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Venezuela politician wants continued US pressure

  • Market: Crude oil
  • 26/02/24

Venezuelan opposition politician and would-be presidential candidate Maria Corina Machado is arguing in favor of continued US economic and political pressure to force Venezuelan president Nicolas Maduro to hold an election that he could lose.

Machado, who overwhelmingly won an opposition primary last year to run in a presidential election expected to be held later in 2024, is barred from taking part in the Venezuelan election. The US has made her ability to participate in the contest a key condition for extending temporary sanctions relief for Venezuela's oil sector beyond 18 April.

"We need to make the Maduro regime understand that he has only two options," either comply with the US-endorsed agreement to hold free and fair elections or walking away from that deal and facing "enormous internal pressure and international isolation," Machado said today in a virtual appearance before Washington think tank the Atlantic Council. Machado has recently made a number of virtual appearances at multiple Washington-based events, including before a House of Representatives panel.

Machado would not explicitly support the snapback of US sanctions and suggested, without providing details, that there may be other ways to economically pressure the Maduro government. "It is time for the international actors that have been supporting the Barbados agreement to make Maduro understand" that he could not break an agreement with the opposition without consequences, Machado said.

Machado also swatted away suggestions that she could step aside as the main opposition candidate in favor of a candidate cleared to run by the government. "The regime at this moment will only accept someone that they know in advance, without doubt, that they will defeat," she said.

The opposition has complained that the Maduro government has partially violated terms of the agreement reached in Barbados in October to partially lift US sanctions by continuing the ban on Machado and by an intense anti-opposition crackdown that began four weeks ago. The government is trying to walk away from the agreement because it realized that "it has totally lost its social base," according to Machado.

But Machado insisted that it is still possible to compel Maduro to hold an open election which he could lose and step down. The key is to make Maduro and his close advisers "understand that the situation is unsustainable if he goes through this path of absolute repression and discharging all the agreements signed so far, and at the same time that if he doesn't, then there will be a path with lower costs."

Other observers do not see a fair election as a possibility under Maduro.

"It is my personal opinion that Maduro will never comply with any agreement that would lead to his involuntary departure from power," former US ambassador to Venezuela William Brownfield said during a recent panel discussion hosted by Washington, DC-based think-tank the Wilson Center. Maduro will postpone any planned election if he is unable to control the outcome, Brownfield said.

The US administration's decision to temporary lift Venezuela sanctions "was not built on some kind of enduring faith in the implementation of the agreement — it was built on verification," White House national security adviser Jake Sullivan said earlier this month.

When the 18 April deadline expires, "we will see, at that point, where we are with respect to the Maduro regime following through on its commitments, and then we'll make our determinations about how we proceed from there," Sullivan said.


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14/07/25

Mexico to negotiate Trump’s tariffs: Sheinbaum

Mexico to negotiate Trump’s tariffs: Sheinbaum

Mexico City, 14 July (Argus) — Mexico believes it can reach a deal with US president Donald Trump after he said he would impose 30pc tariffs on goods imported from Mexico beginning on 1 August. Over the weekend Trump made public on his social media platform a letter sent to Mexican president Claudia Sheinbaum on Friday, threatening the new tariffs. The move could significantly disrupt crude flows from Mexico to the US, and refined product flows from the US to Mexico. Mexico's ministries of the economy, foreign affairs, finance, security and energy said in a statement Saturday that they met with their US counterparts on Friday to begin negotiations to head off the new tariffs before 1 August. The Mexican ministries called the new tariff plan "unfair treatment." With the working group— created by the US State Department — leading the talks, Sheinbaum said today she trusts a deal can be made before 1 August. It is not clear if the 30pc tariff threat applies to trade currently covered by the US-Mexico-Canada trade agreement (USMCA). A White House official said previously that a 35pc tariff against Canada would not include USMCA-covered trade, but that those terms could change. Mexico also has a plan should no deal be reached, Sheinbaum said, without specifying details. When previously threatened with tariffs, Sheinbaum discussed plans to bolster Mexico's economy to become more resilient in the face of disrupted trade with its top trade partner, as well as unspecified retaliatory tariffs. But Trump vowed to raise the tariffs even higher if Mexico was to retaliate with its own measures. In his initial letter to Sheinbaum, Trump repeated previous justifications for higher tariffs by pointing to Mexico's "failure" to stop criminal groups from smuggling fentanyl into the US. Trump recognized that Mexico is working on the issue but does not consider these efforts fruitful: "Mexico has been helping me secure the border, BUT, what Mexico has done is not enough," Trump wrote. Trump sent a similar letter threatening tariffs on Friday to European Commission president Ursula von der Leyen. The US has clinched only one limited trade deal, which keeps in place a 10pc tariff on US imports from the UK while granting a lower-tariff import quota for UK-made cars. Trump has announced a deal with Vietnam, setting tariffs at 20pc. By Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Canada vows to cut red tape to woo energy firms


14/07/25
News
14/07/25

Canada vows to cut red tape to woo energy firms

Calgary, 14 July (Argus) — Canada's federal government is courting energy companies with the passage of a new law designed to fast-track major projects, but some developers might have reservations after a decade of frustration under Liberal party rule. Prime minister Mark Carney has pushed Bill C-5 through parliament to spark investment and project development by promising faster approval times while circumventing onerous rules made by previous Liberal-led governments. Oil and gas firms see this as a positive step, but with the law comes familiar ambiguity. To be considered for the new "national interest projects" list, a project should strengthen Canada's autonomy, provide economic benefits, have a high likelihood of completion, be in the interests of indigenous groups and contribute to meeting Canada's climate change objectives. How well a project satisfies these requirements will be at the discretion of Carney's cabinet and requires a leap of faith for supporters and opponents to trust the new process. Developers can expect a tighter two-year time limit for a federal decision, but how quickly the government navigates indigenous and environmental aspects remains to be seen. Such a consultation was seen as crucial under former prime minister Justin Trudeau, and Carney plans to strike a balance between these aspects and economic development. "Bill C-5 doesn't reform Canada's burdensome regulatory system, which is preventing needed investment," think-tank the Fraser Institute says. "It simply lets politicians decide who gets around it." Some indigenous and environmental groups fear that their concerns about potential projects might be played down under the new fast-track process. Such groups were critical of the legislation, not only because of its implications, but because the bill was fast-tracked, meaning debate and study were truncated. Steel of a deal Oil-rich Alberta's premier, Danielle Smith, and counterparts from other provinces are letting Carney's plan play out — for now. "You can only talk the talk for so long before you start putting some real action around it," Smith says, adding that she wants Alberta's projects on Carney's fast-track list by the autumn. Projects to move energy flows to Canada's east are once again being contemplated, with Smith signing an initial agreement last week with Doug Ford, premier of Ontario, which has been feeling the force of US tariff action. The two leaders will study more oil and gas pipelines between the two provinces built using Ontario steel — a prospect not possible under Trudeau. "Carney is no Justin Trudeau," Ford says, adding that Carney, unlike his predecessor, is bringing "the business approach to the federal government". Free enterprise is Alberta's forte, with TD Economics projecting the province to be a key economy for energy growth in 2025-26. An estimated C$17bn ($12bn) will be invested in oil sands in 2027, up by 28pc from 2024, the Alberta Energy Regulator says. Smith hopes to maintain strong capital inflow by securing more pipeline options, having set a goal of doubling Alberta's oil output from 4mn b/d in 2024. An economic revival seems poised to unfold across Canada, with a proposed LNG export project in Baie-Comeau, Quebec, unveiled this month, just days after LNG Canada's 14mn t/yr west coast facility loaded its first cargo. Quebec premier Francois Legault confirmed his team has discussed the Baie-Comeau project with developers. Federal energy minister Tim Hodgson suggested last week that itcould be considered for the national interest list if Quebec and the developers brought it forward. The scheme is a notable departure for Quebec, which — along with the federal government — cancelled a proposed LNG project in Saguenay in 2021 for environmental reasons. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump threatens Mexico, EU with 30pc tariffs


12/07/25
News
12/07/25

Trump threatens Mexico, EU with 30pc tariffs

Washington, 12 July (Argus) — President Donald Trump on Saturday said the US will impose 30pc tariffs on goods imported from Mexico and the EU beginning on 1 August. In a move that could significantly disrupt crude, refined product and other commodity flows, Trump made public on his social media platform letters sent to Mexican president Claudia Sheinbaum and European Commission president Ursula von der Leyen on Friday threatening the new tariffs. Trump also vowed to raise the tariffs even higher if Mexico or the EU were to retaliate with their own measures. The threats follow similar letters sent to leaders of other countries this past week, including a 35pc tariff on Canadian imports , likewise starting on 1 August, and a 50pc tariff on Brazilian imports . In his letter to Sheinbaum, Trump repeated previous justifications for higher tariffs by pointing to "Mexico's failure to stop the Cartels" smuggling fentanyl into the US. "Mexico has been helping me secure the border, BUT, what Mexico has done is not enough," Trump wrote. "If for any reason you decide to raise your Tariffs, then whatever the number you choose to raise them by, will be added onto the 30pc that we charge," Trump wrote to Sheinbaum. His letter to von der Leyen included similar language. Trump's previous executive orders regarding tariffs on Mexico and Canada carved out exemptions for goods compliant with the US-Mexico-Canada free trade agreement. A White House official on Friday, following Trump's 10 July Canadian tariff announcement, said the exemption will remain in place, with a caveat that Trump has yet to determine the final form of application. Regarding the EU, Trump argued the 30pc figure "is far less than what is needed to eliminate the Trade Deficit disparity we have with the EU". Mexico's ministries of the economy, foreign affairs, finance, security and energy said in a statement Saturday that they met with their US counterparts on Friday to begin negotiations to head off the new tariffs before 1 August. "We stated at the meeting that [the new tariff plan] was unfair treatment and that we disagreed." After receipt of the new tariff letter, von der Leyen said Trump's tariffs "would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic". The US has clinched only one limited trade deal, which keeps in place a 10pc tariff on US imports from the UK while granting a lower-tariff import quota for UK-made cars. Trump has announced a deal with Vietnam, setting tariffs at 20pc. By David Ivanovich Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US to loan 1mn bls crude to Louisiana refinery: Update


11/07/25
News
11/07/25

US to loan 1mn bls crude to Louisiana refinery: Update

Adds details on crude quality issues from Mars pipeline. Washington, 11 July (Argus) — ExxonMobil will borrow up to 1mn bl of crude from the US Strategic Petroleum Reserve (SPR) for its 522,500 b/d refinery in Baton Rouge, Louisiana, in response to a disruption to offshore supply of crude for the facility. ExxonMobil warned suppliers last week of "serious quality issues" related to elevated levels of zinc in crude supplied by the Mars pipeline, which brings crude from a series of deepwater fields in the Gulf of Mexico to shore, according to market sources. In letters to suppliers ExxonMobil said the crude quality issues were "... significantly affecting the operations at our Baton Rouge Refinery," and that it would stop accepting Mars crude "... in an effort to avoid further damages." The US Department of Energy said today it had approved the loan to ExxonMobil, called an exchange, to ensure a stable supply of transportation fuels in Louisiana and the US Gulf coast. The agency said the crude loan will support ExxonMobil's "restoration of refinery operations that were reduced due to an offshore supply disruption." Chevron, one of the producers that contributes crude to the Mars pipeline, said it has "identified a potential contributing source to the Mars crude composition changes, which is associated with the start-up of a new well." Chevron said it was working to resolve the matter and does not expect it to affect current production guidance. In April Chevron started production from a new deepwater field , Ballymore, which ties into the Mars system. Shell, which owns a majority stake in the Mars pipeline, did not respond to a request for comment. Mars premium to WTI falls The August Mars premium to Nymex-quality WTI has dropped nearly $1/bl in the last week. The August Argus Mars volume-weighted average assessment on Thursday was a 9¢/bl premium to the Nymex-quality WTI Cushing benchmark, nearly $1/bl lower than a week earlier. Mars averaged a 63¢/bl premium for the August trade month through Thursday, but was at a $1.40-$1.50/bl premium at the start of the trade month. The August trade month started 26 June and ends 25 July. The SPR, which consists of four underground storage sites in Texas and Louisiana, held 403mn bl of crude as of 4 July. Under the exchange announced today ExxonMobil will eventually return the borrowed crude — along with additional crude as payment for the loan — to the SPR. The SPR's Bayou Choctaw site connects to refineries in Baton Rouge through the Capline pipeline. In 2021, the Department of Energy authorized a loan of up to 3mn bl from the SPR to ExxonMobil's refinery in Baton Rouge to address disruptions related to Hurricane Ida. ExxonMobil was initially scheduled to return the crude in 2022, but that deadline has been repeatedly pushed back, most recently to require a return of the crude by March 2026. By Chris Knight, Eunice Bridges and Amanda Smith Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil advances oil, gas decarbonization strategy


11/07/25
News
11/07/25

Brazil advances oil, gas decarbonization strategy

Sao Paulo, 11 July (Argus) — Brazil is implementing a roadmap to increase crude output without boosting net emissions from the sector, a key argument for its claim to leadership on climate issues ahead of the Cop 30 UN summit. Although Brazil does not plan to phase out fossil fuel use, it is working to reach net zero emissions by 2050, and slashing greenhouse gases from its hydrocarbons production is part of this strategy. Brazil's oil industry already has a carbon footprint at 14.88kg CO2 equivalent (C02e)/bl of oil equivalent (boe), which is well below the global average of 20kg CO2e/boe, according to the hydrocarbons regulator ANP. But with oil and gas production slated to increase steadily over the next decade, Brazil's government and producers are eyeing a range of options to further slash emissions. "Brazil can double oil output without increasing net emissions by employing existing technologies," Heloisa Borges, the director of oil, gas and biofuels at the government energy planning and research agency (Epe) said. As part of these efforts, the government called on Epe, ANP and state-owned company Pre-Sal Petroleo to present a roadmap to decarbonize the sector. The plan presented in late June outlines options including adopting new technologies and expanding existing emissions reductions techniques, such as leak detection and reducing flaring. "Expanding methane capture not only reduces emissions, but it allows companies to use this gas to substitute other fuels, such as diesel in their operations," Borges said. Other fuel substitution operations include using natural gas as fuel for drilling rigs and electrification of production operations, the study said. State-controlled Petrobras is already advancing its decarbonization strategy. The company's most recent five-year plan earmarks R5.3bn ($950mn) for emissions reductions in its operations as well as $1bn for research and development of new technologies. Carbon capture, utilization and storage (CCUS) is a key element, according to Lilian Melo, executive director of the Petrobras' research, development and innovation center Cenpes. The company uses high-pressure separation technology to remove CO2 from oil at the mouth of a reservoir and inject it back into the reservoir after the fluids are separated. This technology significantly reduces emissions, especially because crude produced from pre-salt blocks has high CO2 content, Melo said. The CCUS is used on 23 of Petrobras' offshore platforms in the pre-salt. Petrobras is also working to expand electrification of its on and offshore platforms. Power generation is responsible for 65pc of Petrobras' production-related emissions, according to Melo. The company announced this week a contract with Hitachi Energy to assess electrification of its offshore oil operations. Catch and keep Other oil producers are working to reduce the carbon footprint of their operations, including Eneva, which is also weighing investments in carbon capture and storage. The company is conducting a preliminary study to assess the technical viability of injecting CO2 into fields in the Parnaiba basin in Maranhao state. The Gaviao Real field has been operating for more than 10 years and is expected to become depleted in coming years, when it could potentially be converted to store CO2. Eneva is also weighing investments in carbon storage in the Parana basin, where the company has four exploratory blocks. Preliminary seismic data indicates that these blocks also have salt caverns and the company believes that there is significant potential to offer carbon storage to ethanol mills in areas adjacent to the blocks. Despite Brazil's ambitious emissions reduction plan, it has no intention of pulling back on exploration and production. With few exceptions, the Brazilian government is aligned on developing oil and gas reserves to boost economic growth and energy security and holds that the aim does not hurt its role in climate leadership. Brazil's energy sector GHG emissions mn t CO2e Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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