Germany's Miro CDU outage tightens products supply

Market: LPG, Oil products
21/01/25

Production at the Miro joint venture's 310,000 b/d Karlsruhe refinery has been restricted by a failure today at a crude distillation unit (CDU).

A supplier expects this to result in a multi-week reduction in spot supply from the refinery.

The shutdown of a production line at the plant, which is located on the Rhine river in southwest Germany, has led to an estimated 30pc reduction in products output. At least one supplier has fully suspended spot offerings for heating oil and road fuels.

Trains and barges that were planned for transporting from the refinery have been canceled, although pick up of contracted volumes is unaffected.

Sources said the facility should be back in operation in the coming weeks. Miro did not respond to a request for comment.

Production in southern Germany is already constrained after a fire shut the Neustadt section of the Bayernoil consortium's 215,000 b/d Vohburg-Neustadt refinery.

By Marcel Pott

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13/06/25

Iran suggests upcoming nuclear talks with US are off

Dubai, 13 June (Argus) — Nuclear negotiations between Iran and the US scheduled for Sunday, 15 June, appear to be off following the Israeli air and missile strikes on Iran in the early hours of today. The talks were formally confirmed by mediators Oman on 12 June as taking place in the Omani capital, Muscat. With the mood around the negotiations having taken a turn for the worse this past week, the new round would provide an opportunity for the sides to re-establish their demands, and re-evaluate progress. The key outstanding issue is Iran's ability to enrich uranium, and thus, retain a theoretical path to nuclear weapons. Tehran insists it should be allowed to retain its civilian nuclear enrichment program to supply fuel to nuclear power plants, while US administration officials now appear bent on allowing zero enrichment. The Israeli attacks , which came against US President Donald Trump's advice, appear to have thrown a wrench into the US' efforts to engage Iran diplomatically. Speaking on state television today, Iranian parliament's national security and foreign policy committee member Alaeddin Boroujerdi said the attacks on Iran meant the talks with the US now cannot take place. "With respect to the talks, which we entered at America's request… we were on the verge of a sixth round," he said. "But with these latest developments, I can't see a sixth round taking place." Iran's foreign ministry, which has been leading the discussions for the Iranian side, has yet to explicitly comment on the status of the talks. Neither has Oman. On the attacks, Tehran's Guardian Council, a powerful supervisory body tasked with overseeing legislation, vowed to "give a crushing and tooth-breaking response to these criminals of history in such a way that it will serve as a less on to the enemies of Islam, and the arrogant powers of the world." Iran sent a barrage of drones towards Israel, which appeared to trigger a second round of Israeli strikes on several cities, including Shiraz in the south, Tabriz in the northwest, and Kermanshah in the west. Trump calls for deal The Trump administration has said it was not involved in the Israeli strikes, and warned Iran not to retaliate against its personnel in the Middle East. But it did appear to have at least advance warning of the imminent attack, after ordering non-essential US personnel in Iraq and Israel to evacuate. Trump today again called on Iranian leaders to "make a deal" or face even more "death and destruction" from the next waves of Israeli attacks. "I gave Iran chance after chance to make a deal… but no matter how hard they tried, no matter how close they got, they just couldn't get it done," Trump said on his Truth Social media platform. "There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacked being even more brutal, come to an end. Iran must make a deal before there is nothing left." By Nader Itayim and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Iran’s oil infrastructure untouched by Israeli strikes

13/06/25

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13/06/25

Iran’s oil infrastructure untouched by Israeli strikes

Dubai, 13 June (Argus) — Iran's oil infrastructure emerged unscathed from Israeli air and missile strikes in the early hours of 13 June, according to Iran's state news agency Irna and Argus sources. But the attacks have raised the prospect of a broader escalation in the world's largest oil-producing region. Israel said the strikes targeted military facilities and infrastructure linked to Iran's nuclear programme. It described the operation as an act of self-defence, claiming Iran is "closer than ever" to acquiring a nuclear weapon. The US denied involvement and urged Tehran not to retaliate against US personnel in the region. Iran informed the International Atomic Energy Agency (IAEA) that its Bushehr nuclear power plant was not targeted and that no increase in radiation levels had been observed at its Natanz site, IAEA director general Rafael Grossi said today. Oil operations remain unaffected. Activities at Iranian facilities are continuing "without interruption and in a stable manner," Irna reported, citing state-owned refiner NIORDC. The operator of Iran's 700,000 b/d Abadan refinery said the plant is running at full capacity with no disruption, according to the state news agency Shana. The 110,000 b/d Tabriz refinery — located near one of the reported strike zones — was not hit and "operations resumed as normal," an official at the plant told Argus . No other Iranian oil or gas facilities have been targeted so far, Argus understands. Crude futures surged in early Asian trading on news of the strikes, rising by as much as 13pc before paring gains. As of 09:00 GMT, the front-month August Ice Brent contract was trading at $74.30/bl, down from an earlier high of $78.50/bl. The absence of physical supply disruption helped ease immediate concerns, but the risk of a wider conflict remains high. In response to the strikes, Iran launched around 100 drones toward Israeli territory. "Israel is working to intercept [the drones]," Israeli military spokesperson Effie Defrin said. Israeli media later reported that all drones were intercepted. The fallout from the strikes has affected regional gas operations. Greek independent Energean suspended production from its Karish gas field offshore Israel following a government order issued after the Israeli attacks. Security concerns in key shipping lanes were already rising ahead of the strikes. On 12 June, the Joint Maritime Information Centre (JMIC) warned that the "threat will be elevated until further notice for vessels operating in or transiting the Arabian Gulf, Strait of Hormuz, and Northern Arabian Sea". Any disruption to the Strait of Hormuz — a chokepoint for nearly a fifth of global oil flows — could have immediate and severe consequences for global crude supply and pricing. The Yemen-based Houthi movement, part of Iran's regional proxy network known as the ‘Axis of Resistance', condemned the Israeli strikes and affirmed "Iran's right to carry out a deterrent response." It declared support for Iran's "legitimate right to respond to the aggression." So far, however, neither the Houthis nor other Iran-aligned groups — including Lebanon's Hezbollah and Shia militias in Iraq — have taken retaliatory action. Israel has significantly weakened the Axis of Resistance since the October 2023 Hamas-led attack, eliminating most of Hamas' leadership and key Hezbollah figures. Israel and Iran also exchanged missile and drone strikes in 2024. By Bachar Halabi, Yong Li Tng and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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European products markets jump on Israel-Iran attacks

13/06/25

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13/06/25

European products markets jump on Israel-Iran attacks

London, 13 June (Argus) — European refined product prices rose sharply in early trading on 13 June as market participants reacted to Israel's overnight air and missile strikes on Iran. At 10:29, non-oxy gasoline barges were assessed 3.5pc higher from the previous close at a volume-weighted average (VWA) of $728/t. Front-month Ice July gasoil futures were trading 6pc higher at $683.75/t. Israel launched the strikes in the early hours of Friday local time , targeting military infrastructure linked to Iran's nuclear programme. Israeli officials described the operation as an act of self-defence, warning that Iran is now closer than ever to acquiring a nuclear weapon. The escalation has raised concerns over potential supply disruptions from the Mideast Gulf, a key source of diesel and jet fuel for Europe. Iran could move to close the Strait of Hormuz — a critical chokepoint for global energy flows — which would halt exports of ultra-low sulphur diesel and jet from regional producers such as Kuwait, the UAE and Saudi Arabia. A naval blockade could also restrict LNG shipments from Qatar, tightening gas supply and raising operating costs for European refiners. Despite the sharp rise in flat prices, some market participants questioned the sustainability of the rally. Front-month gasoil futures had already eased from a peak of $706.50/t reached during Asian trading hours. A Singapore-based middle distillates trader said many participants were stepping back to "watch the market closely". A European diesel trader also expressed doubt over how long the gains would hold. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Freight market on alert after Israeli strikes on Iran

13/06/25

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13/06/25

Freight market on alert after Israeli strikes on Iran

Singapore, 13 June (Argus) — Israeli air and missile strikes on Iran in the early hours of Friday have raised the risk of disruption to shipping in the Mideast Gulf, prompting concerns over rising freight rates, insurance costs and vessel safety. The escalation has heightened tensions in one of the world's most critical oil and shipping corridors, centred on the Strait of Hormuz — a chokepoint for about a fifth of global oil supply. Market participants warn that freight rates could surge if the conflict drags on or if Iran launches a retaliatory strike. The Israeli operation targeted military facilities and infrastructure linked to Iran's nuclear programme, according to Israeli officials, who described the strikes as an act of self-defence. Israel has warned that Iran is closer than ever to acquiring a nuclear weapon. Oil prices surged following the strikes, reflecting concern about possible supply disruptions. At 08:30 GMT, the Ice front-month August Brent contract was at $73.51/bl, up by $4.15/bl from its 12 June settlement. Nymex July WTI was at $72.24/bl, up by $4.20/bl. Earlier in Asian trading, Brent had climbed as high as $78.50/bl and WTI reached $77.62/bl. Freight Market Reacts Ships operating in or transiting the Mideast Gulf and the Strait of Hormuz could face higher costs and delays. "Insurance companies could raise the cost of additional war risk premiums (AWRP) if the conflict continues for a long time," a shipbroker said. Other freight market participants echoed this view. "Mideast Gulf freight rates could spike because owners will avoid going there," another source said, adding that shipowners are likely to err on the side of caution. The extent of the impact will depend on how long the hostilities last and the scale of Iran's retaliation. "The main thing to watch... is how Iran will retaliate. Shipping's stance would highly hinge on the degree of retaliation," a tanker broker said. The situation could also trigger operational disruptions, particularly for cargoes yet to load. "There is a possibility that the latest spat could fall under the force majeure clause, which could allow the cancellation of charters," a broker said. Force majeure clauses in charter parties release both parties from liability when extraordinary events — such as war — prevent contract fulfilment. But it remains unclear whether this incident meets that threshold. Higher oil prices could also push up bunker fuel costs, adding further upward pressure on freight rates, a shipowner said. Freight and energy markets are closely watching for signs of Iranian retaliation, which could worsen supply risks and increase volatility. "That [Zionist] regime should anticipate a severe punishment. By God's grace, the powerful arm of the Islamic Republic's Armed Forces won't let them go unpunished," Iran's Supreme Leader Ayatollah Ali Khamenei said on 13 June on social media platform X. While spot rates and war risk premiums are expected to rise in the short term, most market participants are adopting a wait-and-see approach. "The freight market has not yet reacted and rates in the Mideast Gulf did not jump on Friday, but nobody can predict how the conflict will develop further or how many more black swans there will be," a broker said. By Sureka Elangovan and Sean Lui Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EPA draft biofuel blend mandate expected Friday: Update

12/06/25

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12/06/25

EPA draft biofuel blend mandate expected Friday: Update

Updates with changes throughout New York, 12 June (Argus) — President Donald Trump's administration plans to release draft biofuel blend mandates for 2026 and 2027 on Friday, according to three people familiar with the matter. The draft quotas, in addition to a separate final rule cutting cellulosic biofuel mandates for last year, exited White House interagency review on Wednesday, the last step before major regulations can be released. The Trump administration has meetings with legislative stakeholders on Friday morning ahead of the public release, three people said. Previously scheduled meetings through the end of the month as part of the interagency review process appear to have been cancelled, another signal that the rules' release is imminent. The Environmental Protection Agency (EPA) has said it wants to get the frequently delayed Renewable Fuel Standard program back on its statutory timeline, which would require volumes for 2027 to be finalized before November this year. Any proposal will have to go through the typical public comment process and could be changed. EPA said the rules will be posted on its website once they are signed by Lee Zeldin, the agency's administrator. A coalition of biofuel-producing groups and feedstock suppliers, including the American Petroleum Institute, has pushed EPA to set a biomass-based diesel mandate of 5.25bn USG for 2026, hoping that a record-high target will support biorefineries that have struggled this year. Many plants have idled or run less recently, as uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and tariffs that up feedstock costs all hurt margins. US senator Chuck Grassley (R-Iowa) said Thursday that closed biodiesel plants in his state needed a 5.25bn mandate to reopen. Meanwhile, a coalition of independent and small refiners that have long lamented the costs of the program wrote to EPA this week asking for less-aspirational future mandates, including for the conventional category mostly met by corn ethanol. RIN markets were volatile today, trading higher in the morning before slipping lower on fears the mandates would not meet industry expectations. Current year ethanol D6 RINs traded as high as 99¢/RIN before falling as low as 90¢/RIN. Current year biomass-based diesel D4 RINs ended Thursday at 102.5¢/RIN, equal to their close the prior day. Small refinery exemptions loom Zeldin told a House subcommittee last month the agency wanted "to get caught up as quickly as we can" on a backlog of small refiner requests for program exemptions. Courts took issue with EPA's exemption policy during Trump's first term and again during President Joe Biden's tenure, leaving officials now with dozens of waiver requests covering 10 compliance years still pending. It is unclear whether the rule will provide much clarity on EPA's plans for program waivers, but biofuel groups have worried that widespread exemptions would curb demand for their products. The price of Renewable Identification Number (RIN) credits used for program compliance have been volatile this year on rumors about these exemptions, which EPA has called market manipulation. In both the Trump and Biden administrations, EPA estimated future exempted volumes when calculating the percentage of biofuels individual refiners had to blend, effectively requiring those with obligations to shoulder more of the burden to meet high-level volume targets. The agency could continue that approach, but it would be more legally treacherous for the agency to similarly "reallocate" exempted volumes from past years into future standards, lawyers said. EPA by law also has to consult on exemption decisions with the Department of Energy, which a person familiar said was "still going through the scoring process" for assessing some small refinery applications, making quick resolution of the issue unlikely. Unresolved court cases, including a Supreme Court case about the proper venue for small refinery waiver disputes, could also give regulators pause until they know more. Tax credit clarity expected soon Senate committees this week have been releasing their versions of key parts of the major Republican spending bill, and the Senate Finance Committee is expected to do so soon, potentially as early as Friday according to people familiar. The incentive is crucial for biofuel production margins and thus for the viability of EPA mandates too. The version that passed the House last month would extend the "45Z" clean fuel production credit through 2031, bar regulators from considering indirect land use emissions, and restrict eligibility to fuels from North American feedstocks. While various ideas have circulated this year, lobbyists expect the Senate to preserve the general structure of the credit, which throttles benefits based on carbon intensity, rather than reinvent a new subsidy. Still, some Republicans have expressed concern with the House's phaseout of tax credit "transferability", which benefits smaller companies without much tax liability. And major oil refiners with renewable diesel plants reliant on Asian used cooking oil and South American tallow have lobbied for more flexibility around foreign feedstocks. Any changes that up the credit's costs could be controversial too among conservatives worried about the bill's impacts on a mounting federal budget deficit. And the complex tax credit will ultimately need final regulations from the US Department of Treasury clarifying eligibility. At a Senate hearing Thursday, Treasury secretary Scott Bessent said that the Trump administration planned to implement the credit in a way to "not allow for foreign actors to have a back door into the program." By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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