Venezuela court pause adds to sanctions uncertainty
A chamber of Venezuela's supreme court has gone into an indefinite recess as a ban on leading opposition candidate Maria Corina Machado stands, going against conditions the US set to continue suspending oil sanctions.
Venezuela's government vowed to allow free and fair presidential elections this year in an agreement brokered with its opposition in Barbados in October. The White House then further lifted already eased sanctions for six months on 18 October. Venezuela freed some political prisoners in the wake of this, but has not lifted bans on Machado from running in the next election, a move that the opposition says violates the Barbados agreement.
The supreme court yesterday announced that it will stop public proceedings while it takes an inventory of existing cases in its political-administrative chamber, which is hearing Machado's case.
"There will be no proceedings in this room until further notice due to an inventory of cases," a notice on the door of the court in Caracas reads.
The chamber had been shut last week as well because of power blackouts. Lawyers have been unable to access documentation related to the case, members of Machado's legal team said.
"The Maduro government is drifting away from Barbados," said Nelson Hernandez, industry veteran and professor at the Universidad Metropolitana in Caracas.
Today, in another action the opposition said violates the agreement, police entered by force the headquarters of the teachers' union in the state of Barinas. They arrested leader and Machado supporter Victor Venegas on allegations of conspiracy, Venezuela's attorney general said. Machado called for him to be freed.
The lifting of sanctions enabled by the Barbados agreement has let Venezuelan crude exports to the US reach a projected 240,000 b/d in January from about 43,000 b/d in January 2023, based on ship tracking data from Vortexa.
Related news posts
Opec leaves 2024-25 supply, demand forecasts unchanged
Opec leaves 2024-25 supply, demand forecasts unchanged
London, 14 May (Argus) — Opec has left its global oil supply and demand forecasts for 2024-25 unchanged. Demand is projected to rise by 2.25mn b/d to 104.46mn b/d this year and by a further 1.85mn b/d to 106.31mn b/d next year, the group said in its latest Monthly Oil Market Report (MOMR). Minor adjustments were made within the 2024 quarters, reflecting actual data received and expected short-term developments. But the overall growth figure for the full year is the same as last month , with an upwards adjustment in Chinese oil demand, mainly in the first quarter, offset by downward revisions for OECD Americas and the Middle East. Opec introduced a new section in last month's MOMR outlining a liquids supply forecast for all countries outside the wider Opec+ alliance. It expects non-Opec+ supplies to grow by 1.23mn b/d to 52.96mn b/d in 2024 and by another 1.1mn b/d to 54.06mn b/d in 2025. This is unchanged from its previous projection. This year's non-Opec+ supply growth is driven by production increases in the US, Canada and Norway. Next year is supported by a further rise in output in the US and Canada, as well as higher production in Latin America. The supply and demand projections leave the call on Opec+ crude at 43.2mn b/d this year, rising to 44mn b/d in 2025. Opec+ production was 41mn b/d in April, according to an average of secondary sources that includes Argus . By James Keates Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
TMX oil specs inappropriate: Valero, Chevron
TMX oil specs inappropriate: Valero, Chevron
Calgary, 13 May (Argus) — Crude quality specifications on the Trans Mountain Expansion (TMX) pipeline in western Canada are not narrow enough and may prevent buyers in California from taking crude shipped on the recently commissioned system, according to two US refiners. The 590,000 b/d TMX pipeline was placed into service on 1 May, a welcome addition for both producers in Alberta and refiners on the Pacific rim, but the upper limits allowed for crude on the line relating to vapor pressure and Total Acid Number (TAN) are problematic, Chevron and Valero said in letters to the Canada Energy Regulator (CER) on 10 May. The specifications, as set out by Trans Mountain's rules and regulations, were already in place for the original 300,000 b/d crude pipeline, or Line 1, which also carries refined products that require a higher vapor pressure. TMX, or Line 2, will primarily cater to heavy crude shippers. But the vapor pressure limit of 103 kPa at 37.8°C on the new line is nearly 40pc higher than tanks allow, according to Valero. "High vapor pressure crude oil simply cannot be accepted in United States internal floating roof tanks," wrote Valero. The current limits are "wholly inappropriate" and will result in crude being transported through TMX that is not suitable for the west coast market. Chevron concurred that the specifications exceed the limit for storage tanks at its own California refineries in Richmond and El Segundo. "Failure to amend the TAN specification and vapor limits for TMPL may prevent Chevron from purchasing or processing crude from [Trans Mountain] for our California refineries," the company wrote. The letters were in support of a 12 April complaint by Canadian Natural Resources (CNRL) to the CER, requesting the regulator intervene. Fellow oil sands producers Suncor, Imperial Oil, MEG Energy and ConocoPhillips also wrote in support, as did industry groups Explorers and Producers Association of Canada (EPAC) and Western States Petroleum Association (WSPA). Current rules state crudes must have a TAN of less than 1.3mg KOH/g to be considered a Low TAN Dilbit, but that is "inappropriately high," according to CNRL, and should be brought down to the same 1.1mg KOH/g threshold set by other export pipelines. Cenovus and Plains Midstream wrote that the CER did not need to intervene as this was a commercial matter. "This is effectively a commercial dispute that should be dealt with between the sophisticated commercial entities involved," said Plains. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Potential strike threatens Vancouver port again
Potential strike threatens Vancouver port again
Calgary, 13 May (Argus) — A labour dispute at the Canadian port of Vancouver could result in another work stoppage, less than a year after a strike disrupted the flow of more than C$10bn ($7.3bn) worth of goods and commodities ranging from canola and potash to coking coal. Negotiations between the British Columbia Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union (ILWU) Ship and Dock Foremen Local 514 union have stalled as the two sides try to renew an agreement that expired on 1 April 2023. A 21-day "cooling-off period" concluded on 10 May, giving the union the right to strike and the employers association the right to lock out the workers. A vote and 72-hour notice would first need to occur before either action is taken. The BCMEA filed a formal complaint to the Canada Industrial Relations Board (CIRB) the same day, which had to step in last year in another dispute. The BCMEA locked horns with ILWU Canada over a separate collective agreement in 2023 leading to a 13-day strike by the union in July. This disrupted the movement of C$10.7bn of goods in and out of Canada, according to the Greater Vancouver Board of Trade. Vancouver's port is the country's largest — about the same size as the next five combined — and describes itself as able to handle the most diversified range of cargo in North America. There are 29 terminals belonging to the Port of Vancouver. Terminals that service container ships endured the most significant congestion during last year's strike. Loadings for potash, sulphur, lumber, wood pellets and pulp, steel-making coal, canola, copper concentrates, zinc and lead concentrate, diesel and renewable diesel liquids and some agri-foods were also disrupted. The Trans Mountain-operated Westridge Marine Terminal responsible for crude oil exports on Canada's west coast was unaffected. A deal was eventually reached on 4 August. The strike spurred on proposed amendments to legislation in Canada that would limit the effect of job action on essential services. A bill introduced in Canada's Parliament in November would update the Canada Labour Code and CIRB Regulations accordingly. The bill has been progressing through the House of Commons, now having completed the second of three readings. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Chevron books Aframax for TMX cargo to California
Chevron books Aframax for TMX cargo to California
Houston, 13 May (Argus) — Chevron provisionally hired an Aframax to haul a cargo of crude from Vancouver, British Columbia, to the US west coast as the Trans Mountain Expansion (TMX) brings more oil to Canada's Pacific coast. Chevron put the Aframax Garibaldi Spirit on subjects for a Vancouver-US west coast voyage loading from 25 May at WS125, market participants said. That rate is equivalent to $11.16/t or $1.63/bl for heavy sour Cold Lake, according to Argus data. The US west coast historically has been the main destination for crude exported from Vancouver, with 96pc, or about 38,500 b/d, landing at ports in Washington and California in the 12 months ended 30 April, according to data from analytics firm Vortexa. Chevron purchased five cargoes from Vancouver for its 269,000 b/d refinery in El Segundo, California, during that span, most recently in February. The 590,000 b/d TMX project began commercial service on 1 May, tripling the capacity of the Trans Mountain pipeline system to 890,000 b/d. The line creates a larger link from Alberta's growing oil sands production to the west coast port of Vancouver and direct access to Pacific Rim markets, where buyers are eager for heavy sour crude . The first TMX cargo, 550,000 bl of Canadian Access Western Blend which Suncor booked on an Aframax in late April , will load between 18-24 May for June delivery in China. PetroChina and Unipec each control an Aframax near Canada's Pacific coast that would be available to load in Vancouver in the second half of May, though those ships could also be relet to deliver crude to the US west coast. The port of Vancouver's distance from many traditional Aframax trading routes may stretch the global fleet once TMX ramps up. The port cannot accommodate tankers larger than Aframaxes. By Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more