Mexico crude exports up after Tula refinery outage
Mexican crude exports have bounced back in May after a power outage hit state-owned Pemex's 315,000 b/d Tula refinery last week, likely freeing more crude for the export market.
Crude exports rose to about 838,000 b/d so far in May, up by 18pc from full-month April but still 22pc lower compared with all of May 2023, according to trade analytics firm Kpler data.
The month-over-month hike was likely supported by a power outage at the Tula refinery on 13 May, which affected up to 20 processing plants, according to market sources.
It remains unclear if the refinery has resumed operations, but sources said the restart could take about two weeks.
The Tula refinery, which supplies refined products to Mexico City's metropolitan area, processed 246,500 b/d of crude in March, of which 182,000 b/d, or 74pc, was medium or light sour crude, according to the latest Pemex data.
Medium and light sour crude exports rose by 13pc to 336,000 b/d so far in May from the previous month, Kpler data show.
Additionally, fires at the Salina Cruz and Minatitlan refineries in late April could have also added to the uptick of crude exports.
Mexico this year trimmed crude exports to feed its domestic refineries as President Andres Manuel Lopez Obrador seeks to cut fuel imports in his final year in office, in line with his campaign promise to make Mexico more energy independent.
Pemex's six domestic refineries processed over 1mn b/d in March for the first time in almost eight years, driven by billion-dollar investments in maintenance since 2019 and the cut in crude exports.
The start-up of the new 340,000 b/d Olmeca refinery could further reduce crude exports, but the refinery still faces multiple delays.
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Venezuelan vote ends in opposition leader's exile
Venezuelan vote ends in opposition leader's exile
Caracas, 9 September (Argus) — Venezuelan opposition leader Edmundo Gonzalez landed in Spain on Sunday after an arrest warrant accused him of terrorism as President Nicolas Maduro continues to crack down on dissent despite international condemnation. Gonzalez fled to Spain after several days of shuttling between foreign embassies in Caracas "to save his liberty, integrity and life," Maria Corina Machado, Gonzalez's ally and the key opposition figure blocked by Maduro from running in the election, said on social media. "My departure from Caracas was surrounded by episodes of pressure, coercion and threats in order to not allow me to leave," Gonzalez said in an audio post to his followers. "I am confident that in the near future we will continue the struggle to achieve freedom and recover democracy in Venezuela." The US and other countries have not recognized official election results from 28 July and backed the opposition coalition's claim that Gonzalez likely was the winner. But Washington has refrained from taking any action, including enforcing an even stricter regime of oil and other sanctions, to force Maduro to cede power. "The United States strongly condemns Maduro's decision to use repression and intimidation to cling to power by brute force rather than acknowledge his defeat at the polls," secretary of state Antony Blinken said. Gonzalez's departure highlighted pessimism over the possibility of a negotiated departure for Maduro, who claims that he won a third term. "Today is a sad day for democracy," EU foreign affairs representative Josep Borrell said, saying that removing Gonzalez from Venezuela was the only solution for now. Oil minister and vice-president Delcy Rodriguez confirmed Gonzalez's departure late on 7 September, labeling Gonzalez an "opposition citizen" who was granted safe passage after requesting political asylum. In the days after the election, 23 demonstrators and one national guard member were killed, according to figures from the Organization of American States. Maduro boasted of arresting 2,500 "terrorists", but human rights non-governmental organizations say the detainees are demonstrators, election workers, politicians and journalists. According to the human-rights group Foro Penal, more than 1,700 are still in jail. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil to build on G20 for climate leadership role
Brazil to build on G20 for climate leadership role
Sao Paulo, 9 September (Argus) — Brazil to build on G20 for climate leadership role Brazil is looking to use its G20 presidency to advance agreement on energy transition finance — also a central topic at the UN Cop 29 talks this year — consolidating itself as a climate leader as it prepares to host Cop 30 next year. The country has set fighting climate change as one of its G20 presidency priorities. It called for a global finance governance that includes rules for financing a "just and equitable" energy transition in developing economies and foreasier access to climate funds.Brazil is also pushing for a 2pc tax on billionaires that could generate up to $250 bn/yr in revenue. Progressing the painstakingly slow reform of multilateral development banks (MDBs) is important for Brazil. The G20 finance ministers noted in July an MDB roadmap, to be released in October, is a "key deliverable under the Brazilian presidency". MDB reforms, including aligning funding with climate goals and improving access, are also at the heart of finance discussions ahead of November's Cop 29 in Azerbaijan, and with the G20 conclusions overlapping with the climate talks, decisions made in Brazil could help shape outcomes in Baku. At G20 meetings, Brazil also proposed developing climate disaster prevention tools, reached climate pacts with the US, the UK and France, and began plans to launch a new Amazon fund. The country hopes to consolidate its climate leadership ahead of Cop 30, which it is hosting in Belem in 2025. It will capitalise on steady reductions in deforestation in the Amazon rainforest over the past two years and increased adoption of renewable energy to foster higher global climate ambitions. The government is already working on an update of its nationally determined contribution (NDC) climate plan, due early next year. Non-governmental organisations have called on Brazil to slash CO2 emissions by 92pc from 2005 levels by 2035 to 200mn t of CO2 equivalent (CO2e)/yr. NGOs also want a more ambitious 2030 target of 400mn t of CO2e/yr — the NDC currently requires emissions to fall to 1.2bn t CO2e/yr. Preliminary data from Brazil's national institute of space research indicate deforestation fell by nearly 46pc over August 2023-July 2024. Environment minister Marina Silva estimates this cut 250mn t of CO2e emissions in 2023 alone. The final overall 2023emissions data should show another sharp decline, bolstering Brazil's position as a global leader in forest conservation. The country recently launched its national policy for energy transition, establishing guidelines involving wind, solar, hydro, biomass, biodiesel, ethanol, green diesel, carbon capture and storage, sustainable aviation fuel and green hydrogen, with energy minister Alexandre Silveira saying it is "an opportunity to boost local production" on all those fronts. Brazil also launched a programme to support production of electric vehicles (EVs), although it failed to set a definitive plan to phase out internal combustion engines. EV sales reached more than 94,000 units sold in January-July — surpassing the 93,930 units sold in all of 2023. The oil producer's challenge But emissions from Brazil's energy sector rose last year, to 427.8mn t of CO2e from 424.3mn t of CO2e in 2022, with transportation remaining the largest contributor and highlighting the need for more aggressive measures to reduce fossil fuel reliance in transportation. And Brazil is steadily increasing oil production, hoping to increase it further in the south and the country's environmentally sensitive equatorial margin. Output could hit 5.3mn-5.4mn b/d by 2029-30, according to government energy research firm Epe. Brazil still wants to start laying the groundwork for Cop parties to transition away from fossil fuels at Cop 30. But Silva insists developed countries must work on eliminating fossil fuel demand first and provide financial support to help developing nations transition do so. By Lucas Parolin Brazil emissions by sector, 2022 % Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Opec+ members delay output increases to December
Opec+ members delay output increases to December
Dubai, 6 September (Argus) — Opec+ members have opted to delay their plan to start increasing output by two months, against the backdrop of a sharp fall in prices and growing concerns about the oil demand outlook. Eight members of the group — Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman — are now scheduled to start unwinding 2.2mn b/d of "voluntary" crude production cuts from December, instead of October, over a 12-month period, the Opec secretariat said on 5 September. The plan had carried a proviso that the unwinding was subject to "market conditions". And the return of this supply is still not a foregone conclusion. The eight members retain the "flexibility to pause or reverse the adjustments as necessary", the secretariat says. If they go ahead with the updated plan, their collective output targets will rise by around 180,000 b/d in December. The delay to the output increase came as Atlantic basin benchmark North Sea Dated fell close to $75/bl on 5 September, its lowest since December, on concerns over oil demand in China and the US. Beijing imported 1.3mn b/d less crude in July than June, taking its monthly tally of receipts down to 10mn b/d, the lowest in nearly two years. The oil price drop has not taken place in isolation, JP Morgan says. "Alongside commodities, US 10-year treasury yields have tumbled (-70bp) and the US dollar index came down by almost 2pc, signalling a shift in the assessment of macroeconomic risk in the US and globally." The Opec+ delay means that any unwinding of its cuts will not come until after the 5 November US elections. But with gasoline prices there not seen at concerning levels and edging down, oil prices are not viewed as much of an election issue. The decision could help establish a floor under prices, which have fallen despite an oil blockade in Libya that has driven the country's production down to around 300,000 b/d, from almost 1mn b/d. Opec+ may also have sought to add further support to prices by emphasising assurance by overproducers Iraq, Kazakhstan and Russia on "planned compensation schedules". Promised belt tightening from the three would effectively wipe out most barrels coming back to the market until October 2025 — as long as they deliver. For now, the eight members have chosen to buy time and gain more clarity on how the markets develop in the fourth quarter, while also seeking to tighten the noose on compliance. Come early November, those members will have to determine if the market can handle the incremental increase — if not, Opec+ might be up for some hard decisions in December. Compliance and compensation Compliance by some serial overproducers improved in August, Argus estimates. Russia, which has tended to exceed its targets in recent months, saw its output fall by 70,000 b/d to 8.98mn b/d, bang on its formal output target. And Kazakhstan finally started to deliver on its pledge to start compensating for exceeding its targets, with its output in August coming in 40,000 b/d below its effective target under its compensation plan. The biggest overproducer was usual suspect Iraq, which was 200,000 b/d above its formal target and 290,000 b/d over its effective target under its latest plan to compensate for overproducing. Overall production by Opec+ members subject to cuts was barely changed, easing by 10,000 b/d in August, as falls from Russia and Kazakhstan were offset by increases from Nigeria and the UAE. This drove the alliance's output down to 33.82mn b/d, around 30,000 b/d below its collective target. But the forced outages in Libya drove the group's overall output down by a hefty 300,000 b/d. Libya, like Iran and Venezuela, is exempt from production targets. Opec+ crude production mn b/d Aug Jul* Target† ± target Opec 9 21.54 21.45 21.23 +0.31 Non-Opec 9 12.28 12.38 12.62 -0.34 Total 33.82 33.83 33.85 -0.03 *revised †includes additional cuts where applicable Opec wellhead production mn b/d Aug Jul Target† ± target Saudi Arabia 8.96 9.00 8.98 -0.02 Iraq 4.20 4.25 4.00 +0.20 Kuwait 2.40 2.38 2.41 -0.01 UAE 2.98 2.94 2.91 +0.07 Algeria 0.91 0.91 0.91 0.00 Nigeria 1.54 1.46 1.50 +0.04 Congo (Brazzaville) 0.26 0.24 0.28 -0.02 Gabon 0.23 0.21 0.17 +0.06 Equatorial Guinea 0.06 0.06 0.07 -0.01 Opec 9 21.54 21.45 21.23 +0.31 Iran 3.33 3.35 na na Libya 0.92 1.20 na na Venezuela 0.88 0.88 na na Total Opec 12^ 26.67 26.88 na na †includes additional cuts where applicable ^Iran, Libya and Venezuela are exempt from production targets Non-Opec crude production mn b/d Aug Jul* Target† ± target Russia 8.98 9.05 8.98 +0.00 Oman 0.76 0.76 0.76 +0.00 Azerbaijan 0.49 0.48 0.55 -0.06 Kazakhstan 1.37 1.41 1.47 -0.10 Malaysia 0.33 0.34 0.40 -0.07 Bahrain 0.18 0.18 0.20 -0.02 Brunei 0.09 0.09 0.08 0.01 Sudan 0.02 0.02 0.06 -0.04 South Sudan 0.06 0.05 0.12 -0.06 Total non-Opec 12.28 12.38 12.62 -0.34 *revised †includes additional cuts where applicable Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Plaza Marine alleges Ankora used company secrets
Plaza Marine alleges Ankora used company secrets
New York, 6 September (Argus) — New Jersey-based marine fuel supplier Plaza Marine is suing another supplier, Ankora Fuels, alleging that two former Plaza Marine employees used company trade secrets to benefit a rival company and to compete in the same market. Plaza Marine alleges that the two ex-employees, John and Zachary Barbarise, used its trade secrets, confidential information, customer, and supplier relationships to conduct business that is virtually identical to Plaza Marine, according to the suit filed last month in US District Court for the District of New Jersey. John Barbarise was vice president of sales and trading at Plaza Marine until May 2023 and Zachary Barbarise was an operations manager until July 2024. Both individuals are listed as defendants in the suit in addition to Ankora Fuels. According to the lawsuit, John and Zachary's positions at Plaza Marine gave them access to proprietary information about Plaza Marine's business including contracts with its customers, supplier lists and long-term planning like price strategies for its customers. Plaza Marine alleges that John and Zachary used this information to attempt to "clone" Plaza Marine including chartering a vessel that is a long-term vendor of the company and creating a pricing methodology that is like Plaza Marine. This has created confusion in the marine fuel market, according to Plaza Marine. "By creating a competing company engaged in virtually the same activities as Plaza Marine, it is inevitable that John and Zachary will necessarily use and disclose Plaza Marine's trade secrets for their own personal gain and to create an unfair competitive advantage for Ankora," the company said in the suit. According to the lawsuit, prior to resigning from Plaza Marine, Zachary allegedly contacted John on multiple occasions and accessed files related to Plaza Marine's customers, including once after an internal meeting that discussed confidential information related to its customers and suppliers. Zachary also allegedly created Google document files on a personal device and copied and pasted Plaza Marine's trade secrets into that file prior to departing from the company. Plaza Marine alleges that Zachary was passing along this confidential information to John for use at Ankora. Ankora said the allegations are "completely baseless" and that John and Zachary have never taken any information from Plaza Marine. The company said that Zachary has never worked for Ankora and the Google sheets Plaza Marine allegedly found in Zachary's computer were files "for a fantasy football draft and an ultimate fighting championship contest." "The simple truth is Plaza Marine does not want to face competition from a new player in its space. Plaza Marine wants to continue to mistreat customers and other business partners by blocking Ankora Fuels' entry into the market. That's why Plaza Marine has filed this baseless lawsuit. Plain and simple. We are confident that our customers will see the same, and that they will realize – if they haven't already – that Plaza Marine is not a good partner for their businesses," Ankora said. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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