Container ship sinks in strait of Hormuz: Update

Market: Crude oil, Oil products
14/10/26

Adds Iranian navy statement

A container ship has sunk in the strait of Hormuz after hitting a mine, the Islamic Revolutionary Guard Corps (IRGC) navy said according to state news agency Irna.

The vessel was earlier identified as the GFS Pride by Pakistan navy's Navarea IX service, which said it was involved in a security incident in Omani waters.

This is the second vessel to sink in the area in two days, after dry bulk carrier Cape Dao, whichhad been drifting since being hit on 23 September.

Attacks on commercial shipping in the strait have escalated in the past few days. Six vessels came under attack on 11 October.

The IEA today said oil exports from the Mideast Gulf through Hormuz increased by 3.7mn b/d on the month to 10.9mn b/d in September, contributing to a sharp rebound in global supply.

By Ben Winkley

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14/10/26

IEA says 96mn bl yet to be released from stocks

London, 14 October (Argus) — Around 96mn bl of oil is yet to be released from stocks under an agreement made by IEA members in March, the agency said today. In its latest Oil Market Report (OMR), the IEA said its members had released 331mn bl of oil by the end of September, with 46mn bl still to be released in Europe, 40mn bl in the Americas and 10mn bl in Asia-Pacific. It did not provide a crude-to-products breakdown. The March stock release was initially announced as 400mn bl, but members planned contributions came in at around 427mn bl. The release was in response to the effective closure of the strait of Hormuz in the immediate aftermath of the US-Israeli attack on Iran. The IEA said today that Japan and Hungary had released more than they had committed under the March announcement. IEA members are now working to expedite the release of the remaining volumes, including a "substantial" diesel release, following an announcement by G7 leaders earlier this month. The IEA's latest intervention has been prompted by a combination of the Iran war and Ukraine's accelerated bombing campaign against Russian refineries in the summer. It said the vast majority of these stocks will be released in the next four months. The IEA's governing board will meet on 15 October "to take stock" of efforts to release more diesel. By Aydin Calik IEA emergency stock releases mn bl Released* To be released Europe 76 46 Americas 132 40 Asia Pacific 123 10 Total 331 96 *Releases as of end-September. source: IEA Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Global oil supply rebounds in September: IEA

14/10/26

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14/10/26

Global oil supply rebounds in September: IEA

London, 14 October (Argus) — Global oil supply sharply rebounded in September, but the gains remain fragile because of increasing attacks on energy targets by Iran and the Yemen-based Houthis, the IEA said today. In its latest Oil Market Report (OMR), the IEA said global oil supply increased by 2.5mn b/d in September from August, driven by higher output and exports from the Mideast Gulf. Exports from the region rose by 4.4mn b/d on the month to 13.9mn b/d, around 75pc of levels seen before the US-Iran war. Flows through the strait of Hormuz increased by 3.7mn b/d to 10.9mn b/d, elevated by ship-to-ship transfers in the Gulf of Oman, the IEA said. Still, the agency downgraded its global oil supply forecast for this year. It now sees supply falling by 5.76mn b/d to 100.65mn b/d, compared with a 5.67mn b/d fall in September's OMR. It sees supply rebounding by 7.67mn b/d to 108.32mn b/d in 2027. The IEA said global refinery runs remained constrained by the effects of the US-Iran war, and by lower runs in Russia and Asia-Pacific. Product flows from the Middle East have risen in recent weeks but remain half of pre-war levels, the agency said. The world is particularly short of diesel, it said. Global diesel availability fell by 1.5mn b/d in the second quarter and by 1.7mn b/d in the third quarter, compared with year-earlier levels, and middle distillate flows are likely to remain constrained well into 2027. The IEA forecasts global oil demand will fall by 2.62mn b/d to 102.38mn b/d this year, lower by 120,000 b/d from its September projection. It sees demand rebounding by 2mn b/d to 104.38mn b/d next year, which is 560,000 b/d below its prior forecast and still below 2025. The IEA's projections imply that even with a sharp fall in demand the global oil market will be in a supply deficit of 1.73mn b/d this year. It said global observed oil inventories were 509mn bl below pre-war levels at the end of September, with on land stocks at their lowest since at least 2016. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Saudi Aramco administrative building in Dahran attacked

14/10/26

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14/10/26

Saudi Aramco administrative building in Dahran attacked

Singapore, 14 October (Argus) — An administrative building in Dahran, Saudi Arabia belonging to state-controlled Saudi Aramco was targeted on the evening of 13 October, leading to a fire. The relevant authorities have responded to the incident and taken the necessary measures, and there have been no injuries or fatalities, the Saudi energy ministry said in a post on X, without disclosing further details. This comes shortly after the Saudi-led military coalition conducted air strikes on oil storage and distribution sites in Yemen. State-owned Yemen Petroleum's al-Sabaha central station, about 10km west of the capital Sana'a, and its Ras Isa facility at the port of Hodeidah were attacked, and two people died at the latter location, according to Houthi-run Al Masirah TV. The Saudi-led coalition had identified a number of sites where civilian infrastructure was being used for Houthi military operations, including the central fuel station in Sana'a and facilities designated for transporting and distributing fuel in Hodeidah, according to a coalition statement posted by spokesman Turki al-Maliki on X. The coalition's operation focused on neutralising Houthi capabilities used to threaten Saudi Arabia, Yemen, the southern Red Sea, and maritime routes, the statement said. The Houthis initially responded by threatening a "harsh and painful" retaliation in Riyadh if Sana'a was attacked. They later warned workers to stay away from Saudi state-controlled Aramco sites and other oil facilities in Saudi Arabia because they could be targeted. The group also renewed earlier warnings to airlines, passengers and airport workers. The latest attack comes after strikes on Riyadh's King Khalid International Airport over the weekend that killed at least 14 people. The Houthis have previously targeted Saudi oil facilities. They claimed attacks on Aramco's Shedgum and Tanajib gas plants at the weekend, but this has not been independently verified and Aramco has not confirmed them. The front-month December Ice Brent contract was at $106.95/bl at 11:00 Singapore time (03:00 GMT), up by 1.2pc from the close on 13 October. The November Nymex WTI contract was at $95.30/bl, also rising by 1.2pc from its close on 13 October. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US declines to weigh in on Citgo sale

13/10/26

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13/10/26

US declines to weigh in on Citgo sale

Houston, 13 October (Argus) — The US administration has declined to provide a federal appeals court with its view of refiner Citgo's pending sale, according to a court filing today. The US "has no views to express at this time concerning this litigation," the Department of Justice said Tuesday in a filing to the US Court of Appeals for the Third Circuit. The filing was in response to a third request from the court for the US to weigh in on the case. Citgo's three US refineries, as well as its lubricant plants and midstream and retail assets, are being auctioned off to satisfy debt defaults and expropriations owed by Venezuela's state-owned PdV Holdings, the parent company of Citgo. A US federal judge in November affirmed the winning $5.9bn bid from Amber Energy, an affiliate of New York hedge fund Elliott Investment Management. Amber's bid included a separate agreement to settle litigation claims with 75pc of a group of PdV bondholders for $2.13bn. The government of Venezuela and other parties filed appeals in the case. Lawyers representing Venezuela earlier this month asked the court to pause their appeal, arguing that the case might become moot because of new diplomatic ties between the two countries after the US recognition of interim president Delcy Rodriguez's government in March. The fate of Citgo has been murky since the US ousted former president Nicolas Maduro on 3 January and subsequently lifted sanctions on Venezuela's oil exports. Although the US recognizes the Rodriguez-led government, Washington has yet to allow Caracas-based PdV to reassert control over Citgo. The US Treasury Department on 14 September updated a general license that in January set out conditions for PdV's oil sales and business transactions with the US and other companies to include an explicit prohibition against changing the governing structure of Citgo and its parent companies PdV Holding and Citgo Holding. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US, Delek to expand Texas refinery: Vance

13/10/26

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13/10/26

US, Delek to expand Texas refinery: Vance

Houston, 13 October (Argus) — The US administration will use a Korean War-era defense law to help Delek expand its 74,000 b/d Tyler refinery in Texas, US vice president JD Vance said today as the White House tries to rein in soaring fuel prices. The US wants "millions of gallons" of commercial-grade and military-specification fuel to come out of the refinery "in addition to what it's already producing", Vance said in a campaign event for Texas attorney general Ken Paxton, who is in a tight race for a US Senate seat. Vance did not give specifics on the size of the refinery expansion or a timeline for the project. The White House did not immediately respond to a request for more information. The announcement comes as President Donald Trump seeks ways to reduce pump prices, including record-high retail diesel values , that have soared because of global supply shortages caused by the US-Iran war and Ukrainian attacks on Russian refineries. US refiners, who have helped fill the gap in global supply, reported bumper profits in the second quarter with margins doubling from a year earlier. More recently, the US Gulf coast 3-2-1 West Texas Intermediate crude sweet crack spread, a measurement of refining margins, averaged a record high $71.96/bl in the week ended 8 October. Secretary of energy Chris Wright said last month that the US was talking regularly to refiners and seeking to help them expand throughput and "maybe" use funds available through the 1950 Defense Production Act. The law gives the president special powers to require domestic industries to prioritize certain activities related to national defense, such as production of military equipment, or as during the Covid-19 pandemic to produce medical equipment. In March, Trump used the law for the first time to force the restart of a pipeline in California, which allowed US independent Sable Offshore to start sales of crude in that region. Trump also signed five "presidential determinations" earlier this year that invoked the Defense Production Act to support the development of oil production, pipelines, refineries, LNG export terminals, coal-fired power plants and other energy infrastructure. The determinations allow the administration to tap a $1bn fund that the Republican-led US Congress created through a tax and energy law Trump signed last year. The Tyler refinery produces gasoline, distillates, petroleum coke and LPG. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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