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Venezuela talks resume in wake of more arrests

  • Spanish Market: Crude oil, Oil products
  • 15/07/19

Venezuela's government and opposition are resuming negotiations in Barbados today, but both sides are resisting proposed concessions that would facilitate elections next April.

The opposition has pledged to revive the battered national oil industry once President Nicolas Maduro is removed from power. But even if a deal can be reached to hold new elections, there is no agreement on Maduro's standing before the poll, and the opposition faces the risk that a successor to Maduro would win.

Information minister Jorge Rodriguez said on arriving in Barbados that Maduro is "committed to a permanent dialogue for peace" and urged the political opposition led by Juan Guaido to disavow "all unconstitutional actions" aimed at forcing a regime change.

Guaido, the National Assembly president who is recognized by over 50 mainly western states as Venezuela's interim president, said in Trujillo state yesterday that the talks in Barbados "are not a dialogue, but rather a mediation by the government of Norway."

National Assembly second vice president Stalin Gonzalez, a member of Guaido's delegation in Barbados, said the goal of the Oslo-brokered talks is to "achieve a pact in coming days to end the suffering of Venezuelans."

Guaido's delegation also includes Gerardo Blyde, the former mayor of Baruta municipality in Caracas, and former transport and communications minister Fernando Martinez Mottola who served under late president Carlos Andres Perez in 1992-93.

Maduro's delegation to Barbados includes information minister Rodriguez, foreign minister Jorge Arreaza and Miranda state governor Hector Rodriguez, who is seen as the likely candidate of the ruling United Socialist Party (PSUV) if an agreement is reached to hold new presidential elections by April 2020.

The primary obstacle to an agreement appears to be Maduro's refusal to leave the presidency voluntarily ahead of new elections in nine months, government and opposition officials say.

For its part, the opposition is rejecting a government proposal for Guaido to relinquish his self-declared interim presidency and recuse himself from running for president in next year's elections, a Guaido aide close to the talks in Barbados said.

Diosdado Cabello, the second most powerful figure in Maduro's government and head of the controversial National Constituent Assembly (ANC), maintained early today that Maduro will not accept any deal requiring his resignation ahead of elections because it would amount to "surrendering the presidency to which he was elected constitutionally."

The crisis erupted in early January after Maduro was sworn in for another six-year term based on a May 2018 election that was widely deemed abroad as fraudulent. Invoking the constitution, Guaido declared his interim presidency on 23 January, asserting that Maduro's presidency was illegitimate.

The new round of talks are resuming amid political tensions triggered by the arrests of three individuals, including two of Guaido's bodyguards, who are charged with trying to sell up to five Russian-made AK-103 assault weapons allegedly stolen from the army.

The 12 July arrests by government security forces were first disclosed by Rodriguez. Defense minister general Vladimir Padrino, whom Maduro ratified in his post on 5 July, issued a statement separately yesterday rejecting the political opposition's alleged attempt to sell the arms.

Guaido dismissed the allegations by Rodriguez and Padrino as phony. The opposition security officials, identified as Erick Sanchez and Jason Parisi, were "kidnapped" by Maduro's intelligence services who "planted weapons" to justify their illegal arrests the same way that the regime planted weapons on his chief of staff Roberto Marrero when he was arrested illegally on 21 March, Guaido said.

The US administration, which recognizes Guaido as Venezuela's interim leader, says Maduro's departure should be a pre-condition for new elections. "Guaido and his team are not negotiating in Barbados because they trust the regime – they are negotiating to end the regime," State Department special Venezuelan envoy Elliott Abrams said on 12 July.

Organization of American States (OAS) secretary general Luis Almagro, who spoke alongside Abrams to highlight a recent UN report on human rights violations by the Maduro government, questioned the need for talks and called on the US not to relax its sanctions regime.

"If the US lets up pressure, this process will conclude in the same way that the previous four or five negotiations that have taken place since 2014," Almagro said.


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11/07/25

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

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.

Congress resumes push to cut US shipping pollution


11/07/25
11/07/25

Congress resumes push to cut US shipping pollution

New York, 11 July (Argus) — US lawmakers reintroduced two bills Thursday to slash greenhouse gas emissions from the shipping industry. Senators Sheldon Whitehouse (D-Rhode Island) and Alex Padilla (D-California), along with US House of Representatives members Doris Matsui (D-California) and Kevin Mullin (D-California), reintroduced the International Maritime Pollution Accountability Act, which would impose pollution fees on large ships calling at US ports. The bill targets vessels over 5,000 gross tonnes with a $150/t fee on carbon, plus fees on nitrogen oxides at $6.30/lb, sulfur dioxide at $18/lb, and fine particulate matter at $38.90/lb. Ship operators would only pay the carbon fee if no equivalent global measure from the International Maritime Organization (IMO) is in place. Revenue would go toward modernizing the Jones Act fleet with low-emission ships, electrifying shipbuilding, and addressing pollution at US ports. The group also reintroduced the Clean Shipping Act of 2025, led in the House by Representatives Robert Garcia (D-California). It directs the Environmental Protection Agency to impose carbon intensity standards for marine fuels, targeting 30pc lifecycle CO2-equivalent emissions reduction from 2030, 58pc from 2034, 83pc from 2040, and 100pc from 2050. It also requires all ships at berth or anchor in US ports to emit zero emissions by 2035. The lawmakers say the proposed bills also close a major loophole. Marine shipping is largely exempt from fuel taxes unlike other transport sectors. They say the plan will also support US manufacturing and help reduce the US trade deficit. The International Maritime Pollution Accountability Act is endorsed by environmental and advocacy groups including Friends of the Earth, Sierra Club and Ocean Conservancy, among others. The original bills were introduced in 2023 and expired without being enacted. The bills follow the IMO's decision in April to adopt a net-zero framework and a global carbon price proposal for shipping. The US delegation was absent from IMO's April meeting, issuing a statement that "President Trump has made it clear that the US will not accept any international environmental agreement that unduly or unfairly burdens the US or the interests of the American people ." By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil advances oil, gas decarbonization strategy


11/07/25
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.

Saudi Arabia leads June Opec+ production increase


11/07/25
11/07/25

Saudi Arabia leads June Opec+ production increase

Singapore, 11 July (Argus) — Saudi Arabia drove a substantial increase in Opec+ production last month in a bid to mitigate potential supply disruptions stemming from the 12-day Israel-Iran war. Opec+ crude production rose by 830,000 b/d to 35.1mn b/d in June, according to Argus estimates, 290,000 b/d above its collective target for the month (see tables). Saudi Arabia accounted for most of this, boosting output by 600,000 b/d to 9.75mn b/d — 380,000 b/d above its required production of 9.37mn b/d for the month, as published by the Opec secretariat. Saudi production is normally in line with its Opec+ targets. But fears that the Israel-Iran conflict could cause regional production shutdowns and disrupt exports through the strait of Hormuz saw Saudi Arabia substantially increase output as a contingency measure, sources familiar with the numbers told Argus. Most of the additional output went into domestic storage and some was moved on to ships or storage tanks outside the Mideast Gulf, the sources said, stressing that it did not enter the market. Some output was also rerouted through the East-West Pipeline to the Red Sea, bypassing the strait of Hormuz. Saudi Arabia's supply to market — or physical sales — in June was 9.35mn b/d, the sources said, adding that the country's Opec+ commitments are based on its supply to market and not production. This would imply that Saudi Arabia was in line with its Opec+ target in June. Argus' monthly estimates are based on wellhead production. Saudi oil facilities were targeted in a missile attack in 2019 that temporarily shut in 5.5mn b/d of crude output. And Iran has long threatened to shut the strait of Hormuz — through which around 17mn b/d of Mideast Gulf crude and refined products is exported — if attacked. Regional oil production and oil exports through the strait were not affected during the Israel-Iran conflict during 13-24 June. China allocations rise Saudi Arabia's share of the Chinese crude market is increasing thanks to higher output and attractive term formula prices in recent months, with the August-loading allocation to China hitting a two-year high. Refiners in China are set to receive a collective 1.65mn b/d of August-loading Saudi crude, according to market sources. This is 130,000 b/d higher than their July allocations and appears to be the largest amount since September 2023, Argus estimates. The increase was driven by a higher allocation granted to one state-owned refiner, with other Chinese customers' allocations unchanged on the month. Aramco lifted its August formula prices to Asia-Pacific by 90¢-$1.30/bl from July, higher than expectations of a 50-80¢/bl rise based on the wider backwardation — prompt premiums to forward values — in Mideast Gulf benchmark Dubai crude last month. Most Saudi term grades still represented good value on a delivered China basis next to spot medium sweet crudes from the Atlantic basin despite the price hikes, participants in China said. This together with strong seasonal demand may have prompted refiners to keep their term nominations high. Buying interest in Saudi crude was strong elsewhere as well. One northeast Asian refiner said it had asked for and will receive slightly above its usual amount. Other refiners based in Asia-Pacific said they requested and will receive their usual volumes of August-loading Saudi term crude. Requests from European buyers were not significantly higher than usual, traders said. Two European refiners told Argus that they nominated and received their full contractual volumes for August. And demand from other refiners may also have been steady because of firm refining margins and summer demand. Opec+ crude production mn b/d Jun May* Jun target† ± target Opec 9 22.20 21.46 21.96 +0.24 Non-Opec 9 12.90 12.81 12.86 +0.04 Total Opec+ 18 35.10 34.27 34.81 +0.29 *revised †includes additional cuts but excludes compensation cuts Opec wellhead production mn b/d Jun May* Jun target† ± target Saudi Arabia** 9.75 9.15 9.37 +0.38 Iraq 3.96 3.94 4.09 -0.13 Kuwait 2.43 2.43 2.47 -0.04 UAE 3.04 2.94 3.09 -0.05 Algeria 0.93 0.92 0.93 0.00 Nigeria 1.55 1.53 1.50 +0.05 Congo (Brazzaville) 0.25 0.27 0.28 -0.03 Gabon 0.24 0.22 0.17 +0.07 Equatorial Guinea 0.05 0.06 0.07 -0.02 Opec 9 22.20 21.46 21.96 +0.24 Iran 3.37 3.42 na na Libya 1.34 1.37 na na Venezuela 0.96 0.98 na na Total Opec 12^ 27.87 27.23 na na *revised ** Saudi Arabia's supply to market in June was 9.35mn b/d †includes additional cuts but excludes compensation cuts ^Iran, Libya and Venezuela are exempt from production targets Non-Opec crude production mn b/d Jun May* Jun target† ± target Russia 9.02 8.98 9.16 -0.14 Oman 0.76 0.76 0.78 -0.02 Azerbaijan 0.46 0.47 0.55 -0.09 Kazakhstan 1.84 1.80 1.50 +0.34 Malaysia 0.37 0.37 0.40 -0.03 Bahrain 0.17 0.17 0.20 -0.03 Brunei 0.09 0.09 0.08 0.01 Sudan 0.02 0.02 0.06 -0.04 South Sudan 0.17 0.15 0.12 +0.05 Total non-Opec 12.90 12.81 12.86 0.04 *revised †includes additional cuts but excludes compensation cuts Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canada focuses on new US deadline, diversifying trade


11/07/25
11/07/25

Canada focuses on new US deadline, diversifying trade

Calgary, 11 July (Argus) — Canadian prime minister Mark Carney reiterated his plan to diversify trade with countries "throughout the world" following another round of tariff threats, and another deadline, from US president Donald Trump. Carney's comments on social media late on 10 July came hours after Trump said Canada could expect a 35pc tariff on all imports , effective 1 August, repeating earlier claims that the northern country was not doing enough to stop fentanyl from crossing into the US. Canada has said these claims are bogus but in late-2024 still committed to spending $900bn (C$1.3bn) on border security measures over six years. "Canada has made vital progress to stop the source of fentanyl in North America," Carney wrote on X. The prime minister said he is now working to strike a new trade deal before the 1 August deadline. Trump and Carney last month agreed they would work toward a broad trade agreement by mid-July, with Canada at the time targeting 21 July to finalize a deal. The 35pc tariff would be separate from tariffs set for specific sectors, which include a 50pc tariff on copper imports. It is not clear if any imports currently covered by the US-Mexico-Canada trade agreement (USMCA) would be affected by Trump's latest tariff threats. Carney has advocated the need to shore up trade partnerships with "reliable" countries since being sworn is as prime minister in March, saying the old relationship with the US "is over". The energy-rich nation needs to build more infrastructure to unlock this potential, and with a surge in public support, is trying to entice developers with a new law to fast-track project approvals . But those are multi-year efforts and Canada is still trying to reach a deal with the US to keep goods moving smoothly. The two economies are highly integrated with $762bn worth of goods crossing the US-Canada border in 2024, according to the Office of the US Trade Representative. Canada on 29 June rescinded a digital sales tax (DST) that would have collected revenue from the US' largest tech companies, after US secretary of commerce Howard Lutnick said the tax could have been a deal breaker in trade negotiations. That show of good faith — which seemingly got nothing in return — was criticized within Canada and contrary to Carney's repeated "elbows up" mantra in the face of Trump's threats. 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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