Cameroon targets partial refinery restart in 2027

Spanish Market: Crude oil, Oil products
22/08/25

Cameroon's state-owned Sonara plans to restart production at its 42,000 b/d Limbe refinery in December 2027. The plant has been idle since a fire in May 2019.

UK engineering consultancy Ekium has recommended a partial restoration of the site, Sonara said, although targeted nameplate capacity was not disclosed. Sonara and Ekium were approached for comment on this.

Ekium said 75pc of Limbe's original capacity are recoverable, with 8pc permanently lost and 17pc to be verified from September.

Sonara will construct a hydrocracker, diesel hydrotreatment plant and isomerisation unit in 2028-30, to allow gasoline and diesel output to meet Afri 5/6 standards containing 10ppm-50ppm sulphur, and fuel oil to meet Marpol specifications of no higher than 5,000ppm sulphur.

A second crude distillation unit (CDU) will be installed in 2031-35, alongside a second hydrocracker unit and a vacuum distillation unit (VDU), increasing output by 3.5mn t/yr.

Technical work will begin in January. Sonara will continue to supply refined products until the refinery restarts production, it said.

By George Maher-Bonnett

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17/09/26

US considers loaning more crude from SPR

Washington, 17 September (Argus) — A recent increase in crude prices has made it a "very real possibility" that the US Department of Energy (DOE) will offer an additional round of crude loans under a still ongoing 172mn bl drawdown from the US Strategic Petroleum Reserve (SPR), US energy secretary Chris Wright said. The escalation of hostilities in the Middle East has caused front month WTI crude prices to jump to about $101/bl, which is about 25pc more than futures prices for delivery six months from now. The steep backwardation in the futures market, if it continues, has made it a "very real possibility" that DOE will resume offering oil under the existing crude loan program, Wright said. "The market right now is saying, 'Hey, maybe we need that oil.' So quite possibly we will respond to that," Wright told reporters on Thursday. DOE has already loaned more than 130mn bl of crude or more than 75pc of the drawdown that President Donald Trump authorized in March, and another 3mn bl is scheduled to be released over the next few weeks. But the remaining crude of the authorization — about 38.5mn bl — has yet to be obligated. DOE got high interest in the program this spring, as traders took advantage of about a $30/bl premium in the front month crude contract over futures prices a year later. That profit was more than enough to cover a requirement to return more crude to the SPR than borrowed, which so far is putting about 1.25 bl into the SPR for each 1 bl borrowed. But by June, when DOE offered to loan out the remaining 40mn bl out of the 172mn bl authorization, the profitability of the trade had collapsed , and only 500,000 bl was contracted. "We had stopped selling because the prices were flat," Wright said. "The market today is pulling for it. If that remains, then it's very possible we will finish the allocation of oil we originally agreed to trade." The ongoing drawdown has pushed crude inventories in the SPR to a 44-year low of 285mn bl. Wright has previously said he expects crude to start returning to the SPR by early next year, but the reserve will remain partially depleted even after that refill process finishes in 2029. The US Congress has only provided $171mn to buy crude to refill the SPR, and Wright said he was looking at other options to refill the SPR. "We have a couple of other very creative ideas that I've hinted at for a while — you'll hear more about them later — where we're going to we're going to put quite a few more barrels into the SPR at no cost to the US taxpayers," Wright said at an event held by The Daily Caller . By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US gasoline, aromatics tighten on diesel focus

17/09/26

US gasoline, aromatics tighten on diesel focus

Houston, 17 September (Argus) — US oil refineries are focusing the highest run rates in 22 years on diesel production as two wars increase overseas demand, a move that has tightened domestic supplies of gasoline and aromatic blending components. Prices for aromatics blended into gasoline stand at multi-year highs, with the ethylbenzene (EB) assessment reaching levels reaching a record-high of 503¢/USG on 8 September . EB feedstock benzene and toluene and xylenes prices all reached four-year highs in September. Benzene peaked at 547¢/USG on 15 September and toluene and xylenes both peaked at 564¢/USG on 16 September, Argus data show. The rise in aromatics prices has been driven by increased blending of low-octane, light-naphtha into US gasoline supplies, as blending naphtha boosts demand for high-octane aromatic blendstocks to raise gasoline's octane rating to retail specifications. Naphtha blending demand is rising because of high gasoline prices that have increased gasoline's premium to naphtha, known as the naphtha-gasoline spread, into September, bucking seasonal trends. The spread normally narrows after peak high-octane blending demand in June ( see chart ). But the naphtha-gasoline spread widened to 157¢/USG in September, up by 22¢/USG from June, Argus data show. The unseasonably wide naphtha-gasoline spread can be traced to higher gasoline prices, rather than a particularly weak naphtha market that caused supply builds in prior years. The naphtha-gasoline spread stands above levels seen during the fall of 2022 and 2023, when falling naphtha exports boosted US supplies. Naphtha exports in 2022 and 2023 were 258,000 b/d and 281,000 b/d, respectively, while naphtha exports so far this year have averaged 402,000 b/d. Also contributing to this year's unseasonably high prices for aromatics blendstocks toluene, xylenes and EB are plant turnarounds at two aromatics producers in September and October that have tightened supplies further. The US has also received fewer aromatics imports than in the past four years because of feedstock supply issues in Asia-Pacific that have capped refinery run rates in the region. That has forced Asian petrochemical producers to prioritize supplying their regional trading partners, even with open arbitrage opportunities to the US in spite of import tariffs. Focus on diesel Aromatics demand for gasoline blending has also been supported by US refiners' decision to prioritize diesel production, tightening supplies of gasoline and blending components. With the harvest season boosting domestic diesel demand and wars in Ukraine and the Mideast Gulf creating supply constraints that have boosted export demand, the Nymex ultra-low sulfur diesel (ULSD) contract settled at a record high this week. Refiners' focus on diesel at the expense of gasoline has outweighed the seasonal shift to winter-grade gasoline, which this year was allowed to begin on 1 September, two weeks earlier than usual. The shift to winter specifications permits lower cost, higher-vapor pressure blendstocks like butane to enter the gasoline blend pool, which typically reduces demand for aromatic blendstocks. Gasoline prices also remain unseasonably high. Conventional 87-grade gasoline prices stand $1.68/USG higher than year-earlier levels and $0.97/USG higher than the five-year rolling average for the month of September, Argus data show. Meanwhile, premium 93-grade gasoline prices, which include additional high-octane blendstocks, stand $1.83/USG higher than a year earlier and $0.98/USG higher than the five-year rolling average for September. Higher gasoline prices stem from the overseas conflicts that have reduced inventories and increased global crude prices. Gasoline inventories totaled 207.7mn bl and motor gasoline blending components totaled 193.1mn bl in the week ended 11 September, down from a year earlier by 9.9mn bl and 9.6mn bl, respectively, according to US Energy Information Administration (EIA) data. Inventories of gasoline and blendstocks are poised to tighten further, pushing prices higher, as refiners prioritizing diesel production. Meanwhile, crude prices have surged since the start of the US-Iran war, with WTI Houston crude closing at $107.78/bl on 15 September and crude prices peaking this year on 6 April at $119.66/bl, Argus data show. Refinery rates at 22-year highs US refiners are running all out to capture record high margins, particularly for diesel. Refinery operating rates have averaged 97.3pc so far in September, the highest average monthly rate since June 2004 and well above the roughly 90-95pc range of recent years, EIA data show. As US refinery run rates increase, so has diesel output. ULSD production last week was up by 7.7pc from a year earlier at 5.04mn b/d, according to EIA data. In August, ULSD production rose to 5.01mn b/d, the highest output since December 2025. US diesel production has climbed since the beginning of the Mideast Gulf war to help meet European demand for fuels typically sourced from the Middle East and Russia. US Gulf coast ULSD exports to Europe climbed to 590,000 b/d in the week ended 11 September, up by 490,000 b/d from the prior week, according to Vortexa vessel-tracking data, and the highest exports to the continent in Vortexa records dating to January 2016. Record high US diesel exports have contributed to a draw down in inventories, which totaled 107.9mn bl in the week ended 11 September, down by 16.8mn bl from the year prior. US refiners in September usually build diesel stocks ahead of seasonal turnarounds, when they shift away from maximum diesel yields. If diesel inventories remain low in October, gasoline and aromatic blendstock prices could gain further support. With tight diesel and gasoline inventories and aromatic chemical prices near multi-year highs, the market has little room for disruption. Any major refinery outage or major Gulf coast storm could quickly drive fuel and aromatic petrochemical prices higher. By Jake Caldwell, Blake Del Papa and Hunter Fite Naphtha - Conventional 87 grade gasoline spread ¢/USG Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Indonesia to continue 50pc biodiesel blend in 2027

17/09/26

Indonesia to continue 50pc biodiesel blend in 2027

Singapore, 17 September (Argus) — Indonesia will continue implementing a 50pc biodiesel-fossil diesel blend (B50) target in 2027, the country's ministry of energy and mineral resources (ESDM) said at the sixth palm biodiesel conference in Bali today. But the government will also consider adding 10pc of hydrotreated vegetable oil (HVO) into the diesel pool, on top of 50pc biodiesel next year, ESDM director general Eniya Listiani Dewi said. Indonesia currently requires 5pc of HVO to be blended into the diesel fuel pool with a cetane number (CN) of 51. Domestic fuel sales for CN51 gasoil were at 1.1mn kilolitres, followed by 1.3mn kl for CN48 and 520,000kl for CN53 gasoil in 2025, according to ESDM data. A ramp up to 10pc HVO blend for the entire diesel fuel pool appears ambitious, since the country currently lacks any dedicated HEFA production. State-controlled Pertamina can co-process up to 45,000 t/yr of HVO at its Dumai refinery, but domestically produced neat HVO is only planned to come to market in 2030, when it plans to bring a HEFA plant on line with roughly 890,000 t/yr total HVO and SAF production at its Plaju refinery in South Sumatra. The plant has not yet reached final investment decision, according to Argus records. Indonesia will also set a minimum one-year period for further infrastructure and supply chain upgrades before targeting a higher biodiesel blend percentage, Dewi added. The country moved to B50 in July . HVO is chemically identical to fossil diesel and can be used as a drop-in fuel without additional modifications to on-road vehicle engines, in contrast to biodiesel which requires further testing to ensure stable fuel use. By Malcolm Goh and Lauren Moffitt Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Italy scraps road tax to counter fuel price surge

17/09/26

Italy scraps road tax to counter fuel price surge

Milan, 17 September (Argus) — Italy approved a decree scrapping road tax for about 14.5mn cars and motorcycles in an effort to offset rising energy prices, the government said. The exemption applies to vehicles with an engine power of up to 80kW, which covers around 70pc of Italy's car stock, with one vehicle per person eligible. The measure will apply in 2027 alone, but the government said it intends to abolish the tax permanently through measures in its next budget. Prime minister Giorgia Meloni said that with no end in sight to the US-Iran war and fuel prices constantly rising, it no longer made sense to tackle the problem at the pump. "We have chosen a structural measure rather than an emergency measure," she said late on Wednesday. Rome has approved 15 packages since March to temper fuel price rises, mainly by offering discounts at the pump that have cost the state more than €2.3bn ($2.65bn). The latest decree includes a 12.2¢/litre discount on diesel fuel from 18-25 September followed by a 6.1¢/l discount from 26 September to 5 October. Diesel prices have risen by more than those of gasoline this year, because of a Russian ban on diesel exports and the effects of the US-Iran war on availability from the Mideast Gulf. Scrapping the 2027 vehicle road tax will cost €2.36bn, according to a draft version of the Italian decree. Government sources said unused EU Recovery fund money, including loans and grants will partly cover the cost. The new one-off diesel discounts will cost €111.8mn, the sources said. Rome's move is one of several by European governments to help consumers with rising fuel costs. Germany plans measures to ease what chancellor Friedrich Merz described as "too big a burden", Spain has made a series of cuts to its fuel taxes, and the UK fuel retailers' association has called on the government not to raise fuel duty at the start of 2027. By Stephen Jewkes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

NY Harbor winter RBOB prices reach record high

16/09/26

NY Harbor winter RBOB prices reach record high

Houston, 16 September (Argus) — New York Harbor winter RBOB prices reached record highs on Wednesday as bullish futures and tight regional supply persisted. New York Harbor barge winter RBOB prices rose by 2.61¢/USG to $3.55/USG on Wednesday, the highest level for winter RBOB since Argus assessments began in 2006. Futures rose for the fourth consecutive session as global oil supply concerns persisted on ongoing tensions in the Mideast Gulf. Differentials settled at 6.75¢/USG premium over the Nymex contract on Wednesday, compared with a 2.5¢/USG premium a year earlier and a 0.5¢/USG discount in 2024. Differentials were supported by the rally in cash price and widening backwardation in the front-month Nymex spread. The October/November Nymex spread settled at +25.18¢/USG on Wednesday, compared with about +6¢/USG a year earlier and about +2¢/USG in 2024. Prompt bid levels rose consistently throughout the day on stronger demand, while market participants continued pointing to tight prompt supply at the beginning of high RVP gasoline season. The logistics of managing summer gasoline tank bottoms and tank turnovers this month followed on weeks of seasonally low imports and production levels during the summer, resulting in thinner inventory levels through RVP transition. Blending economics also tightened this week on more expensive high-octane gasoline components, such as alkylate and reformate, while imports remained thin on a shut transatlantic arbitrage. New York Harbor gasoline imports are expected to rise this month but will likely not alleviate prompt supply tightness over the next few weeks, according to market participants. Gasoline cargo arrivals are projected to total about 6.7mn bl in September, according to vessel tracking service Vortexa, compared with about 5.9mn bl a year earlier and about 7.2mn bl in the same period of 2024. Atlantic coast gasoline imports averaged 358,000 b/d in the August through mid-September period, according to Energy Information Administration (EIA) data, compared with 471,000 b/d a year earlier and 539,000 b/d in 2024. Gasoline stocks on the central Atlantic coast — the five-state region that includes New York Harbor — dropped to the lowest point since November 2024 at 24.3mn bl the last week of August, according to EIA data. Inventories rose to 25.1mn bl last week but were still about 10pc below a year earlier. Total Atlantic coast gasoline stocks have mostly been trending lower since late June on thinner local production and imports. By Stephanie Crawford Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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