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Houthis claim Saudi airspace unsafe: Update
Houthis claim Saudi airspace unsafe: Update
Updates with details throughout London, 5 October (Argus) — Yemen's Houthis on Monday threatened to target all civilian flights using Saudi Arabia's airspace, after the militant group appeared to be losing ground in the latest bout of fighting of the country's civil war. In a social media post the Houthi military headquarters claimed that it carried out an attack on the King Khalid airport in Riyadh and other civilian airports in Saudi Arabia and that, further, it attacked Saudi Aramco's Rabigh refinery on the Red Sea coast. There has been no independent confirmation of those claims. The warning follows a large-scale offensive against the Houthis by Yemen's internationally recognised and Saudi-backed government, which said it had made some gains against the Houthis. The Houthi militants warned "all international airlines using Saudi airspace to cease their flights, as it has become an operations zone for our forces." But Saudi airspace remains open and commercial flights continue to operate as of 20:30 GMT on Monday, according to Flightradar24.com flight-tracking data. Saudi aviation regulator GACA and air navigation provider Sans have announced no operating restrictions. But the European Union Aviation Safety Agency (EASA) last week advised airlines to avoid parts of the Jeddah flight information region in Saudi Arabia because of escalating Houthi missile and drone attacks. Jeddah airport remains open. The US Embassy in Riyadh issued an updated travel advisory on Monday, advising of "the potential for aerial drone or missile attacks on Saudi Arabia". President Donald Trump's administration so far has declined to announce provision of air defense and other military support for Riyadh, despite the Houthis' attacks on the Saudi energy infrastructure. "It'll all work out very well," Trump told reporters at the White House on Monday, about the Saudi-backed offensive against the Houthis. "The US has a defense and security agreement with Saudi Arabia and we intend to live by it," secretary of state Marco Rubio said at a briefing in Washington on Monday, but he added that "I won't discuss details further than that". But Turkey and Pakistan, which signed an informal defense alliance with Saudi Arabia last month, indicated on Monday that they may provide military support for Riyadh. A joint statement by the three countries on Monday pledged to "move immediately" to take "the necessary measures to provide the agreed military forces and resources and ensure their rapid deployment in the Kingdom". By Andrey Telegin and Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Germany weighs maritime GHG loophole closure
Germany weighs maritime GHG loophole closure
Hamburg, 5 October (Argus) — The German ministry for the environment, climate action, nature conservation and nuclear safety (BMUKN) is examining various options for closing the so-called maritime loophole. The market has already reacted, with German renewable fuel tickets generated through the maritime loophole now being priced at wider discounts, reflecting increased concerns over potential invalidation. The ministry confirmed to Argus that it is assessing relevant options. No draft proposal currently exists, nor is there a timetable for a possible amendment. The ministry also pointed out that the federal government is already empowered to exclude renewable energy carriers used outside land-based transport from counting towards the Greenhouse Gas Reduction Quota (GHG quota). This authority was introduced through the Second Act on the Further Development of GHG quota. The legislator justified the measure on the grounds that "negative effects on the GHG quota market" should be prevented where they arise "from the use of renewable energy products outside land-based transport — for example in maritime transport". The existing regulation gap allows renewable fuel tickets to be generated for road fuels that are ultimately used in maritime transport. Under article 52 of Germany's energy tax law (EnergieStG), the volumes are initially taxed voluntarily as road transport fuel, making them eligible for compliance under the GHG quota system pursuant to the Federal Immission Control Act. The energy tax paid can subsequently be reclaimed once the fuel has been used in the maritime sector, while the generated renewable fuel tickets remain valid. Market participants said the regulation gap can be used with various biofuels, although advanced B100 biodiesel and bio-LNG are currently the most relevant. According to market participants, the regulation gap is being utilised by established companies in the fuel sector and by specialist firms whose business model is based on the marketing of such renewable fuel tickets. Market participants said the prospect of regulatory changes is already affecting the valuation of the corresponding renewable fuel tickets. Renewable fuel tickets for the category Other current compliance year that were generated through this mechanism are now being traded at discounts of around €40/tCO2e. Previously, discounts had been around €20/tCO2e. Market participants attributed the widening discount to recent discussions about a possible closure of the regulation gap by the BMUKN and resulting concerns over the potential invalidation of affected volumes. At the same time, several market participants considered the retrospective invalidation of previously transferred or already submitted renewable fuel tickets unlikely. Instead, uncertainty relates primarily to the future eligibility of such volumes should the regulation gap be closed. Some buyers have also introduced contractual provisions, excluding the transfer of renewable fuel tickets generated through the loophole to avoid potential regulatory risks. By Ricco Schalamon and Marcel Rothenstein Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US diesel stocks low as export control threat wanes
US diesel stocks low as export control threat wanes
Houston, 5 October (Argus) — The waning threat of a ban on US diesel exports offers little relief for a US distillate complex facing peak heating demand just as domestic inventories slump to historical lows and global supplies tighten. US president Donald Trump on 30 September tempered his endorsement of a diesel export ban because of concerns that it could push up gasoline prices, as his administration raised expectations of price relief from new diesel supplies in Europe. Trump said he was still "thinking about" an export ban, but believes the US is in a "good place" because of a recent drop in crude prices and a "tremendous" amount of oil coming out of the strait of Hormuz. US energy secretary Chris Wright expects diesel prices to "move meaningfully down in the coming weeks and days", in part because of additional supplies from Europe. "You will hear announcements from our friends in Europe about new diesel supplies that'll come to the market that'll meaningfully push diesel prices down," Wright says. The G7 announced a 100mn bl oil stocks release on 2 October, to begin immediately. Market participants are closely watching Trump's evolving comments on the possible ban. Such a measure could help rebuild low domestic distillate inventories and improve supply security during the harvesting season and ahead of winter. But limiting exports could weigh on Nymex ultra-low sulphur diesel (ULSD) futures, reduce arbitrage opportunities and pressure refinery margins, potentially diminishing refiners' incentives to maximise distillate production. Trump's latest comments come as supply tightens even further in the US northeast ahead of the peak heating season, in part because of refinery maintenance that started in September and will continue until mid-November at Irving Oil's 320,000 b/d St John refinery in New Brunswick, Canada, one of the largest sources of imported diesel for the region. Ultra-low sulphur distillate inventories in the New York region were the lowest in more than four years at 8.9mn bl in the week to 25 September, more than 37pc below a year earlier. This has boosted demand for deliveries to the region. Gulf coast diesel is moving to the northeast along the Colonial Pipeline as well as arriving by sea, tightening tanker availability, increasing demand for pipeline space and raising transport costs. The arbitrage from the Gulf coast to New York Harbor hit its widest in nearly four years on 29 September, as the Gulf coast ULSD premium to Linden, New Jersey, along the Colonial Pipeline rose to 34.81¢/USG, its highest since November 2022 (see graph). Cracking spreads Some support could come from refinery economics that continue to favour diesel over jet fuel. The Nymex ULSD 1:1 crack spread against WTI crude averaged $105.57/bl over 16-30 September after hitting a historical high of $117.92/bl on 16 September. The US jet fuel crack spread averaged $91.07/bl over the same timeframe (see graph). The stronger diesel margin will probably prompt refiners capable of shifting yields towards distillate production to continue prioritising ULSD over jet fuel during the autumn. Gulf coast diesel prices rose on strong demand and low inventories. ULSD inventories in the region dropped to 35.9mn bl in the week to 25 September, down by 1.4mn bl compared with a year earlier. The region has become a key alternative supplier in the face of lower exports from the Mideast Gulf and Russia. The region's diesel exports surged by 41pc to 1.41mn b/d in September from a year earlier and were the highest for any September since at least 2016, according to oil analytics firm Vortexa. By Eunice Bridges and Craig Ross US crack spreads Colonial Pipeline ULSD arbitrage Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Global inventories 'scarily thin': Aramco CEO
Global inventories 'scarily thin': Aramco CEO
London, 5 October (Argus) — Global oil inventories are "scarily thin" after seven months of production and shipping disruptions caused by the US-Iran war, Saudi state-controlled Aramco's chief executive Amin Nasser said today. "The most serious energy supply shock in my career" has left the global oil supply system straining, Nasser said at the Energy Intelligence Forum in London. "The supply resilience cushion is scarily thin," he said, putting the global oil stock draw at 3bn bl since the start of the war. Replenishing inventories while meeting demand could take up to two years, Nasser said, longer than the 18 months he forecast in early August. He said a co-ordinated release of oil from inventories "was the last major tool in the box". The G7 last week said it would co-ordinate a release of 100mn bl from oil stocks over the next four months, including a substantial diesel release within 20 days. This appears to be part of a 400mn bl commitment made in March. "Emergency reserves might buy us a winter," Nasser said today. "They cannot fix long-term supply." He said a full reopening of the strait of Hormuz is essential to relieve the pressure. But the US and Iran have not reached any sort of agreement that would allow this. Tehran's Islamic Revolutionary Guard Corps (IRGC) has resumed attacks on tankers in the strait of Hormuz and today instructed a tanker transiting the waterway inbound to turn back or be targeted, according to UK Maritime Trade Operations (UKMTO). By Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.