after the plant's maintenance requirements surged. Speaking July 14, South Africa's Minister of Mineral Resources and Energy Gwede Mantashe hinted at plans to revive operations at the plant, letting local reporters that private investors would be sought to support its activity. ""Minister Mantashe's recent comments have signaled that he wants to bring it back into operation, but this will face financing challenges,"" said Mike Davies, senior advisor on South Africa and Namibia at Horizon Engage, a consultancy, Aug. 6. ""Treasury is increasingly reluctant to fund [state-owned enterprises] SOEs hence Mantashe's recent appeal to private investors, while the deal will also come under scrutiny under the Government of National Unity,"" he said. Lack of investment appetite for the refinery has stoked long-held energy security concerns for South Africa, which has been left with just two active refineries, Astron and Natref in recent years. Engen shut its Durban refinery, Enref, in 2020, after a fire before Sapref closed in 2022, leaving the country with some 218,500 b/d refining capacity and a growing reliance on growing import volumes to service its fuel demand. In May, South Africa's Department of Mineral Resources and Energy, the DMRE, said it ""has seriously noted with concern the declining local refining capacity"" in the country, and has since expressed intentions to restore domestic production. For Shell, the refinery divestment coincides with plans to exit its South African downstream business , also announced in May, ending over 120 years in the space as it has sought to consolidate its downstream business and focus on areas such as North America and China. Speaking to S&P Global Commodity Insights in May, a Shell spokesperson said the group had already been approached by ""several highly credible parties,"" though a buyer for the business is yet to be announced. ","Shell, BP to fund South Africa's Sapref refinery operations in government takeover",2024-08-06 18:53:58+00:00,Light Ends,Light Ends,0.9002678834949914,0.0728850474282135,0.5119990378979936,Bearish,Bearish 237," State-run refiner Indian Oil cancelled a tender to build a 10,000 metric tons/year renewable hydrogen plant, a company executive said Aug. 6, a decision that according to an analyst and industry members highlights the difficulties faced by early starters of the energy transition. Indian Oil floated the tender for a renewable hydrogen plant in August 2023, but following a legal challenge, the company revised it and floated it again in March for the plant to be built on the site of its Panipat refinery on a Build-Operate-Own basis. “Yes, it has been cancelled,” the company executive said, not wishing to be named. “Discussions are ongoing on how to go forward.” Indian Oil planned to have the renewable hydrogen plant built in a timeframe of 32 months from the date of the award of the tender, according to the March tender seen online. The last date for submission of the bid was April 22, but the firm extended the last date multiple times owing to limited response from bidders, according to industry members. ""Indian Oil may have encountered initial challenges in initiating the project as the hydrogen market is still evolving,” said Akshay Modi, Senior Analyst – South Asia Natural Gas, LNG and Hydrogen at S&P Global Commodity Insights. “However, by leveraging the learnings from this tender, the company can expedite the release of a new tender as it aims to achieve net-zero by 2046."" Modi said few bidders could have responded to the tender and since this was a reverse auction tender, Indian Oil would have ideally preferred a higher number of bidders for a better price discovery. Industry members have said inflation, absence of price discovery and lack of targets for mandatory consumption of renewable hydrogen are some of the difficulties plaguing the early renewable hydrogen projects. Conditions Sole bidders or consortiums were invited on the condition that they should have executed a plant having hydrogen handling facilities in refineries, power plants or electrolysis plants, according to the tender. Indian Oil is adopting several methods to decarbonize its operations, such as advancing renewable hydrogen projects and tapping low-carbon energy sources, while maintaining growth in its conventional business, Chairman Shrikant Vaidya told Commodity Insights in an interview in February. The company, with a net-zero target by 2046, has a joint venture, GH4India, with engineering company L&T and renewables company ReNew with plans to build a large-scale renewable hydrogen business for domestic and export sales. Industry sources said the legal dispute last year was related to the participation of GH4India in the tender process, as bidders said it would amount to a conflict of interest. Indian Oil officials did not comment on the matter. The tender also said the bidder should be a renewable power producer operating a plant connected to the grid powered by solar, wind or any other form of renewable energy for one year in order to qualify. Going ahead, since the plant has a very small capacity, it motivates the company to bear an initial loss and take a bigger risk on the project, Modi said. Other Indian refineries may chart their own course for their respective renewable hydrogen production plans and may not necessarily face the same issues as Indian Oil, he added. Platts, part of S&P Global Commodity Insights, assessed Japan hydrogen produced via alkaline electrolysis (including capex) at $6.99/kg on Aug. 6, up 27.32% on the month. Platts, part of Commodity Insights, assessed Oman hydrogen produced via alkaline electrolysis (including capex) at $5.22/kg on Aug. 6, same as a month ago. ","Indian Oil cancels tender to build a 10,000 mt/yr renewable hydrogen plant",2024-08-06 18:07:44+00:00,Light Ends,Light Ends,0.968619990804451,0.4412527693004176,0.028270630729168,Bearish,Bearish 238," Brazilian independent oil and natural gas producer Prio registered a 31.7% year-on-year decrease in July's output amid maintenance work, shuttered wells and delays obtaining environmental licenses to make repairs, according to the company's latest production report. Prio pumped an average of 67,666 b/d of oil equivalent in July, down from 99,094 in July 2023, the company said Aug. 5. That was the third-consecutive monthly retreat in output. July's production also tumbled 23.3% from 88,200 boe/d in June. Prio continued to face technical issues and equipment problems that shuttered offshore production wells, with repair efforts undermined by an ongoing strike at the Brazilian Institute for the Environment and Natural Resources, or IBAMA, the company said. Workers at IBAMA, which is Brazil's top federal environmental regulator, walked off the job on June 24 and July 1. The strike is delaying efforts to carry out well interventions and swap out failed submerged centrifugal pumps at the Frade field and the Polvo-Tubarao Martelo production hub, Prio said. IBAMA needs to approve environmental licenses in order for Prio to start the work, but the strike halted approvals of drilling permits and other environmental licenses for offshore projects. A federal judge ordered workers involved in licensing and permitting back on the job, but work-to-rule actions implemented in January have remained in place and slowed down the pace of work at the regulatory agency, according to government and industry officials. The work slowdown previously affected Prio in the first quarter, with the company failing to win installation licenses and drilling permits to start development of the Wahoo discovery, according to the company. Prio had expected to start installing subsea systems at Wahoo in the first quarter, but the company never received the required permits. Now, the installation will need to be pushed back into the third quarter, depending on the availability of ships and support ships. Despite the delays, Prio continues to estimate first oil from Wahoo in 2024, according to company officials . The field is expected to produce about 40,000 b/d from four production wells, which will be tied back to the FPSO Valente floating production, storage and offloading ship anchored at the nearby Frade field. The strike's impact also continued to loom at Frade, where Prio shuttered the ODP3 well in May for a workover, but is still waiting on IBAMA to approve a permit for the work. Prio previously repaired a defective valve at Frade that had undermined output in April. Frade produced 44,469 boe/d in July, down 20.9% from 56,199 boe/d in July 2023, Prio said. July's output also fell 3% from the 46,013 produced in June. Prio also could restart production from the MUP3A production well, which was shuttered in September 2023. A restart, however, has been complicated by hydrates that plugged flow lines connecting the well to the FPSO Valente. Albacora Leste shutdown Prio also registered a sharp retreat in July from the Albacora Leste field, which had returned to full production capacity in April, the company said. Prio shuttered production at Albacora Leste for 13 days in June to carry out maintenance work, with output returning gradually during the month. The work was part of a wide-ranging campaign aimed at boosting production from the offshore heavy oil producer. Albacora Leste produced 13,441 boe/d in July, down 50.3% from 27,019 boe/d in July 2023, Prio said. July's output also sank 51.9% from the 27,983 boe/d pumped in June. Prio owns a 90% operating stake in Albacora Leste, which it purchased from state-led oil company Petrobras in January 2023. The remaining 10% equity share is retained by Spanish-Chinese joint venture company Repsol Sinopec. Well troubles also continued to undermine output at the Polvo-Tubarao Martelo production hub, with the TBMT-8H, TBMT-10H and TBMT-4H wells all temporarily shuttered in July after submerged centrifugal pumps failed, Prio said. The pumps are needed to lift the field's highly viscous crude from the seabed to the FPSO on the surface. The cluster also had issues with electricity generation onboard the FPSO Polvo, which were resolved during the month. Similar to Frade, Prio is waiting on IBAMA to issue environmental licenses that will allow the company to swap out the pumps, according to the company. The Polvo-Tubarao Martelo cluster produced 9,757 boe/d in July, down 38.5% from 15,876 boe/d in July 2023, Prio said. July's production also fell 31.3% from the 14,204 boe/d produced in June. ","Brazil's Prio July oil equivalent output falls 31.7% on maintenance, shuttered wells",2024-08-06 18:01:51+00:00,Crude Oil,Crude Oil,0.6701106289785023,0.0078376357949296,0.9905128575275034,Bullish,Bullish 239," Eni has picked up four exploration blocks offshore Ivory Coast as the Italian major looks to follow its Baleine and Calao discoveries with more finds in the African country, according to an official notice seen by S&P Global Commodity Insights Aug. 6. The Ivorian president’s Council of Ministers said Eni’s local subsidiary had signed production sharing contracts for blocks CI-504, CI-526, CI-706 and CI-708, the notice read. The agreements commit the Italian firm to spend at least $80 million on exploring in the four blocks during the initial three-year exploration period, as per the notice. The licenses frame Eni’s recent Calao discovery , made in March with the Murene-1X well, which is thought to contain up to 1.5 billion barrels of oil equivalent. At the time, Eni said it had encountered “light oil, gas and condensates” in block CI-205, drilling to depths of 5,000 meters in water depths of 2,000 meters. The Italian company did not respond to requests for comment on the new licenses. Eni brought its landmark Baleine field off Ivory Coast online in August 2023, just two years after its initial discoveries – an extremely fast turnaround by industry standards. Baleine – which sits on block CI-101 – is currently producing around 22,000 b/d, according to Eni, with output expected to ramp up to 60,000 b/d in the second phase and 150,000 b/d in the third in 2026. Phase two is expected to begin in December, Eni said in a statement late-July, with refurbished floating storage and offloading units preparing to set sail for Ivory Coast. Eni first invested in the coastal West African country in 2015 and also holds deepwater blocks CI-401, CI-501, CI-801 and CI-802. The country has emerged as one of Africa’s exciting oil and gas frontiers, seeing a flood of investment as IOCs depart from mature producers such as Nigeria, Angola and Equatorial Guinea. Elephant deals The Eni deals come just days after US independent Elephant Oil signed production sharing contracts for three blocks onshore Ivory Coast: CI-520, CI-521 and CI-522. The seven-year contracts set the stage for exploration and production activities by Elephant in cooperation with state-owned Petroci. The US firm will hold an 80% stake to Petroci’s 20%, according to a release by the country’s oil ministry. Oil exploration first began onshore in Ivory Coast in the 1950s, but discoveries have mostly been made offshore in recent years. Elephant also holds onshore oil exploration assets in Benin. London-listed mining company Red Rock Resources holds a 4.64% interest in Elephant Oil. ",Eni follows Ivory Coast discoveries with four new licenses,2024-08-06 17:24:08+00:00,Crude Oil,Crude Oil,0.1530896470875467,0.0549995258663276,0.995547625287158,Bullish,Bullish 240," The EU’s soybean meal imports in marketing year 2024-25 (July-June) totaled 1.77 million mt as of Aug. 4, up 8% on the year, European Commission data showed Aug. 6. Poland and Spain were the largest buyers within the bloc over the period at 305,665 mt and 256,185 mt, respectively. Meanwhile, Brazil and Argentina were the largest soybean meal suppliers to the EU with volumes at 848,436 mt and 700,157 mt, respectively. The EU imported 510,996 mt of soybean meal in MY 2023-24, according to the data. The region’s soybean imports dropped 17% on the year to 1.12 million mt in MY 2024-25. Spain and Germany were the largest buyers at 381,275 mt and 213,558 mt, respectively. Brazil-origin products accounted for 71.6% of the EU’s raw soybean inflows, while its share of soybean meal over the period was 47.9%. The EU is the world’s largest soybean meal importer and the second-largest soybean purchaser. The bloc’s soybean oil imports in MY 2024-25 fell 61% year on year to 39,264 mt as of Aug. 4, EU data showed. Ireland and the Netherlands were the largest buyers within the bloc while the United Kingdom and Norway were the largest soybean oil suppliers to the EU. The EU imported 693,725 mt of soybean oil in MY 2023-24, according to the data. The bloc’s sunflower oil imports decreased 19% on the year to 181,342 mt in MY 2024-25. The EU’s rapeseed oil imports fell 89% year on year to 3,351 mt over the period while palm oil inflows were at 228,528 mt, down 33% on the year, the data showed. Platts, part of S&P Global Commodity Insights, assessed soybeans FOB Paranagua June new crop at $405.03/mt Aug. 5, up $3.4/mt day on day. ",EU DATA: MY 2024-25 soybean meal imports rise 8% on year as of Aug 4,2024-08-06 16:59:53+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.342071210786748,0.015098814145808,0.9963424427616474,Bullish,Bullish 241," PPC is to buy a 600-MW onshore wind farm in Romania and other green assets as well as a 145 MW project pipeline from a Macquarie-owned developer, the Greek utility said Aug. 6. The agreement values the assets at Eur700 million with the ""overall valuation being in line with precedent transactions on the market,"" it said. Assets are owned by Evryo Group, Czech utility CEZ' former Romania unit, now owned by funds managed by Macquarie Asset Management. The 600-MW wind farm near Constanta close to the Black Sea started operations in 2012 and is one of Europe's biggest onshore wind parks featuring 240 x 2.5 MW turbines. The deal strengthens PPC's strategy in Romania, also adding 22 MW hydro, 6 MW battery storage and 1 MW of solar PV installed capacity. Upon completion of the agreement, expected in the fourth quarter, PPC's operating renewables portfolio in Romania will double, it said. The utility strives to meet an 8.9-GW target in 2026 across its entire group. By end-June, PPC's installed renewables capacity stood at 4.7 GW, up 34% year on year, the utility said in a results statement Aug. 6. A further 3.3 GW are either in construction or ready to build. In its Greek generation unit, lignite output fell 30% to 1.5 TWh for the six months’ period. In the first half of the year PPC’s natural gas- and oil-fired generation both climbed, 33% and 18% respectively year on year to 3.1 TWh and 1.7 TWh, the utility said. ","Greek PPC to buy a 600 MW Romanian wind farm, portfolio from Macquarie-owned developer",2024-08-06 16:42:52+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.5347407212028467,0.2641231411812467,0.770694310481352,Bullish,Bullish 242," Commodities trader Vitol can go ahead with its plan to take Saras private after successfully increasing its ownership in the Italian refining business to more than 50%. Vitol first revealed its plan to take the business private in February , when it announced its intended acquisition of an additional 35% stake in the business, which owns the 300,000 b/d Sarroch refinery on the island of Sardinia. Previously, Vitol had held around 10.46% of Saras shares, while rival Trafigura had a 9.6% stake. The takeover was completed June 18, initially leaving Vitol with a 45.48% majority stake and triggering a mandatory tender offer for remaining shares in the business. In a statement Aug. 5, Saras said that the Vitol-controlled Varas Holding had successfully acquired 51% of the company’s share capital, allowing it to delist the company from the Milan Stock Exchange. Delisting of the business will take place after confirmation that necessary requirements have been met, although failing this Vitol would have the right to delist the company by other means, such as a merger, Saras said in its statement. Vitol, which is yet to provide comment on the move Aug. 6, has previously underscored the strategic advantage of connecting the refinery to its vast global trading network. Private ownership of the business promises to give the trader unique insight into European refining margins, analysts have said. With the ability to process over 30 types of crude, Sarroch is ripe for optimization in a post-Russian feedstock market for Europe, while its location on the Mediterranean provides an opportunity for traders seeking to leverage new oil flows. The addition of Sarroch to Vitol's portfolio takes its refining portfolio to around 800,000 b/d of capacity across seven refineries, giving it the largest downstream production footprint among its trading peers. The Italian refinery is now the company's largest refining asset, comprising almost 40% of a wider downstream footprint that spans Switzerland, Germany, the Netherlands, Australia, Malaysia and the UAE. The sale was agreed upon at Eur1.60 per share, adjusted down from a previous Eur1.75 under the initial sale agreement Feb 11 to account for dividend distributions. The original deal valued the business at Eur1.7 billion ($1.83 billion). There has been a spate of buying interest among trading houses in the refining sector recently as they seek to leverage back-to-back years of record profits to expand. Trafigura, while seeing its interest in Sarroch come to an end with Vitol's move, expects to complete its takeover of ExxonMobil’s Fos-sur-Mer refinery in the South of France via its joint-venture Rhone Energies by October, it said Aug. 1. ",Vitol to take Italian refiner Saras private after acquiring 51% stake,2024-08-06 16:38:38+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.2451681513627575,0.9597875634761625,0.1390469461953216,Neutral,Neutral 243," The Mediterranean sweet crude market has so far shown minimal reaction to the total shutdown of the 300,000 b/d Sharara oil field in Libya, according to market participants. Differentials for key Mediterranean sweet crude grades, including Azeri Light, Saharan Blend and Es Sider, have so far remained steady, sources said, as supply in the region remains plentiful. “No panic due to Sharara so far,” one trader said. “WTI [Midland] is still everywhere.” WTI Midland, imported from the US Gulf Coast, is a natural competitor to light sweet crudes in the Mediterranean such as El Sharara. According to data from the Platts Periodic Table of Oil, WTI Midland has a 0.2% sulfur content and API gravity of 42. Libya’s El Sharara crude has a 0.08% sulfur content and API gravity of 42.6. Libya’s largest oilfield was taken completely offline Aug. 5, after the son of eastern warlord Khalifa Haftar ordered a shutdown in response to a European arrest warrant. Output at the huge Sharara field, with a capacity to produce up to 300,000 b/d of crude oil, initially fell to around 100,000 b/d after protesters entered the operations room on Aug. 4, sources told S&P Global Commodity Insights, before ceasing by Aug. 5. Production at the Sharara field was previously halted for two weeks in January when Libya's National Oil Corp. declared force majeure amid protests. The shutdown in January caused Mediterranean sweet crude prices to spike amid a supply shortage in the region. Azeri Light, Es Sider and Saharan Blend crude differentials all reached 2024 highs on Jan. 23 and Jan. 24. The extent of any possible supply disruption amid the current shutdown remains unclear for now, but traders said on Aug. 5 that they were cautiously optimistic that the suspension of output would be short-lived. ",Mediterranean sweet crude market shows muted response to Sharara shutdown,2024-08-06 16:14:27+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.9325031318640816,0.0495648809818491,0.5429754497917567,Bearish,Bearish 245," Italian refiner Saras, operator of the Sarroch refinery on the island of Sardinia, said Aug. 6 that the Vitol-controlled Varas Holding has acquired 51% of the company's share capital. In February, Vitol agreed to acquire approximately 35% stake in Saras. In April, the Italian government approved Vitol's bid to acquire a controlling stake in Saras. The sale for the latest package that brought Vitol's share above 50% was agreed at EUR 1.60 per share, down from a previous EUR 1.75 under the initial sale agreement Feb 11 to account for dividend distributions. The acquisition of the 300,000 b/d refinery, a major supplier of oil products in the Mediterranean, would take Vitol's refining portfolio to around 800,000 b/d, Vitol has said previously. Saras said July 31 that the Sarroch refinery aims to process 96.5 million-98.5 million barrels (13.2 million-13.5 million mt) of crude, to which approximately 1 million mt (around 7 million barrels) of feedstock will be added in 2024. Light extra-sweet made up the biggest share of the crude slate, at slightly more than 40% in the quarter and first half, followed by light sweet. ",REFINERY NEWS: Vitol acquires 51% in Italian refiner Saras,2024-08-06 16:04:02+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.8689949188910813,0.0582047794386012,0.682749279013743,Bearish,Bearish 246," The spread between LNG bunker fuel in Rotterdam and its 0.5%S marine fuel equivalent narrowed to a year-to-date low as demand for the former picked up in the Amsterdam-Rotterdam-Antwerp region. Platts, part of S&P Global Commodity Insights, assessed Rotterdam LNG bunkers at $12.488/GJ Aug. 5, a discount of 31.7 cents/GJ to 0.5%S marine fuel in the Dutch port, which was at $12.805/GJ. This was far below the average spread across July which stood at minus $2.035/GJ, Commodity Insights data showed. Market participants highlighted a combination of factors that had pushed up the LNG bunker price as demand picked up in the region. “We see a healthy port calling with a mixed bag of product tankers, pure car carriers and cruise ships, it’s getting better,” said an Atlantic LNG bunkers trader. “There is increasing activity and it's only going to go up and up.” Already this year the Port of Rotterdam reported record high LNG sales for Q2 2024 as LNG sales as a marine fuel reached 242,931 cu m. Moreover, market sources pointed to favorable arbitrage economics in Europe, compared to Asia, with European benchmark TTF gas prices prices lower than their Asian LNG counterpart, the JKM marker. On top of this, the same source noted that infrastructure limitations in Asia had led to vessels opting for European bunkering instead. “There is a lot of activity in Asia. The Singapore and Malaysia bunkers schedule is filled up, already 30 days in advance. Singapore only has three barges and [there are only] three barges in Malaysia so it’s very small,” said the trader. “If the spot price is too high vessels will skip the Southeast Asia bunkers call and fill up here [Northwest Europe] instead,” he added. Platts last assessed month-ahead September Dutch TTF at $11.471/MMBtu Aug. 5, while the JKM marker was assessed at $12.849/MMBtu. LNG bunkers in Rotterdam were assessed at $13.176/MMBtu Aug. 5 while Singapore LNG was at $14.772/MMBtu, putting Rotterdam at a $1.60/MMBtu discount to its Asian counterpart. In comparison, demand for 0.5%S marine fuel has softened significantly, leading to a sharp decline in prices. This weakness in VLSFO can be largely attributed to the summer season, as the market hits the peak holiday period. “It’s been very calm since the beginning of August, with many people on holiday. I don’t see any other reason apart from seasonality,” said a local trader. At the end of July, VLSFO prices were seemingly stable, with traders optimistic about a potential rise in demand. “I see demand for VLSFO picking up,” noted one trader. However, the ample supply and peak holiday season have dampened demand, adding further pressure to prices and extending the downward trend that started in July. In August, VLSFO prices dropped by 6%, with buyers waiting for the trend to bottom out to capitalize on the lowest prices. “People are holding off on purchases, expecting prices to fall further given the lower trading activity,” a trader said. Moreover, on Aug. 5, the broad selloff in the stock market and fears of a US recession didn’t leave the bunker market, pushing VLSFO prices down by an additional $15/mt. Platts last assessed 0.5%S marine fuel at $525/mt Aug. 5. ",Rotterdam LNG bunkers spread with VLSFO narrows to 2024 low,2024-08-06 14:52:56+00:00,Light Ends,Light Ends,0.9939137467781636,0.0281544684865053,0.1353956067132341,Bearish,Bearish 247," YPF, the biggest oil and natural gas producer in Argentina, has agreed to sell 15 maturing conventional blocks to smaller local companies in a move to concentrate its business on the Vaca Muerta shale play for production and export growth. The state-run company sold the blocks in six clusters in the provinces of Chubut, Mendoza, Neuquén and Río Negro, which all told are producing around 29,000 b/d of crude and 351,000 cu m/d of gas, it said in a late Aug. 5 statement. In Mendoza, the company sold a cluster of six blocks in the north of the province to Petróleos Sudamericanos and another two in Llancanelo to Petroquímica Comodoro Rivadavia, or PCR. On the border of Neuquén and Río Negro, it sold the Señal Picada-Punta Barda block to Velitec, while a cluster of four blocks in the north of Neuquén went to Bentia Energy and Ingeniería Sima, YPF said. Further south, in the province of Chubut, it sold Escalante–El Trébol and Campamento Central-Cañadón Perdido to Pecom. These are the first of 55 fields that YPF wants to sell this year as part of a wider divestment plan that includes noncore assets in Bolivia, Brazil and Chile, as well as a gas distributor in Buenos Aires. The 55 fields have passed their peak production levels, making it less efficient and more expensive for such a big company as YPF to continue developing them. On the other hand, the assets can be developed profitably and efficiently by smaller companies, YPF has said. YPF said it has received more than 60 offers from some 30 local and international companies for the conventional blocks. The company has said it will use the proceeds to invest in boosting output in Vaca Muerta and building takeaway capacity from the play with the goal of taking its portfolio to 80% Vaca Muerta and 20% conventional from a current 50/50. The most immediate target is to increase shale oil production to more than 160,000 b/d in 2025 from 97,000 b/d in 2023 -- and 112,000 b/d in the first quarter of this year, YPF has said. Increasing oil and gas exports The production growth is building up a surplus for exporting, with the company’s shipments to Chile rising 22% to 23,000 b/d in the first quarter from the year-earlier level. With production on track to continue rising, YPF is moving forward on the construction of takeaway and export capacity. It recently launched construction of Vaca Muerta Sur, a transport and export system will have an initial 180,000 b/d of capacity in 2026 before increasing to 360,000 b/d in 2027 and subsequently 800,000 b/d. At the same time, YPF is also working with Malaysia’s Petronas on a project to start exporting LNG in 2027 with the shipment of 6 million cu m/d via a floating liquefaction terminal. The project will increase to 40 million cu m/d in 2029-30 and 120 million cu m/d in 2030-31 with an onshore terminal in the province of Río Negro, the company has said. YPF’s gas production was 36.4 million cu m/d in the first quarter of this year, in line with the 36.5 million cu m/d in the year-earlier quarter. Of this, shale gas rose 7.8% to 18 million cu m/d in the first quarter from 16.7 million a year earlier, helping to compensate for an 8.4% decline in conventional gas output and 3.4% fall in tight gas over the same period, according to YPF's latest financial report. YPF was producing a total of 314,000 b/d of oil and 33 million cu m/d of gas in June, according to the latest data from the Energy Secretariat. ",Argentina’s YPF finds buyers for 15 maturing conventional blocks as it focuses on Vaca Muerta,2024-08-06 14:39:26+00:00,Heavy Distillates,Heavy Distillates,0.730343190741341,0.0442969452385158,0.9335945937022538,Bullish,Bullish 249," Refineries in Nigeria, including the newly launched Dangote and the upgraded Port Harcourt, have been in focus. Dangote denied allegations of a crude distillation unit outage and said it had been reselling barrels of WTI crude oil from the US that were initially intended for processing with the intention of lifting more Nigerian crude. ""Our CDU is working and in perfect condition,"" said company spokesman Tony Chiejina in a statement July 26. A company source said the refinery was reselling the WTI emboldened by assurances from the country's regulator that domestic supply would be made available. The Nigerian government adopted July 29 a proposal for state oil company, Nigerian National Petroleum Co. (NNPC), to sell crude oil to its new Dangote refinery in naira, the local currency. Nigerian crude oil for Dangote was previously predominantly purchased in US dollars due to its location in the Lekki free trade zone in Lagos, designed to help attract foreign investment. However, as the refinery has scaled its operations, it has struggled to secure sufficient crude feedstock, while weakness in Nigeria's naira in the foreign exchange market has made dollar-based transactions increasingly unattractive. In a statement on X, formerly Twitter, Bayo Onanuga, Special Adviser to Nigeria's President Bola Tinubu, said that the Federal Executive Council had adopted a proposal for 450,000 barrels of Nigerian crude oil to be offered in naira to domestic refineries, using Dangote as pilot. Meanwhile, in anticipation of the start of gasoline production, Dangote has curbed its fuel oil and naphtha exports in July as the plant gears toward its first gasoline production, according to sources and ship tracking data. Gasoil, fuel oil and naphtha exports were among the first barrels to depart the refinery since it started up in December, in the absence of an operating fluid catalytic converter, which produces gasoline. When operating, the FCC can process low sulfur straight run, while naphtha was expected to be held back for gasoline blending. A representative for Dangote told S&P Global Commodity Insights July 18 the refinery expected to deliver its first gasoline to the market mid-August, delayed by a month from its latest projections. Ongoing maintenance Refinery Capacity b/d Country Owner Unit Duration Ras Lanuf 220,000 Libya NOC Restart Pending Indeni 24,000 Zambia Zambia Full Mothballed Engen 125,000 South Africa Engen Fire Conversion Sapref 175,200 South Africa Joint Full Mothballed Tema 45,000 Ghana Tema Full Ongoing Limbe 72,000 Cameroon Sonara Offline 2019 Upgrades Warri 125,000 Nigeria NNPC Overhaul N/A Kaduna 110,000 Nigeria NNPC Overhaul N/A Port Harcourt 210,000 Nigeria NNPC Overhaul N/A Pointe Noire 25,000 Congo CORAF Upgrade 2022 Dakar 24,000 Senegal SIR Expansion N/A Assiut 90,000 Egypt ASORC Upgrade 2020 Suez 68,000 Egypt Suez company Upgrade N/A El Nasr 146,000 Egypt EGPC Upgrade N/A Mombasa 70,000 Kenya Government Conversion NA Sogara 19,000 Gabon Joint Upgrade 2025 SIR 75,000 Cote d'Ivoire SIR Upgrade 2028 Luanda 65,000 Angola Sonangol Upgrade 2026 Launches Dangote 650,000 Nigeria Dangote Ind Launch 2023 Hassi Messaoud 100,000 Algeria Sonatrach Launch 2027 Tiaret 100,000 Algeria Sonatrach Launch 2021-22 Kenya NA Kenya Government Launch NA Takoradi 150,000 Ghana Joint Launch NA Lobito 200,000 Angola Joint Launch 2025 Cabinda 60,000 Angola Joint Launch 2022 Soyo 100,000 Angola Joint Launch 2024 Albert Graben 60,000 Uganda Government Launch 2023 Condensate 200,000 Nigeria NNPC Launch NA Red Sea Coast 200,000 Sudan Government Launch NA Nigeria/Niger NA Nigeria Government Launch NA Ndola NA Zambia NA Launch 2025 Morocco 100,000 Morocco Joint Launch NA Punta Europa 10,000 Equatorial Guinea Joint Launch NA Cogo 10,000 Equatorial Guinea Joint Launch NA Kamsar 12,000 Guinea Brahms Launch NA Waltersmith 5,000 Nigeria Joint Expansion NA Benin NA Benin Government Launch NA Paloch 40,000 South Sudan Trinity Energy Launch NA Kribi 80,000 Cameroon Joint Launch NA Pointe Noire 50,000 Congo Joint Launch 2023 Moribayah NA Guinea Joint Launch NA Akwa Ibom 200,000 Nigeria Bua Group Launch NA Tema 100,000 Ghana Sentuo Launch 2023 New and ongoing maintenance New and revised entries ** South Africa's Natref refinery was expected to complete its maintenance during July, the company said July 11. The company has previously said the refinery would carry out maintenance set to last seven weeks from May to July. Existing entries ** Sudan's Khartoum refinery has been ""completely destroyed"" after the Sudanese army bombed the idled plant late May 21, according to Sudan's Rapid Support Forces militia. Seized by the Rapid Support Forces in April 2023, Khartoum refinery fully halted processing at the end of July 2023. Since the beginning of the conflict between forces loyal to warring generals in the East African country, the militia was using the refinery to supply its troops with fuel. ** Ghana's Tema refinery remains idled, energy minister Matthew Opoku Prempeh told S&P Global Commodity Insights in March 2024. The plant faced several issues over the past few years, experiencing intermittent outages at its crude distillation unit and fluid catalytic cracker. The refinery was shut January 2017 after an explosion at a furnace attached to the CDU. The CDU was installed the month before and had only just begun processing Ghana's TEN Blend crude grade. ** Cameroon's Sonara is looking for an engineering company that can carry out a feasibility study to reconstruct Limbe facility units destroyed during a fire in May 2019. The study would look into finalizing the units in the Phase 1 modernization project: reconstruction, debottlenecking and revamping of the damaged units and building new conversion units, including hydrocracker, isomerization, hydrotreater and a bitumen unit. The reconstruction was authorized by the country's president in 2022, according to local media Cameroon-Tribune. Previously, the Cameroon government looked to launch a tender in search of companies interested in building a new refinery. Sonara's Limbe facility has been entirely offline since May 2019. Shortly before the explosion it had increased its capacity to 72,000 b/d from 45,000 b/d through an upgrade program, which involved the construction of a vacuum distillation unit, a catalytic reformer and a power plant as part of its phase 1 upgrade. ** Libya's Ras Lanuf refinery restarted its ethylene plant, but the refinery remained offline, according to market sources. No time frame was available for the refinery's restart. Initial stages of operation were started May 12 when naphtha was introduced into furnaces and the cracked gas compressor system started, leading to the production phase. The refinery had been closed since 2013 due to an arbitration dispute, which NOC won in March 2021 against the Libyan Emirates Oil. At the time, it was thought the award might lead to the refinery reopening. ** The reopening of Zambia's Indeni Petroleum Refinery remains uncertain following a government decision to compensate more than 300 workers and maintain the ageing refinery under care and maintenance while an appropriate investor is sought, Energy Minister Peter Kapala said. The decision was seen to be disappointing by union chief Mutukelwa Lubita since workers expected the government to revive the plant rather than close it indefinitely. The refinery's operations were suspended in late December 2020 for annual maintenance and never reopened for financial and technical reasons. At the end of 2021, the plant was put under care and maintenance. According to Kapala, Indeni was no longer profitable and fuel pump prices were high due to the refinery's inefficiency. Lubita said the unions and government should work together to ""fix"" the challenges, save jobs and prevent fuel supply issues. The government has started an audit and will come up with the real value of the site while a long-term solution for the refinery is sought, Kapala said. ** South Africa's largest refinery Sapref was to carry out a phased shutdown of its facility, the company said in March 2022. ""We are commencing with a staggered shutting down of our units followed by decontamination phase. There may be flaring and steam venting over the next two weeks,"" the company said. Its owners have been considering the future of the plant including a future sale of the asset, they have said, adding that a restart was possible in the future. ** South Africa's Engen said it would proceed with the conversion of its Durban refinery into a terminal. The refinery has been shut since a fire and explosion in December 2020. The refinery-terminal conversion was expected to be commissioned in the third quarter of 2023. Upgrades New and revised entries ** Nigeria's Old Port Harcourt refinery will restart in August, its owner NNPC said. Speaking to reporters July 15, NNPC CEO Mele Kyari announced the new timeline for revived operations at the plant, which has suffered numerous setbacks since closing for repairs in 2020. In March, NNPC said the plant was stocked with crude oil and would restart operations by the end of the month. In February, Shell said it had supplied the plant with 475,000 barrels of crude oil from the Bonny Terminal in readiness for resumed production at the plant, initially slated for restart December 2023. Existing entries ** Tunisia's STIR was planning to increase its capacity by around 50% by 2030, local media report reported. The refinery will be expanding capacity around 50% to 48,000 b/d under Tunisia's 2035 energy strategy. Its current capacity is sufficient to cover one-third of Tunisia's oil products demand although around half of STIR's output is exported. Furthermore, the refinery does not operate at full capacity and in 2023 processed around 22,000 b/d, down 28% on the year, according to the report. ** Angola's Sonangol plans to build new units, such as an RFCC as well as a steam cracker as part of the expansion project for its Luanda refinery, a company source said at the ARDA conference in Cape Town April 24. The company is studying a capacity expansion at Luanda from 60,000 b/d to 120,000 b/d, by building a new CDU. In addition, it aims to build a new RFCC and HDS units, as well as a steam cracker and 200,000 mt/year petrochemical plant. The new units will help improve the specifications and comply with AFRI 5 and 6 standards. It is also planning to build a biorefinery in Luanda as part of its energy transition. The Luanda projects were due to be completed by 2026. Sonangol completed the construction of a new platforming unit at its Luanda refinery in 2022, as a result of which it increased gasoline output fourfold. ** Nigeria's Warri plant, which is undergoing a major overhaul, is nearing restart, according to Mele Kyari, group CEO of Nigerian National Petroleum Company. NNPC said Feb. 5 that the Warri refinery would be mechanically ready by the end of the first quarter. The repairs were being handled by a consortium of Italian engineering firms Saipem and Saipem Contracting and were to be completed in three phases spread over a total 77-month period. ** Nigeria's northern Kaduna refinery will resume production by end-2024 after four years of closure, the country's Minister of State for Petroleum Resources, Heineken Lokpobiri, said in October. The 110,000 b/d Kaduna refinery, like other three state-owned oil refineries, was shut in late 2020 for a major overhaul after years of neglect that meant the refinery only operated sporadically. State energy company NNPC said that it contracted South Korean engineering group Daewoo to carry out a quick fix of Kaduna refinery, as opposed to a long-term complete overhaul, as Nigeria sought to urgently restore local gasoline supply. The Kaduna refinery would initially be refining 60,000 b/d of crude when it resumes operations at the end of 2024. Nigeria wants to fix its refineries, including the 210,000 b/d Port Harcourt refineries and the 125,000 b/d Warri refinery. ** Republic of Congo is looking to upgrade its existing Pointe Noire refinery and also build a new refinery, the country's Minister of Hydrocarbons Bruno Jean-Richard Itoua said at an industry event June 1. The upgrade and expansion of the Pointe Noire refinery, which will enable it to be more profitable, will depend upon securing financing, the minister said. ** Cote d'Ivoire's SIR refinery is aiming to increase its capacity and improve the quality of its products and energy efficiency in the next few years. The refinery expected to start an EPC in January 2024 and commission the unit, which will enable it to produce 10 ppm diesel, in 2028. It is also working on a project aimed at reducing the benzene content of gasoline to 1% in volume from 4%-5% currently, the feasibility study for which is underway with the project due to be completed in 2028. Separately, it is expanding the CDU capacity from 75,000 b/d to 100,000 b/d. The project is in the FEED phase and is expected to be completed in 2028. It will also build a new reformer with a 100 mt/hour capacity, expected to start operations in 2028. A feasibility study is also currently underway. In 2026, SIR expects to launch new sea terminals and is considering building new storage. It is doing a feasibility study on the cogeneration of electricity and steam from natural gas, expected to be completed in 2025. As part of its energy transition strategy, SIR is looking to replace fuel oil with natural gas for refinery operations and electricity generation and plans to install a mini solar power station and start biofuel production, as well as look at CO2 capture and potential hydrogen projects. ** Sogara, Gabon's sole refinery, is considering building a new hydrocracker to process the residue, which currently accounts for up to 55% of its output. The hydrocracker will allow Sogara to produce 10 ppm diesel and meet Africa's objective of moving to cleaner fuel that complies with both AFRI 6 and Euro-V emission standards and reduce residue output to around 30%. Sogara can process up to 1.2 million mt/year but typically processes about 980,000 mt/year. ** Senegal's SAR Dakar refinery plans to increase its capacity to 5 million mt/year (100,000 b/d) by 2028 and move to producing fuels that comply with both AFRI 6 and Euro 5 emission standards, a company source said. Work on the expansion project at Senegal's sole refinery is set to start around 2025-26. The refinery underwent an upgrade in 2022 during which it increased its capacity from 1.2 million mt/year to 1.5 million mt/year. It also increased storage capacity for crude oil and oil products, built a new preflash column and furnace which allowed it to increase capacity to 180 mt/hour from 150 mt/hour, and expanded catalytic reformer capacity to 18 mt/hour from 14 mt/hour. The upgrade was also part of the refinery's switch to being able to process Senegalese crude oil. ** Egypt's Assiut Oil Refining Co. aims to establish a crude distillation complex, with a production capacity of 5 million mt/year and a gas recovery project for production of diesel, gasoline and butane. Separately, construction of the hydrocracker complex at Egypt's Assiut was expected to be completed in Q4 2023. The contract includes process units such as vacuum distillation, diesel hydrocracker, delayed coker, distillate hydrotreater and a hydrogen production facility. The project also includes other process units as well as interconnecting. It will transform lower value products into about 2.8 million mt/year of cleaner products, such as Euro 5 diesel. The upgrade at Assiut includes the installation of 880,000 mt/year continuous catalytic reforming and isomerization complex, a 400,000 mt/year vapor recovery unit and a 2.3 million mt/year hydrocracker. ** Expansion of Egypt's Suez refinery is being carried out, with the aim of achieving continued safe operation of production equipment in the coke complex in order to maximize output of products such as diesel, butane and gasoline for local market. ** Egypt's Nasr petroleum refining in Suez has a distillation project (CDU) and gas recovery project underway. The CDU is being established with a feeding capacity of 1.2 million mt/year of condensate to produce naphtha, kerosene and butane. Launches New and revised entries ** Niger will shortly start a project for the construction of a new refinery, local media said citing President Abdourahmane Tchiani's televised speech. No further details were announced. The country currently has the 21,000 b/d SORAZ refinery in Zinder. In 2018, the Niger government reached an agreement with neighbor Nigeria to build a refinery in a border town between Niger and Katsina State in northern Nigeria. However, there has been no further news on that project. Existing entries ** The new 5 million mt/year refinery at Hassi Messaoud in Algeria will start production at the end of 2027 after the project for the facility was revived following coronavirus-related delays, local media reported July 2024, citing a Sonatrach official. Hassi Messaous will produce an additional 2.7 million mt/year of diesel and 1.2 million mt/year of gasoline, said the company's vice president for refining, Slimane Slimani, without providing further details. In late 2023, Algerian president Abdelmadjid Tebboune called for the refinery project at Hassi Messaoud to be revived. Algerian state-owned Sonatrach had previously expected the refinery to start operations in 2024 after construction work started at the beginning of 2020. Sonatrach has contracted the Technicas Reunidas-Samsung Engineering consortium to build the new plant. There is already a 1.1 million mt/year simple refinery at Hassi Messaoud, which started operations in 1972. Hassi Messaoud, Biskra and Tiaret were part of the government's 2021-2024 oil sector plan, with each refinery intended to have a 5 million mt/year capacity. The technical, architectural and land development studies for the facilities were completed in 2017. Investment decisions on the refinery's projects in Biskra and Tiaret will not be made before 2025. ** Angola's greenfield refinery in Cabinda, which is currently under construction, is expected to be commissioned by December, a company source said on the sidelines of the ARDA conference in Cape Town April 22. Local media has also suggested the plant would go online at the end of 2024. Previously, mechanical completion was expected at the end of 2023, with the first phase of 30,000 b/d expected to be commissioned in Q1 2024. The second and third phases will see processing capacity expanded to 60,000 b/d and the addition of a catalytic reformer, catalytic cracker and hydrotreater. Angola's new Lobito refinery will help the country reach self-sufficiency of oil-product supply and also supply nearby countries, including Zambia and South Africa, a company official said. The Lobito project, which started in 2010 and was suspended in 2016, resumed in 2023. Sonangol is still discussing with potential investors with shared ownership considered as an option. The new refinery will be technologically advanced, highly optimized and is configured to maximize production of Euro V diesel. It is aimed to process Angola's medium/light crudes. It will be a full conversion single train refinery with a hydrocracking technology aimed to maximize diesel production. Mechanical completion is expected by the end of 2026 and production aimed for Q2 2027. In March 2024, KBR said it has been awarded a project management contract by Sonangol for the design and construction of the Lobito refinery. Separately, completion of Angola's another greenfield project, the Soyo refinery, is expected in 2027. ** South Sudan will build roads so that the Bentiu refinery is fully operational in 6-8 months, local Ecofin agency reported in April, citing a government official. The country has been looking to reopen Bentiu, the country's sole oil refinery, in order to mitigate the fuel crisis resulting from floods and linked to the fighting in neighboring Sudan. Last October, Bentiu halted output as floods made roads impassable for trucks to pick up products. The refinery will be increasing capacity to 7,000 b/d before potentially ramping up to 10,000 b/d. ** The secondary units at Nigeria's Dangote were ""99% complete"" and undergoing checks, a person with close knowledge of the refinery said in April. The person also said he expected the refinery's residual fluid catalytic cracker to be producing finished-grade gasoline at a steady state ""earlier"" than expected. He said that once the RFCCU is producing on-spec product, it will be able to ""reach capacity quickly."" Dangote Industries said January 2024 that its 650,000 b/d oil refinery had started production, starting with diesel and jet fuel and later gasoline. ** The investor selected by Uganda for the construction of its new Albertine Graben refinery has finalized all necessary agreements with Uganda's government and is expected to make a final investment decision, according to an official in April 2024. The UAE's Alpha MBM investments, which was selected in January, is in a fast-track mode to move ahead, Uganda's minister of energy and mineral development Ruth Nankabirwa told an oil and gas conference. The investor has finalized agreements including a stakeholder agreement, agreement with the host government and a crude purchase agreement. The three commercial agreements were a pre-condition before the FID could be undertaken and now the investors are working on it. The refinery's planned startup, set initially for 2023, was delayed several times, with the latest timeline setting expected commissioning for 2027. ** The new China-built Sentuo refinery in Tema, Ghana is running at just 30,000 b/d, energy minister Matthew Opoku Prempeh told S&P Global in March 2024. Earlier, Ghana's National Petroleum Authority suspended sales of gasoline from the newly commissioned Sentuo oil refinery due to high vapor pressure. The NPA said that during a ""monitoring and verification exercise"" on Feb. 16 it noted that the product exhibited vapor pressure above the maximum requirement of the Ghana Standard of Petrol. The new refinery was officially commissioned Jan. 26 after being initially expected to start up in 2021. It started test operations last August. During the first phase, it will process 40,000 b/d (2 million mt/year), which will subsequently be increased by 60,000 b/d, bringing total capacity to 100,000 b/d (5 million mt/year). All types of crude will be processed after Phase 2, with an output of 3.2 million mt/year of products, including gasoline, kerosene and diesel above Euro IV standard. ** South Sudan will require several options to provide oil products including building other refineries, according to officials. A joint venture project between Safinat and the national oil and gas corporation of South Sudan, or Nilepet -- Bentiu -- is one of the five refineries with a targeted total refining capacity of 127,000 b/d. Trinity Energy was in advanced preparations to start building a 40,000 b/d refinery near the Palouch oil fields in the Upper Nile. One of the refineries is set to be based in Tharjiath. Nilepet is already building another refinery with the South African company Central Energy Fund to further enhance the country's refining capacity, sources said. ** Nigeria first small-scale oil refinery, the Waltersmith modular plant, will double its output capacity to 10,000 b/d by the first half of 2025, the plant owners said December 2023. The Waltersmith modular refinery, located in the southeast Imo state, is owned jointly by local company Waltersmith Petroman Oil and the Nigerian Content Development and Monitoring Board and came on stream in October 2020, with capacity to refine 5,000 b/d of crude. The refinery, which is being built in phases, would eventually raise capacity to 45,000 b/d, Waltersmith said previously. ** Republic of Congo plans to have a new refinery by 2026, the country's Minister of Hydrocarbons Bruno Jean-Richard Itoua said at an industry event June 1. Works on the new plant, whose first phase is expected to be operational within two years, will start later this year. Around half, or 2 million-2.5 million mt/year of the refinery's capacity, which is part of the first phase, will be aimed at covering domestic consumption while the remaining 2.5 million mt/year would be aimed at producing oil products for exports. A decision had recently been taken to double the new plant's capacity, which is a private enterprise, from 2.5 million mt/year to 5 million mt/year. The new refinery will also be built near Pointe Noire and potentially could be combined with the existing CORAF refinery, depending on whether it is kept in operation. ** Libya has awarded Honeywell UOP a contract to help develop a 30,000 b/d refinery at a cost of Eur600 million ($646 million), officials said in March 2023. Zallaf Libyan Oil & Gas Co, a unit of state-owned National Oil Corp, signed the contract with Honeywell UOP to develop the South Refinery, a project which has been in the works for over 30 years, the NOC said. The refinery, located in the southern city of Awbari, will process crude from El Sharara field to produce gasoline, diesel, kerosene and LPG for the domestic market, the NOC said. The project includes two phases, an initial one that consists of front end engineering and design, or FEED, to be implemented by Honeywell UOP, and a second phase for construction. ** Canadian producer Decklar Resources Inc. and Edo Refinery and Petrochemical Company Ltd. announced March 2023 an agreement to deliver an additional 150,000 barrels of crude oil to the modular Edo refinery located in southern Nigeria. Under the agreement, Decklar Resources will increase crude feedstock supply to the Edo refinery from an initial 30,000 barrels, to meet the expansion of the refinery's capacity billed to be completed in March this year, Decklar said in a statement. Edo Refinery and Petrochemical Company Ltd. said in January that the second phase of the expansion of the facility would, on completion in March, add 12,000 b/d to raise production to 21,000 b/d. The modular refinery can produce 50% of diesel at 500,000 liters, 25% of naphtha at 300,000 liters and 20% of Low Pour Fuel Oil at 200,000 liters. ** Nigeria's two modular facilities -- the 10,000 b/d plant in Port Harcourt, Rivers State and the 10,000 b/d modular refinery Ibigwe, in Imo State, -- are at various stages of completion, according to officials. ** Chad's government is considering the construction of a second refinery in the country in order to secure better domestic supply. The government ""will work to finalize feasibility studies for a second refinery and launch its construction,"" local media cited the Prime Minister Saleh Kebzabo as saying. The 20,000 b/d N'Djamena is the only refinery operating in Chad. ** KBR has been awarded a front-end engineering design for Bua Group's new, modern refinery facility in Nigeria. Bua Group plans to build a 200,000 b/d integrated refinery and petrochemical plant in Akwa Ibom, according to its website. The plant aims to produce Euro 5 fuels and polypropylene for the domestic and regional markets. ** Nigerian National Petroleum Corp. is close to taking a final investment decision with some investors to build a 50,000 b/d condensate refinery. NNPC signed the front-end engineering design for the construction of the plant -- which will be in the Niger Delta -- with engineering firm KBR. NNPC first announced in August 2018 plans to build a condensate refinery with capacity to refine 200,000 b/d of the condensate oil produced by the country. ** Nigeria has reached an agreement with neighbor Niger to build an oil refinery in a border town between Niger and Katsina state in northern Nigeria. ** The Ministry of Hydrocarbons of Guinea has signed a memorandum of understanding with logistics company United Mining Supply to set up an oil refinery. UMS has said it will conduct a feasibility study to construct a refinery in Moribayah. ** Africa Finance Corp. has signed an agreement with Brahms Oil Refineries Ltd. to co-develop a refinery and storage terminal in Guinea. AFC will work on the development and subsequent financing of a petroleum storage and associated refinery project in Kamsar, Guinea. That will include a 12,000 b/d modular refinery, a 76,000 cu m crude oil storage terminal, a 114,200 cu m storage terminal for refined products, and ancillary transportation infrastructure. Guinea currently has no refineries. ** The construction of Republic of Congo's Atlantic Petrochemical Refinery project has begun. The government signed a deal with China's Beijing Fortune Dingsheng Investment to construct a 2.5 million mt/year refinery in the port city of Pointe Noire. The Chinese company is also keen on launching a petrochemical complex in the country. The African oil producer has only one refinery, the 27,000 b/d CORAF plant, also in Pointe Noire. ** Cameroon is looking to build a new refinery in the southern port city of Kribi, with a capacity of 4 million mt/year after operations at its sole refinery in Limbe were crippled due to a major fire in 2019. Kribi has been chosen as the site as it is already home to the country's main crude export terminal. ** Equatorial Guinea's 5,000 b/d modular oil refinery project at Punta Europa was expected to receive an FID. The government is hoping to build two modular refineries in the country, one at the Punta Europa complex on Bioko Island and the other at Cogo on the mainland. ** Benin is looking to launch the construction of a new refinery. A committee will look at the feasibility studies for the project and will also analyze the market prospects until 2030. The project will be developed as a public-private partnership. ** Russian state development bank VEB has signed investment cooperation deals with African organizations on financing a refinery in Morocco. The memorandum on the oil refinery in Morocco was signed with the Russian Export Group and Morocco's MYA Energy, part of the Marita Group. The refinery has a planned capacity of up to 5 million mt/year. Morocco's sole refiner Samir was forced to halt processing at the Mohammedia plant in 2015 after crude oil deliveries were delayed due to financial problems. Since then, attempts to resume operations or find an investor have been unsuccessful. ** A consortium of Russian investors is planning a $4 billion project for a new refinery in northern Zambia at the site of the country's aging state-owned Indeni plant. ** Russian state-owned exploration company Rosgeologia may build a Red Sea Coast refinery in Port Sudan, which would supply landlocked countries in Africa. Sudan had started discussions to develop a 200,000 b/d refinery on its Red Sea coast. The project's timeline has not been disclosed. The only refinery operating in the country is the Khartoum, after the Port Sudan refinery closed in 2013 and was decommissioned. ** Ghana's government has set its sights on building a 150,000 b/d refinery in Takoradi. ",REFINERY NEWS ROUNDUP: Nigerian plants in focus,2024-08-06 13:54:23+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.7808105076483952,0.2263700714688372,0.6137423195094139,Bearish,Bearish 250," Valero Energy reported flaring from Complex 1 and Complex 3 at its 195,000 b/d McKee refinery in Sunray, Texas, as it started a planned maintenance on several units at the refinery, an Aug. 2 filing made with state regulators said. The flaring began Aug. 2 and ended Aug. 4, and was due to ""planned shutdowns for maintenance in Complex 1 and Complex 3,"" according to the filing with the Texas Commission for Environmental Quality. Among the units listed on the filing was a gasoline-making fluid catalytic cracking unit. Market sources said the scope of the work also included a crude distillation unit. Maintenance is expected to be completed by the end of August. A company spokesperson was not immediately available for comment. The McKee refinery is located on the Texas Panhandle and provides refined products to markets in Texas, New Mexico, Arizona, Colorado, Oklahoma, and Mexico via pipeline and rail. ","REFINERY NEWS: Valero shuts CDU, FCCU at McKee refinery for planned work",2024-08-06 13:53:42+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.4402314687273724,0.0169660374222161,0.9936953157581484,Bullish,Bullish 251," Kazakhstan is extending its ban on the export of oil products, including to the Eurasian Economic Union, for another six months, according to a draft published on the energy ministry's website Aug. 6. The ban, which first started in 2019 and covers exports of gasoline, jet fuel, diesel and gasoil by truck, was introduced to safeguard domestic supply during agricultural works and refinery turnarounds. The Eurasian Economic Union includes Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia. ",Kazakhstan extends ban on oil products exports by truck for six months,2024-08-06 13:28:40+00:00,Crude Oil,Crude Oil,0.9865110038172464,0.1757744372367313,0.0321448342023035,Bearish,Bearish 254," The physical Hi-Lo spread has widened to a three-month high amid prompt demand for low sulfur (1%S) fuel oil within the Mediterranean and a dearth of cargoes. The physical Hi-Lo spread – the premium of 1%S FOB NWE cargoes above their 3.5% FOB Rdam Barge counterpart – was last assessed at $16.75/mt Aug. 5, representing the highest level since April 30. Within the paper markets, Platts, part of S&P Global Commodity Insights, assessed the front month paper Hi-Lo at $23.50/mt Aug. 5, rising $1.25/mt on the day to the highest level since April 24. Market participants said the otherwise thinly traded market has seen an increase in activity recently. One trader said “right now [1% strength] is due to prompt demand... there is a tightness of 1% cargoes in the Mediterranean.” A second trader source said the generally quiet market has seen an uptick in activity amid higher demand from utilities to meet their power generation requirements. Within the Platts Market on Close assessment process, Alkagesta has been bidding since early August for a 25,000-mt LSFO cargo on a CIF Malta basis but was unable to find a seller, further highlighting the tightness for LSFO within the region. ",Physical Hi-Lo spread hits 3 month high amid prompt LSFO demand,2024-08-06 12:03:23+00:00,Heavy Distillates,Heavy Distillates,0.1840593067177691,0.0261368961178816,0.9971377489959176,Bullish,Bullish 257," The Middle East sour crude complex saw cash differentials for key sour crude markers fell to fresh lows during the Singapore Platts Market on Close assessment process Aug. 6, though spot activity was thin with the October-loading cycle still in early days. Platts, part of S&P Global Commodity Insights, assessed October cash Dubai and cash Oman at a premium of 54 cents/b to the same-month Dubai futures at the market close, all down 11 cents/b on the day. October cash Murban was assessed at a premium of 55 cents/b to the same-month Dubai futures, down 10 cents/b on the day. Differentials for all the three markers were hovering at lows not seen since the end of June. During the Platts MOC process, 29 October Dubai partials of 25,000 barrels each traded. The sellers were Phillips 66, Mitsui, Reliance, Trafigura, PetroChina, ExxonMobil, BP and Unipec, and the buyers were Vitol, Glencore and Gunvor. No convergences were reached during the Platts MOC process. A convergence occurs when 20 partials are traded between two counterparties, resulting in a full 500,000-barrel physical cargo being declared from the seller to the buyer. Activity remained muted in the broader market with traders awaiting Aramco's September crude oil allocations, as well as the release of more producer official selling prices. ",CRUDE MOC: Middle East sour crude cash differentials slip to fresh lows,2024-08-06 10:52:50+00:00,Crude Oil,Crude Oil,0.98213158210339,0.0197436197984139,0.4293953999430511,Bearish,Bearish 258," Nigeria’s state oil firm announced the introduction of a new export grade – the Utapate crude blend – on Aug. 5, taking the country’s total number of crude grades to 31. In a statement, the Nigerian National Petroleum Company said exports of Utapate crude started in July from Oil Mining Lease (OML) 13, operated by NNPC’s upstream subsidiary NEPL and a subsidiary of local company Sterling Oil. “Located offshore Akwa Ibom State in Nigeria, Utapate’s current crude oil production is at 28,000 b/d, with the potential to increase it to 50,000 b/d,” the state firm added. The sulfur content of the new crude is 0.0655%. “Spanish oil giant Repsol won the tender for the initial cargo of 950,000 barrels of the new crude blend, which is comparable to the much sought-after Amenam crude,” NNPC said. “Gulf Transport and Trading, another leading crude oil dealer, has also secured… tenders for August and September 2024.” A source from Sterling said that OML 13 was producing “25,000 b/d and gradually increasing” as of early July. The Nigerian company is owned by the Sandesara brothers, who had fled India in 2017 following allegations of defrauding public sector banks in the country. According to the Nigerian Upstream Petroleum Regulatory Commission, Utapate production was 10,000 b/d in May and 19,000 b/d in June. The introduction of the new grade follows the launch of Nembe crude oil, produced from OML 29 by NNPC and local company Aiteo, in 2023. “Similar to the Nembe crude oil grade, the Utapate crude oil blend has a low sulfur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe,” NNPC said. Utapate is sweeter than Nigeria’s flagship Bonny Light crude grade, which typically has a sulfur content of around 0.14%. Bonny Light was last assessed by Platts – part of S&P Global Commodity Insights – at $78.74/b on Aug. 5, at a $2.80/b premium to key benchmark Dated Brent. NNPC said the launch of Utapate demonstrates its ambition to boost Nigeria’s crude oil production and grow the country’s reserves through the development of new assets. The country has the capacity to produce some 2.2 million b/d of crude but production has fallen since 2013 due to field maturation, technical issues, rampant oil theft by gangs in the Niger Delta and inadequate exploration activity. With majors including ExxonMobil and Eni agreeing to sell onshore and shallow water assets, local firms like Sterling, Oando and Seplat are taking over key projects. Sub-Saharan Africa’s biggest producer pumped 1.5 million b/d of oil in June, according to the latest Platts OPEC Survey from Commodity Insights. ","Nigeria launches new Utapate crude grade, first cargo heads to Spain",2024-08-06 10:12:18+00:00,Crude Oil,Crude Oil,0.3088481660883744,0.1079621412094748,0.9720770689939444,Bullish,Bullish 259," Tupras' refinery output in the second quarter of 2024 rose 15.2% on the quarter and on the year to 7.8 million mt, data released Aug. 5 by Turkey's largest refiner showed. The company’s refinery capacity utilization was 93.5% in Q2, of which 88% was crude utilization and 5% intermediate products. This was up from Q1’s utilization of 82%, of which 76% was crude oil and 6% intermediate products, and up from 83% in Q2 2023, of which 71% was crude and 12% intermediate products Production for the first half of 2024 was 12.7 million mt, up 16.5% on the year, and against a full year target of 26 million mt. Tupras said its crack refining margin for H1 2024 was $12.9/b, above its target of $12/b for 2024 but down from the $14.3/b it reported for Q1. The company did not give a separate figure for Q2. Previously, the company had announced net refining margins of $9.6/b for H1 2023 and $16/b for 2023. Tupras said the white product yield from its Q2 output was 78.5% or 6.8 million mt, up from the 75.3%, or 5.9 million mt produced in Q1 and 73.5%, or 5.9 million mt, in Q2 2023. Of the 6.8 million mt, 32% was diesel, 22% gasoline, 16% jet, 10% bitumen and 10% fuel oil, compared with 34% diesel, 20% gasoline, 19% jet, 12% bitumen and 4% fuel oil in Q2 2023, Tupras said. Maintenance Tupras reported maintenance work at three of its four refineries during 2024. At its 227,000 b/d Izmit plant, it reported the periodic maintenance at its Fuel Oil (residue) Conversion Unit -- scheduled for 13 weeks during Q1 -- had been completed as had the periodic maintenance of the FCC unit scheduled for six weeks in Q2. However, the company said the planned periodic maintenance of the crude oil and vacuum unit and desulfurizer -- both scheduled to take five weeks in Q4 -- had both been postponed. At its 239,000 b/d Izmir plant, Tupras reported the completion of a periodic maintenance of the crude oil, vacuum and HYC units, scheduled to take seven weeks in Q1. A revamp of the FCC unit at Izmir slated to take 21 weeks during Q3-Q4 is still planned. Seasonal work scheduled to take 10 weeks during Q2 and Q4 on the crude oil and vacuum units at Tupras 28,000 b/d Batman refinery, which refines Turkey's domestically produced crude, is still ongoing, the company said. Sales Tupras said its total sales in Q2 were 7.8 million mt, up 11.4% from the previous quarter, and up 6.9% on the year. Of this, 5.7 million mt was domestic sales, up 11.8% quarter on quarter and down 3.3% year on year, while exports totaled 2.2 million mt, up 15.8% on the quarter and 57.1% on the year. Half-year sales were reported at 14.8 million mt, up 8.8% on the year, with domestic sales of 10.8 million mt, down 1.8% on the year, while exports totaled 4.1 million mt, up 57.7% on the year. Tupras noted that the sharp rise in export sales compared with the same period last year was driven by a high demand for gasoline and HSFO. Tupras said it had imported 1.547 million mt of diesel and 758,000 mt of fuel oils in Q2, compared with 800,000 mt and 488,000 mt, respectively, in Q1, but did not state the origins of the imports. In its forecast for 2024, Tupras said it expected its own refining margin to be around $12/b, down from the $14/b it predicted for 2024 in its Q1 report, with capacity utilization of 85%-90%, compared with 87.5% reported for 2023. Tupras said it expected 2024 production at its four refineries to be 26 million mt, relatively steady from 24 million-25 million mt in 2023. It expects full-year sales at 30 million mt, slightly down from the 30.1 million mt reported for 2023. The company added that during 2024, it plans to invest a total of $256 million in polypropylene splitters for its Izmit and Izmir refineries and in a propane polypropylene storage and sales system for Izmit. Tupras said the aim of the investments is to produce high value added chemical products and to reduce the company's scope 3 emissions. Power production Tupras said power sales from the 528.6 MW generation portfolio operated by its power subsidiary Entek Elektrik in Q2 totaled 640 GWh, up 86% from Q1 and up 101% on the year. The company's portfolio consists of a 264.3 MW hydro plant, a 116 MW wind plant, a 112 MW combined-cycle gas turbine plant and a 7 MW solar plant. The company said that out of 653MW of pre-licenses it has been awarded, development of 155 MW is ongoing and ""progressing rapidly"". In June, Entek had completed a share purchase agreement for a 214 MW solar power plant in Romania currently under development. Tupras production data for Q1 2024 (million mt) Q2 2024 % change on Q1 % change on Q2 2023 Total production 6.8 15.2 15.2 Capacity Utilisation 93.5 11.4 10.5 Tupras Tupras sales data for Q1 2024 (million mt) Sales Q2 2024 % change on Q1 % change on Q2 2023 Total 7.8 11.4 6.9 Domestic 5.7 11.8 -3.3 Exports 2.2 15.8 57.1 Source: Tupras company data ",REFINERY NEWS: Turkish Tupras Q2 output rises 15% on the quarter and year,2024-08-06 10:10:44+00:00,Crude Oil,Crude Oil,0.4002367472206688,0.0144223859994277,0.9958705778763252,Bullish,Bullish 260," China’s independent refineries cut crude oil imports originating from Iran in July while boosting Russian ESPO inflows in the wake of higher outflows of the grade from Russia, data collected by S&P Global Commodity Insights showed Aug. 6. Despite that, Iranian barrels remained the top choice for the independent refineries in July. The refineries, mainly the small ones in Shandong province, imported 5.48 million mt (1.3 million b/d) of Iranian crudes in July, falling 10.1% from an eight-month high of 6.1 million mt in June. Iranian imports are usually reported as Malaysian barrels when the refineries declare inflows to the customs. ESPO imports surged 56.7% to 1.7 million mt (402,000 b/d) in July from a 37-month low of 1.08 million mt in June. The volume excluded CNOOC’s 400,000 mt of ESPO inflows via the Dongying port in Shandong, some or all of which were intended for refilling the strategic petroleum reserve. In July, the Far East Kozmino port loaded 34 Aframax cargoes bound for China, an increase from the 30 ships loaded in June. Higher loadings supported a rise in deliveries to the independent sector. ESPO blend crude is one of the most favorable barrels for Chinese state-owned and independent refiners. However, despite a rebound in ESPO volumes, the independent refineries' total feedstock imports from Russia fell 7.9% month on month and 41.7% year on year to 2.18 million mt in July. The refineries cut their combined feedstocks imports to a three-month low of 3.65 million b/d (15.45 million mt) in July amid low utilization rates. Yulong Petrochemical's new 400,000 b/d refinery is expected to receive three Aframax cargoes of ESPO and a cargo of Sokol in September as it prepares for startup, according to trade sources. The barrels were purchased in end-July and early-August, with ESPO cargoes transacted at discounts of 80-90 cents/b to ICE Brent, DES Shandong, and Sokol at ICE Brent plus 50 cents/b on the same basis. Fuel oil slumps, bitumen blend jumps The independent refiners’ fuel oil imports slumped 77.7% month on month to a four-month low of 371,000 mt in July, Commodity Insights data showed. Trade sources said high imported fuel oil costs pushed some independent refineries, which do not have government permission to import crude oil, to switch to bitumen blend. As a result, bitumen blend imports -- originating from Venezuela -- jumped 14.3% month on month to an eight-month high of 1 million mt. Over January-July, bitumen blend imports were still 27.5% lower from a year earlier at 5.16 million mt, while fuel oil imports slipped 1.2% during the period to 8.52 million mt. The importers reported a combined 6.82 million mt of feedstocks from Malaysia in July, declining 4.2% from June. These barrels included Mal Blend crude, Nemina crude, fuel oil and bitumen blend, which were mainly barrels produced by Iran and Venezuela, according to trade sources. Commodity Insights collects information from trade and independent refinery sources, Kpler shipping data, shipping brokers, port sources and S&P Global Commodities at Sea , and corroborates that information with sources with direct knowledge of the matter. Top feedstock suppliers for China's independent refiners ('000 mt) Jul-24 Jun-24 Change Jul-23 Change Malaysia 6,822 7,118 -4.2% 6,256 9.0% Saudi Arabia 2,680 3,071 -12.7% 1,530 75.2% Russia 2,181 2,369 -7.9% 3,744 -41.7% Brazil 1,087 281 286.8% 685 58.7% Iraq 839 1,342 -37.5% 830 1.1% UAE 655 180 263.9% 2,192 -70.1% Kuwait 550 425 29.4% 420 31.0% Angola 280 143 95.8% 395 -29.1% US 280 129 117.1% - - Canada 80 80 0.0% - - Total* 15,454 15,413 0.3% 17,114 -9.7% Jan-Jul 2024 Jan-Jul 2023 Change Malaysia 43,269 40,360 7.2% Russia 22,956 34,054 -32.6% Saudi Arabia 19,884 12,466 59.5% Iraq 7,030 7,327 -4.1% UAE 6,176 13,111 -52.9% Brazil 4,074 3,751 8.6% Kuwait 2,139 2,230 -4.1% Angola 1,358 1,062 27.9% Qatar 675 - - US 671 1,251 -46.4% Total* 109,918 122,077 -10.0% Top feedstock imports for China's independent refiners ('000 mt) Crude Jul-24 Jun-24 Change Jul-23 Change Mal Blend 5,364 6,099 -12.1% 2,209 142.9% ESPO 1,696 1,082 56.7% 2,300 -26.3% Arab Light 1,241 1,102 12.6% 135 819.3% Arab Heavy 1,124 978 14.9% 716 57.0% Basrah Heavy 699 564 23.9% 280 149.6% Khafji 550 425 29.4% 140 292.9% Sepia 543 141 285.1% 203 167.5% Upper Zakum 390 110 254.5% 1,552 -74.9% Nemina 272 - - 239 14.0% Tupi 270 - - 203 33.0% Subtotal* 14,083 13,599 3.6% 14,675 -4.0% Bitumen Blend 1,000 875 14.3% 775 29.0% Fuel Oil 371 939 -60.5% 1,664 -77.7% Total feedstock* 15,454 15,413 0.3% 17,114 -9.7% Crude Jan-Jul 2024 Jan-Jul 2023 Change Mal Blend 30,169 19,391 55.6% ESPO 13,149 18,976 -30.7% Arab Light 8,619 2,885 198.8% Arab Heavy 6,378 6,962 -8.4% Basrah Medium 3,952 3,134 26.1% Basrah Heavy 3,078 3,078 0.0% Sokol 3,018 1,221 147.2% Arab Extra Light 2,796 1,219 129.4% Upper Zakum 2,460 8,917 -72.4% Arab Medium 2,091 1,680 24.5% Subtotal* 96,237 106,332 -9.5% Bitumen Blend 5,163 7,122 -27.5% Fuel Oil 8,518 8,623 -1.2% Total feedstock* 109,918 122,077 -10.0% *Includes imports from other countries, and other grades Source: S&P Global Commodity Insights ","CHINA DATA: Independent refineries’ Iranian crude imports fall in July, ESPO inflows rebound",2024-08-06 10:08:15+00:00,Crude Oil,Crude Oil,0.8785561530752279,0.0186618027774788,0.8608317497210682,Bearish,Bearish 261," Independent commodity trader Gunvor has agreed to purchase TotalEnergies’ 50% stake in Total PARCO Pakistan, a fuel marketing company, the companies said Aug. 6. Total PARCO Pakistan is a 50/50 joint venture between TotalEnergies Marketing and Services and Pak-Arab Refinery Limited (PARCO) in Pakistan with a retail network of more than 800 service stations, fuel logistics and lubricants activities. ""The transaction reflects the selective strategy of TotalEnergies in Marketing & Services focused on core geographies with growth and transitioning opportunities,"" TotalEnergies said in a statement. Following the transaction, the new entity will continue its retail business under the existing “Total Parco” brand and its lubricants business under the “Total” brand for five years in Pakistan. No financial details of the transaction were given. ",Gunvor acquires TotalEnergies' 50% stake in Pakistan retail fuel business,2024-08-06 09:18:23+00:00,Middle Distillates,Middle Distillates,0.6957440741803658,0.04513385519314,0.9263159849394376,Bullish,Bullish 263," Coal is poised to remain a dominant power fuel in India for nearly two decades despite popular belief that renewables will be fueling majority of power in Asia, and primarily India, as huge investment required to build green capacities and intermittent nature of renewables will likely remain a roadblock, according to Vuslat Bayoglu, managing director of South African mining company Menar. ""Rate of population growth in India commands higher-than-ever energy requirements, and to meet such heightened demand coal has to remain the mainstay for decades to come, even as renewables will see their fair share of growth. However, baseload power cannot be neglected, and coal will continue to drive that in India as the question revolves around not just energy needs but also reliability and uninterrupted supply, which unfortunately cannot come from renewables that easily in countries like India,"" Bayoglu said. According to Bayoglu, transition to renewables has a different meaning when put in an Asian context. ""It is a requirement, of course, but it should not come at a cost of depriving people of basic energy needs,"" he said, adding that Asian economies will be equipped to deal with it, but there should not be a timeline pressure, as affordability is a big concern in deploying renewable energy sources. Meanwhile, investments that have gone into coal cannot be done away with without a proper realization of returns, he said, referring to coal-based plants across Asia that are newly built and are far from their lifecycle-end. ""There should also be talks around how to lower emissions from coal-based power and non-power sectors as they are the ones securing supply for many years to come, and how coal will always remain a baseload fuel even if renewables grow at an expected rate in Asia."" India to drive energy sector spending Menar, which has interests in coal, nickel, gold, and manganese, among others, looks at India as having an even higher say in overall energy commodities' pricing structure as well as driving the demand fundamentals, particularly for coal in the international waters. Menar's coal production capacity stands at about 7 million mt/year through subsidiaries and investments. ""A growing India is beneficial for the entire world, as demand centers will be the ones shaping a global trade narrative, especially when geopolitical risks have become a norm. Over the next few years, India will likely compete with China even more strongly as far as trade dominance is concerned,"" Bayoglu said. While India's crude oil import bill fell in the last fiscal 2023-24 (April-March) due to lower international prices in the post-war stabilization year, import dependency hit a new high of over 87.7%, according to Petroleum Planning and Analysis Cell (PPAC) data, amid rise in population, rapid economic growth, and scaling up of infrastructure and industrial sectors. Coal imports also rose to a record over 260 million mt last fiscal, keeping overseas reliance to over 25% of the total consumption, and gradually narrowing the gap with Chinese coal imports that stood at over 450 million mt last year. South Africa's logistics snag on recovery path While South African coal is preferred in markets like India, Pakistan, parts of Europe and China, domestic transportation trouble with state-owned freight operator Transnet, frequent rail line disruption, and issues of theft and burglary have collectively contributed to supply-chain inefficiency over the years, leading to underutilized export potential. Bayoglu, however, believes the government along with other relevant stakeholders are working on plans to improve the logistics shortcomings, including increasing the number of trains, fixing line efficiency and bolster security. ""Logistics problems are a part of every country, and while I agree it has impacted South Africa more, I see improvement on the ground and in about 2-3 years, we'll be able to get rid of many transportation and allied problems to be able to ship more products outside of the country,"" he added. ",INTERVIEW: Coal to remain a dominant power source in India: Menar MD,2024-08-06 09:05:27+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.8016277509325491,0.3724349030761851,0.3001200417505417,Bearish,Bearish 266," Crude oil futures hung on to early gains through midafternoon Asian trade Aug. 6 after a volatile trading session though analysts warned that prevailing demand concerns are likely to cap gains. At 3:15 pm Singapore time (0715 GMT), the ICE October Brent futures contract was up 41 cents/b (0.54%) from the previous close at $76.71/b, while the NYMEX September light sweet crude contract rose 57 cents/b (0.78%) at $73.51/b. Global financial markets attempted to stabilize after a volatile start to the week that saw a broad move away from risk assets such as oil futures. ""It seems we've caught a brief respite as some of the falling knives have finally hit the floor,"" said SPI Asset Management's managing partner, Stephen Innes. The rebound Aug. 6 was broadly attributed to supply-side concerns following the shutdown of Libya’s largest oilfield and geopolitical developments in the Middle East. Resilient US services data overnight also offered some support for prices and bolstered a broad-based recovery in risk sentiment, IG's market analyst, Yeap Jun Rong, told S&P Global Commodity Insights. ""Oil prices have been attempting to stabilize from recent rout ... but that is weighed against geopolitical developments in the Middle East, where initial retaliation from Hezbollah has been more contained than what some expect,"" he continued. ""For now, concerns around US growth risks are eased by resilience in US services activities, but it may have to take more to reassure markets of a stronger global demand outlook for oil. Until then, gains in oil prices may seem more limited."" Overarching worries over demand from China, the world's largest importer of crude, continued to cap gains to crude prices, ING's commodity analysts said Aug. 6. ""Investors have been exiting commodities in recent weeks, highlighted in positioning data and this has continued in recent days,"" they added, noting a steady decline in open interest in ICE Brent futures contracts since mid-June that reflected a souring speculative appetite. Investors await China's trade data due Aug. 8 which will be the next key Asian economic data point this week for commodity markets. The country's crude inflows had slipped 10.8% on the year in June with poor refining margins and soft refined product demand said to cap gains through July, sources said. Dubai crude Dubai crude swaps and intermonth spreads were mixed in midafternoon Asian trading Aug. 6 from the previous close. The October Dubai swap was pegged at $75.13/b at 2 pm Singapore time (0600 GMT), up $1.29/b (1.75%) from the previous Asian market close. The September-October Dubai swap intermonth spread was pegged at 43 cents/b, down 2 cents/b over the same period, and the October-November intermonth spread was pegged at 31 cents/b, up 1 cent/b. The October Brent-Dubai exchange of futures for swaps was pegged at $1.93/b, up 11 cents/b. ",OIL FUTURES: Crude price holds steady as demand expectations cap gains,2024-08-06 07:16:44+00:00,Crude Oil,Crude Oil,0.6180553094938609,0.93851015672549,0.0371534296054699,Neutral,Neutral 267," Term contractual ex-wharf 380 CST high sulfur fuel oil at the UAE’s bunker hub of Fujairah for August were inked at premiums of around $6-$8/mt to Mean of Platts Arab Gulf 180 CST HSFO assessments, traders said Aug. 6, as some sellers were keen to draw down stockpiles. Some of the August-loading term contract HSFO ex-wharf cargoes were also concluded at premiums around the low-teens, according to traders, while intense competition among suppliers around the UAE’s bunker hub of Fujairah also pressured downstream valuations. Previously, most of the HSFO ex-wharf term contract barrels for July were signed at higher premiums of around $8-$15/mt premiums, traders said. “HSFO [cargo] availabilities are okay. There can be wide range of premiums seen often due to various origins and strategies that suppliers employ to procure cargoes,” a Fujairah-based trader said. The Platts-assessed Fujairah-delivered 380 CST HSFO bunker premium to FO 380 CST 3.5% FOB Arab Gulf cargoes declined to an average of $23.92/mt in July and has inched up to $25.37/mt so far in August, but still far below the $31.79/mt average in June. “More players are getting into the HSFO space,” a Fujairah-based bunker supplier said, suggesting that downstream competition has intensified in the region. According to local traders, some flat price sellers have reportedly offered aggressively to capture inquiries consisting of substantial requirements, undercutting the rest of their competitors with by fairly wide margins. “Recently, competition has been tough, we have even lost all inquiries today,” another bunker supplier said, adding that deals were inked at low premiums even for prompt refueling dates. In addition to the ample HSFO inventories, downstream barging schedules for early refueling requirements were mostly available within same-day to three-day lead times, as buyers could secure bunkers promptly. Supply adequate, healthy demand Higher HSFO inflows in H2 July kept inventories well-supplied, while at least two cargoes totaling approximately 734,000 barrels, or 116,000 mt, of HSFO reportedly hailing from Iran and Russia, were expected to land in Fujairah around early-August period, according to industry sources. HSFO consumption from regional utility sectors rose during the peak summer season in the Middle East to strengthen valuations for part of Q2 and Q3 period, though traders in the region also said that the demand and supply dynamics were “balanced” since July, compared to tighter stockpiles earlier in Q2. Stockpiles of heavy residues around Fujairah hub, consumed for power generation purposes and as ship fuel, climbed 3% on the week to a two-week high of 9.702 million barrels in the week ended July 29, latest data from the Fujairah Oil Industry Zone showed. HSFO demand around Fujairah were seen rather decent, or above-average, on most trading days recently, as discounts against prices at Singapore widened significantly owing to tighter-than-usual barging schedules around the world’s largest bunkering hub, bunker suppliers said. As a result, traders in Singapore also noted that some volumes of spot HSFO inquiries were lost to competitive offers available in Fujairah, especially for tankers with the option to refuel in the Middle East or plying along the Arab Gulf-Asia routes. “Suppliers [in the UAE] are facing a difficult market and high level of competition… Nevertheless, buyers are winners in these conditions,” a second trader said. Spreads between Singapore delivered marine fuel 0.5%S prices versus the same delivered grade at the UAE’s bunker hub of Fujairah most recently widened to an over four-month high of $27/mt July 30, before narrowing to $18/mt Aug. 5, Commodity Insights data showed. Prior to July 26, this HSFO delivered spread between both hubs were last assessed wider at $29/mt March 14 earlier this year. Moreover, HSFO delivered price spreads between both key hubs averaged $19.33/mt Aug. 1-5, compared with $15.52 in July. Platts is part of S&P Global Commodity Insights. ",Fujairah’s HSFO August HSFO ex-wharf premiums slip; stocks adequate,2024-08-06 07:05:38+00:00,Heavy Distillates,Heavy Distillates,0.2559277693200499,0.0455022541865582,0.9908809098055872,Bullish,Bullish 268," Japan's US crude imports in March more than doubled year on year and nearly quadrupled from February to 3.01 million barrels, according to preliminary data released April 30 by the Ministry of Economy, Trade and Industry, at a time when US barrels were competitive against Middle East supplies and as the country increases its efforts to diversify supply. Imports from the US jumped in March as Japan's dependency on Middle East crude slid to 94.7% from 96.6% in March 2023, marking the sixth year-on-year decline, led by reduced imports from Saudi Arabia, Kuwait and Qatar, according to METI data. Japan imported from the US in March 2.05 million barrels of WTI Midland crude and 966,761 barrels of Mars crude for a total of 3.01 million barrels, or 97,257 b/d. US supply accounted for 4.1% of Japan's total crude imports and was the fourth-largest supplier in the month. On a CFR North Asia basis, US WTI Midland crude's premium over the UAE's Murban crude averaged 22 cents/b in December, when North Asian refiners were purchasing March-arrival cargoes, a relatively narrow spread that likely allowed some system barrel sellers to move some cargoes to Japan, according to S&P Global Commodity Insights data. Japan's ENEOS Holdings said Feb. 9 it was exploring procuring crude from the US as well as from Central and South America as part of efforts to diversify its sources of crude supply, given its high dependency on Middle East crudes and amid heightened tensions in the region. Feedstock managers at two major refiners and trade sources at a Japanese integrated trading company said that since the country relies heavily on Middle Eastern sour crude, the recent tensions ignited by Iran's attack on Israel earlier in April was a major feedstock security concern and they would consider reaching out to their regular US crude suppliers and trading firms for a potential increase in spot purchases, at least through the next few trading cycles. ""Events like these should seriously kick-start supply diversification efforts, perhaps starting off with more US crude buying,"" a crude and condensate trader at a Japanese integrated trading firm said. Ecuador was the sixth-largest crude supplier to Japan in March, with inflows of the country's Napo crude in March up 13.9% year on year at 699,986 barrels, or 22,580 b/d, according to METI data. The UAE remained Japan's top crude supplier in March, with imports from the country averaging 1.055 million b/d, up 9.8% year on year, followed by Saudi Arabia, down 7.2% year on year at 989,492 b/d. Imports from Kuwait and Qatar, respectively the third- and fifth-largest suppliers of crude to Japan in March -- dropped 22.1% and 67.8% year on year to 171,858 b/d and 50,272 b/d. Yen depreciation Meanwhile, middle distillate marketers were assessing how the marked weakness of the yen could affect jet fuel sales in the short to medium term. The currency's weakness could significantly reduce overseas travel demand as the global purchasing power of local consumers has deteriorated. However, tourist arrival numbers could see a big boost as foreign holiday seekers and travelers aim to make most of the weak local currency, a product sales and marketing source at Cosmo Oil said. ""A weak yen does not bode well for [Japanese] refiners' feedstock crude purchases but it would work in favor of jet fuel sales and middle distillate exports,"" he said. ""It would be interesting to see major city airports' inbound overseas passenger numbers throughout the second quarter."" Japan's jet fuel sales in March slid 16.2% year on year to 73,433 b/d, while sales of kerosene, which has similar specifications to jet fuel, surged 37% to 322,452 b/d as a result of below-average temperatures in the month. Jet fuel exports in March fell 9.6% year on year to 130,868 b/d, while gasoline exports rose 6.4% to 117,392 b/d. Gasoline imports averaged at 47,549 b/d in March, more than triple the 14,135 b/d of March 2023, while domestic gasoline sales inched up 0.5% year on year to 742,114 b/d. Japan's top 10 crude suppliers: Countries Mar 2024 (b/d) Share (%) Mar 2023 (b/d) % chg on year Feb 2023 (b/d) % chg on month United Arab Emirates 1,055,483 44.1 961,274 9.8 1,077,822 -2.1 Saudi Arabia 989,492 41.3 1,066,321 -7.2 938,265 5.5 Kuwait 171,858 7.2 220,512 -22.1 183,933 -6.6 United States of America 97,257 4.1 43,599 123.1 27,092 259.0 Qatar 50,272 2.1 156,287 -67.8 134,344 -62.6 Ecuador 22,580 0.9 19,828 13.9 41,722 -45.9 Australia 6,963 0.3 0 n/a 0 n/a Oman 1,982 0.1 0 n/a 32,243 -93.9 Brunei 0 0.0 9,683 n/a 10,807 n/a Bahrain 0 0.0 16,149 n/a 0 n/a Other 0 0.0 13,293 n/a 0 n/a Total 2,395,888 100.0 2,506,946 -4.4 2,446,227 -2.1 Countries Jan-Mar 2024 Jan-Mar 2023 % chg on year United Arab Emirates 1,049,586 943,353 11.3 Saudi Arabia 955,948 1,149,885 -16.9 Kuwait 178,801 262,078 -31.8 Qatar 88,922 152,217 -41.6 United States of America 86,248 48,499 77.8 Ecuador 28,609 21,530 32.9 Oman 16,419 27,713 -40.8 Australia 5,332 2,583 106.4 Bahrain 5,211 16,750 -68.9 Brunei 3,444 6,670 -48.4 Other 4,872 18,864 -74.2 Total 2,423,392 2,650,144 -8.6 Japan's oil product sales (Unit: b/d): Mar-24 Mar-23 % Change Feb-24 % Change Gasoline 742,114 738,422 0.5 720,623 3.0 Naphtha 581,341 689,610 -15.7 681,703 -14.7 Jet Fuel 73,433 87,629 -16.2 75,972 -3.3 Kerosene 322,452 235,367 37 372,312 -13.4 Gasoil 536,566 541,985 -1 535,622 0.2 Fuel Oil A 203,741 205,799 -1 206,543 -1.4 Fuel Oil B, C 100,611 146,025 -31.1 114,678 -12.3 Total 2,560,259 2,644,896 -3.2 2,707,453 -5.4 Jan-Mar 2024 Jan-Mar 2023 % chg on year Gasoline 717,892 729,056 -1.5 Naphtha 646,856 679,626 -4.8 Jet Fuel 71,861 70,101 2.5 Kerosene 361,679 367,928 -1.7 Gasoil 514,490 526,303 -2.2 Fuel Oil A 198,884 212,944 -6.6 Fuel Oil B, C 112,763 188,253 -40.1 Total 2,624,425 2,774,390 -5.4 Japan's oil product imports (Unit: b/d): Mar-24 Mar-23 % Change Feb-24 % Change Gasoline 47,549 14,135 236.4 30,200 57.4 Naphtha 424,415 443,949 -4.4 441,635 -3.9 Jet Fuel 0 n/a n/a 2,547 n/a Kerosene 20,830 18,988 9.7 52,592 -60.4 Gasoil 4,502 5,585 -19.4 6,238 -27.8 Fuel Oil A 0 n/a n/a 0 n/a Fuel Oil B, C 5,615 33,029 -83 7,134 -21.3 Total 502,911 515,806 -2.5 540,347 -6.9 Jan-Mar 2024 Jan-Mar 2023 % chg on year Gasoline 46,772 22,786 105.3 Naphtha 433,341 428,266 1.2 Jet Fuel 812 3,231 -80.0 Kerosene 50,321 55,882 -10.0 Gasoil 7,524 5,419 38.9 Fuel Oil A 0 0 n/a! Fuel Oil B, C 9,306 42,257 -78.0 Total 548,076 557,690 -1.7 Japan's oil product exports (Unit: b/d): Mar-24 Mar-23 % Change Feb-24 % Change Gasoline 117,392 110,331 6.4 105,733 11.0 Naphtha 1,187 n/a n/a 1,035 14.8 Jet Fuel 130,868 144,766 -9.6 126,025 3.8 Kerosene 2 19,963 -100 3 -53.2 Gasoil 141,533 129,018 9.7 79,811 77.3 Fuel Oil A 141 1,986 -92.9 123 14.7 Fuel Oil B, C 170,258 148,567 14.6 158,290 7.6 Total 561,381 543,974 3.2 471,021 19.2 Jan-Mar 2024 Jan-Mar 2023 % chg on year Gasoline 100,560 120,909 -16.8 Naphtha 1,538 0 n/a Jet Fuel 132,772 121,902 8.9 Kerosene 4 19,963 -100.0 Gasoil 103,271 150,364 -31.3 Fuel Oil A 135 2,898 -95.4 Fuel Oil B, C 154,462 147,952 4.4 Total 492,742 560,936 -12.2 Source: Ministry of Economy, Trade and Industry ",JAPAN DATA: US crude imports more than double in March as Middle East dependency eases,2024-08-06 05:32:05+00:00,Crude Oil,Crude Oil,0.4138644441048548,0.0150493707064405,0.995211809237626,Bullish,Bullish 269," The volume of Dubai crude oil futures contracts traded on the Tokyo Commodity Exchange rebounded 5.89% on the month to 124,754 lots in July, the latest TOCOM data showed. The traded volume of the contracts in June was the lowest on record, according to TOCOM data going back to July 2020. The uptick followed the return of Asian refineries from maintenance season, which restored some capacity despite poor margins and tepid domestic demand. Reflecting the weak backdrop, July's traded volume was still 12.4% lower than the 142,406 lots traded in July 2023, the data showed. Nevertheless, the Dubai complex saw some support from a largely closed arbitrage window for light, sweet US crudes to Asia, while a wider Brent-Dubai exchange of futures for swaps spread also hindered the flow of Brent-linked crudes from West Africa, Europe and the Mediterranean into the region. The Brent-Dubai EFS spread, meanwhile, widened in the first half of July, reaching a four-month high of $2.48/b on July 19. The spread was last wider March 4, when it was assessed at $2.54/b. On the physical front, 53 Dubai partials traded during the Platts Market on Close assessment process over the first three trading sessions in August, a significant increase from the 9 partials traded during the same period the previous month. The M1 Dubai swap settled at $84.99/b at the start of July and ended the month 7.25% lower at $78.83/b, S&P Global Commodity Insights data showed. Platts assessed the September Brent-Dubai EFS at $1.61/b on July 31, up 23 cents/b, or 16.67%, from July 1, the data showed. Dubai crude oil futures traded on TOCOM: July '24 June '24 M-o-M Change July '23 Y-o-Y Change Dubai crude oil 124,754 117,817 6,937 5.89% 142,406 -17,652 -12.40% Source: Tokyo Commodity Exchange ",Dubai crude futures traded volume on TOCOM rebounds in July from record low,2024-08-06 03:49:45+00:00,Crude Oil,Crude Oil,0.9752642693358928,0.0062041669289742,0.7597364195926029,Bearish,Bearish 270," Spot prices traded on the Japan Electric Power Exchange retreated for the first time in three days for Aug. 7, with the 24-hour day-ahead price dropping 8.4% on the day to Yen 14.70/kWh as temperatures are forecast to ease. The JEPX 24-hour day-ahead price fell to Yen 16.05/kWh for Aug. 6 after rising for the second consecutive day, following drops over the weekend when power demand is lower than on weekdays. Tokyo is forecast to experience maximum 32 degrees Celsius for Aug. 7, with cloudy skies and occasional rain, compared with 33 C for Aug. 6, according to the Japan Meteorological Agency. The temperatures in Tokyo, which has been a driver for incremental power demand in so far this summer, are down from occasional levels above 35 C in recent weeks. Lower temperatures have also boosted TEPCO Power Grid's supply capacity over demand in recent days. The company expects its Tokyo area demand to peak at 50.88 GW with a supply capacity of 56.24 GW, resulting in a 10% surplus during an hour to 2 pm local time (0500 GMT) Aug. 6. The country's power demand, meanwhile, is also slated to slow with the upcoming Obon summer holidays next week. Japan's LNG stocks held by major utilities retreated 8.5% on the week to 2.15 million mt as of July 28, the Ministry of Economy, Trade and Industry said July 31, marking the first drop in three weeks. ",Japan's spot electricity price retreats 8% as temperatures ease,2024-08-06 02:40:13+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.9959565357693,0.0140988714517654,0.1311151549452274,Bearish,Bearish 271," Hong Kong's imports of refined oil products rose 31.96% on the month but edged 2.12% lower on the year, to 1.42 million kiloliters, or 226,475 barrels, in June, with the gains led by jet fuel/kerosene, the most recent Census and Statistics Department data showed. The Census and Statistics Department publishes data in kiloliters, which S&P Global Commodity Insights converts to barrels using a factor of 6.2898. Hong Kong’s jet fuel/kerosene inflows climbed 34.51% on the month, and 4.69% on the year, to 556,993 kiloliters in June. The rise in jet fuel/kerosene imports tracks expansion in Hong Kong's flagship carrier Cathay Pacific Airways’ passenger traffic, which rose 9.52% on the month, and 18.7% on the year, to 1.84 million travelers in June, the company said. “Following a slightly quieter month in May, travel sentiment rebounded in June with leisure travel on both long-haul and short-haul routes performing well,” Cathay's Chief Customer and Commercial Officer Lavinia Lau said in a statement. Notably, Cathay Pacific, along with its low-cost carrier HK Express, carried about 92,000 passengers combined on June 30, marking the highest daily number of travelers since the pandemic. The increase in passenger numbers contributed to the slight strengthening of the regional jet fuel/kerosene complex, with the Platts-assessed FOB Singapore jet fuel/kerosene outright price averaging $97.33/b in June, rising from $95.43/b in May, S&P Global Commodity Insights data showed. Meanwhile, Hong Kong’s gasoline imports fell 30.87% on month, and 33.15% on year to 28,171 kiloliters in June, the data showed. The fall in Hong Kong’s gasoline inflows was likely due to the holiday period, with most people travelling out of Hong Kong during the monsoon season in June, market sources said. Platts assessed FOB Singapore 92 RON at an average of $87.93/b in June, down from $91.13/b in May, S&P Global data showed. Imports of gasoil, diesel and naphtha slipped 2.42% on the month and 7.20% on the year to 301,610 kiloliters, amid an uptick in prices. Naphtha prices surged slightly higher on the back of lower arbitrage volumes into Asia in June. The Platts-assessed C+F Japan naphtha price rose slightly to an average of $681.30/mt in May, up $5.03/mt from the average of $676.27/mt in May, S&P Global data showed. The benchmark Platts FOB Singapore 10 ppm sulfur gasoil outright price at an average of $98.09/b in June, up from $97.32/b in May, according to S&P Global data. Gas inflows reach 11-month high Hong Kong imported 395,524 mt of natural gas in June, an 11-month high, but 12.61% higher from a year earlier and up 2.12% from May, the data showed. LPG inflows, on the other hand, were up 12.75% on the month but slumped 20.34% on year in June at 24,043 mt. Platts assessed CFR North Asia propane at an average of $629.45/mt in June, up from $620.02/mt in May, Commodity Insights data showed, while CFR North Asia butane was assessed at an average of $612.50/mt in June, from $610.79/mt in May. Hong Kong's gas imports are likely to continue their upward trend during the summer months which start from early-May to late-September when demand for LPG and natural gas is typically strong for electricity generation to power air conditioners. Hong Kong's Census and Statistics Department releases LPG and natural gas data in metric tons. ","HONG KONG DATA: June oil product imports surge 32% on month to 226,475 barrels",2024-08-05 23:12:38+00:00,Crude Oil,Crude Oil,0.910734521344928,0.0064218533983766,0.9545482409018056,Bullish,Bullish 310," Rio Grande LNG developer NextDecade signed an engineering, procurement and construction contract with Bechtel for a proposed Train 4 expansion of the Texas facility that it expects to commercially sanction by the end of 2024, the companies said Aug. 5. Under the lump sum turnkey EPC contract, NextDecade agreed to pay Bechtel about $4.3 billion for the work on Train 4 and related infrastructure, the companies said. Total estimated project costs are expected to be $6 billion-$6.2 billion, including $1.7 billion-$1.9 billion owner’s costs, contingencies, financing fees and interest during construction. NextDecade also maintained its target for reaching FID on Train 4 by the end of the year, having built significant commercial momentum in recent months. The three-train first phase of the Rio Grande LNG terminal is already under construction in Brownsville, Texas, after NextDecade reached a final investment decision on the 17.6 million mt/year project in July 2023. Bechtel is also NextDecade’s EPC contractor for that project. A total of five trains have been proposed, which would bring the terminal’s production capacity to about 27 million mt/year at full construction. In May, NextDecade struck an equity and offtake deal with the UAE’s ADNOC covering 1.9 million mt/year of volumes from Train 4. It was the first binding sale and purchase agreement tied to the expansion project. The US developer in June signed a preliminary deal with Saudi Aramco that called for negotiating a binding agreement with the state-run oil giant for 1.2 million mt/year. NextDecade has said it is targeting deals covering about 4.5 million mt/year from each of the expansion trains in order to reach FID. The company in June said it expects France's TotalEnergies will exercise its option for 1.5 million mt/year from Train 4, meaning the deal with Aramco, if finalized, ""would give us sufficient commercial support for a Train 4 FID."" ",NextDecade signs contract with Bechtel to build Rio Grande LNG expansion,2024-08-05 21:39:02+00:00,Light Ends,Light Ends,0.6318878481465546,0.0703450634656935,0.9332617233358352,Bullish,Bullish 311," Kosmos Energy had its share of operational stumbles in the second quarter, with a delayed startup of the Winterfell field in the US Gulf of Mexico and an underperforming well in Ghana, although the company is confident it will make its year-end goal of 90,000 b/d of oil equivalent, Kosmos' top executive said Aug. 5. ""Two years ago we announced a target to grow production by around 50%, driven largely by the delivery of three important projects – Jubilee Southeast in Ghana, Winterfell in the Gulf of Mexico and GTA,"" an LNG project on the Mauritania-Senegal border, Kosmos CEO Andy Inglis said in a Q2 earnings conference call. ""We're around halfway to achieving that target with the successful startup of Jubilee Southeast and Winterfell alongside production enhancement projects in the Gulf of Mexico,"" he said. Also, later this year Inglis said startup of the first phase of the GTA – Greater Tortue Ahmeyim LNG project – is expected while the infill drilling campaign in Equatorial Guinea should contribute to Kosmos' year-end output goal of around 90,000 boe/d of oil. GTA represents a 2.3 million mt/year offshore LNG export project, with estimated reserves of 15 Tcf. First LNG is expected in Q4, Kosmos said. The company's Equatorial Guinea project at the Ceiba and Okume fields are also expected to contribute to higher Q4 production as an infill drilling campaign in that country has now begun, Inglis said. Added Equatorial Guinea wells should raise output Two infill wells at those Equatorial Guinea fields, one already drilled, should add around 3,000 b/d of oil net to Kosmos' 2024 exit rate. And an infrastructure-led prospect, Akeng, should also spud after those two wells, with results expected by year-end 2024. Kosmos' second quarter net production from Equatorial Guinea was about 8,500 b/d of oil, about flat with 8,400 b/d in the same year-ago quarter. The company's total production in Q2 2024 was 62,100 boe/d, up 7% year over year. Kosmos' Q2 2024 production was about the same as it was in Q2 2022 when it set its year-end 2024 output target. The year-over-year growth in Q2 2024 reflects higher production in Ghana following completion of a three-year infill drilling campaign, although this was offset by lower US Gulf production from planned downtime and a delay to startup of Winterfell, where a third well is slated to come online by the end of Q3. The three initial Winterfell wells are expected to deliver total gross production of roughly 20,000 boe/d, according to Kosmos, which has a 25% stake in the field. Winterfell didn't come online until early July – following a ""slight delay"" in work after drilling the first two wells and subsea hookup in April 2024, Inglis said during the project's debut. Two more Winterfell wells eyed Two additional Winterfell wells are planned for Phase 1 of the project, where the partners have targeted around 100 million boe of gross recoverable resource. Beacon Offshore Energy operates the field. Kosmos' Q2 net US Gulf production was 11,700 boe/d, down 26% from the same 2023 period. In addition, an underperformance from the J-69 well at Ghana's Jubilee field in Q2 caused a slower-than-expected ramp-up in the field, as did a temporary reduction in water injection, Inglis said. A new production well drilled during Q2 should boost output in that region, along with new 4-D seismic to be shot in early 2025 which should identify better wells for the 2025-2026 drilling campaign. Also, a Jubilee water injector well was drilled in Q2 to remedy the reduced output in water injection. In Q2, Kosmos' net production in Ghana averaged around 42,000 boe/d, up from 33,700 boe/d in the same three months of 2023. ""Not every well will match expectations and J-69 has certainly had an impact on this year's production level,"" Inglis said. ""But the three-year [drilling] program was done on 4-D seismic data that is now almost eight years old,"" Inglis said. ""Technology has moved on massively over time,"" he said. ""I’m confident that there will be a significant uplift in the seismic data which will allow us to drill [a] high-quality set of development wells when we restart the program in 2025."" ","Kosmos sees 2024 total output of 90,000 boe/d, despite Q2 operations thorns: CEO",2024-08-05 20:52:58+00:00,Crude Oil,Crude Oil,0.8611486920731575,0.0139861304147178,0.9109603243384596,Bullish,Bullish 312," Dated Brent was assessed at two-month lows Aug. 5 as various contracts in the Brent complex dropped value on the day, amid a wider patch of economic weakness. Platts, part of S&P Global Commodity Insights, last assessed Dated Brent at $76.70/b, down $2.26/b on the day, its lowest level since June 5, when the global crude benchmark was assessed at $75.92/b. This follows dives in other key oil prices, including ICE Brent futures and front-month Cash BFOE -- the latter of which reached a six-month low Aug. 5. Platts last assessed M1 Cash BFOE at $76.45/b, its lowest level since January 8, when the contract was assessed at $75.66/b. Cash BFOE represents the price of cargoes of Brent, Forties, Oseberg, Ekofisk, Troll and WTI Midland trading in the two- to four-month ahead forward market, and is a key component in the Brent complex. ","Dated Brent reaches two-month low Aug. 5 as physical, derivatives prices slide on day",2024-08-05 19:13:27+00:00,Middle Distillates,Middle Distillates,0.99014323991594,0.049372481350431,0.1100989529665578,Bearish,Bearish 317," Alaska North Slope production was up marginally in July over June, but otherwise reflected normal seasonal dips along with a long-term decline expected in mature producing fields, according to production data from the Alaska Department of Revenue available Aug. 5. Production totaled 445,995 b/d on average from North Slope producing fields in July, up from 439,255 b/d in June, but down from 460,616 b/d in May. A summertime dip in production is typical on the North Slope because oil and gas processing plants are less efficient as temperatures warm from colder winter months. In January, output from the slope averaged 475,081 b/d, for example. Comparing performance of four producing regions in the revenue department data -- the regions roughly correlating to larger producing fields -- the Prudhoe Bay field operated by Hilcorp Energy showed an increase of 6,740 b/d in July over June. The Kuparuk River producing region, west of Prudhoe Bay, also showed a rise in July of 5,835 b/d on average over June, according to the data. This includes the Kuparuk River field, but also the smaller Oooguruk and Nikaitchuq fields. ConocoPhillips is operator at the Kuparuk field, while Eni Oil and Gas is operator at Oooguruk and Nikaitchuq. Eni is in the process of selling the Oooguruk and Nikaitchuq fields to Hilcorp Energy, the companies have announced . In contrast, the Alpine field, owned and operated by ConocoPhillips, lost production in July, down 3,444 b/d from June on average. Alpine is the farthest west of the larger North Slope producing fields and is adjacent to the Colville River, the boundary between state-owned lands and the federal National Petroleum Reserve-Alaska. The small Lisburne field, operated by Hilcorp Energy, also dropped slightly in July, down 3,444 b/d from June. Lisburne is to the east near the Prudhoe Bay field and with its reservoir underlying that in the larger Prudhoe field. While the currently-producing North Slope fields appear to be holding steady, the data also reflects a long-term, gradual decline that is typical of oil and gas fields. For example, the North Slope production average in June of an average 439,255 b/d reflects a drop in June output from an average 476,395 b/d five years ago, in June 2018; 500,526 b/d in June, 2014, 10 years ago, and from 591,665 b/d in June, 2009, 15 years ago. The gradual decline raises questions as to how far slope production can drop before operating problems develop for the Trans Alaska Pipeline System, or TAPS, which was built in the 1970s and is designed to move 2 million b/d from northern Alaska to the Valdez Marine Terminal in the south coast of Alaska. TAPS moved that volume for its first 10 years until the fields went 'off plateau' in 1988, with the onset of the gradual decline. Studies by Alyeska Pipeline Service Co., which operates TAPS, show the system could operate down to about 300,000 b/d in its current configuration, although the per-barrel transportation costs would rise. However, with new North Slope projects set to begin production in 2026 and 2029, the decline of TAPS throughput to the 300,000 b/d threshold will now be delayed. Pikka, a new project in construction by Australia-based Santos, Ltd. and its minority partner Repsol, is now in construction with its first phase set to begin production in mid-2026 at 80,000 b/d. ConocoPhillips’ new Willow project, also in construction, is set to start up in 2029 at 180,000 b/d. Pikka and Willow will offset the North Slope decline, but the effect will be temporary unless other new oil finds are made. In its long-term Alaska production forecast, the state Department of Revenue’s economic analysis group expects a modest increase in slope production over the next 10 years with the new fields adding output and the older, larger fields on the slope continuing to decline. ","Alaska North Slope crude output up in July, but long-term decline continues",2024-08-05 18:46:32+00:00,Crude Oil,Crude Oil,0.9250819733661794,0.7533416980476184,0.0190781421241472,Bearish,Bearish 320," The balance-month -- currently August -- Dated to Frontline contract was assessed Aug. 5 at its lowest level since June after losing 34 cents/b from its Aug. 2 close amid a weakening in European sweet crudes. The DFL represents the difference between ICE Brent futures and Dated Brent. Platts, part of S&P Global Commodity Insights, assessed the balance-month DFL contract at minus 3 cents/b Aug. 5, the lowest since June 14. It is also the first time since June 18 that the balance month and month 1 DFL contracts have been assessed in contango. Platts assessed the month 1 -- currently September -- DFL contract at 5 cents/b Aug. 5. The weakening in the balance-month DFL contract is considered a bearish signal for the physical crude market. Platts last assessed the global Dated Brent benchmark at $78.265/b Aug. 2, the lowest since June 5. ",Balance-month DFL contract slips to seven-week low in bearish sign for physical crude fundamentals,2024-08-05 17:37:31+00:00,Crude Oil,Crude Oil,0.7401241282705484,0.01302918221555,0.9743396431603212,Bullish,Bullish 321," Local authorities in the Erbil governate of Iraq's semiautonomous Kurdistan region have shut 138 illegal topping plants and ordered dozens of licensed refineries to implement environmental protection requirements or face closure. The move was prompted by complaints of pollution and worsening air quality in the Kurdistan capital of Erbil, local media reported Aug. 4. It also comes amid a surge in the black market trade in crude and refined products in Kurdistan, since the closure of the region's main export pipeline to the Turkish port of Ceyhan in March 2023. S&P Global Commodity Insights previously reported the rise of hundreds of small refineries, including simple topping plants, many of which are illegal, which now benefit from landlocked Kurdish crude that is sold at a major discount to international prices. Kurdish crude production has now rebounded to as high as 300,000 b/d from nearly zero when the pipeline was shuttered, sources have told Commodity Insights. Besides emissions from the facilities, the trade in local crude and refined products has also resulted in greatly increased road traffic from trucks carrying the oil, prompting local protests over safety and pollution. The topping plants usually produce fuel oil and low quality gasoil that is sold locally and delivered by truck to traders in Iran and Turkey. In June, a massive fire broke out at an oil refinery located on the Erbil-Gwer road. The licensed refineries in Erbil will be given a grace period of 10 days to adhere to environmental requirements and rectify all violations, or they will be legally charged, Erbil Governor Omed Khoshnaw said in a press briefing. Associated industries, such as tar manufacturers and electricity generators, are also required to clean up their operations and their owners will face arrest if they use ""bad"" gasoil. The governor threatened to arrest the owners of these plants “after increased complaints of smoke [and] fog that engulfs and chokes."" A committee has been formed under the chairmanship of the deputy governor to protect Erbil's environment and to follow up and monitor the implementation of these guidelines and decisions. Kurdistan Regional Government authorities could not be reached for comment on whether it is searching for additional illegal refineries or cracking down on illicit fuel trade. ",Iraqi Kurdistan officials order crackdown on illegal refineries over pollution,2024-08-05 16:53:01+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.7018279312380852,0.0262538013626527,0.9586026616100868,Bullish,Bullish 322," Barge navigation on the Rhine and oil logistics in southern Germany face rising costs next week as water levels are expected to drop below levels required for transporting maximum loads. Passable water levels at Kaub in Germany, one of the narrowest stretches of the strategic waterway, stood at 236 cm midday Aug. 5, data from German water authority WSV showed, down from a recent high of over 600 cm in June, when floods caused closures along stretches of the Rhine as barges were unable to sail under some bridges. But low rainfall means Rhine river flows have slipped a quarter to 1,253 cu m/second -- the largest week-on-week drop since June 10-16 -- as flows reached 4% below their long-term average of 1,304 cu m/second. Average water flows were last below their long-term average in mid-May. According to WSV's two-week forecast, Kaub levels are likely to dip below 180 cm next week before recovering slightly but remain under 200 cm by Aug. 19. Rhine levels at Kaub below 200 cm typically force oil barges to short load, leading to associated increases in transport costs. When the water level is 135 cm, many barges can only be half loaded, effectively doubling the cost of river transport. The Rhine is used to transport millions of tons of commodities through inland Europe, including oil products, chemicals, iron ore, and coal in addition to goods on container barges. In the summer of 2022, navigable water levels on Europe's key transport waterway fell to multi-year lows of 31 cm, effectively shutting the waterway to flows of commodities and container ships. ",Rhine barge cargo navigation limits set to kick in amid dryer weather,2024-08-05 16:00:15+00:00,Light Ends,Light Ends,0.0456601062846635,0.6730156550673786,0.938331641491556,Bullish,Bullish 323," Bolivia has been returning its diesel supplies to normal following shortages, bringing in the first of four delayed shipments from a Chilean port. This move came as the country seeks to increase local oil production to reduce import reliance, said Franklin Molina, Hydrocarbons and Energy Minister, on Aug. 3. After visiting service stations, Molina said in a statement that a total of 27 million liters were unloaded, a volume that will increase over the next few days. “Our commitment is to guarantee a stable and continuous supply of diesel throughout the year, thus ensuring that the sectors that depend on this resource can operate without interruptions,” he said. Molina spoke after the country ran up a 28% deficit in diesel supplies, sparking protests and long lines at service stations. The shortages happened largely because of supply chain disruptions, with a storm surge delaying the unloading of four ships with a total of 160 million liters of diesel at the Port of Arica in Chile, while low water levels on rivers stalled deliveries from neighboring countries. This pushed YPFB, Bolivia’s state oil company, to scramble to import supplies by truck from the neighboring countries of Argentina, Brazil, Paraguay and Peru. The official said the unloading of the rest of the supplies from the ships will improve diesel supply in Bolivia. Rebuilding oil production Looking ahead, Molina said that, to avert a repetition of these shortages, a key is to step up oil exploration to rebuild production after a decade of decline. “The supply problem has an explanation: the reduction in the production of liquid hydrocarbons and gas, caused by the lack of investment in exploration,” Molina said. Oil output tumbled 59% to 21,000 b/d in April from a peak of 51,100 b/d in 2014, while gas output shrank 44% to 33.8 million cu m/d from a record 60.8 million cu m/d over the same period, according to data from the state statistics institute INE. Molina said that a $1.4 billion exploration program launched in 2021 will eventually turn this decline around as discoveries are made. YPFB made the first large find last month in Mayaya Centro-X1, a well in an undeveloped basin to the north of La Paz with 1.7 Tcf of potential reserves. More discoveries like this will make it possible have accessible energy supplies at a low cost, helping to reduce imports, Molina said. ",Bolivia returns diesel supplies to normal following shortages,2024-08-05 15:57:51+00:00,Middle Distillates,Middle Distillates,0.6759949982835339,0.4895948090123831,0.2499967329410388,Bearish,Bearish 324," Methanol producer OCI remains optimistic on the decarbonization-led drivers of demand for methanol, primarily in the maritime industry, according to its earnings report Aug. 2. That is amid “increasing regulation placing greater pressure on carbon emissions reduction,” its said, with the extension of the emissions trading scheme [ETS] coverage including the maritime sector from January 2024. The FuelEU maritime initiative will mandate a reduction in GHG intensity of marine fuels from 2025, buoying the uptake of lower carbon fuels such as methanol and potentially ammonia. The company said that 301 methanol dual fuel newbuild/retrofit ships are on order for delivery over 2024-2028, representing up to 7 million mt/year of potential additional demand for methanol, compared with current demand in the maritime sector of 350,000 mt and a current global merchant market of around 32 million mt. The recently adopted Fit-for-55 framework targets including RED III for road, FuelEU Maritime for marine, ReFuelEU Aviation for aviation and RepowerEU for biomethane are mandating greater reductions in carbon emissions. The company suggested that total fuel-based demand for green methanol from road, marine and aviation could reach up to 9 million mt/year in 2030 compared with less than 200,000 mt/year currently, according to industry projections. The European Commission will impose provisional tariffs on Chinese biodiesel of 12.8%-36.4% in August, after figuring that it is being sold in the EU markets at unfairly low prices, the company added, with that implementation set to support European biodiesel prices and boost the ""willingness-to-pay"" for OCI’s key product, bio-methanol, and benefiting OCI's HyFuels business. “The EU’s investigation continues, and definitive duties could be announced in early 2025,” its said. OCI also said that demand experienced an uptick amid higher oil prices which supported methanol affordability for MTOs as well as energy applications such as gasoline blending. Overall, the company reported revenues from its methanol division falling 8% on the year to $231 million in Q2 amid lower sales volumes. Total own produced methanol sales declined 14% on the year to 344,000 mt due to a planned shutdown at Natgasoline, where OCI-produced sales were 50% lower on the year. According to Commodity Insights data, Platts' average quarterly European methanol prices climbed roughly Eur20/mt from Q1 to Eur310.80/mt in Q2, amid tighter supply caused by global turnarounds or supply disruptions in Norway, the Americas and Egypt. ",OCI optimistic about methanol demand driven by decarbonization efforts,2024-08-05 14:59:37+00:00,Light Ends,Light Ends,0.0629199702047663,0.2057783158901492,0.9927984601723642,Bullish,Bullish 325," Mitsubishi Power will supply a M701F gas turbine capable of 30% hydrogen co-firing to a 500 MW gas turbine combined cycle plant in Malaysia, with commencement planned in 2027, the company said Aug. 5. Low carbon hydrogen/ammonia-fired power plants are expected to play a significant role in energy transition due to their ability to reduce carbon footprint of utility scale electricity generation. Singapore, Japan and Australia have recently started initiating similar plants. ""This project, equipped with our hydrogen-ready M701F gas turbine, reaffirms our commitment to supporting Malaysia's journey towards net-zero by 2050,” Akihiro Ondo, CEO and Managing Director of Mitsubishi Power Asia Pacific, said. Located in Miri in northeastern Sarawak, the project is owned and operated by PETROS Power, a subsidiary of Sarawak-owned oil and gas company Petroleum Sarawak Berhad, or PETROS, Mitsubishi said. PETROS is developing the GTCC power plant, supported by Sinohydro as the engineering, procurement, construction and commissioning contractor, alongside Mitsubishi Power, it said. Upon completion, the GTCC plant will be able to provide energy security for northern Sarawak while providing sufficient energy capacity for Sarawak's future power demand and growth, according to PETROS. The GTCC is expected to be a key state facility in a major natural gas hub of Sarawak, and is being developed under the Sarawak Gas Roadmap, which supports Sarawak's aspiration of being a high-income state by 2030. The Sarawak Gas Roadmap details leveraging gas to drive sustainable development across four strategic hubs -- Kuching, Bintulu, Samalaju and Miri in Malaysia -- according to the PETROS website. Each of these hubs have clean energy projects alongside conventional energy. For example, Kuching and Samalaju each have GTCC project in addition to Miri, while Bintulu has a clean ammonia project. Service agreement Mitsubishi Power has also secured a long-term service agreement with PETROS to ensure the operational performance of the Miri power plant, Mitsubishi said. The generators for the power plant will be manufactured by Mitsubishi Generator, which was formed on April 1, 2024, through integrating power-generator systems businesses of Mitsubishi Heavy Industries and Mitsubishi Electric Corporation. Mitsubishi Power and its parent Mitsubishi Heavy Industries will continue to focus on advancing the adoption of power generation technologies for projects that contribute to decarbonization, the company said. Mitsubishi Heavy Industries and Thailand's largest power producer Electricity Generating Authority of Thailand signed a memorandum of understanding for research for the introduction of hydrogen co-firing technologies for gas turbine power generation, Mitsubishi said June 5. South Australia has a facility , due to be operational in 2026, that will use the state’s excess renewable energy to produce renewable hydrogen, which will be stored and used to fuel a 200-MW power station, the state has said. Platts, part of S&P Global Commodity Insights, assessed Japan hydrogen produced via alkaline electrolysis (including capex) at $6.67/kg on Aug. 5, up 21.49% month on month. Platts assessed New South Wales hydrogen produced via alkaline electrolysis (including capex) at $9.58/kg on Aug. 2, up 46.26% on the month, Commodity Insights data showed. ",Mitsubishi to supply turbine for 30% hydrogen co-firing in Malaysia power plant,2024-08-05 14:28:28+00:00,Middle Distillates,Middle Distillates,0.7814437424468561,0.3647361256709857,0.4716865176404632,Bearish,Bearish 328," European LNG prices saw increments through the week as supply-side concerns kept the market jittery despite fundamentals painting a bearish picture. Platts, part of S&P Global Commodity Insights, assessed the DES September Northwest Europe price at $11.60/MMBtu Aug. 2, up $1.118/MMBtu, or 10.7%, on the week. This marks the largest week-on-week change in NWE prices in 10 weeks. Meanwhile, the September JKM was at $12.772/MMBtu on Aug. 5, 3 cents/MMBtu lower on the week. NWE, Med The recent supply-side worries have contributed to the price bullishness by raising the upside risk ahead of winter procurement. These worries are about the risk of impending maintenance at Norwegian facilities, the increase of hostilities in the Middle East, and supply delays originating from Asia. In Europe, the basic demand structure has remained bearish, even despite the bullishness around prices. Subdued demand for LNG is being seen in Northwest Europe, in part because of robust inventories and Norwegian supply, and in part because LNG is more expensive than local gas hubs. “Imports have dropped due to a combination of weak demand, robust Norwegian supplies and lower liquefaction utilization,” said David Lewis, LNG Analyst at Commodity Insights. “So Europe needs less LNG at a time when there is less LNG globally.” Mediterranean demand has seen some uptick in comparison to the previous months, but it is still below seasonal norms. This has led to the widening of spreads between the LNG prices in the Mediterranean and their Northwest European counterpart. The West Mediterranean was assessed at an 8 cents/MMBtu premium to Northwest Europe, while the East Med marker was assessed at a 25 cents/MMBtu premium. These are the strongest premiums versus NWE for Med since April 2023 and since April 2024 for the EMM. Americas In the US, following Freeport’s outage July 7, last week finally saw stable feedgas demand at the facility, indicating that the Texan facility is back in operation with all three trains running. ExxonMobil delayed the startup of the Golden Pass LNG export terminal to late 2025, roughly six months later than planned, due to the bankruptcy of lead contractor Zachry Group. The revised timeline follows a federal bankruptcy court's approval of a settlement, allowing remaining contractors to continue construction despite the project's earlier cost overruns and challenges. The Platts Gulf Coast Marker for US FOB cargoes loading 30-60 days forward was assessed at $10.82/MMBtu Aug. 2, up $1.42/MMBtu on the week. In Latin America, the past week saw Calamari LNG, Colombia’s sole LNG importer, awarded a one-cargo buy tender Aug. 2. Calamari LNG was seeking a partial cargo of 44,000 cu m for delivery between Aug. 13-19 Platts assessed DES Brazil for deliveries 15- to 45-days forward at $11.535/MMBtu, or at a 6.5 cents discount to September NWE. LNG swaps The focus of the market has shifted from the prompt months to the forward months, primarily to ensure winter supply security. “Focus is now on winter,” said an Atlantic-based trader. “Then watch for impact of decline of the global economy but that's down the road.” However, the limited liquidity in the market is spilling over to the forward months too. The market is also weighing the impact of the Russia-Ukraine transit deal expiry, which would potentially leave the region looking for alternative cargoes. This is adding to the winter bullishness. Platts assessed the September DES Northwest Europe derivative at $11.596/MMBtu on Aug. 2, with October at $11.745/MMBtu, November at $12.505/MMBtu and December at $12.754/MMBtu. In addition, Asia is expected to continue pulling cargoes even going into September, which is aiding the supply anxiety among market participants. LNG bunker Atlantic LNG bunker prices continued an upward trajectory on the week amid growing LNG bunkering buying interest. Platts assessed LNG bunker Rotterdam and Barcelona at $13.342/MMBtu and $13.444/MMBtu respectively Aug. 2, both up 86.6 cents/MMBtu on the week. Rotterdam LNG bunker sales saw record-high results in the second quarter as the port published sales of 242,931 cu m. “More container vessels, car carriers and tankers are being delivered and receiving supply in Rotterdam,” an Atlantic-based trader said, adding there had been no problems with supply tightness so far. Across the Atlantic, LNG bunker fuel was assessed at $12.13/MMBtu Aug. 2 , up 60.6 cents/MMBtu on the week. ",ATLANTIC LNG: Key market indicators for Aug. 5-9,2024-08-05 14:03:31+00:00,Light Ends,Light Ends,0.0337039108356315,0.4836515873335125,0.985367392013835,Bullish,Bullish 329," The European gasoline complex fell sharply Aug. 2 on the back of a much lower crude oil price, with traders pointing to a sharp shift in blending economics as a result of the selloff. The Eurobob front-month FOB AR swap fell below a six-month low Aug. 2 to be assessed at $762.25/mt, having dropped 8.6% on the day, according to assessments by Platts, part of S&P Global Commodity Insights. A global selloff in equities on the back of weak economic data saw crude oil prices also fall sharply, with Platts assessing Dated Brent down $3.56/b on the day. Around 70% of the outright gasoline price is widely considered to be simply the crude oil price. The resulting fall in the gasoline flat price also resulted in a sharp drop in the spread between the Eurobob swap and the equivalent naphtha swap, with Platts assessing the spread at $130.25/mt Aug. 2, also a six-month low. The spread between gasoline and naphtha is a key indicator for blending economics, and determines the relative incentives for blenders to select certain components. In mid-morning trading London time Aug. 5, the September gasoline-naphtha spread had fallen even further, trading around $115/mt. Barge trading activity jumped on the day, with traders saying this was the result of the fall in the spread, which was not tied to arbitrage economics. During the Platts Market on Close assessment process, there were nine trades for finished-grade 10 ppm barges. “The gas-nap is moving, the flat price came off, so people may change their plans on what to blend,” said one trader in Europe. Another source in the region said: “The August gas/nap has come off over $20/mt, I would not be surprised if plans change.” During the week sources had pointed to a tighter market for reformate, a key high-octane blendstock. A lower gasoline-naphtha spread could further disincentivize reformate production. Meanwhile, although the supply tightness in the naphtha market in July was no longer as strong, the backwardation structure in the European naphtha market faced upward pressure as demand for naphtha to go into both petrochemical production and gasoline blending remained persistently strong. This opposing trend further pressured the gas-nap spread on the day. ""The naphtha market looks tight at the moment as there is not much [product] available and the buying interest is significant on physical,” said a European petrochemical trader. ""Producers and blenders are building [naphtha] stocks before the turnaround season.” Platts assessed the August/September time spread for Platts CIF NWE naphtha swap at $11.50/mt on Aug. 2, up $1.75/mt on the day. ","Eurobob swap, gas-nap spread falls below 6-month low amid crude selloff",2024-08-05 13:34:47+00:00,Light Ends,Light Ends,0.872127102503801,0.2254386798801159,0.344426387885904,Bearish,Bearish 330," Petrochemicals demand continues to remain generally slow over the summer holiday period with many market participants on holiday and consumer plants being taken offline for maintenance. Aromatics Liquidity in the European benzene and styrene markets is expected to slow down after August contract price settlements, with market participants being absent amid the summer. Demand was not expected to pick up, however, tightness in the European styrene market may continue. Demand for toluene in Europe is expected to continue to remain strong amid ongoing supply tightness and cracker issues in northwest Europe, while demand for mixed xylene may remain softer in comparison. Meanwhile, activity in the orthoxylene and paraxylene spot markets may remain subdued, with demand for additional material expected to weaken due to sufficient supply in downstream markets. Olefins Supply of ethylene on the ARG (Äthylen Rohrleitungsgesellschaft) pipeline remained constrained across the week to Aug. 2 following restocking activity through July and some steam cracker issues, according to market sources. Market participants were heard seeking to secure volumes and stock up balances ahead of September, when three steam crackers in Germany -- BASF, LyondellBasell and BP -- are expected to go into a planned turnaround. European propylene markets will see residual tightness across the week ahead, driven by production constraints and some restocking demand for material ahead of a turnaround season in mid-to-late Q3. Despite this, underlying market conditions will remain muted, with downstream demand weak. Butadiene availability will remain balanced to tight in Europe amid several unplanned outages, while demand will be supported by traders looking for additional export volumes loading in late August/early September. European glycol sentiment is expected to stay weak through August as a number of downstream production units are already beginning shutdowns. As demand in August is typically weak, some consuming units will shut their plants for the entire month for maintenance amid lower order intakes. Buyers are left with ample supply as a result. Methanol and MTBE European methanol prices remain elevated amid ongoing global supply disruptions in the Americas, Europe and Egypt. Prices have marginally eased over the prior weeks due to slow summer demand, which is expected to persist throughout August, according to market participants. The European MTBE market remains healthy in terms of supply despite sources noting a closed arbitrage from China, with most volumes from the country now focused on the domestic market. Polymers The European high density polyethylene markets have been seeing a rise in spot prices amid tighter supply. Supply of HDPE grades tightened further, with continued limitations in imports from the Middle East amid production issues in the region and output rates among European producers low. Meanwhile, trading activity in the European linear low density polyethylene market was muted. In the European low density PE market, tight material availability continued, with continued low domestic production rates and limited imports into Europe. Market sources cited supply constraints for LDPE grades both in the spot and contract markets, while producers cited limited availability of additional volumes. European polypropylene markets will focus on contractual negotiations across the week ahead, with mixed views among participants on the expected direction of pricing across the month. The week ahead is also likely to see some supply uncertainty amid an outage, which will likely weigh against against the summer holiday period in the continent, particularly in southern Europe. European PVC prices ended the previous week stable, but with monomer costs moving higher, producers and other market participants had intentions of increasing both spot and contract prices in August to help restore margins that were hit by weak demand over the past year. Although a clear demand recovery is still some way off, producers are confident that a reduction in imports due to higher freight costs and antidumping duties applied on US and Egyptian imports will likely aid some demand recovery as consumers are concerned of not having sufficient security stocks as a number of producers start scheduled maintenance shutdowns, which are at risk of overrunning or being subject to delays. The European polyethylene terephthalate market may experience stable-to-weak fundamentals, with demand expected to soften due to summer shutdowns. Meanwhile, supply availability is also expected to improve, driven by material arriving from Asia and improved feedstock PTA availability in Europe. The polystyrene market remained weak with low demand amid announcements of price increases by producers in the range of Eur100-135/mt. Ample supply was seen within the market, with producers running at low output rates. Asian imports were not heard arriving into Europe due to elevated freight costs. Sentiment in the ethylene-vinyl acetate market was mixed in the week. Although offers were seen higher through July amid healthy demand from the agricultural film and general packaging segments, demand in August is expected to ease and even weaken towards the end of the month. The nylon market is expected to continue seeing quiet spot activity. Demand for nylon in the construction and automotive sectors is expected to remain weak. Market participants are now looking towards the September period for some recovery in demand. Recycled plastics In the week ahead, the European recycled PET market is expected to maintain stable fundamentals, paired with a seasonal downturn due to summer shutdowns. Meanwhile, bale availability is anticipated to continue rising, and prices across regions are expected to start softening due to improved supply. The focus of European recycled polypropylene markets will remain on their virgin counterparts across the week ahead, with appetite for material clipped across the sector due to a seasonal downturn, and remaining fully contingent on cost competitiveness against fossil-based PP. Geographic divergence in fundamentals will be seen across the week, with differing levels of market activity seen across different regions of the continent. The European recycled high density polyethylene market may start seeing activity pick up slightly later this week as some participants may start to return from holiday. While demand for the packaging grade was seen to be stable and firm in recent weeks, market participants will start to assess the impact of an upward settlement of virgin feedstock monomer ethylene for August. A potentially narrowing spread between recycled and virgin HDPE should weigh on consumers’ minds if virgin HDPE follows through and starts factoring in virgin feedstock’s pricing trend. The European recycled low density polyethylene market may see some activities re-emerging later this week following the summer holiday. As the market reopens, the impact of an upward settlement in virgin ethylene’s contract price, as well as cheaper feedstock bales for the recycled grade, may partially counterbalance each other. The European recycled polystyrene and ABS market may see varying performances across geographic markets as some participants may be more affected by subdued demand during the peak summer period while others may continue to see the market being stable and resilient against weak virgin demand trend. Intermediates and solvents The European acrylates market continues to contend with poor demand and ample or stable supply for butyl acrylate and glacial acrylic acid, resulting in prices remaining flat to somewhat pressured. Meanwhile, the European market for 2-ethylhexyl acrylate remains tight amid unconfirmed supply disruptions in Europe, with market participants concerned this could worsen over August and early September due to planned summer maintenances. Acrylonitrile markets will continue to see quiet spot activity across the week, with reasonable demand from downstream markets covered by contractual commitments. Arbitrage opportunities, despite strong pricing in Europe, will remain thin on the ground due to ongoing logistical delays and strong freight rates. The hydrocarbon solvents market is expected to see weak trading activity due to the holiday season which continues to place downward pressure on prices. Demand from the gasoline blending and chemical sector is expected to remain relatively unchanged, rolling over weak demand in previous weeks. On hexane, some market participants expect to see an uptick in demand as the oil extraction season gets underway. European acetic acid and vinyl acetate monomer markets remain muted over the summer period with many participants on holiday, leading to ample supply and weaker prices. Participants said they expect demand and market activity to recover in September. ",EMEA PETROCHEMICALS: Key market indicators for Aug 5-9,2024-08-05 13:17:44+00:00,Light Ends,Light Ends,0.101918540686852,0.1901171313535627,0.9872135925684828,Bullish,Bullish 331," Supply tightness will likely dominate the light end markets in the week to Aug. 9 despite relatively stable demand fundamentals. Gasoline ** The Gasoline markets were highly volatile on the week to Aug. 2 amid the monthly roll. The Eurobob M1 crack spread fell to $15.15/b Aug. 2 from $16.38/b July 26, but spiked to $17.5/b July 31. Traders pointed to a large volume of paper positions rolling into the front-month on the last day of the month, before the market corrected back down by the end of the week. ** Aug. 2 saw the outright crude price dropping over $2/b amid global economic worries. The Eurobob Sep swap was assessed down 4.72% to $762.25/mt, bringing the flat price past a six-month low. Sources said blending economics changed sharply as a result, with more barges trading hands on the day. However, the arbitrage remained shut amid a stock build in the US. ** Looking forward, traders pointed to a mostly closed arbitrage to both the US and West Africa. However, stocks in PADD 1, while higher on the week, remain close to five-year lows. Traders highlighted a situation where any major supply disruptions could see a large volume of cargoes fixed for TA destinations. Naphtha ** In the European naphtha market, backwardation will likely steepen as the market factors in the upcoming refinery turnaround season. ** Platts, part of S&P Global Commodity Insights, assessed the August/September time spread for Platts CIF NWE naphtha at $11.50/mt on Aug. 2, up $1.75/mt on the day. Stable demand for naphtha to go into both petrochemical pool and gasoline blending combined with expectations of lower supply keep the backwardation structure elevated. ** According to a European broker source, the market looks “tight in the ARA and Mediterranean” due to upcoming refinery turnaround season and “restocking” by market participants with Agerian origin naphtha looking “still very expensive”. The source added that overall “demand is good and cracking looks pretty tight” for naphtha. ** Steeper naphtha backwardation on the week has also led to lower ARA stocks. Naphtha stocks in the Amsterdam-Rotterdam-Antwerp hub fell 2.38% in the week to Aug. 1 to 410,000 mt, according to Insights Global data. LPG ** The European propane market diverged on the week, as pockets of strength in crude oil bolstered large cargo values while subdued demand inland weighed heavily on fundamentals. ** Short supply in the large vessel markets have restricted spot trading activity as players struggle to locate product, sources said. Meanwhile, refinery exports for the inland complex were up on the month as supply outpaces demand for barges and railcars. ** Platts assessed the CIF NWE large cargo market at $584.75/mt Aug. 2, up $11.50/mt on the week, while the propane coaster market climbed $24/mt to $630/mt. The FOB barges and FCA railcar and trucks markets stood at a $54.75/mt and a $2.75/mt discount to the CIF large cargo market, respectively. ** The European butane market was volatile throughout the week, trailing moves in the naphtha market. Butane remains in favor for flexible steam crackers keeping buying appetite elevated slightly in the market. ** Meanwhile, supply continues to be constrained for the coaster and large cargo markets as North Sea maintenance and reduced US tons tighten fundamentals. ** In the barge market, the closure of the Shell’s steam cracker in the Netherlands could see more volumes forced into the complex, players added. In outright terms, the FOB seagoing butane coaster market was assessed by Platts at $543/mt Aug. 2 down $6/mt on the week or 83% as a proportion to naphtha. The CIF coaster market dropped $5/mt on the week to be assessed at $491/mt or 75% as a proportion to naphtha. ** The West Mediterranean butane market dropped on the week amid an uptick in selling appetite. Sources had pointed to tighter fundamentals after US imports fell to near three-year lows for July, S&P Global Commodities at Sea data showed. ** High US terminal costs are keeping arbitrage dynamics thin, with US barrels continuing to point into the far East market. Meanwhile, Algeria’s Sonatrach kept its butane CP steady for August and increased propane prices slightly for the month. ** The West Mediterranean FOB butane market was down $31.75/mt on the week to $508.25/mt Aug. 2 or 77.75% as a proportion to naphtha. The FOB West Med propane market stood at $679.75/mt Aug. 2, up $11.50/mt on the week. ",EMEA LIGHT ENDS: Key market indicators for Aug 5 – 9,2024-08-05 12:34:46+00:00,Light Ends,Light Ends,0.0169967624656271,0.9325825319329314,0.9031850611531304,Neutral,Neutral 333," Cargoes of high sulfur fuel oil are expected to reach European shores from Latin America and North America in the week ahead, with the market set to receive a deluge of supply. HSFO The European high sulfur (3.5%S) fuel oil markets are continuing to see healthy bunkering demand in Europe and from the Middle East for power generation purposes. Elevated prices have meant that cargoes continue to arrive from the Americas with new cargoes expected to land in Northwest Europe in the first half of August. However, traders said there is good demand in the Mediterranean which could pull some of these cargoes from the Rotterdam region. LSFO The low sulfur (1%S) fuel oil market has seen a recent increase in activity following a recent tightness of cargoes in the Mediterranean and strong prompt demand. Traders indicated that high August temperatures have meant that utility shorts in the Mediterranean are in the market for LSFO to meet their high power generation needs. In the very low sulfur (0.5%S) fuel oil market, bunkering demand remains weak due to stronger demand for HSFO from larger scrubber-fitted ships. The front-month paper fuel oil hi-lo ended the week at $22.25/mt, having widened by $6.75/mt, while the front-month paper Hi-5 narrowed by $75/mt to $86/mt. Bunkers The bunker market is expecting another week of low demand while healthy supplies continued to push prices lower. In both Northwest Europe and the Mediterranean, the holiday season has kicked in, leaving trading activity sluggish. Prices have tumbled in both basins, while suppliers struggle to keep their premiums. In Gibraltar, premiums over Rotterdam have been rangebound, while Las Palmas’ premiums have also narrowed, following the general weakening of the market. Feedstocks Vacuum gasoil and low sulfur straight run fuel differentials remained weak in the week to Aug. 2. Market participants continued to cite decreasing demand for feedstocks, attributed to end-product cracks weakening for products like diesel. Traders will be watching end-product crack developments, which will continue to affect demand levels for VGO and LSSR. ",EUROPE AND AFRICA RESIDUAL AND MARINE FUEL: Key market indicators Aug 5-9,2024-08-05 12:26:14+00:00,Heavy Distillates,Heavy Distillates,0.0273303802155067,0.4617596825963456,0.9897479198119444,Bullish,Bullish 334," Crude oil volumes sent from Azerbaijan to Turkey through the Baku-Tbilisi-Ceyhan pipeline averaged 630,533 b/d in June, up by 8.1% month on month but down 3.8% year on year, according to data from Turkish pipeline operator Botas published Aug. 5. BTC flows over the first half of the year averaged 605,230 b/d, down 3.7% on the same period in 2023, the Botas data showed. According to data released July 11 by Azerbaijan's energy ministry, its crude and condensate production in June averaged 603,400 b/d, up 5.0% on the month but down 2.0% year on year, with exports of 493,333 b/d rising 3.3% on the month and falling 4.8% on the year. January-June exports at 483,846 b/d were down 6.6% on the same period in 2023. The BTC pipeline mainly carries crude from the BP-operated ACG oil field and condensate from the BP-operated Shah Deniz gas field but also carries crude from other non BP-operated Azeri fields as well as crude from Kazakhstan and Turkmenistan. In late 2022, Kazakh state-owned KazMunaiGaz and Azerbaijan's Socar reached a transit agreement under which 1.5 million mt/year (around 30,000 b/d) of crude from Kazakhstan's Tengiz field would be exported via the BTC pipeline. The move was seen as a response to the threat posed to lifting crude from the Black Sea terminal of the CPC pipeline, which carries the bulk of Kazakhstan's crude exports, by the ongoing Russia-Ukraine war. In March, KMG said it had reached an agreement with Socar for a phased increase in the volume of Kazakh crude exported through Azerbaijan by 50% to 2.2 million mt/year, or around 180,000 mt/month. KMG said July 25 that last year 1.057 million mt had been shipped under the deal, with more than 700,000 mt shipped over the first half of 2024. Last month, sources said Azerbaijan was unlikely to resume exports of Azeri Light via the Baku-Supsa pipeline and could assign the route for Kazakh crude, supporting a Kazakh push to diversify export routes. Meanwhile, there were no crude flows through the pipeline to Ceyhan from Iraq for a 15th consecutive month in June. The halt on the line followed an international arbitration court ruling that Iraq said upheld its sovereignty over oil exports from the semi-autonomous Kurdistan region. Despite efforts by Ankara and other external players, talks between the Iraqi central government, the Kurdistan regional government (KRG) and the region's producers have as yet failed to agree a formula to restart exports. On June 9 Baghdad hosted a meeting with KRG officials and oil company representatives, with reports indicating that oil companies operating in the region could consider allowing their contracts to be modified. However, as yet no agreement has been reached, with recently agreed OPEC production limits meaning that the Iraqi central government would be obliged to cut production from its own fields if production from those in the Kurdistan region restarted. Batman-Dortyol flows down 13% on month Flows of crude produced by Turkish upstream operator TPAO and some small private operators through the Batman-Dortyol pipeline averaged 86,667 b/d in June, down 13.1% on May but up 4.2% year on year, with H1 flows up 29.2% year on year. The sharp rise in H1 volumes is believed to be at least in part due to lower-than-normal flows from Feb. 20 onwards last year, following the series of devastating earthquakes which hit the region of Turkey through which the line passes. The annual rise may also have been caused in part by increased production by TPAO from Turkey's recently discovered Cudi and Gabar fields. Turkish energy minister Alparslan Bayraktar said July 13 that production from the Gabar field had reached 45,000 b/d -- up from a previous peak of 42,500 b/d in May. In previous statements Bayraktar has said that production is expected to top 50,000 b/d in June, and 100,000 b/d by the end of the year. An energy ministry official confirmed to S&P Global Commodity Insights last month that previously announced talks with Baghdad concerning the construction of a 37 km spur pipeline to allow crude from the field to be transited to Ceyhan via the Iraq-Turkey oil pipeline were ongoing. Flows through the Dortyol-Ceyhan pipeline carrying crude from the smaller Dortyol oil terminal to the main Ceyhan terminal averaged 105,167 b/d in June, up 22.6% on May and up 6.7% year on year. The reason for the sharp monthly rise is unclear but it follows 24.4% fall in May compared to April. The line was commissioned in April 2023 to offer flexibility to companies exporting crude from Turkish fields. Crude transit from Botas's Ceyhan terminal and onward to Tupras's Kirikkale refinery averaged 104,233 b/d in June, up 16.0% on May and up 5.7% year on year. Similarly, the reason for the sharp monthly rise is unclear but it follows a sharp fall of 17.8% in May. The annual rise follows a 26.9% annual rise in May. Flows in May 2023 were unusually low due a to a combination of the impact of the earthquakes and maintenance work. ",TURKEY DATA: June crude flows via BTC pipeline up 8.1% on month,2024-08-05 11:53:27+00:00,Crude Oil,Crude Oil,0.3629806721704797,0.0140970090822662,0.9962488885901332,Bullish,Bullish 335," Market participants are watching the wheat crop harvest progress in the Black Sea and Europe. Meanwhile, in the sunflower oil market sources expect reduced destination demand from India. Wheat Platts assessed FOB Russia wheat down $1/mt on the week at $222/mt. The FOB CVB 12.5 and 11.5% rose 75 cents/mt on the week to $229.75/mt and $224.75/mt respectively. The Russian agriculture ministry set its variable export tax for wheat for Aug. 7-13 at Rb444/mt ($5/mt) Aug. 2, down Rb462/mt (or $10/mt) from the previous seven-day period. Ukraine has so far harvested 19.4 million mt of wheat (92% of total completion) with a yield of 4.35 mt/ha. Meanwhile in France, 61% of wheat has been harvested, up 41% from last week. Corn Platts assessed FOB Ukraine corn up by $8/mt on the week at $201/mt, and FOB Constanta Varna Burgas corn up by $6/mt at $212/mt on the week. In Ukraine, farmer sales are anticipated to remain low in the coming week despite approaching harvest possibly due to the low-yield prospects of new crops. Traders are looking forward to hearing trading prices for the new crop corn, which is anticipated to reach earlier in the market than usual, attributable to the expected early harvest of the crop in the region. In the destination market, the competitiveness of the US and Brazilian corn is anticipated to affect the demand for Ukraine corn. Market participants are expecting the US Gulf to be a more competitive origin for Spain's corn imports. Sunflower oil Platts assessed FOB Black Sea sunflower oil steady on the week at $949/mt on Aug. 2. India is expected to reduce its imports of Ukrainian sunflower oil in the marketing year 2024-25, according to Anil Bagani, head of commodity markets research at Sunvin Group India. Bagani indicated that imports of crude sunflower oil from Ukraine are projected to fall to 3.4 million mt, down from 3.5 million mt in the MY 2023-24. India will likely source more sunflower oil from Russia, Argentina, and possibly Europe to meet its domestic demand. The decrease in Ukrainian supply is attributed to adverse weather conditions that impacted the sunflower harvest, which is estimated to be around 12.5 million mt, with a reduced oil content. Rapeseed oil Platts assessed rapeseed oil FOB Dutch Mill front run down Eur10/mt on the week at Eur981/mt on Aug. 2. Europe's rapeseed harvest is still underway after rains in France and Germany delayed progress, which could lead to crop losses and reduced quality, said GrainTrade. In the oilseeds sector, rapeseed has been harvested from nearly 1.2 million hectares, or 95% of the target area. ",EMEA AGRICULTURE: Key market indicators for Aug 5–9,2024-08-05 11:53:21+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.072844571811597,0.6372531642982545,0.9067626915649524,Bullish,Bullish 336," Crude oil futures were down in the mid-morning Aug. 5 trade, as the global financial markets faced a selloff with weakness seen across many key asset classes. A decline in global stock markets was largely caused by main players exiting their positions in previously robust stakes and the US macroeconomic data suggested higher risks of a recession. However, escalating tensions in the Middle East kept the pressures elevated on the supply side thus limiting the fall in crude oil futures. At 1206 GMT, the October ICE Brent crude oil futures contract was at $75.77/b, down $1.04/b from the previous settlement at $76.81/b, while the October WTI Crude Futures contract was at $71.59/b, down $1/b from the previous settlement at $72.59/b. On Aug. 5, the financial markets opened under a stronger market selloff with Nasdaq falling nearly 4% and Dow and S&P500 futures falling around 1.5% while Japan’s Nikkei 225 decreased by more than 12%, its biggest fall since 1987. This fall in main stock indexes continues the downward trend of the previous week after macroeconomic data showed weakness in the manufacturing and construction industries. The released data from the US Jobs Report, which showed a 4.3% US unemployment rate and limited payrolls growth, added to the mounting fears of an economic slowdown. “With demand indicators looking soft and jobless claims on the rise, the risks are skewed towards unemployment increasing more rapidly”, which in turn increases the “likelihood of recession”, said James Knightley, the chief US economist at ING. However, the fall in crude oil future was limited on the news of escalating Middle Eastern tensions with wider conflict in the region leading to higher risks of disruptions in global oil supply. Warren Patterson, ING’s Asia Head of Commodity strategy, said, “Rising geopolitical tensions in the Middle East” are likely to make the market keep a “higher risk premium for oil”. ",OIL FUTURES: Crude oil faces downward pressure amid wider weakness in financial markets,2024-08-05 11:52:34+00:00,Crude Oil,Crude Oil,0.991738624579052,0.1354634985390609,0.0295039473673525,Bearish,Bearish 338," Australia’s Woodside Energy has entered into a binding agreement to acquire chemical firm OCI Clean Ammonia Holding’s low carbon ammonia project in the US which starts production next year and integrates with Carbon Capture and Storage operations the following year, Woodside said Aug. 5. the US’ landmark climate and energy law, the Inflation Reduction Act, with an estimated $800 billion to $1.2 trillion in tax credits over 10 years, has driven global investors to set up new energy plants in the US, drawn by the prospects of attractive costs and access to global markets. “This transaction positions Woodside in the growing lower carbon ammonia market,” said Meg O’Neill, CEO of Woodside. “Global ammonia demand is forecast to double by 2050, with lower carbon ammonia making up nearly two-thirds of total demand.” The project is located in Beaumont, Texas, on the US Gulf Coast and can serve customers domestically and internationally, Woodside said. Phase one has a design capacity of 1.1 million mt/year and is under construction. Initial ammonia production, derived from natural gas, will start in 2025, while the low carbon ammonia, derived from natural gas, paired with CCS will follow in 2026, Woodside said. Nitrogen and low carbon hydrogen feedstocks, needed to produce the low carbon ammonia, will be sourced primarily from Linde, Woodside said. The Linde feedstock facility is currently under construction, targeting completion in early 2026, Woodside said. Ahead of completion, early supply of feedstock will come from multiple suppliers. CCS services will be provided to Linde by ExxonMobil and are expected to be available in 2026, it said. The deal was sealed by Woodside for an all-cash consideration of approximately $2.350 billion. Phase two The facility is designed to accommodate a second 1.1 million mt/year production train (phase two). Phase two remains in pre-final investment decision state and Woodside will target FID readiness for it in 2026. “This acquisition is a material step towards delivering our scope three investment and abatement targets,"" Woodside said. ""Phase one has the capacity to abate 1.6 million mt/yr of CO2-e and with the addition of phase two, the project has the capacity to abate 3.2 million mt/yr CO2-e, or over 60% of scope three abatement target.” The project’s competitive advantages includes gross equity scope one and two emissions of less than 0.1 million mt/year CO2-e, with potential to further lower emissions with renewable power. The existing global ammonia market stands at 200 million mt/year, traded on a blend of spot and medium-term contracts, Woodside said. Woodside’s project is in a favorable location on the US Gulf Coast with access to multiple sources of feedstock and a deepwater port for international export, it said. Demand The project will target conventional ammonia customers initially and will target low-carbon ammonia customers in Europe and Asia when CCS is operational, Woodside said. “The potential applications for lower carbon ammonia are in power generation, marine fuels and as an industrial feedstock, as it displaces higher-emitting fuels,” O'Neill said. Meanwhile, Woodside said April 19 that its US liquid hydrogen project H2OK will continue to make progress even as the US government’s final guidelines on hydrogen production tax credits under IRA are awaited, for a likely announcement in the second half of 2024. Woodside's other renewable hydrogen projects include the H2Perth in Kwinana in Australia, the H2Tas in Tasmania, and the Southern Green Hydrogen in New Zealand. Woodside's most advanced CCS project, the Angel CCS joint venture off the northwestern coast of Western Australia, signed a memorandum of understanding with Yara Pilbara Fertilisers to study the feasibility of using CCS with the decarbonization of Yara Pilbara’s existing operations near Karratha in Western Australia, the company said on April 19. Platts, part of S&P Global Commodity Insights, assessed US Gulf coast ammonia at $475/mt basis CFR USGC on Aug. 2, up 14.45% month on month. It assessed Northwest Europe blue ammonia at $582.55/mt basis CFR Aug. 2, up 14.47% from a month ago. ",Woodside to acquire OCI’s low carbon ammonia project with CO2 capture in US,2024-08-05 11:04:16+00:00,Middle Distillates,Middle Distillates,0.4715034108593507,0.0622617612290053,0.969340414519816,Bullish,Bullish 340," NextChem, a subsidiary of Italian Energy transition firm Maire, has secured a feasibility study for a new Sustainable Aviation Fuel project in Indonesia, in collaboration with PT Tripatra Engineers and Constructors, the company said in a statement Aug. 5. The project, located in Sei Mangkei, Indonesia, aims to establish a small-scale modular plant with a production capacity of 60,000 mt/year of SAF. The facility will utilize regionally sourced feedstocks, including used cooking oil and palm oil mill effluent. According to the statement, Maire's proprietary technologies -- NX PTU and NX SAF BIO -- will play a crucial role in the plant's design and configuration. These SAF production process involve pre-treating the feedstocks through the NX PT technology and refining them into SAF using hydrogen via the NX SAF BIO technology. This method promises to produce ultra-low carbon SAF, potentially reducing aviation emissions by up to 95% compared with conventional fossil fuels. “This agreement underscores our dedication to leading the energy transition. By leveraging our integrated approach, we can effectively decarbonize high-impact sectors such as aviation,"" said Alessandro Bernini, CEO of Maire. SAF is expected to account for 0.61% of global aviation fuel consumption in 2024, up from 0.31% (20,000 b/d) in 2023, according to S&P Global Commodity Insights. This is expected to rise to 3.24% in 2040 and 24.06% in 2050. Platts, part of Commodity Insights, assessed SAF production costs (palm fatty acid distillate) in Southeast Asia at $1,613.3/mt Aug. 1, up $2.97/mt from the previous assessment. ",Maire secures feasibility study for sustainable aviation fuel project in Indonesia,2024-08-05 10:50:02+00:00,Middle Distillates,Middle Distillates,0.7590250378525661,0.9179293206480048,0.0155207824164093,Neutral,Neutral 341," The Middle East sour crude complex saw cash differentials for key sour crude markers plunge during the Singapore Platts Market on Close assessment process Aug. 5, tracking a broader sell-off in the financial markets and as Aramco's September crude oil official selling prices came in below expectations. Platts, part of S&P Global Commodity Insights, assessed October cash Dubai, cash Oman and cash Murban at a premium of 65 cents/b to same-month Dubai futures at the market close, all down 31 cents/b on the day. The slump in sour crude differentials comes amid a broader sell-off across financial markets, with trading curbs triggered in some regional stock exchanges during the Aug. 5 Asian session. Platts assessed the M+2 October Dubai swap at $73.84/b at the Aug. 5 Asian close, down 5.7% from the prior Aug. 2 close and reaching its lowest for the year. Aramco's September OSPs, issued early in the Aug. 5 session, also came in sharply below some traders' expectations. The OSPs reflected an Asian end-user market that is still struggling with poor refining margins and weak domestic demand. An impending hike in OPEC+ output, after the group in an Aug. 1 meeting opted to stand pat on its policy to unwind voluntary production cuts from October, was likely also a contributing factor, traders said. ""Very bearish signal,"" a trader said. During the MOC, 20 October Dubai partials of 25,000 barrels each traded. The sellers were PetroChina, Trafigura, Unipec, Phillips 66 and Mitsui, and the buyers were Vitol, Gunvor and Glencore. No convergences were reached during the MOC. A convergence occurs when 20 partials are traded between two counterparties, resulting in a full 500,000-barrel physical cargo being declared from the seller to the buyer. ",CRUDE MOC: Middle East sour crude cash differentials plunge on risk-off sentiment,2024-08-05 10:36:31+00:00,Middle Distillates,Middle Distillates,0.5352400084151175,0.0483427060561867,0.966937818206443,Bullish,Bullish 342," Low sulfur fuel oil storage available for lease in China’s largest bunker hub of Zhoushan rose for the third straight month to a record high as of Aug. 5, Zhejiang Mercantile Exchange data showed, as supplies decline and a slight cut back in production is expected in August. LSFO ullage rose 4.6% on the month to 2.06 million cu m, while the total ullage across all oil products edged higher by 0.6% on the month to 8.72 million cu m. LSFO ullage soared 170.4% year on year, while total ullage surged 124% during the period. Crude oil storage availability remained unchanged on the month at 2.89 million cu m as of Aug. 5, while gasoline storage posted the biggest decline, decreasing 2% on the month to 980,000 cu m, and naphtha dropping 1.9% from a month earlier to 1.01 million cu m. Diesel storage availability was unchanged on the month at 1.26 million cu m, and jet fuel steady at 520,000 cu m. A major local refiner indicated plans to reduce LSFO production for the month by about 100,000 mt, to 1.2 million-1.3 million mt, translating to a 7%-8% decrease in output. A gradual decline in fuel oil export quota volumes for the rest of the third quarter is expected to support the downstream LSFO premium at the Zhoushan bunkering hub, as market participants await the next batch of quotas. The previous quota was released in early May. A Zhoushan-based bunker supplier said the next tranche of fuel oil quotas could be possibly smaller. “The refineries will have to cut back [on LSFO production].” The premium for Zhoushan-delivered marine fuel 0.5% bunker over FOB Singapore marine fuel 0.5% cargo values averaged $12.91/mt in July, rising from June’s average of $4.19/mt, Platts data from S&P Global Commodity Insights showed. Platts assessed the premium at $23.34/mt on Aug. 2, rising $2.68/mt on the day. LSFO tank utilization rates in Zhoushan rose 3.16 percentage points month on month to 40.68% as of Aug. 5, as leased storage rose to 5.98 million cu m, from 5.21 million cu m a month earlier, and total capacity increased to 14.7 million cu m, from 13.9 million cu m, according to ZME data. ","Zhoushan LSFO storage availability rises for 3rd month in Aug, hits record high",2024-08-05 10:26:24+00:00,Heavy Distillates,Heavy Distillates,0.1466015606240709,0.1547373120318614,0.980964181075922,Bullish,Bullish 343," Oil storage reserves in southern Russia's Kamensky district became the latest target of the Ukrainian military on Aug. 3, after six drones targeted the site in Rostov. ""Tanks with fuel were damaged, followed by a fire on the territory of base No. 7,"" Vladimir Savin, head of the Kamensky District, said via Telegram Aug. 3. Savin later confirmed that the fire had been extinguished at around midday local time, almost 10 hours after first responders were first called to the site after the attack. Rostov regional governor Vasily Golubev confirmed that the incident marked part of a massive attack on Aug. 3 that saw 55 Ukrainian drones launched over the territory. Both the Kamensky and Morozovsky districts sustained damage from the strike, with Morozovsky declaring a state of emergency in response to the activity. The weekend activity, which also damaged fuel storage in Russia's Belgorod region near the front line, underscored an ongoing threat to its oil infrastructure from Ukrainian drone strikes. Because recent drone strikes have mostly focused on strategic fuel reserves crucial for Russia's military rather than refinery infrastructure, Russia has been able to restore most of its refining capacity damaged by previous drone strikes, though the 240,000 b/d Tuapse refinery was targeted July 22 . In response, Russia is targeting power infrastructure in Ukraine, leading to widescale blackouts and forcing it to increase imports from the EU. ",Oil storage in Russia's Rostov region hit by drone strike,2024-08-05 10:17:27+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.257696181416207,0.3121346992026987,0.9081363050379035,Bullish,Bullish 344," Flows of Nigerian crude into the Netherlands tallied 10.5 million barrels in July, the highest monthly figure since August 2019 when volumes topped 10.7 million barrels, according to the latest ship tracking data from S&P Global Commodities at Sea on Aug. 5. Peak summer demand season in Europe was cited by traders as the catalyst for increased appetite for Nigerian barrels, which saw an in-tandem strengthening in prices across the July trading cycle. The Netherlands took receipt of 2.2 million barrels of Forcados crude in July, another multiyear high, with the grade’s assessment by Platts rising from at parity to Dated Brent to a $1.70/b premium between June 1 and July 1, S&P Global Commodity Insights data showed. Forcados was last assessed at a $3.70/b premium on Aug. 2, with earlier August trading cycle moves indicating a continuation of strong demand for Nigerian oil exports. Nigerian crude typically trades on a free-on-board basis several weeks prior to loading. In line with Europe’s larger cut, one of Nigeria’s usual customers India saw imports of July cargoes limited to just 2 million barrels, the lowest monthly figure since May 2023, CAS data showed. Traders in the region noted the arbitrage into India was hard to work with longer-haul voyages impacted by backwardation in Brent market structure. “West African crude is currently expensive, levels are not coming down and structure is up,” said an Indian refinery source in the July trading cycle. “It’s difficult for arbitrage buyers.” Forcados retained its spot as the highest volume export grade in Nigeria, with 5.3 million barrels shipped internationally, though down from June’s figure of 7.8 million barrels. Forcados was followed closely by Qua Iboe and Escravos at 4.8 million barrels and 3.9 million barrels, respectively. Nigeria loaded 44.8 million barrels of crude in July, with 6 million barrels in total already discharged or currently in transit to the mega Dangote refinery, according to CAS, representing a near 13% of all loadings through the month. ",WAF TRACKING: Nigerian crude exports to Netherlands top 5-year high in July,2024-08-05 10:09:58+00:00,Crude Oil,Crude Oil,0.4330397513389999,0.014056527792304,0.9934434610247002,Bullish,Bullish 345," The Vietnamese government has granted Hai Linh Co. Ltd. the license to import and export LNG, making it the second company or the first private firm in the country to trade LNG, according to documents seen by S&P Global Commodity Insights Aug. 5. Last year, the Ministry of Trade and Industry of Vietnam issued the first LNG import and export license to PetroVietnam Gas, the country’s state-owned oil and gas company. On May 8, Hai Linh announced the targeted operating start date of the Cai Mep LNG terminal in September 2024, together with Singapore-headquartered Atlantic, Gulf and Pacific LNG, or AG&P LNG, a subsidiary of Nebula LNG, at the Cai Mep LNG Terminal Commissioning Symposium. The Cai Mep LNG Terminal in Vietnam’s southern province of Ba Ria-Vung Tau will provide integrated LNG supply solutions through AG&P LNG and Hai Linh's downstream joint venture -- Vietfirst Gas, which had secured a 1 million mt/year LNG offtake agreement with HPP power plant and another agreement with one of the demand aggregators in Vietnam. The market was expecting a tender from Hai Linh, following an expression of interest issued in May for a commissioning LNG cargo to the terminal. The company has not issued any LNG tender to date, market sources said. Platts on Aug. 2 assessed the September JKM at $12.915/MMBtu and the September Southeast Asia Marker -- reflecting the value of cargoes delivered into Southeast Asia -- at 27.7 cents/MMBtu discount to the September JKM, Commodity Insights data showed. ","Vietnam’s Hai Linh receives license to import, export LNG",2024-08-05 09:47:49+00:00,Light Ends,Light Ends,0.1103725340269816,0.0573674056751151,0.9971421332541408,Bullish,Bullish 346," Japan’s Idemitsu Kosan may restart its naphtha-fed steam cracker in Tokuyama on Aug. 11, multiple trading sources close to the matter said Aug. 5. Idemitsu Kosan was unavailable for comment. The cracker was initially shut on July 15 due to some problems, a company source said July 18. The unit is able to produce 623,000 mt/year of ethylene and 450,000 mt/year of propylene. The company also supplies crude C-4 to its external customers for butadiene production. The cracker shutdown has led to reduced crude C-4 feedstock supplies and a butadiene shortage of 4,000 mt, S&P Global Commodity Insights previously reported. Platts, part of Commodity Insights, assessed the CFR Northeast Asia butadiene marker down $10/mt on the day at $1,540/mt at the Asian market close Aug. 2. The Platts-assessed CFR China propylene price was at $865/mt the same day, down $10/mt on the week but unchanged on the day. ",Japan's Idemitsu could restart Tokuyama steam cracker on Aug 11,2024-08-05 09:28:16+00:00,Light Ends,Light Ends,0.4359261133538192,0.1201680147024797,0.9354078618954806,Bullish,Bullish 347," Indonesia’s biodiesel production in June was up 3.7% year on year at 1.06 million kiloliters (222,250 b/d), taking production for the first half of 2024 to 6.57 million kiloliters (227,062 b/d), up 12.7% from 5.83 million kiloliters (202,600 b/d) in the same period of 2023, trade body Indonesia Biofuel Producer Association or APROBI said Aug. 5. APROBI said consumption was pushed higher by increased biodiesel mandates, which are set to rise further next year. Indonesia already has the world’s highest biodiesel blending mandate, set at 35% of gasoil consumption, as Jakarta looks to reduce energy imports as well as support its domestic palm oil industry. The blending mandate, popularly known as B35, was raised from 30% to 35% in February 2023, with nation-wide implementation starting later in the year from August. Domestic biodiesel consumption in the January-June 2024 period rose to 6.21 million kiloliters, up 9.3% from 5.68 million kiloliters in H1 2023. In 2023, Indonesia produced 13.15 million kiloliters of biodiesel and consumed 12.24 million kiloliters, APROBI data showed. The Southeast Asian country has completed automotive trials of its 40% blend of biodiesel and could implement it by the middle of next year, Eniya Listiani Dewi, the director general of Director General of New, Renewable Energy and Energy Conservation at the energy and mineral resources ministry, said June 29. For 2024, Indonesia -- the largest producer and exporter of palm oil -- has raised its allocation for palm oil-based biodiesel by 1.9% from 2023 to 13.41 million kiloliters, according to the energy and mineral resources ministry. To achieve a 40% blending rate, the ministry estimates that 16 million kiloliters of palm oil-based biodiesel will be needed. Looking further ahead, President-elect Prabawo Subianto expressed support for the biodiesel program during his election campaign, pledging to implement 50% biodiesel fuel (B50) and 10% bioethanol fuel (E10) mandates by 2029. Exports shrink Meanwhile, Indonesia’s biodiesel exports shrunk to 22,411 kiloliters in H1 2024, compared to 112,803.3 kiloliters in H1 2023, APROBI data showed, Indonesia’s biodiesel exports have fallen sharply in recent years from over 1 million kiloliters in 2018 and 2019 as the world’s largest biofuel buyer, the EU, phases out palm oil-based biodiesel. Platts, a part of S&P Global Commodity Insights, assessed the price of Biodiesel FOB Southeast Asia at $1,059/mt Aug. 2, up 2.3% from the start of the month. Indonesia biodiesel supply and demand June 2024 June 2023 Change (m-o-m) Jan-June 2024 Jan-June 2023 Change (y-o-y) Production 1.064 1.033 3.7% 6.57 5.83 12.7% Consumption 0.987 1.026 -3.8% 6.214 5.68 9.4% Exports 0.001 0.005 -80% 0.022 0.112 -80.1% All figures in million kiloliters Source: APROBI data ",Indonesia's biodiesel output up 12% in H1 on increased domestic mandates: APROBI,2024-08-05 09:20:18+00:00,Middle Distillates,Middle Distillates,0.9702805578585036,0.0042874303132751,0.879916606140781,Bearish,Bearish 349," China’s independent refineries cut their combined feedstocks imports to a three-month low of 3.65 million b/d (15.45 million mt) in July amid low utilization rates, data from S&P Global Commodity Insights showed on Aug 5. Their July feedstock imports, comprising of imported crudes, fuel oil and bitumen blend, fell 2.97% from 3.77 million b/d (15.41 million mt) in June and fell 9.7% year on year, the data showed. The small independent refineries with capacity between 40,000-214,000 b/d, most of which are located in Shandong province, were the main contributor to the reductions due to their ongoing low operating rate amid the weak refining margins, sources said. Those independent refineries imported a combined of 2.16 million b/d (9.03 million mt) of feedstocks, down 5.8% on the month, Commodity Insights data showed. The small Shandong-based independent refineries operated at average 49.1% of their capacity in July, two percentage points lower from June as refining margins fell from Yuan 248/mt to Yuan 218/mt in July, according to data from local information provider OilChem. On a year-on-year basis, the refining margins fell 74.9%, and the utilization rate was down 12 percentage points from last July, OilChem data showed. The year-on-year utilization drop also led the small independent refineries to lower their feedstock imports by 21.2% year on year to 2.13 million b/d. Shandong's independent refineries typically serve as a key indicator of China's oil demand, as they operate more autonomously than their state-owned peers in the refining sector. Mega refiners boost imports The small independent refineries' reduction exceeded the month-on-month gain from the mega private peers' imports, although combined volume of that rose 4.8% from June to their four-month high of 6.43 million mt in July, Commodity Insights data showed. Zhejiang Petroleum & Chemical, was the leading importer to bring in 3.67 million mt of crudes, up 10.2% from a month earlier. ZPC in July received its first Canada AWB crude of around 550,000 barrels, transmitted via the Trans Mountain Expansion oil pipeline (TMX), the first of such by a private refiner. The company will continue to receive AWB cargoes in the coming months, according to sources. In the previous trading cycle, ZPC’s parent company Rongsheng Petrochemical was heard to have bought four AWB Aframax cargoes for October arrival at discounts of $6/b to December ICE Brent, DES Zhoushan, Commodity Insights reported previously. ""The popularity of Canadian crudes, mainly AWB, is mainly due to the competitive prices for promotion as TMX starts operation. But the sustainability will eventually depend on the market price of the crudes and freight,"" a refining engineer with Sinopec said. Top feedstock importers for independent sector ('000 MT) Jul-24 Jun-24 Change Jul-23 Change Zhejiang Petroleum & Chemical 3,671 3,332 10.2% 3,021 21.5% Hengli Petrochemical 1,575 1,297 21.4% 1,321 19.2% Shenghong Petrochemical 1,180 1,504 -21.5% 1,310 -9.9% Kedama 1,085 1,075 0.9% 524 107.1% Dongming 810 920 -12.0% 983 -17.6% Hebei Xinhai 677 300 125.7% 250 170.8% ChemChina 550 625 -12.0% 1,612 -65.9% Fengli 520 260 100.0% - - Hualian 412 400 3.0% 330 24.8% Jincheng 340 670 -49.3% 500 -32.0% Total* 15,454 15,413 0.3% 17,114 -9.7% Total* (Mil B/D) 3.654 3.766 -3.0% 4.047 -9.7% *Includes imports of other recipients Source: S&P Global Commodity Insights ",CHINA DATA: Independent refiners' July feedstocks imports hit 3-month low at 3.65 mil b/d,2024-08-05 08:19:40+00:00,Light Ends,Light Ends,0.2289666204853779,0.0221728787596698,0.9970617574910134,Bullish,Bullish 350," Premiums of Singapore's August term ex-wharf marine fuel 0.5%S barrels rose on the month and were signed around $7-$13/mt to the benchmark FOB Singapore marine fuel 0.5%S cargo values, traders said Aug. 5, above the most inked $5-$8/mt premiums for July-loading barrels previously. Despite adequate inventories overall, the downstream low sulfur fuel oil market in Singapore, the world’s largest bunker hub, recently strengthened significantly as fewer suppliers could secure barge reloading in late July amid deferred loading schedules toward early August through the first half of August onward, traders said. Recent spikes in bunker premiums curbed overall demand to moderate levels at best, while buoyed LSFO arbitrage flows toward Singapore for August arrivals could weigh on near-term valuations. A few upstream LSFO suppliers deferred ex-wharf physical deliveries reportedly due to off-specification cargoes, momentarily limiting stockpiles of the bunker-grade compliant product, and thinned barge availabilities for very prompt refueling requirements, according to industry sources. However, traders’ bullish sentiments were recently moderated with reportedly more resumptions of barge reloads at local terminals, with more suppliers securing ex-wharf loadings, thus likely to ease the tighter-than-usual barging schedules gradually for the near term. “Suppliers are now playing catch up with [the loss in] all the July sales,” a Singapore-based bunker supplier said, referring to downstream sellers affected by the deferred barge reloading schedules. The Platts Singapore-delivered marine fuel 0.5%S bunker premium over the benchmark FOB Singapore Marine Fuel 0.5%S cargo value climbed to a near six-month high of $30.66/mt Aug. 1, before inching down to $29.34/mt Aug. 2, and was last assessed higher at $34.15/mt Feb. 8, S&P Global Commodity Insights data showed. “Ex-wharf premiums were still strong as of late July. Buying interests and offers shifted toward H2 August already,” a Singapore-based fuel oil trader said, citing limited offers previously available for H1 August loading dates. Suppliers grappling with lackluster downstream margins could also see some momentary relief, as spreads between Singapore’s delivered marine fuel 0.5%S price versus the ex-wharf grade, or barge spreads, widened to average $6.04/mt across July, above the $4.26/mt in June. Most recently, the spreads jumped to a near six-month high of $19/mt Aug. 1, before narrowing to $18/mt Aug. 2, Commodity Insights data showed. “LSFO volumes transferred are still relatively small, and we have [the] option to switch bunkering ports if Singapore’s premiums are too high… These days, premiums [have] been higher for near dates,” a shipping company source said Aug. 5, indicating some diversion in demand to manage procurement costs. August arbitrage replenishments rise Asian LSFO fundamentals, which garnered support since late July amid tight prompt supplies and some loading delays in the downstream bunker market, are expected to come under pressure in August as higher arbitrage arrivals from the West adds to already increasing regional supplies, market sources said. Aided by viable arbitrage economics in recent weeks, the Singapore hub is now expected to receive around 2.5 million-2.6 million mt of LSFO from the West in August, up from about 2.2 million-2.4 million mt scheduled for July, Commodity Insights reported earlier. Alongside the low sulfur straight run fuel oil barrels from Nigeria’s Dangote refinery coming into Asia, traders said regional supplies from countries such as Indonesia and Thailand have also been rising in recent weeks. The market is also expecting potentially more exports from Kuwait’s Al Zour refinery in coming weeks after they issued two recent spot tenders for July and August loadings, despite the peak summer months with seasonally strong power generation demand, several traders said. In addition to growing supplies, Singapore’s LSFO bunker sales have persistently remained sluggish this year as scrubber-installed ships, undertaking longer routes due to the ongoing Red Sea crisis, have propelled demand for HSFO grades, sources said. Platts assessed the Singapore marine fuel 0.5%S cargo's differential over Mean of Platts Singapore marine fuel 0.5%S assessment at a premium of $4.42/mt at the Asian close Aug. 2, down from $5.75/mt in the previous session, and sinking to its lowest in four weeks, Commodity Insights data showed. Near-term LSFO supplies are looking quite ample, especially on the back of such a sizable arbitrage inflow from the West, said a second Singapore-based trader. “I am expecting the cash premiums and overall LSFO market fundamentals to come off gradually.” ","Singapore’s Aug ex-wharf term LSFO premiums rise, demand moderate",2024-08-05 07:58:20+00:00,Heavy Distillates,Heavy Distillates,0.8425992801212722,0.0120785681996574,0.95272070847684,Bullish,Bullish 351," Crude oil futures were lower in midafternoon Asian trade Aug. 5, paring early gains on recession fears and the rising risk of an escalation in Middle East tensions. At 3:18 pm Singapore time (0718 GMT), the ICE October Brent futures contract was down 63 cents/b (0.82%) from the previous close at $76.18/b while the NYMEX September light sweet crude contract fell 70 cents/b (0.95%) at $72.82/b. Risk assets retreated aggressively through Asian trade as volatility surged through the session, leading to a slump in crude oil prices that were already described as oversold against underlying fundamentals. ""Rising volatility forces investors to cut exposure across the board, hence the spillover to commodities from the current rout in equities,"" said Ole Hansen, Saxo's head of Commodity Strategy, Aug. 5. Trading curbs were activated in South Korea for the first time in four years after equities tumbled through early trade. Japanese stocks also sank into a bear market. ""The talk of the town has been the contagion effect of this multi-pronged bear assault, which now seems to have shifted into a self-perpetuating mode,"" said SPI Asset Management Managing Partner, Stephen Innes. ""The global markets are facing a barrage of crises, making any hopes of a Monday recovery rally seem like a distant fantasy,"" he said, echoing multiple analysts of the view that the US Federal Reserve may now be behind the curve in their interest rate cut cycle. Markets watchers also continued to monitor the tensions in the Middle East where the US has warned that Iran could strike Israel in the coming days, regional media reported Aug. 5. ""Markets are weak ... economic data last week stressed markets and geopolitical stress in Middle East amplified the concerns,"" Priyanka Sachdeva, senior market analyst at Phillip Nova, told S&P Global Commodity Insights Aug. 5. ""Missing clarity on the Fed's take on rate cuts is [also] keeping a cap on economic growth prospects."" Meanwhile, Asian services activity data offered some support to crude prices with the services Purchasing Managers' Index data from China and Japan reflecting an expansion in activity. ""China’s Caixin services PMI beat estimates, helping to alleviate fears about China’s economic outlook,"" Saxo's Hansen added. China's services economy has been a key pillar of crude demand amid a dearth in activity in the country's energy-intensive manufacturing sector. Over the weekend, China's State Council published a communique of plans to boost domestic demand, focusing particularly on the “eat, drink, and play” categories, which have support transportation and tourism segments. Dubai crude Dubai crude swaps and intermonth spreads were narrower in midafternoon Asian trading Aug. 5 from the previous close. The October Dubai swap was pegged at $74.16/b at 2:40 pm Singapore time (0640 GMT), down $4.11/b (5.25%) from the previous Asian market close. The September-October Dubai swap intermonth spread was pegged at 50 cents/b, down 12 cents/b over the same period, and the October-November intermonth spread was pegged at 32 cents/b, down 13 cents/b. The October Brent-Dubai exchange of futures for swaps was pegged at $1.96/b, up 20 cents/b. ","OIL FUTURES: Crude slumps as market volatility rages on recession, Middle East risks",2024-08-05 07:22:12+00:00,Crude Oil,Crude Oil,0.2546138622922748,0.2652310285746309,0.9408557079130884,Bullish,Bullish 352," Pakistan’s high sulfur fuel oil exports surged nearly threefold on the year to 820,484 mt in the financial year ended June 30, as refineries ramped up shipments to reduce inventories at their terminals in the wake of a shift to cheaper power generation alternatives, latest data from the Oil Companies Advisory Council showed. The country also exported 276,979 mt of low sulfur fuel oil during the financial year, compared with no volumes the year before. The government has been discouraging power generation companies from using fuel oil while encouraging cheaper sources like nuclear, coal, hydel and LNG, said Muhammad Awais Ashraf, research director at AKD Securities, a Karachi-based broking firm. “Refineries have no alternatives but to export fuel oil ... [and] run the units at the desired level to reduce fuel oil stocks at the terminal,” he said. Pakistani refineries aim to reduce fuel oil production over the next three to four years, converting their operations to increase the throughput of Euro-V standard petrol and diesel products, according to government sources. The Asian high sulfur fuel oil market has been supported by seasonal power generation demand from South Asian countries such as Bangladesh and Sri Lanka, and stable bunkering activity on the back of increasing high-sulfur grade consumption by scrubber-installed ships, according to trade sources. Tighter non-sanctioned supplies in the region have strengthened HSFO fundamentals, with Pakistan fuel oil likely absorbed by buyers favoring such volumes, traders said. The M1-M2 spread for the 380 CST grade averaged at a backwardation of plus $13.98/mt in July, compared with the June average of plus $7.65/mt, Platts data from S&P Global Commodity Insights showed. Pakistan, which traditionally was a net importer of fuel oil, has become an exporter of the residual fuel grade since last year, adding to the regional supplies and weighing on prices, trade sources said. Platts assessed the benchmark Singapore 380 CST high sulfur fuel oil cargo’s cash premium over the MOPS 380 CST HSFO assessment 93 cents lower on the day at a premium of $4.42/mt on Aug. 2, hurt by slower buying interest and competitive offers from Trafigura during the Platts Market on Close assessment process. Power generation Pakistan's electricity generation from fuel oil-fired plants fell 51.5% on the year to 2,428 GWh in FY 2023-24, according to data from the National Electricity Power Regulatory Authority. Meanwhile, the country’s reliance on other power generation sources picked up during the year. Power generated from hydel rose 10% on the year to 39,872 GWh, regasified LNG gained 7% on the year to 23,755 GWh and local coal surged 55% on the year to 15.197 GWh. Electricity generated in the country during the financial year fell to a four-year low of 127,167 GWh, from a 129,591 GWh a year earlier. “The fall in consumption was mainly due to the higher electricity tariffs, rising inflation and an overall decline in economic activities, [which] led to the decline in power generation,” said Tahir Abbas, head of research at Arif Habib, a Karachi based broking firm. The government’s decision to generate less electricity from fuel oil-fired plants had reduced HSFO consumption in the country, with demand in the latest financial year slumping 49% on the year to 1.04 million mt, OCAC data showed. Key Pakistani refineries’ fuel oil stockpiles (unit: mt) July 2024* June 2024 M-o-M change July 2023 Y-o-Y change PARCO 90,326 139,834 -35% 83,223 8.5% NPL 30,871 38,132 -19% 18,995 62.5% PRL 9,293 16,110 -42% 19,660 -53% ARL 16,981 44,448 -62% 11,717 45% Cynergico 21,377 59,647 -64% 9,683 120% Total 168,848 298,171 -43% 143,238 17.8% *As of July 25 Source: Refinery sources ",Pakistan's HSFO exports nearly triple as focus shifts to cheaper power sources,2024-08-05 07:21:11+00:00,Heavy Distillates,Heavy Distillates,0.5376781517919975,0.0093321741643482,0.9943928916349536,Bullish,Bullish 353," Taiwan's consumption of oil products fell 2.96% on the month but rose 12.4% on the year to 758,139 b/d in June, with month-on-month increases in consumption offset by a steep fall in naphtha consumption, the latest data from the Ministry of Economic Affairs' Energy Administration showed. ""Domestic demand isn’t that good. Oil product consumption will be about the same level usually,” a Northeast-Asia refinery source said. Taiwan's naphtha consumption tumbled 9.5% on the month but rose 4.9% on the year to 329,000 b/d in June. Olefin margins continues to be weak as the spread between CFR Northeast Asia ethylene and CFR Japan naphtha physical averaged at $160.81/mt in June, down from May average of $182.77/mt. This is below the typical breakeven spread of $250/mt for integrated producers and $300-$350/mt for non-integrated producers, S&P Global Commodity Insights data showed. Taiwan's Formosa Petrochemical reduced its operating rate to an average of 70% to 75% capacity at its No. 2 and No. 3 naphtha-fed steam crackers in Mailiao while the No.1 unit was shut for maintenance, Commodity Insights reported previously. Consumption edges higher Taiwan's diesel consumption edged 2.2% higher on the month but fell 3.7% on the year to 109,000 b/d in June. In recent spot activity, Taiwan's state-owned CPC sold 450,000 barrels of 10 ppm sulfur gasoil for Sept. 1-20 loading at a discount of 60-70 cents/b to the September average of Mean of Platts Singapore 10 ppm sulfur gasoil assessments, FOB Kaohsiung. Meanwhile, Taiwan's Formosa Petrochemical sold 300,000 barrels of ultra low sulfur diesel via private negotiation, at a discount of around 90 cents/b to the loading-month average of MOPS 10 ppm sulfur gasoil assessments, FOB Mailiao. Trade sources said both cargoes were sold to the same Australian buyer who will likely co-load the cargoes to optimize ship economics. Separately, Formosa sold 750,000 barrels of ultra low sulfur diesel loading over Sept. 18-22, at a discount of around 90 cents/b to the loading-month average of MOPS 10 ppm sulfur gasoil assessments, FOB Mailiao. The buyer was heard to be an oil major, according to trade sources. Taiwan's jet fuel demand inched 0.9% higher on the month and surged 15.3% on the year to 6,000 b/d in June, the data showed. Global air passenger demand, measured in revenue passenger kilometers (RPK), rose 9.1% year on year in June, driven by the summer holiday season, data from the International Air Transport Association showed July 31 showed, giving a boost to jet fuel prices. Reflecting stronger demand for jet fuel during the month, the Platts-assessed FOB Singapore jet fuel/kerosene cargo flat price averaged $97.33/b in June, rising from $95.43/b in May, Commodity Insights data showed. Motor gasoline consumption rose 1.1% on the month but fell 3.9% on the year to 163,000 b/d in June, with near-term demand possibly hampered by rising pump prices. CPC and Formosa Petrochemical raised prices for 92 RON Gasoline for a fifth consecutive week, with prices up NT 20 cents/liter to T$30/l in the week beginning Aug. 5, local media reported. Taiwan's fuel oil demand firmed 3% on the month to 79,218 b/d in June, a level that was more than seven-fold the volume consumed in the corresponding month in 2023. Asia's low sulfur fuel oil fundamentals, which garnered strength in recent weeks amid tight prompt supplies and some loading delays in the downstream bunker market in Singapore, were expected to see potential downsides in August as higher arbitrage inflows from the West adds to already increasing regional supplies, while the high sulfur fuel oil market remains relatively well supported amid seasonal utility demand and stable bunkering activity, market sources said. The Platts-assessed Singapore Marine Fuel 0.5%S cargo's cash differential over the Mean of Platts Singapore Marine Fuel 0.5%S assessment, which posted a monthly gain of 62% in July, averaged $6.09/mt during the month, up from an average of $2.47/mt in June, Commodity Insights data showed. Platts assessed the LSFO premium $1.33/mt lower on the day at a premium of $4.42/mt Aug. 2, the lowest since July 5, when it was assessed at a premium of $4.31/mt, the data showed. Taiwan's oil products demand in June: Unit: '000 b/d Jun-24 Jun-23 Change May-24 Change LPG 72 61 17.8% 67 6.3% Naphtha 329 314 4.9% 364 -9.5% Motor gasoline 163 170 -3.9% 161 1.1% Jet 6.0 5.9 0.9% 5.2 15.3% Diesel 109 113 -3.7% 106 2.2% Fuel oil 79.218 10.986 621.1% 76.930 3.0% Source: Ministry of Economic Affairs' Energy Administration ","TAIWAN DATA: June oil products demand falls 3% on month to 758,139 b/d",2024-08-05 06:32:40+00:00,Light Ends,Light Ends,0.7623556534794311,0.0090807241365477,0.981237230543648,Bullish,Bullish 354," Japan's third-largest refiner Cosmo Oil restarted the 75,000 b/d No. 1 CDU at its 177,000 b/d Chiba refinery in Tokyo Bay Aug. 4 after technical issues, a company spokesperson said Aug. 5. The crude distillation unit had been shut June 6-July 16 due to planned maintenance to update power-related equipment, S&P Global Commodity Insights previously reported. The Platts-assessed gasoline, kerosene and gasoil prices across the Chiba, Kanagawa, Chukyo and Hanshin regions averaged Yen 77,550/kiloliter ($2.05/gallon), Yen 78,000/kl and Yen 76,600/kl, respectively, on Aug. 5, S&P Global Commodity Insights data showed. ",REFINERY NEWS: Japan's Cosmo restarts No. 1 Chiba CDU after glitches,2024-08-05 06:09:20+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.1943372925219089,0.0548924111977634,0.9932318968492028,Bullish,Bullish 355," Asian petrochemicals prices are seen mixed in the week of Aug 5-9, amid varying market fundamentals. Among aromatics, supply for benzene is expected to increase while demand for toluene is seen firm. Meanwhile, plant shutdowns amid continued poor demand from downstream market are likely to keep propylene stable. Methanol could trade sideways this week, with volatility in crude oil and Chinese methanol futures seen impacting the CFR China prices. Benzene ** Market participants expect benzene prices to ease, as South Korea’s S-Oil resumes operations at its benzene production line at the No. 2 aromatics plant in Onsan. ** Lower-than-expected inventory build in east China ports have led some market participants to believe that demand for CFR China cargoes should remain healthy. ** The weekly average of the Platts-assessed FOB Korea benzene marker rose $18.83/mt to $995.76/mt in the week ending Aug. 2, S&P Global Commodity Insights data showed. Toluene ** The Asian toluene market in Northeast Asia is expected to detach itself further from South and Southeast Asia prices in the week ahead, with strong buying for South Korea-origin cargoes pulling prices up on the FOB Korea market. ** The Platts-assessed toluene FOB Korea marker jumped $41/mt week on week to $886/mt on Aug. 2, led by buy interests heard up to $885/mt to no counters, Commodity Insights data showed. ** In the China market, the FOB China marker was up $15/mt on the week, lagging behind the FOB Korea marker, while CFR China prices were down $9/mt over the same period, in line with the weaker domestic China ex-tank market. Styrene monomer ** Styrene monomer prices may soften as a correction after the rally seen in the previous week due to global supply concerns and stronger international prices, industry sources said. ** Styrene inventory rose marginally in east China with stocks up by 100 mt to 51,300 mt in the week ending Aug. 2, trade sources said. ** Asian styrene monomer prices were assessed $29/mt higher on the week at $1,145/mt CFR China and $1,130/mt FOB Korea Aug. 2. Isomer MX ** Asian markets are expected to be long on isomer MX cargoes, a situation compounded by the S-Oil fire, which is seen adding additional cargoes for sale to the market. ** Some of the isomer MX cargo is off-specification for chemicals usage, and may go into the gasoline blend pool, said sources. However, gasoline traders are likely to seek heavily discounted prices. ** FOB Korea isomer MX tracked weak crude oil market with prices falling to $873/mt FOB Straits on Aug. 2 from $887/mt on July 26. MTBE ** The Asian MTBE market is expected to remain weak, with gasoline demand still looking soft. ** China domestic prices were higher than in Singapore, with a closed arbitrage window extending into the next week. Singapore prices were weak, frequently falling below $800/mt FOB Straits. ** Platts assessed MTBE FOB Straits at $784/mt FOB Straits on Aug. 2, from $813/mt on July 26. Methanol ** Asian methanol prices could trade sideways in the week to Aug. 5 but volatility in crude oil and Chinese methanol futures could see CFR China methanol prices oscillating either way. ** Spot trading activity in Southeast Asia is expected to be thin with the region balanced in supply and demand. ** Platts assessed CFR China methanol down $2.50/mt week on week at $288/mt and CFR Southeast Asia $4.50/mt lower at $346/mt on Aug. 2. Propylene ** The Asian propylene complex is expected to remain stable amid mixed fundamentals. Plant shutdowns may support the market while continued poor demand from downstream markets is seen keeping the supplies buoyed in the region. ** Platts assessed the propylene CFR China marker down $10/mt on the week at $865/mt Aug. 2. Polypropylene **The Southeast Asian polypropylene markets remain on a downtrend, as converters in the region remain cautious owing to weak end-user demand. **The Chinese polypropylene market is anticipated to remain rangebound. Despite weak underlying demand, prices remain supported by macroeconomic sentiment and fluctuations in domestic futures. **Platts assessed CFR SEA PP raffia and injection prices down $5/mt at $950/mt in the week ending August 2, while CFR China PP raffia and injection prices were stable on the week at $915/mt, and China domestic PP raffia prices were up Yuan 30/mt on the week at Yuan 7,620/mt. PVC ** The Asian polyvinyl chloride complex is expected to remain rangebound as market participants hold mixed views regarding India's buying activity. ** China-India freight rates were seen moving down, sources said, as the Platts-assessed CFR India marker fell $40/mt on the week to $870/mt at the July 31 Asian close. R-PET ** Southeast Asian recycled polyethylene terephthalate clear flake (including premium grade) markets were on a downtrend, and prices are expected to weaken further as EU buyers paused purchases. Freight rates to the Middle East were heard to be improving, enabling exports to the region. ** Offers for FOB Southeast Asian R-PET food-grade pellets were stable, although recyclers’ margins remain pressured by high PET bottle bale feedstock costs in the region. ",ASIA PETROCHEMICALS: Key market indicators for Aug 5-9,2024-08-05 06:05:40+00:00,Light Ends,Light Ends,0.090977444905841,0.166919125065446,0.9912833927151088,Bullish,Bullish 356," The total traded volume of DME Oman crude futures inched up 1.51% on the month to 127,116 lots in July, Dubai Mercantile Exchange data showed Aug. 5, as a wider East-West spread supported demand for the grade from its main customer, China, despite still poor end-user margins there. Since the start of the year, the exchange has recorded an increase in total traded volumes every month, extending its streak for the seventh consecutive time in July. All contracts traded on the DME consisted entirely of Oman crude futures. The DME also lists other crude futures contracts, including Oman crude financial futures and the Brent-Oman futures spread. The rise in volumes comes as a wider Brent-Dubai Exchange of Futures for Swaps spread helped support demand for Middle Eastern sour crudes despite still poor margins afflicting end-users across the region. The front-month EFS spread had risen over the first half of July to touch a four-month high of $2.48/b July 19. It was last higher March 4 when it was assessed at $2.54/b. Platts assessed front-month cash Oman over same-month Dubai futures meanwhile at an average premium of $1.60/b over July, up 75 cents/b on the month, S&P Global Commodity Insights data showed. Weak demand is expected to weigh on China's annual crude throughput for the rest of the year. In the first half of 2024, the throughput declined 0.9% on the year to 14.5 million b/d, according to data from the National Bureau of Statistics. In July, China's combined throughput, which includes state-run refineries and mega private plants, reached 10.23 million b/d with an 83% utilization rate, lower than the 10.41 million b/d needed for an 85.6% capacity utilization a year earlier, data collected by Commodity Insights showed. Meanwhile, the exchange announced July 10 that it will be renamed to the Gulf Mercantile Exchange effective Sept. 2, following Saudi Tadawul Group's acquisition of a 32.6% strategic stake, Commodity Insights reported previously. This comes as DME's front-month trading volume soared by an impressive 31%, reaching 505 million barrels during H1 2024, compared with 385 million barrels in the second half of 2023, the exchange said in a July 8 notice. Additionally, the physical delivered volume for H1 2024 rose by 9% to 113 million barrels, up from 104 million barrels in H2 2023, while the total exchange volume saw substantial growth of 21% over the period, touching 680 million barrels, compared with 562 million barrels in H2 2023. However, open interest for the Oman futures contract stood at 15,380 lots on July 31, plunging 32.1% from the end of June. DME Oman futures is a physically delivered futures contract for Oman crude blend. Oman crude -- which has a gravity of 33.2 API and a sulfur content of 1.3% -- typically sees the lion's share of its exports going to mainland China, with some barrels also going to Taiwan, Japan, South Korea and India. Total traded volumes: July June MoM change Oman crude futures 127,116 125,225 1.51% Total open interest: As of July 31 As of June 28 MoM change Oman crude futures 15,380 22,633 -32.05% Source: Dubai Mercantile Exchange ",DME Oman crude futures traded volume rises for seventh straight month in July,2024-08-05 05:48:02+00:00,Crude Oil,Crude Oil,0.97502016207753,0.178306932593977,0.0544136444772743,Bearish,Bearish 357," Open interest for front-month Singapore August gasoline derivative contracts that traded on the Intercontinental Exchange in July rose 14.55% on the month to 41.19 million barrels, latest ICE data showed. Open interest for the front-month August Singapore 92 RON gasoline swaps contract gained 17.98% on the month to 28.61 million barrels in July. The uptick in market liquidity came amid an increase in supply volatility as regional demand slipped seasonally. The Asian gasoline complex softened in July due to tepid demand from Indonesia after the festive season as the country moved away from the Eid al-Adha period, trade sources said. The ongoing monsoon season in India also dampened demand for transportation fuels, leading to an estimated 84,000 b/d decline in gasoline demand, analysts at S&P Global Commodity Insights said in their latest South Asia short-term outlook. Demand for gasoline in Vietnam -- one of the region's largest buyers of higher octane gasoline -- also fell on the back of heavy flooding, sources said. The regional supply outlook, however, remained relatively unclear amid concerns of a potential increase in Chinese export volumes in August. For now, China's clean oil product exports in 2024 are anticipated to remain stable on the year at around 40 million mt due to less favorable export margins and a slight domestic surplus. Open interest for gasoline futures contracts on ICE: Mogas (Unit: '000 barrels) Aug OI Jul OI M-o-M Change Singapore Mogas 92 28,613 24,253 17.98% Singapore Mogas 92/Brent 12,574 11,702 7.45% Total 41,187 35,955 14.55% Source: Intercontinental Exchange Notes: Open interest for a month is measured at the end of the previous month ",ICE front-month Singapore gasoline swaps open interest rises 14.6% on month in July,2024-08-05 05:34:38+00:00,Light Ends,Light Ends,0.9728828723480236,0.014601680870517,0.5689659248788862,Bearish,Bearish 358," The Asian gasoline complex is expected to remain firm over Aug. 5-9 underpinned by lower export flows amid an unplanned refinery shutdown in Japan, sources said. In northeast Japan, ENEOS, the country’s largest refiner, shut down the sole 145,000 b/d crude distillation unit at its Sendai refinery Aug. 1 due to technical problems, according to a company source. No further details were provided regarding the restart date. The Platts-assessed gasoline cash premium, as of Aug. 2 was at the Mean of Platts Singapore minus $0.26/b. This represents a sharp decrease of 127.36% from the previous week’s closing value of MOPS plus $0.95/b on July 26. Naphtha ** The Asian naphtha market continues to be on a downtrend as poor downstream demand exacerbated the complex, market sources said. ** Reflecting the weakening market, the H2 September/H2 October time spread was flat at the Asian close Aug. 2, narrower from $0.50/mt the previous day, S&P Global Commodity Insights data showed. ** Platts assessed the front-month Singapore reforming spread -- the difference between Singapore 92 RON gasoline and naphtha derivatives and a barometer of the economic attractiveness of naphtha's use in gasoline blending -- at $15.36/b on Aug. 2, down $1.78/b on the week, Commodity Insights data showed. MTBE ** The Asian market was expected to remain weak, with gasoline demand still looking thin. ** China domestic prices were higher than in Singapore, with a closed arbitrage window extending into the next week. Singapore prices were weak, frequently falling below $800/mt FOB Straits. ** FOB Straits assessment was down $29/mt week on week to close at $784/mt FOB Straits on Aug. 2, from $813/mt on July 26. Toluene ** The Asian toluene market in Northeast Asia is expected to detach itself further from South and Southeast Asia prices in the week ahead, with strong buying for South Korea-origin cargoes pulling prices up on the FOB Korea market. ** The Platts-assessed toluene FOB Korea marker jumped up sharply $41/mt week on week to $886/mt on Aug. 2, led by buy interests heard up to $885/mt to no counters, Commodity Insights data showed. There was a 2,000-mt trade heard done at $880/mt FOB Korea, for any-September loading, letter of credit at sight basis Aug. 2. ** In the China market, the FOB China marker was up $15/mt on the week, lagging behind the FOB Korea marker, while CFR China prices were down $9/mt over the same period, in line with the weaker domestic China ex-tank market. Ethanol ** US Gulf to Philippines freight prices edged down this week to $90-$100/mt, with MR tanker freight rates heard at around $80/mt, sources said. ** US Energy Information Administration data released July 31 for the week ended July 26 showed that ethanol production soared to an all-time peak, up 14,000 b/d, or 1.28%, to 1.109 million b/d. The previous benchmark of 1.108 million b/d was set during the week of Dec. 1, 2017. Compared to the year-ago week, production was 42,000 b/d, or 3.94%, higher. ** The Platts-assessed CIF Philippines bioethanol marker slumped $41.33/cu m on the week to $615/cu m Aug. 2, Commodity Insights data showed tracking US futures and lower freight rates. Isomer-MX ** Asian markets are expected to be long on isomer MX cargoes, a situation compounded by the S-Oil fire, which will only add additional cargoes for sale to the market. Sources have said that China could be a potential buyer for cargo. ** Some of the isomer MX cargo is off-specification for chemicals usage, and may go into the gasoline blendpool, said sources, but gasoline traders look set to ask for heavily discounted prices. ** FOB Korea isomer MX assessment followed downward crude oil market with prices falling to $873.5/mt FOB Straits on Aug. 2, from $887/mt on July 26. Aug-02 W-o-W Change RON Price per Ron ($/mt) Price per Ron ($/cu m) GASOLINE FOB Singapore 91 RON non-oxygenated $89.94/b -3.48% 91 NA NA FOB Singapore 92 RON oxygenated $87.7/b -3.56% 92 FOB Singapore 95 RON oxygenated $92.86/b -2.62% 95 FOB Singapore 97 RON oxygenated $93.66/b -2.45% 97 BLENDSTOCKS FOB Singapore Naphtha $72.34/b -1.27% 72 4.72 5.35 FOB Korea Toluene $886/mt 4.85% 115 6.11 9.79 FOB Singapore MTBE $784/mt -3.57% 115 1.68 1.90 FOB Korea Isomer-MX $873.5/mt -1.52% 113 6.10 10.63 CIF Philippines Ethanol $615/cu m -6.30% 118 1.21 3.01 ",ASIA OCTANE: Key market indicators for Aug 5-9,2024-08-05 05:31:52+00:00,Light Ends,Light Ends,0.035730158622045,0.3072234899024628,0.99390007348306,Bullish,Bullish 359," The total traded volume of Dubai crude futures rose 11.40% on the month to 1.82 million lots in July, Intercontinental Exchange data showed Aug. 5, amid still-weak refining margins in the Asian market, although wider East-West spreads kept end-user demand focused on Dubai-linked sour crudes. ICE Dubai crude futures comprises Dubai first-line futures, Dated Brent versus Dubai first-line futures and Brent first-line versus Dubai first-line futures. In July, traded volumes for Dated Brent versus Dubai first-line futures fell 20.11% to 12,664 lots, while Dubai first-line futures increased 17.03% to 1.22 million lots and Brent first-line versus Dubai first-line futures edged up 2.1% to 588,285 lots. One lot is equivalent to 1,000 barrels. The rise in traded volumes came amid a still-weak Asian market as end-users across the region continued to grapple with poor margins and weak domestic demand. Nonetheless, the Dubai complex received some support from a largely closed arbitrage window for light, sweet US crudes to Asia, while a wider Brent-Dubai Exchange of Futures for Swaps spread also hindered the flow of Brent-linked crudes from West Africa, Europe and the Mediterranean into the region. The front-month Dubai cash-futures spread averaged at a premium of $1.60/b over July, up 74 cents/b from a premium of 85 cents/b over June. The Brent-Dubai Exchange of Futures for Swaps spread meanwhile had risen over the first half of July to touch a four-month high of $2.48/b July 19. It was last higher March 4 when it was assessed at $2.54/b. Open interest volumes As of July 31, the combined open interest volumes for the Dubai crude futures forward curves stood at 947,555 lots, rising 4.83% on the month. The Dubai first-line futures contracts saw the largest increase of 7.25% to 479,354 lots, while the Dated Brent versus Dubai first-line futures decreased 29.75% on the month to 26,291 lots at end-July. Additionally, open interest for front-month Dubai crude futures contracts on ICE dropped 17.61% on the month to 181,798 lots at end-July, data compiled by S&P Global Commodity Insights showed. The decline was led by the Brent first-line versus Dubai first-line futures contract, which fell 21.24% on the month to 74,107 lots. The M1 Dubai swap settled at $84.99/b at the start of July and ended the month 7.25% lower at $78.83/b, Commodity Insights data showed. Platts assessed September Brent-Dubai EFS at $1.61/b on July 31, increasing 23 cents/b or 16.67% from July 1, according to Commodity Insights data. Front-month open interest As of July 31 As of June 28 MoM change Dubai 1st Line 99,850 115,168 -13.30% Dated Brent vs Dubai 1st Line 7,841 11,387 -31.14% Brent 1st Line vs Dubai 1st Line 74,107 94,096 -21.24% Total 181,798 220,651 -17.61% Total open interest As of July 31 As of June 28 MoM change Dubai 1st Line 479,354 446,949 7.25% Dated Brent vs Dubai 1st Line 26,291 37,423 -29.75% Brent 1st Line vs Dubai 1st Line 441,910 419,538 5.33% Total 947,555 903,910 4.83% Total traded volumes As of July 31 As of June 28 MoM change Dubai 1st Line 1,217,345 1,040,243 17.03% Dated Brent vs Dubai 1st Line 12,664 15,852 -20.11% Brent 1st Line vs Dubai 1st Line 588,285 576,194 2.10% Total 1,818,294 1,632,289 11.40% Source: Intercontinental Exchange ",ICE Dubai crude futures July total traded volume rises 11.4% on month,2024-08-05 05:29:16+00:00,Crude Oil,Crude Oil,0.967165565309226,0.0096569642255578,0.7621809320430223,Bearish,Bearish 360," Asian sour crude traders and end-users welcomed Saudi Aramco's lower-than-expected September crude oil official selling prices for Asia-bound cargoes, with some saying the OSPs were a nod to an Asian market still struggling with poor margins and demand, as well as an impending ramp-up in output from the OPEC+ group. The producer in an early Aug. 5 notice raised the Asia-bound September OSP differential for its flagship Arab Light grade by 20 cents/b to a premium of $2/b to the Oman/Dubai average. The September OSP differential for Arab Extra Light and Super Light was raised by a range of 10-20 cents/b, while that for Arab Medium and Heavy were kept unchanged on the month. Expectations leading into the OSP release had been for the producer to raise Arab Light by a range of 30-80 cents/b, with Arab Extra Light and Super Light to be raised by largely the same extent, while the heavier Arab Medium and Heavy grades were expected to see slightly larger increases relative to Arab Light by about 10-20 cents/b, S&P Global Commodity Insights earlier reported. ""Better than expected,"" one Asian end-user source said. The OSPs reflected an Asian end-user market still struggling with poor refining margins and weak domestic demand. An impending hike in OPEC+ output, after the group in an Aug. 1 meeting opted to stand pat on its policy to unwind voluntary production cuts from October, was likely also a contributing factor, traders said. Current OPEC+ plans call for eight members led by Saudi Arabia, Russia, Iraq and the UAE to begin gradually phasing out some 2.2 million b/d in voluntary production cuts between October 2024 and September 2025. Aramco's OSPs have been overvalued relative to the spot market for the last one year, with current conditions and the impending production increases providing an opportunity for the producer to bring its OSPs more in line with spot prices, trade sources added. ""Think Saudi [Aramco] is partly correcting some of the premium that had accumulated in their OSPs over the last one year. Now that OPEC+ exports are rising and demand is sliding, that premium has to go,"" a trader said. The current month's October-loading cycle was bearish, with Asian refining margins still hovering at relatively weak levels despite having recovered from multiyear lows in May. Platts, part of Commodity Insights, pegged the Dubai-Singapore cracking netback margin at $2.74/b Aug. 2, down 9 cents/b on the day and far from when it started the year in the $4-$8/b range. Key prices and spreads in the Dubai complex have also weakened sharply in recent days, with the second-month October Dubai crude swap pegged by Platts at $75.40/b at 11 am Singapore time Aug. 5, down 3.7% from the Aug. 2 Asian close and a low not seen since Jan. 3 when it was assessed at $74.92/b, Commodity Insights data showed. The October-November Dubai swap intermonth spread has similarly plunged, likely reflecting the prospect of increased OPEC+ supplies from October. The spread was pegged at 35 cents/b at 11 am Singapore time Aug. 5, down 15 cents/b on the week. ","Lower-than-expected Aramco Sep OSPs a nod to weak Asian market, OPEC+ cut unwind",2024-08-05 05:13:22+00:00,Crude Oil,Crude Oil,0.1216070506132988,0.0534346867658949,0.9966264078415474,Bullish,Bullish 361," Crude oil prices are expected to receive support over Aug. 5-8 from rising geopolitical tensions in the Middle East and an expansion in China's services activity. Front-month ICE October Brent crude oil futures were trading at $77.03/b at 11:54 am Singapore time (0354 GMT) Aug. 5, rising 22 cents/b or 0.3% from the previous settle. Middle East crude The Asian and Middle East sour crude markets saw the emergence of Saudi Aramco's September crude oil official selling prices in early morning trading Aug. 5, with Aramco's September allocations and spot trades expected to pick up shortly after. Aramco's September OSPs for Asia-bound cargoes were below market expectations, in a likely a concession by the producer to many Asian end-users grappling with poor margins and weak domestic product demand. The front-month Dubai cash-futures spread averaged at a premium of $1/b over Aug. 1-2, down from an average premium of $1.60/b in July. Asia-Pacific regional crude Trading activity is expected to ramp up over Aug. 5-8, with fresh October-loading program issues anticipated across regional crude and condensate barrels. The cash differentials for October-loading cargoes of medium sweet crudes could be stable to slightly weaker due to lower freight costs and a weakening Brent structure, market sources said. Market participants await the issuance of July Indonesian Crude Price and term tender results for Rang Dong crude by PetroVietnam Oil for loading over Oct. 1, 2024-March 31, 2025. The tender closed July 30, with validity until Aug. 9. Delivered crude US WTI Midland crude premiums into Asia may be stable to lower, with the latest trade levels heard at a premium in the mid-$3s/b to October Dated Brent, DES Singapore for November-delivery barrels. Market participants are keeping an eye on fresh offers and trades for Brazil's Tupi crude for November-arrival barrels. The grade was last heard traded at a premium in the high $1s/b to October Dated Brent, DES China. Oil futures Oil prices could increase over Aug. 5-8, as bearish macroeconomic sentiment and escalating Middle East tensions lead to market volatility. China's manufacturing PMI edged down 0.1 point to 49.4 in July, National Bureau of Statistics data showed. In the US, the Institute for Supply Management's July manufacturing purchasing managers' index fell for the fourth straight month to 46.8%, from 48.5% in June. The manufacturing sector represents about 11% of the US economy and 26% of China's economy. Platts, part of S&P Global Commodity Insights, assessed the prompt M1-M2 ICE Brent crude time spread at 54 cents/b at the Aug. 2 Asian close, narrowing 31 cents/b or 36.5% on the week. ",ASIA CRUDE OIL: Key market indicators for Aug 5-8,2024-08-05 04:41:18+00:00,Light Ends,Light Ends,0.0504391172396894,0.3135809897138942,0.9900624131734674,Bullish,Bullish 362," Asia's light ends refined product gasoline market was expected to strengthen during the week of Aug. 5-8 amid regional refinery issues. LPG prices were also expected to get support amid continuing tensions in the Red Sea. However, naphtha prices could face pressure on the back of lower demand from South Korean naphtha cracking centers. Gasoline ** Asian gasoline could start this week on a positive note after last week’s slump in cash premiums, underpinned by lower export flows amid an unplanned refinery shutdown in Japan and gasoline cargoes circulating within the European domestic market, sources said. ** In northeast Japan, the country’s largest refiner ENEOS shut the sole 145,000 b/d crude distillation unit at its Sendai refinery Aug. 1 due to technical problems, according to a company source. No further details were provided regarding the restart date. ** The negative East-West arbitrage, ranging between minus $7/b and minus $8/b, shows that spreads are more favorable for Europe, encouraging ships to remain in European waters due to better margins, according to market sources. The spread was pegged at minus $7.25/b at 0300 GMT on Aug. 5. ** However, market participants are expecting fresh resupply sometime in September due to better refining margins and China’s anticipated export quota announcement for the third quarter. **The Platts-assessed gasoline cash premium was at the Mean of Platts Singapore gasoline assessment minus 26 cents/b as of Aug. 2. This represented a sharp decrease of 127.36% from the previous week’s closing value at MOPS gasoline assessment plus 95 cents/b on July 26, according to data from S&P Global Commodity Insights. Naphtha ** The physical C+F Japan naphtha marker was at $655/mt in midmorning Asian trade Aug. 2, down $19.50/mt from the previous Asian close. ** Asian naphtha prices were expected to fall on the back of low demand from South Korean naphtha cracking centers, sources said. ** Many South Korean units were running at lower run rates of 60%-70%, sources said. ** Cash differentials are expected to decrease this week as physical time spreads narrowed. The H2 September-H2 October time spread was flat at the Asian close Aug. 2, down from 50 cents/mt the previous day, Commodity Insights data showed. ** The Platts-assessed CFR Northeast Asia ethylene-CFR Japan naphtha physical spread -- closely watched by petrochemicals producers -- widened $14.50/mt on the week to $190.50/mt at the Aug. 2 Asian close, Commodity Insights data showed. LPG ** The Asian LPG market was likely to see some strength as the landed cost of exports from the Middle East could rise amid higher freight costs following issues moving Very Large Gas Carriers from Yanbu due to tensions in the Red Sea, sources said. ** Saudi Aramco announced August contract prices at $590/mt for propane and $570/mt for butane, up $10/mt and $5/mt, respectively, Commodity Insights previously reported. ** However, Asian LPG prices could face some pressure amid slowing demand from China as PDH run rates remain stable, sources said. ** Broker sources pegged the front-month September FEI swap at $624/mt early Aug. 5, down from the Platts assessment at $637/mt at the Aug. 2 Asian close, on the back of a drop in front-month Brent crude markers. ",ASIA LIGHT ENDS: Key market indicators for Aug 5-8,2024-08-05 04:38:39+00:00,Light Ends,Light Ends,0.0453387710455933,0.1784035912530729,0.9961594998768606,Bullish,Bullish 363," A gradual decline in fuel oil export quota volumes for the rest of the third quarter is expected to support the downstream low sulfur fuel oil premium at China's Zhoushan bunkering hub, as market participants await the next batch of quotas. The volumes have continued to decline after the release of the previous fuel oil export quota in early May, with market participants expecting the next batch in one to two months. “Most of [the export quota is] gone … I think it's probably less than 20%,” a local bunker supplier said, anticipating the next fuel oil export quotas around end-August. “LSFO export quotas are going to run out and refineries are reducing LSFO production.” However, slower demand could cap gains in the premium in Zhoushan, leading to a little changed delivered spread versus Singapore in the near term, traders said. Singapore, the world's largest bunker hub, in recent months has been facing intense price competition from alternative bunkering locations, such as Zhoushan and neighboring Port Klang, as the LSFO premium in the city-state hit a near 6-month high. Local suppliers in Singapore have been waiting for the arrival of replenishment LSFO cargoes in the wake of some off-specification supply issues since late July. That has disrupted some downstream suppliers' barge reloading schedules, deferring ex-wharf loadings to early-August dates and leading to a wider spread with competing bunkering hubs such as Zhoushan. In early August, traders in Singapore have reported a gradual resumption of previously deferred barge reloadings at local terminals, as more suppliers strive to ""catch up"" with lost bunker-grade LSFO supplies from late July. Platts, part of S&P Global Commodity Insights, assessed the spread between Zhoushan-delivered marine fuel 0.5%S bunker over the delivered grade in Singapore at a discount of $6.00/mt on Aug. 2, narrowing from $10.00/mt on Aug. 1. The spread in July averaged at a discount of $1.57/mt, narrowing from a discount of $6.53/mt in June. The premium for Singapore-delivered marine fuel 0.5%S bunker against the benchmark FOB Singapore marine fuel 0.5%S cargo reached a near a six-month high of $30.66/mt on Aug. 1, before declining marginally to $29.34/mt on Aug. 2. Meanwhile, the premium for Zhoushan-delivered marine fuel 0.5%S bunker against benchmark FOB Singapore marine fuel 0.5%S rose $2.68/mt on the day to $23.34/mt on Aug. 2. The average premium for July strengthened to $12.91/mt, from $4.19/mt in June. Traders’ LSFO sentiment for the Singapore hub has been more bearish for the later part of August through September, with stronger cargo inflows expected due to viable East-West arbitrage margins. Lower production, weather impact Market participants expect the premium to rise slightly in Zhoushan in August against the benchmark FOB Singapore marine fuel 0.5%S cargo value but remain at a discount to the delivered grade in Singapore. Lower production levels due to depleting current export quotas and adverse weather-related impacts could support the premium. “Zhoushan [LSFO premiums] in August, I think it will go up … the flat price is around Mean of Platts Singapore plus $15/mt recently,” another local bunker source said. A third local bunker supplier in Zhoushan said the next tranche of fuel oil quotas could be possibly smaller. “The refineries will have to cut back [on LSFO production].” Bad weather conditions in Zhoushan have been a common occurrence and are expected to continue resulting in the loss of some supply days. Trade sources estimate that bad weather affects deliveries for nearly one-third of the year, with August expected to face more weather events than July. July saw some impact from weather as anchorages in Zhoushan were shut for about half a week due to strong winds due to Typhoon Gaemi making landfall in Taiwan. However, slower LSFO demand is expected to weigh on the premium in Zhoushan. “I personally think the discount [to the delivered grade in Singapore] will continue until October, mainly due to a reduction in demand for fuel oil in China, and the continued decline in demand for gasoline and diesel. Marine fuel is no exception,” a Chinese ship charterer said. ",China fuel oil quotas decline seen supporting Q3 LSFO premiums in Zhoushan,2024-08-05 04:21:24+00:00,Middle Distillates,Middle Distillates,0.8180750253304625,0.0069607788944018,0.9750163524772206,Bullish,Bullish 364," South Korea's third-quarter 2024 diesel demand could take a hit as domestic courier and parcel delivery truck operations are expected to fall significantly in the short term, after two major e-commerce companies filed for bankruptcy, middle distillate marketers at two refiners said Aug. 2-5. Two major South Korean e-commerce platform operators, WeMakePrice and TMON, filed for court receivership with the Seoul Bankruptcy Court July 29, as the two companies failed to repay vendors using their services amid liquidity crisis. The Seoul court decided to grant the two companies one month to seek debt restructuring on their own on Aug. 2. Middle distillate marketers at two major South Korean refiners indicated that they are reassessing their near-term diesel wholesale distribution and sales outlook as the two e-commerce firms' financial troubles could lead to a significant drop in domestic online shopping transactions and ultimately much lower courier truck operations throughout August or even September. The number of delivery packages or parcels that nationwide couriers handle every month averaged over 400 million so far this year, according to CJ Logistics. The financial issue at WeMakePrice and TMON would bode ill for domestic logistics as consumer online shopping activities through e-commerce platforms generate a large majority portion of courier companies' delivery operations, an official at CJ Logistics said. Diesel demand in Asia's fourth biggest oil consuming nation rose 1.9% year on year to 40.93 million barrels in the second quarter. Most of South Korea's diesel demand is driven by the transportation and logistics sectors. Reflecting the increase in demand, exports in Q2 slipped 0.6% year on year to 47.7 million barrels. Taking into account the potential drop in delivery truck turnover rate and overall online shopping logistical operations, on top of the dismal new housing projects and old apartment renovation activities, South Korea's Q3 diesel sales could slip under 40 million barrels, according to analysts and middle distillate marketing sources based in Seoul. The nation's biggest e-commerce platform operator Coupang is still thriving, which means any downside diesel demand impact from the logistics sector should be short lived, said a middle distillate distribution and sales manager at a major South Korean refiner. The government estimates the two troubled e-commerce companies' unsettled payments to be at around 274.5 billion won ($200 million) so far and the amount could more than triple due to the approaching settlement period for consumer-vendor transactions made during June and July. Asian market overview In the broader Asian gasoil complex, market participants are assessing the possibility of South Korea increasing exports in the event of a significant drop in August domestic sales as ample near-term regional supply and a lack of fresh demand drivers amid monsoon season continue to weigh on the ultra low sulfur diesel market. “The gasoil complex should receive some support in September as the monsoon season ends and there’s some demand from Europe on the back of winter heating demand. Otherwise, demand is going to be weak in August,” a regional middle distillate trader said. At the same time, trade participants were keeping close watch on refinery margins. “It is possible that we see some economic run cuts due to current oversupply but I don’t think it will be that significant since cracks are still positive,” an industry source said. Platts, part of S&P Global Commodity Insights, assessed the FOB Singapore 10 ppm sulfur gasoil derivative crack spread to the front-month Dubai swap -- which measures the relative strength of the product to the crude it is refined from -- narrowing 32 cents/b on the day to $16.90/b at the Aug. 2 Asian close. At this level, the crack is trading at a 92 cents/b premium to that of jet fuel/kerosene and $8.48/b higher than 92 RON Gasoline, Commodity Insights data showed. ",South Korea's short-term diesel demand under pressure on e-commerce firms' bankruptcy,2024-08-05 04:10:41+00:00,Middle Distillates,Middle Distillates,0.9351722250227056,0.171817725847343,0.2811231704249793,Bearish,Bearish 365," Open interest for front-month August Singapore 10 ppm sulfur gasoil swap contract traded on the Intercontinental Exchange rose 2.37% on the month to 41.12 million barrels in July, Intercontinental Exchange data showed Aug. 2. Despite the rebound, July’s figure remains marginally lower than the front-month open interest seen in both April and May, historical data compiled by S&P Global Commodity Insights showed. While stockpiling demand for winter heating is due to begin in the coming months, current gasoil demand remains under pressure amid a seasonal lull due to the monsoons. Furthermore, Asia continued to witness a supply glut amid poor arbitrage economics to the West as elevated freight rates trapped barrels in the region. Reflecting stability in the swaps market, the Platts-assessed FOB Singapore 10 ppm sulfur gasoil front month derivative time spread was mostly unchanged across June and July, averaging about minus 10 cents/b in both months. Looking ahead, Commodity Insights analysts revised down their forecast for Asian diesel/gasoil demand growth by 60,000 b/d to 90,000 b/d in 2024. ""This reflects a downward revision to demand in mainland China, where the real estate sector continues to lag despite stimulus measures, and growing LNG heavy truck penetration driven by economic benefits,"" the analysts said in their latest outlook. The Chinese government is considering the release of 15 million mt of oil product export quotas in September, according to the sources, that will bring the country's total clean oil product export quota to 48 million mt for 2024. In the first half of 2024, China's clean oil products exports declined 2.7% year on year to 19.86 million mt (865,000 b/d) because of slower overseas demand and thin export margins, leaving about 13.14 million mt of quotas available for the second half of the year until a new batch of quotas is released. China's 2024 clean oil product exports have been widely expected to remain steady on the year at about 40 million mt, due to less attractive export margins and a slight surplus in the domestic market. Open interest for front-month August FOB Arab Gulf gasoil swap contracts that traded on ICE, meanwhile, slumped 92.13% on the month in July to 132,000 barrels, ICE data showed. The availability of VLCCs could bolster the Persian Gulf gasoil complex in the near term though demand concerns in Europe remain due to a seasonal lull, according to middle distillate trade sources. Open interest for gasoil futures contracts on ICE: Gasoil (Unit: '000 barrels) Aug OI Jul OI M-o-M Change Singapore Gasoil 10ppm Futures 41,121 40,169 2.37% Singapore Gasoil 0.05% 0 0 N/A Singapore Gasoil 0.05%/ICE Gasoil 0 0 N/A Singapore 10ppm Gasoil/Gasoil 0.05% 0 0 N/A Singapore Gasoil 0.05%/Dubai 0 0 N/A Middle East Gasoil Futures 132 1,678 -92.13% Total 41,253 41,847 -1.42% Source: Intercontinental Exchange Note: Open interest for a month is measured at the end of the previous month. ",ICE front-month Singapore 10 ppm gasoil swap open interest rebounds 2% on month in July,2024-08-05 02:05:30+00:00,Middle Distillates,Middle Distillates,0.9722379954681442,0.012674857484802,0.6158472840199645,Bearish,Bearish 366," Saudi Aramco maintained or raised the Asia-bound September official selling price differentials for its crude grades by 10-20 cents/b, a notice from the producer showed Aug. 5. Aramco set the September OSP differential for its flagship Arab Light at a premium of $2.00/b to the Oman/Dubai average, rising 20 cents/b on the month. For the Arab Extra Light grade, Aramco increased the OSP differential by 10 cents/b to a premium of $1.70/b to the Oman/Dubai average. The Super Light OSP differential gained 20 cents/b to a premium of $2.95/b to the Oman/Dubai average. The Arab Medium and Arab Heavy OSP differentials were both unchanged on the month respectively at premiums of $1.25/b and 50 cents/b to the Oman/Dubai average. Saudi Aramco's crude oil official selling prices: (Unit: $/b) Grade Destination Basis June July August September Change Super Light Asia Oman+Dubai 3.45 2.95 2.75 2.95 0.2 Extra Light Asia Oman+Dubai 2.8 2.2 1.6 1.7 0.1 Light Asia Oman+Dubai 2.9 2.4 1.8 2 0.2 Medium Asia Oman+Dubai 2.35 1.95 1.25 1.25 0 Heavy Asia Oman+Dubai 1.6 1.2 0.5 0.5 0 Extra Light USA ASCI 7 7 7.1 6.35 -0.75 Light USA ASCI 4.75 4.75 4.85 4.1 -0.75 Medium USA ASCI 5.45 5.45 5.45 4.7 -0.75 Heavy USA ASCI 5.1 5.1 5.1 4.35 -0.75 Extra Light Med ICE Brent 3.7 4.7 5.6 2.85 -2.75 Light Med ICE Brent 2 3 3.9 1.15 -2.75 Medium Med ICE Brent 1.4 2.4 3.3 0.55 -2.75 Heavy Med ICE Brent -1.3 -0.3 0.6 -2.15 -2.75 Extra Light NWE ICE Brent 3.7 4.7 5.6 2.85 -2.75 Light NWE ICE Brent 2.1 3.1 4 1.25 -2.75 Medium NWE ICE Brent 1.3 2.3 3.2 0.45 -2.75 Heavy NWE ICE Brent -1.1 -0.1 0.8 -1.95 -2.75 Source: Saudi Aramco ",Saudi Aramco maintains or raises Asia-bound Sep crude OSPs by 10-20 cents/b,2024-08-05 01:59:16+00:00,Crude Oil,Crude Oil,0.1546421322956317,0.0326334906947126,0.9972733309790736,Bullish,Bullish 367," The Asian middle distillates complex could be sluggish over Aug. 5-8, as trade participants await fresh spot activity for September-loading cargoes to provide further pricing direction. Front-month ICE October Brent crude oil futures fell to $76.42/b at 9 am Singapore time (0100 GMT) on Aug. 5, from $80.03/b at the Aug. 2 Asian close. Jet fuel/kerosene The Asian jet fuel/kerosene complex over Aug. 5-8 could be pressured by exports from China that are expected to add to a supply glut, dampening market sentiment. The Platts FOB Singapore cash differential for jet fuel/kerosene to the Mean of Platts Singapore jet fuel/kerosene assessment was minus 56 cents/b at the Aug. 2 Asian close, compared with minus 13 cents/b a week earlier. Platts is part of S&P Global Commodity Insights. Global air passenger demand, measured in revenue passenger kilometers, rose 9.1% year on year in June , driven by the summer holiday season, data from the International Air Transport Association showed July 31. Total capacity, measured in available seat kilometers, increased 8.5% from June 2023. Brokers pegged the balance-month August-September jet fuel/kerosene swap time spread at minus 36 cents/b at 0100 GMT on Aug. 5, compared with minus 35 cents/b at the Aug. 2 Asian close. The Platts fourth quarter-first quarter jet fuel/kerosene swap spread averaged plus 50 cents/b over July 29-Aug. 2, narrowing from plus 60 cents/b the week before. Gasoil The Asian gasoil complex is expected to be stable over Aug. 5-8 supported by pockets of regional demand, though trade participants have been cautious about a potential downside due to seasonal weakness. Brokers pegged the balance-month August gasoil exchange of futures for swaps -- an indicator of East-West arbitrage flows -- at minus $26.57/mt at 0100 GMT on Aug. 5, compared with Platts' assessment of minus $26.17/mt at the Aug. 2 Asian close. Brokers pegged the balance-month August-September gasoil swap time spread at minus 30 cents/b at 0100 GMT on Aug. 5, compared with Platts' assessment of minus 31 cents/b at the Asian close Aug. 2. Singapore's onshore commercial stocks of gasoil and jet fuel/kerosene rose 2.7% over July 25-31 to a three-month high of 11.35 million barrels, Enterprise Singapore data showed Aug. 1. The stocks were last higher at 11.39 million barrels in the week to May 1. The Platts-assessed Q4-Q1 gasoil swap spread averaged plus 64 cents/b over July 29-Aug. 2, narrowing from plus 75 cents/b in the previous week. ",ASIA MIDDLE DISTILLATES: Key market indicators for Aug 5-8,2024-08-05 01:50:17+00:00,Middle Distillates,Middle Distillates,0.0349323069930016,0.3108553233580309,0.9934744470886032,Bullish,Bullish 368," The combined open interest for front-month Singapore high sulfur fuel oil contracts rose 19.6% on the month to 8.54 million mt in July, the latest Intercontinental Exchange data showed. The combined open interest includes contracts for the Singapore 380 CST and 180 CST HSFO grades, the Singapore viscosity spread and the Singapore 180 CST and 380 CST East-West contracts. The biggest increase was seen in the Singapore 180 CST East-West contract, which saw front-month open interest soar 82.9% on the month to 75,000 mt in July. The Singapore 380 CST contract was the only contract that saw a decrease in front-month open interest, which slipped 1.6% month on month to 4.06 million mt. Meanwhile, open interest across the HSFO forward curve edged 0.05% higher on the month to 43.465 million mt. The forward curve open interest for the 180 CST East-West contract plunged 40.9% on the month to 189,000 mt, while the open interest for the 180 CST contract gained 6.4% month on month to 2.68 million mt. The Asian HSFO market has been supported by seasonal utility demand and stable bunkering activity due to increasing high sulfur grade consumption by scrubber-installed ships. Tight availability of non-sanctioned supplies has also aided current HSFO market fundamentals. The M1-M2 spread for the 380 CST grade averaged at a backwardation of plus $13.98/mt in July, compared with the June average of plus $7.65/mt, Platts data from S&P Global Commodity Insights showed. The benchmark Singapore 380 CST HSFO cargo’s cash premium to the Mean of Platts 380 CST HSFO assessment fell to $4.42/mt on Aug. 2, hurt by weak buying interest and competitive offers from Trafigura during Platts Market on Close assessment process. The Singapore 380 CST HSFO cargo price averaged $500.98/mt in July, compared with an average of $500.35/mt in June. Marine fuel oil The combined open interest for front-month Singapore marine fuel oil contracts on ICE inched down 1.3% on the month to 4.631 million mt in July, led by a 42.7% decrease in the marine fuel 0.5%S East-West contract to 697,000 mt. The combined open interest includes contracts for Singapore marine fuel oil 0.5%S, the marine fuel 0.5%S-380 CST HSFO spread, called the Hi-5 spread, and the marine fuel 0.5%S East-West contract. Asian low sulfur fuel oil fundamentals, which have strengthened in recent weeks because of tight prompt supplies and some loading delays in the downstream bunker market in Singapore, could potentially weaken in August as higher arbitrage inflows from the West add to already increasing regional supplies, trade sources said. Along with low sulfur straight run fuel oil barrels from Nigeria’s new Dangote refinery coming into Asia in recent weeks, traders have been expecting potentially higher exports from Kuwait’s Al-Zour refinery in the coming months once peak summer power generation demand cools off in the Middle East. Singapore is expected to receive 2.5 million-2.6 million mt of LSFO from the West in August, up from 2.2 million-2.4 million mt in July, aided by viable arbitrage economics, Commodity Insights reported earlier. Platts assessed the Singapore marine fuel 0.5%S cargo's cash differential over the MOPS marine fuel 0.5%S assessment $1.33/mt lower on the day at a premium of $4.42/mt on Aug. 2, the lowest since a premium of $4.31/mt on July 5. In July, the LSFO premium posted a monthly gain of 62%. The Singapore 0.5% sulfur marine fuel cargo price averaged $604.39/mt in July, up from an average of $584.86/mt in June. Open interest for the marine fuel oil contracts across the forward curve fell 4.8% on the month to 32.069 million mt. Front-month open interest: Aug-24 OI (as of July 31, 2024) Jul-24 OI (as of June 28, 2024) M-o-M change S'pore 380 CST 4,057 4,124 -1.62% S'pore 180 CST 796 776 2.58% S'pore visco 927 707 31.12% 180 East-West 75 41 82.93% 380 East-West 2,680 1,490 79.87% HSFO total 8,535 7,138 19.57% MF 0.5% 3,537 3,115 13.55% MF 0.5%/380 CST 397 360 10.28% MF 0.5% East-West 697 1,216 -42.68% LSFO total 4,631 4,691 -1.28% Total forward curve open interest: As of July 31, 2024 As of June 28, 2024 M-o-M change S'pore 380 CST 27,349 26,403 3.58% S'pore 180 CST 2,680 2,520 6.35% S'pore visco 3,138 3,115 0.74% 180 East-West 189 320 -40.94% 380 East-West 10,109 11,086 -8.81% HSFO total 43,465 43,444 0.05% MFO 0.5% 22,715 23,997 -5.34% MFO 0.5%/380 CST 2,314 2,295 0.83% MF 0.5% East-West 7,040 7,390 -4.74% LSFO total 32,069 33,682 -4.79% Units: 1,000 mt Source: Intercontinental Exchange ",ICE front-month Singapore HSFO open interest rises 19.6% on month in July,2024-08-05 01:26:07+00:00,Heavy Distillates,Heavy Distillates,0.3680894977575156,0.0174831468128536,0.9948051320226456,Bullish,Bullish 369," Production will be increasing “in the near future,” Montfort said by email, in response to a report by Argus that output will resume in August after being stopped in May because of a lack of feedstock. “The refinery remains operational. As with any refinery there will be fluctuations in production over time due to a variety of usual operational and market factors,” Montfort said. The business operates a 65,000 b/d crude processing facility in the Port of Fujairah, the UAE, selling low sulfur fuel oil to the shipping industry. Vitol also produces LSFO at Fujairah with an 82,000 b/d refinery that can produce some 45,000-50,000 b/d of International Maritime Organization-compliant bunker fuels. Both facilities have focused on taking heavy sweet crude feedstock, including Chad's Doba Blend and South Sudan's Dar Blend. Damage to South Sudan’s only export pipeline through Sudan has kept tens of thousands of barrels offline. Fort Energy under previous ownership by Uniper and Vitol has also taken heavy sweet Australian crude , including Pyrenees and Van Gogh. Montfort declined to comment on its crude sources and on current demand, other than “we see continued strong demand in the market.” ",REFINERY NEWS: Fort Energy at Fujairah ‘remains operational’,2024-08-05 00:45:56+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.7759527163455429,0.5201155448061243,0.177664332423712,Bearish,Bearish 370," Container ship Groton was attacked 125 nautical miles east of Aden in Yemen, the UK Maritime Trade Operations said Aug. 3, as shipping continues to be a target in the conflict in the Middle East. Groton is sailing under a Liberian flag, was last docked at Fujairah in the UAE and is bound for Djibouti, according to S&P Global Commodities at Sea. UKMTO said that the vessel was hit by an unknown explosive. It added that there were no fires, water ingress or oil leaks as a result of the attack, and the vessel was continuing to its next port of call. An investigation is ongoing and UKMTO advised vessels to transit with caution and report any suspicious activity. On July 15, three ships were attacked off the Red Sea coast of Yemen, including the Aframax tanker Chios Lion, which suffered damage. Yemen-based Houthi rebels have not formally claimed responsibility, but they have led a major campaign targeting ships in recent months. They claim to have attacked more than 100 ships linked to Israel, the US and UK in the Red Sea and Gulf of Aden since the Israel-Hamas war broke out Oct. 7. Many major energy and shipping companies, including BP, Maersk, QatarEnergy and Frontline, have altered their routes to sail around Africa to avoid the Houthis. Security risks have increased in the Middle East in recent weeks, with the assassination of Hamas political leader Ismail Haniyeh in Iran raising the risk of retaliatory attacks. This will pose ongoing risks to shipping, S&P Global Commodity Insights forecasts. “Houthi targeting of commercial and naval vessels in the Gulf of Aden, Bab al-Mandab Strait and Red Sea is likely to continue through 2024, despite US-led coalition strikes on Houthi territory in Yemen, maintaining a severe risk for all vessels and crew attempting to transit the Bab al-Mandab Strait and the Red Sea, regardless of affiliation,” Commodity Insights said. ",Container ship Groton attacked near Yemen amid growing Middle East security risks,2024-08-04 12:25:30+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.2455938019686252,0.0446709896652019,0.994086058444945,Bullish,Bullish 371," A drone strike on an oil depot in Russia’s Belgorod region resulted in a fire breaking out at a fuel tank, regional governor Vyacheslav Gladkov said in a post on Telegram Aug. 3. Infrastructure in the region, which borders Ukraine, has been the target of numerous attacks since Russia invaded Ukraine in February 2022. It is the second attack on Russian oil storage in a week. On July 28, the governor of Kursk region said that three fuel tanks were set on fire after a drone strike. Ukraine has increased attacks on Russian oil storage and refining in 2024 as it bids to disrupt supplies to the Russian military. In response, Russia is targeting power infrastructure in Ukraine, leading to widescale blackouts and forcing it to increase imports from the EU. ",Oil depot in Russia’s Belgorod region hit by drone strike,2024-08-04 10:14:50+00:00,Macroeconomic & Geopolitics,Macroeconomic & Geopolitics,0.2439007859221225,0.95119864038905,0.1290759728160473,Neutral,Neutral