Brazil's Porto Alegre airport to stay shut to Dec

Spanish Market: Oil products
04/06/24

The Salgado Filho international airport in Porto Alegre, in flood-hit Rio Grande do Sul state, is expected to remain closed until December, German airport management company Fraport said.

The airport sustained significant damage in the record floods that hit that state in late April and early May. The floodwaters only recently receded, allowing Fraport to begin cleaning the terminal and clearing the runway.

Prior to the floods, the airport had forecast that it would have 5,404 domestic and international flights and transport over 608,000 passengers in April.

The company has yet to issue a firm assessment of the damage to the terminal and runway, but hopes that the airport will resume operations by the end of the year.

Some flights have temporarily been redirected to the nearby Canoas air force base and Fraport is operating a temporary terminal at a shopping mall in Canoas.

The airport was Brazil's eighth busiest in passengers transported in 2023.

The floods have left at least 172 dead and over 579,000 people displaced, according to the state's civil defense.

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16/06/25

Climate plans so far fall short on fossil fuels: E3G

Edinburgh, 16 June (Argus) — Only 10 of the 22 new nationally determined contributions (NDCs) — climate plans — submitted so far have reaffirmed commitments relating to phasing down coal power or transitioning away from fossil fuels, think-tank E3G said today. These mostly fall short of the goal of the Paris Agreement, it said, and it called on UN Cop 30 climate summit host Brazil to turn "signal into substance". NDCs from Japan, Singapore and Moldova mention the priorities of phasing down coal and transitioning away from fossil fuels, two key outcomes under the UN climate body UNFCCC's first global stocktake (GST) agreed at Cop 28 in Dubai. The GST, an assessment of climate action progress under the Paris Agreement, included an historic call to transition away from fossil fuels. But very little progress has been made on its implementation so far. The UAE in its new NDC stipulates that it "integrates the outcomes of the GST", while the Maldives and Moldova, which are heavily reliant on energy imports, have goals to reduce dependency on fossil fuel imports, citing energy security reasons, according to E3G. The think tank noted that 11 countries that have submitted plans are part of coalitions aiming at phasing out fossil fuels. But none "have introduced country-wide moratoriums on fossil fuel exploration and drilling," E3G said. Canada and Mexico have partial bans, while the UK has announced bans on new drilling licenses in the North Sea, it said, but most countries do not explicitly pledge to divest from fossil fuel assets in their new NDC. Except for the UK, major emitters' NDCs and implementation fall short of what is needed to keep global warming within "safe limits". "With the September NDC deadline fast approaching, Brazil has a critical chance to turn that signal into substance," and rally countries to submit climate plans with credible strategies to move beyond fossil fuels, E3G said. Looking at Brazil, which is hosting Cop 30 in Belem in November, E3G said the country has pledged that "in the medium and long term, it will seek to gradually replace the use of fossil fuels with electrification solutions and advanced biofuels." But Brasilia is looking to develop its oil and gas, including in the environmentally sensitive equatorial margin. It will offer 332 oil and gas blocks in an auction this week — the first since December 2023 — including 47 in the equatorial margin's Foz do Amazonas basin. A separate report today from civil society organisation Oil Change International noted that Brazil "is among the 10 largest expanders of oil and gas to 2035." The country's plans to ramp up oil and gas output "sets a detrimental example", Oil Change said. But Brazil "exemplifies the difficulties that emerging economies with oil and gas reserves face when trying to balance poverty eradication, industrialisation and climate goals", it added. The US is set to account for 58pc of carbon emissions from new oil and gas fields over 2025-35 — around 16pc of the remaining carbon budget — while Brazil's projected share of carbon emissions is 1.4pc, Oil Change found. Oil Change put the global cumulative CO2 emissions from projected new oil and gas extraction at just under 46bn t. The carbon budget refers to a limit on CO2 emissions, in order to keep the global rise in temperature to 1.5°C above pre-industrial levels, as sought by the Paris agreement. The reports were released to coincide with the beginning of the "halfway point" climate talks, hosted by the UNFCCC in Bonn, Germany. These technical negotiations are scheduled for 16-26 June. By Caroline Varin and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Electronic interference rising in Mideast Gulf: UKMTO

16/06/25

Electronic interference rising in Mideast Gulf: UKMTO

Dubai, 16 June (Argus) — Electronic interference within the waters of the Mideast Gulf and the strait of Hormuz are at elevated levels, the UK Maritime Trade Operations (UKMTO) said today. The UKMTO "has received multiple reports… that there is increasing electronic interference within the waters of the Gulf," it said. Monitoring of automatic identification systems (AIS) by the UKMTO has confirmed the finding, it said. The warning comes during a new escalatory cycle between Israel and Iran that was triggered by a series of air and missile strikes by Israel on several key Iranian military and nuclear sites on 13 June. Iran responded with ballistic missile and drone strikes on military targets in Israel, including the Kirya complex in Tel Aviv, which houses the defence ministry headquarters. The two sides have been exchanging missile fire with increasing intensity ever since, with critical energy infrastructure being hit. The UKMTO said electronic interference across the wider region has been rising in this period, which is "having a significant impact on vessels' positional reporting" through automated systems. It advised vessels transiting through Mideast Gulf and nearby waters to do so "with caution" and continue to report incidences of electronic interference. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

German gasoil demand up on Middle East conflict

16/06/25

German gasoil demand up on Middle East conflict

Hamburg, 16 June (Argus) — Gasoil demand in Germany has risen sharply following Israel's attack on Iran in the early hours of 13 June. The attack triggered a sharp increase in crude and gasoil futures and prompted German traders to buy ahead of possible further price rises. The rise in demand coincides with relatively low import availability into northern German ports, largely because of reduced arrivals from countries east of the Suez Canal. The arbitrage window from east of Suez to northwest Europe was closed from early May to the first week of June, limiting flows into the region at a time when German demand had been weakening. Northern German ports received 67,000 b/d of diesel from the US and the Netherlands during 1–13 June — a daily average increase from May, but still 44pc lower than in April. Ice Brent crude futures rose by more than 10pc at one point on 13 June, while Ice gasoil futures jumped by up to $60/t. The price surge fed through to the German market, where national average prices rose by nearly €3.30/100 litres for heating oil, €3.20/100l for diesel and €2.40/100l for gasoline. Domestic traders responded by stepping up purchases ahead of the weekend, anticipating further price increases should the conflict between Israel and Iran escalate. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Israel’s Haifa refinery hit in Iran missile attack

15/06/25

Israel’s Haifa refinery hit in Iran missile attack

London, 15 June (Argus) — Israel's 197,000 b/d Haifa refinery has suffered damage from an Iranian missile attack but remains operational, operator Bazan said on Sunday. "The refining facilities continue to operate, while some downstream facilities at the complex have been shut down," it said. Bazan said that the attack damaged pipelines and transmission lines between the facilities in the complex in a "localised manner." The damage to the refinery marks the first direct Iranian attack on Israel's energy infrastructure since the latest round of hostilities began on Friday, 13 June. They also follow Israeli drone attacks on two gas treatment facilities in southern Iran. Iran's oil ministry said today that Israel had hit an oil storage facility in Tehran's northwestern Shahran district late on Saturday. This caused a blaze that spread to "two or three" tanks storing oil products, the Tehran fire department said. A second depot in the district of Rey, in southern Tehran, was also targeted, resulting in another fire. The oil ministry said the fires at both locations have been brought under control. Iran's oil minister, Mohsen Paknejad made a visit to the Rey depot on Sunday to survey the damage and the ongoing restoration work. Israel has temporarily taken two key gas fields offline as a precautionary measure due to the conflict. By Aydin Calik and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EPA proposes record US biofuel mandates: Update

13/06/25

EPA proposes record US biofuel mandates: Update

Updates with new pricing, reactions throughout. New York, 13 June (Argus) — President Donald Trump's administration today proposed requiring record biofuel blending into the US fuel supply over the next two years, including unexpectedly strong quotas for biomass-based diesel. The US Environmental Protection Agency (EPA) proposal, which still must be finalized, projects oil refiners will need to blend 5.61bn USG of biomass-based diesel to comply with requirements in 2026 and 5.86bn USG in 2027. Those estimates — while uncertain — would be a 67pc increase in 2026 and a 75pc increase in 2027 from this year's 3.35bn USG requirement, above what most industry groups had sought. The proposal alone is likely to boost biofuel production, which has been down to start the year as biorefineries have struggled to grapple with uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and higher import tariffs. The National Oilseed Processors Association said hiking the biomass-based diesel mandate to the proposed levels would bring "idled capacity back online" and spur "additional investments" in the biofuel supply chain. The EPA proposal also would halve Renewable Identification Number (RIN) credits generated from foreign biofuels and biofuels produced from foreign feedstocks, a major change that could increase US crop demand and hurt renewable diesel plants that source many of their inputs from abroad. US farm groups have lamented refiners' rising use of Chinese used cooking oil and Brazilian tallow to make renewable diesel, and EPA's proposal if finalized would sharply reduce the incentive to do so. Biofuel imports from producers with major refineries abroad, notably including Neste, would also be far less attractive. The proposal asks for comment, however, on a less restrictive policy that would only treat fuels and feedstocks from "a subset of countries" differently. And EPA still expects a substantial role for imported product regardless, estimating in a regulatory impact analysis that domestic fuels from domestic feedstocks will make up about 62pc of biomass-based diesel supply next year. The Renewable Fuel Standard program requires US oil refiners and importers to blend biofuels into the conventional fuel supply or buy credits from those who do. One USG of corn ethanol generates one RIN, but more energy-dense fuels like renewable diesel can earn more. In total, the rule would require 24.02bn RINs to be retired next year and 24.46bn RINs in 2027. That includes a specific 7.12bn RIN mandate for biomass-based diesel in 2026 and 7.5bn in 2027, and an implied mandate for corn ethanol flat from prior years at 15bn RINs. EPA currently sets biomass-based diesel mandates in physical gallons but is proposing a change to align with how targets for other program categories work. US soybean oil futures surged following the release of the EPA proposal, closing at their highest price in more than four weeks, and RIN credits rallied similarly on bullish expectations for higher biofuel demand and domestic feedstock prices. D4 biomass-diesel credits traded as high as 117.75¢/RIN, up from a 102.5¢/RIN settle on Thursday, while D6 conventional credits traded as high as 110¢/RIN. Bids for both retreated later in the session while prices still closed the day higher. Proposed targets are less aspirational for the cellulosic biofuel category, where biogas generates most credits. EPA proposes lowering the 2025 mandate to 1.19bn RINs, down from from 1.38bn RINs previously required, with 2026 and 2027 targets proposed at 1.30bn RINs and 1.36bn RINs, respectively. In a separate final rule today, EPA cut the 2024 cellulosic mandate to 1.01bn RINs from 1.09bn previously required, a smaller cut than initially proposed, and made available special "waiver" credits refiners can purchase at a fixed price to comply. Small refinery exemptions The proposal includes little clarity on EPA's future policy around program exemptions, which small refiners can request if they claim blend mandates will cause them disproportionate economic hardship. EPA predicted Friday that exemptions for the 2026 and 2027 compliance years could total anywhere from zero to 18bn USG of gasoline and diesel and provided no clues as to how it will weigh whether individual refiners, if any, deserve program waivers. The rule does suggest EPA plans to continue a policy from past administrations of estimating future exempted volumes when calculating the percentage of biofuels individual refiners must blend in the future, which would effectively require those with obligations to shoulder more of the burden to meet high-level 2026 and 2027 targets. Notably though, the proposal says little about how EPA is weighing a backlog of more than a hundred requests for exemptions stretching from 2016 to 2025. An industry official briefed on Friday ahead of the rule's release said Trump administration officials were "coy" about their plans for the backlog. Many of these refiners had already submitted RINs to comply with old mandates and could push for some type of compensation if granted retroactive waivers, making this part of the program especially hard to implement. And EPA would invite even more legal scrutiny if it agreed to biofuel groups' lobbying to "reallocate" newly exempted volumes from many years prior into future standards. EPA said it plans to "communicate our policy regarding [exemption] petitions going forward before finalization of this rule". Industry groups expect the agency will try to conclude the rule-making before November. The proposed mandates for 2026-2027 will have to go through the typical public comment process and could be changed as regulators weigh new data on biofuel production and food and fuel prices. Once the program updates are finalized, lawsuits are inevitable. A federal court is still weighing the legality of past mandates, and the Supreme Court is set to rule this month on the proper court venue for litigating small refinery exemption disputes. Environmentalists are likely to probe the agency's ultimate assessment of costs and benefits, including the climate costs of encouraging crop-based fuels. Oil companies could also have a range of complaints, from the record-high mandates to the creative limits on foreign feedstocks. American Fuel and Petrochemical Manufacturers senior vice president Geoff Moody noted that EPA was months behind a statutory deadline for setting 2026 mandates and said it would "strongly oppose any reallocation of small refinery exemptions" if finalized. By Cole Martin and Matthew Cope Proposed 2026-2027 renewable volume obligations bn RINs Fuel type 2026 2027 Cellulosic biofuel 1.30 1.36 Biomass-based diesel 7.12 7.50 Advanced biofuel 9.02 9.46 Total renewable fuel 24.02 24.46 Implied ethanol mandate 15 15 — EPA Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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