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Crew abandon vessel after Red Sea attack: Update

  • Market: Crude oil
  • 19/02/24

Adds Houthi comments paragraphs 3-5, 8

A ship was attacked 35 miles (56km) south of Mokha, Yemen on 18 February, forcing the crew to abandon the vessel, the UK Maritime Trade Operations (UKMTO) said.

The vessel was damaged by a nearby explosion at around 20:00 GMT, the vessel master reported. The crew have abandoned the ship and are safe, while military authorities remain on the scene to provide assistance, the UKMTO said.

The UKMTO did not identify the vessel involved. But the military spokesman of Yemen's Houthi militants Yahya Saree identified the vessel as the Rubymar, which he said the Houthis targeted "with a number of appropriate naval missiles."

"The ship suffered catastrophic damage and came to a complete halt," Saree said on 19 February. "As a result of the extensive damage that the ship suffered it is now at risk of… sinking in the Gulf of Aden. During the operation we made sure that the ship's crew exited safely."

The Rubymar is a Belize-flagged bulk carrier that was travelling from the Saudi port of Ras al-Khair in the Mideast Gulf to the Bulgarian Black Sea port of Varna, according to vessel tracking service FleetMon, which also showed that the vessel had "armed guards on board."

US Central Command said on 18 February that it had carried out five strikes on areas of Yemen controlled by the Houthi militant group, including on an unmanned underwater vessel. This was after US forces struck more targets in Yemen during strikes over 16-17 February, following an attack on the Pollux Long Range 2 tanker in the Red Sea on 16 February. The Pollux was carrying Russian crude to India, according to Vortexa data.

But US and UK strikes against Houthi militants will not remove the threat against maritime navigation through the Red Sea, said the head of Yemen's Saudi-backed presidential council Rashad al-Alimi at the Munich Security Conference on 17 February. Partnership with his government to restore the state and retake Houthi-controlled areas will ensure regional security, he said.

Houthi forces "will not hesitate to take more military measures and carry out more qualitative operations against all hostile targets", Saree added, to defend Yemen and support Palestinians coming under bombardment by the Israeli military in its campaign against the Gaza-based Hamas militant group that carried out a cross-border attack on Israel on 7 October. "The operations… in the Red and Arab Seas will not stop until the aggression stops and the siege on Gaza is lifted," Saree said.

At 04:00 GMT the Ice front-month April Brent crude contract was at $82.88/bl, lower by 59¢/bl from its settlement on 16 February when the contract ended 61¢/bl higher.

The Nymex front-month March crude contract was at $78.78/bl, down by 41¢/bl from its settlement on 16 February when the contract ended $1.16/bl higher.


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12/11/24

Cop: Negotiators positive on remaining Article 6 talks

Cop: Negotiators positive on remaining Article 6 talks

Baku, 12 November (Argus) — Negotiators have a "positive attitude" towards outstanding talks on Article 6 of the Paris Agreement taking place at the UN Cop 29 climate conference in Baku, Azerbaijan, bolstered by the finalisation of crediting mechanism standards yesterday. The adoption of two key Article 6.4 standards on Monday night kicks off remaining talks on a very positive note, Switzerland's lead negotiator on international carbon markets under Article 6, Simon Fellermeyer, said. The approval has set the mood for remaining negotiations, lead Article 6 negotiator for New Zealand Jacqui Ruesga added. Article 6 of the Paris accord aims to help set rules on global carbon trade. Negotiators have already seen a more constructive attitude to discussions since the failed talks at Cop 28 in Dubai last December, Ruesga said. This was spurred on by disappointment at the lack of outcome last year, and supported by a number of informal meetings organised in the lead-up to June's Bonn climate conference, as well as increasing direction from heads of delegation on the subject. Divergence persists on some issues, but negotiators still have this positive attitude, Ruesga said. Different sides have also begun communicating the reasons behind their positions more clearly, Article 6 negotiator for Colombia Adriana Gutierrez added, which she hopes will help bring a result this year. Outstanding questions include how to deal with reporting inconsistencies and credit authorisations. Countries also still disagree on the question of whether Article 6.2's international registry should be capable of holding internationally transferable mitigation outcome (Itmo) units, or simply provide an accounting function. But talks on this point are progressing along the lines of deciding which potential functions of the registry could be integrated or dropped in the view of opposing sides, Ruesga said. The first ever Itmo transfer, which took place between Switzerland and Thailand earlier this year , would have been much easier through such a registry, Fellermeyer said. Gutierrez expects most remaining topics to be concluded ahead of Cop 30 in Belem, Brazil, next year. But some smaller, more technical elements are "bound to stick through" to the next summit, Ruesga said. There is not much appetite to reopen most elements for discussion next year, Fellermeyer said, meaning it could be that they are either concluded in Baku or left in a state of "constructive ambiguity". Agreement in Baku on the remaining Article 6 elements is important to give confidence to potential participants, Fellermeyer said, having encountered parties who declined to cooperate through the mechanism owing to a lack of visibility on the rules. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: UK sets ambitious 2035 climate target


12/11/24
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12/11/24

Cop: UK sets ambitious 2035 climate target

London, 12 November (Argus) — The UK government has set a target to cut all greenhouse gas (GHG) emissions by at least 81pc by 2035, from a 1990 baseline, the country's prime minister Keir Starmer said today at the UN Cop 29 climate summit in Baku, Azerbaijan. The target, which will form the basis of the UK's next national climate plan, is in line with recent recommendations from the independent advisory Climate Change Committee . Energy minister Ed Miliband sought the committee's guidance shortly after the Labour government was elected in July. Starmer urged all countries to come forward with new national climate plans — known as nationally determined contributions (NDCs) — at Cop 29. Details of the UK's new NDC are not yet clear, but Starmer said his government is "fully committed" to its pledge of zero-emissions power by 2030. He also repeated his promise for a "government that trod lightly on people's lives". "The UK is stepping up as a climate frontrunner at a time when such leadership is critically needed, co-founder of think-tank E3G Nick Mabey said. "We hope to see detailed implementation plans — ideally with sectoral commitments and a supporting investment roadmap — to lend credibility to its submission." The energy transition "is a huge opportunity", Starmer said, pointing to global appetite for renewables investment. And he noted the "advantage of being a first mover". The country's Labour government, elected in July, has diverged substantially from the previous administration on climate issues. The UK government today announced a "clean industry bonus" — a provisional £27mn ($34.6mn) per GW of offshore wind, to incentivise offshore wind developers to invest in industrial areas, many of which are rooted in the oil and gas industry. This will boost "green jobs" and support sustainable industry, the government said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Carbon credit standards key step, work continues


12/11/24
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12/11/24

Cop: Carbon credit standards key step, work continues

Baku, 12 November (Argus) — The adoption of new standards for creating carbon credits under the Paris Agreement on the first day of the UN Cop 29 climate summit yesterday is a key step, but work continues on Article 6. Cop parties agreed yesterday on standards that will cover credits for greenhouse gas (GHG) emissions removals under Article 6.4 of the Paris accord. The new standards set requirements for developing and assessing projects and establish rules covering carbon removal projects. Article 6 of the Paris accord aims to help set rules on global carbon trade. Cop 29 lead negotiator Yalchin Rafiyev said the decision is a critical step towards concluding Article 6 negotiations. "This will be a game-changing tool to direct resources to the developing world and help us save up to $250bn/yr when implementing our climate plans," Rafiyev reiterated. "[The] centralised UN mechanism for markets looks at the projects that are not financially feasible currently and how it can help in providing some stream of revenue," chair for the supervisory body Maria al-Jishi said. UN climate body UNFCCC chief Simon Stiell said that yesterday's breakthrough was a good start but pointed out that this was "the product of over 10 years of work within the process" and that more work remains to be done. Cop parties must reach a deal on other aspects of implementing 6.4 and 6.2, which together govern how countries can use carbon credits to meet their GHG emissions-reduction pledges, known as nationally determined contributions (NDCs). Remaining issues include the nature of credit registries, the guidance for inclusion of removals and a solution for dealing with reporting inconsistencies and credit authorisations. Overlapping articles 6.4 and 6.2 elements are still under discussion and will require a decision at Cop 29, including on how governments and host parties choose to interact with 6.4 on credit authorisation and how national credit registries can interact with the 6.4 registry, al-Jishi said. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Azerbaijan president criticises ‘petrostate’ label


12/11/24
News
12/11/24

Cop: Azerbaijan president criticises ‘petrostate’ label

Edinburgh, 12 November (Argus) — Azeri president Ilham Aliyev remonstrated a room packed with world leaders at the UN Cop 29 summit in Baku about calling his country a "petrostate", given its small share of global oil and gas production. He said that it was "not fair" to label Azerbaijan a "petrostate", adding that it might have been "acceptable" when the country produced more than half of global oil output in the 19th century. He said the country accounts for 0.7pc of global oil production and 0.9pc of global gas production today. He also said that Azerbaijan's share of global greenhouse gas emissions is only 0.1pc. Azerbaijan's oil output reached 480,000 b/d in October. "Right after Azerbaijan was elected as a host country of Cop 29 we became a target of co-ordinated, well-orchestrated campaign of slander and blackmail," he said. The Azeri president reiterated that oil and gas is a "gift of god" and that countries rich in natural resources should not be blamed for bringing them to the markets as they are needed. He pointed out again that eight of the 10 countries that are supplied with Azeri gas are in Europe and that the EU asked Azerbaijan to double its gas supply to the bloc by 2027. Natural gas output in Azerbaijan reached a new high of 132mn m³/d in 2023, and the country aims to increase it further. Upping exports to the EU to 20bn m³/yr by 2027, from the current 12bn m³/yr, has been a key government commitment since 2022, when Europe was desperate for alternative gas suppliers. The UAE, Azerbaijan and Brazil — the Cop presidencies Troika — face scrutiny for pushing for increased global climate ambitions, but at the same time seemingly avoiding the question of fossil fuels in relation to their own new climate targets. The Troika countries look at fossil fuels through the lens of their own national circumstances — with their economies being heavily reliant on them. Azerbaijan's increasing gas exports spurred an economic boom, with GDP increasing tenfold over 2003-13. "As a president of Cop 29, I will be a strong advocate for the green transition, but at the same time we must be realistic," he said. He listed green projects in Azerbaijan, either in the pipeline or already operating, including an agreement to be signed at Cop 29 with BP to build a 240MW solar power station. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Opec trims oil demand growth forecasts again


12/11/24
News
12/11/24

Opec trims oil demand growth forecasts again

London, 12 November (Argus) — Opec has cut its global oil demand growth forecasts for 2024 and 2025 for a fourth month in a row, citing China as the main reason. In its Monthly Oil Market Report (MOMR) today the producer group revised down its 2024 demand growth projection by 110,000 b/d to 1.82mn b/d. It cut its demand growth forecast for China to 450,000 b/d in 2024, from 580,000 b/d in last month's MOMR. Opec's global oil demand growth forecast for 2024 is now 430,000 b/d lower than the 2.25mn b/d it had long projected until it made its first downward revision for 2024 in August. But its demand forecasts are still much higher than many others. The IEA's latest oil demand projection for 2024 is 860,000 b/d, while the EIA's 920,000 b/d. For 2025, Opec downgraded its demand growth forecast by 100,000 b/d to 1.54mn b/d, again mainly due to China. This is 310,000 b/d lower than its long-held 1.85mn b/d growth projection for next year, which it also first downgraded in August. On the supply side, the group kept its non-Opec+ liquids growth estimate for 2024 and 2025 unchanged at 1.23mn b/d and 1.11mn b/d, respectively. Opec+ crude production — including Mexico — increased by 215,000 b/d to 40.34mn b/d in October, according to an average of secondary sources that includes Argus . This is about 2.36mn b/d below Opec's projected call on Opec+ crude for this year, which is 42.7mn b/d. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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