US base oil output rises 12pc in February: EIA

Spanish Market: Oil products
01/05/26

US base-oil production in February rose on the year by 12pc to 157,040 b/d, according to the Energy Information Administration (EIA).

Total base-oil output in February was also up by 9.4pc from January levels of 143,550 b/d.
Paraffinic base-oil production increased by 14pc compared to February 2025 and by 15pc from January 2026.
Elevated base-oil premiums over competing fuels, such as gasoline and diesel, incentivized refiners to keep base oil production elevated despite thin buying interest in the market.
Base-oil products supplied, a proxy for demand, rose to 118,071 b/d in February, more than double year-earlier levels and up by 3.6pc from January.
Naphthenic base-oil production in February declined to 18,070 b/d, down by 3.8pc from a year earlier and down by 22pc from January.

By Karly Lamm

US paraffinic base oil output by region			b/d
Regions	Feb 26	Jan 26	m-o-m±%
US Atlantic coast	10,860	6,970	56
US Midcontinent	8,070	7,650	5
US Gulf coast	107,210	99,680	8
US Rocky Mountains	0	0	0
US West coast	12,820	6,130	109

Paraffinic toal	138,960	120,420	15
Energy Information Administration (EIA)

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08/05/26

EU says no regulatory barriers to US Jet A use

Brussels, 8 May (Argus) — The European Commission today said there are no regulatory obstacles to the use in Europe of imported Jet A fuel, which is being considered as an alternative because of a shortfall in Jet A1 supplies. Europe — like most of the world — uses A1-specification jet fuel, whereas the US uses Jet A. The two specifications are almost identical, but Jet A1 importantly has a freeze point of -47°C, which is 7°C lower than Jet A. The US has become Europe's single-largest jet fuel supply region since the closure of the strait of Hormuz, through which 40pc of Europe's jet fuel imports transit. The commission said any fuel grade change requires proper management and communication, and "may require the agreement of the users connected to that system". The EU Aviation Safety Agency (EASA) today outlined "risks associated with the introduction of Jet A fuel in a Jet A-1 environment", including potential "mismatches" between fuel properties and existing operational, technical and procedural assumptions, but said it does not consider these an "unsafe condition". The commission also said airlines can be exempted from the ReFuelEU regulation's 90pc fuel uplift requirement when taking extra supplies from departure airports. Fuel supply issues at airports may also exempt airlines from landing and take-off slot obligations as a "justified non-use of slots". EU energy spokesperson Anna-Kaisa Itkonen said the guidance explains the current legal situation but does not add "anything new". "This is not us recommending airlines what [fuel type] they should be using," Itkonen said. The commission has a "full" overview of commercial jet fuel stocks, she said. "Airlines are not obliged to share this information to us," she said, noting the need to respect commercial confidentiality. In the event of last-minute cancellations, the guidance covers passengers' entitlement to reimbursement, re-routing or return, airport assistance and compensation. Airlines may be exempt from financial compensation if a cancellation was caused by an extraordinary circumstance such as local fuel shortages. "Cancellations caused by exceptionally high fuel prices, as opposed to local fuel shortages, cannot be considered as constituting 'extraordinary circumstances'," the commission said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Iran seizes US-sanctioned oil tanker off Oman: IRNA

08/05/26

Iran seizes US-sanctioned oil tanker off Oman: IRNA

Dubai, 8 May (Argus) — Iran's navy has seized an oil tanker that is sanctioned by the US for moving Iranian oil, on the basis it was "attempting to disrupt oil exports and the interests of the Iranian nation," according to state news agency IRNA. Ocean Koi "was carrying oil cargo of the Islamic Republic of Iran" and was taken by the country's navy to the southern coast, IRNA said. The US treasury included Ocean Koi on its list of sanctioned vessels for links to the Iranian oil trade in February. Oil analytics firm Vortexa shows the tanker, under the name Jin Li , loaded a small amount of high-sulphur fuel oil (HSFO) off the coast of Oman on 7 May with its destination showing the port of Khor Fakkan in the UAE. By Elshan Aliyev Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US court finds 'section 122' tariffs unlawful

07/05/26

US court finds 'section 122' tariffs unlawful

Washington, 7 May (Argus) — A federal trade court ruled on Thursday that 10pc tariffs that President Donald Trump imposed in February on a vast number of imported products were unlawful under a 1974 law he used as the basis for the duties. Trump had imposed the "section 122" tariffs on imports on 20 February as a de facto replacement of emergency tariffs the US Supreme Court had thrown out the same day. Trump said he was imposing the 10pc tariffs to address a deficit in the "balance of payments" flowing into the US, using authorities that could remain in place for 150 days, until 24 July. Trump exempted energy, critical minerals, fertilizers and some agricultural imports from new import taxes. But the US Court of International Trade, in a 2-1 ruling on Thursday, found the latest tariffs were "invalid as contrary to law". The court said nowhere in the proclamation imposing the tariffs had Trump identified a "balance-of-payments deficit" under the meaning of the 1974 trade law. The administration had used a mechanism of finding deficits that unless every individual sub-account was balanced, the "president would always be able to identify a balance-of-payment deficit", the court said. The court permanently blocked the US from collecting the section 122 tariffs from state of Washington and two small private importers that had filed the case, and it also required the US to pay refunds and interest. But the court said California and other states that were part of the lawsuit had not shown legal "standing" to obtain the same relief. The court's decision, if upheld, could open the door to other states and plaintiffs that have paid the section 122 tariffs to pursue their own claims to obtain tariff refunds. The White House did not immediately respond to a request for comment. The administration is still in the process of refunding $166bn in emergency tariffs the Supreme Court struck down. The administration last month launched a system to manage tariff refunds. The first refunds will be paid out as early as 12 May, federal customs officials said earlier this week. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

European jet premiums lowest since before US-Iran war

07/05/26

European jet premiums lowest since before US-Iran war

London, 7 May (Argus) — Apparent discussions between the US and Iran on reopening the strait of Hormuz pushed European jet fuel spreads to their narrowest since before the war began, adding to existing pressure from prompt supply stability. But outright prices in Europe must remain high to continue attracting that supply. Argus assessed jet fuel cargoes delivered to northwest Europe at a $99.50/t premium to front-month Ice gasoil futures on 6 May, falling by about a third on the day. Refining margins slimmed to below $60/bl. Both are the narrowest since 27 February, the day before the US-Iran war broke out. US president Donald Trump on 6 May said a deal was under discussion with Iran to reopen the strait of Hormuz and end the US blockade of Iranian ports. Front-month Ice gasoil futures dropped by more than 8pc on the day, pushing outright jet fuel prices to $1,287/t, the lowest since the first week of the war. Jet fuel premiums have steadily fallen for more than two weeks. This reflects greater confidence about prompt supply in Europe, thanks to arrivals from the US and Nigeria, domestic refinery output and heavy reliance on inventories, all of which are helping to offset the loss of Mideast Gulf supply until demand ramps up in summer. Flat price high to pull supply But outright prices remain more than 50pc higher than pre-war levels, reflecting global undersupply of jet fuel until flows through the strait of Hormuz return. Europe must compete with other regions, such as east Africa , for the remaining supply. Airline executives and market participants have warned the cost of securing jet fuel will be significant . Airlines appear committed to maintaining supply, but not all will be able to handle such steep fuel costs. This proved fatal for the US' Spirit Airlines , which permanently closed on 2 May. Ryanair chief executive Michael O'Leary said some European airlines could meet a similar fate if prices remain high. By Amaar Khan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Kenya lowers fuel standards to ease supply access

06/05/26

Kenya lowers fuel standards to ease supply access

Dubai, 6 May (Argus) — Kenya has temporarily lowered diesel and gasoline quality standards to ease challenges in sourcing fuels because of the US-Iran war in the Middle East. Sulphur limits for gasoil and gasoline have been lowered to 50ppm from the 10ppm for six months from 1 May, according to Kenya's ministry of investments, trade and industry. The measure is introduced to ensure the stability of fuel imports while sourcing higher quality fuels proves difficult. It also allows Kenya to choose from a wider range of fuel suppliers. The policy will be reviewed at the end of the six-month period, or earlier if global supply conditions improve, the ministry said. This comes just a month after Kenya's energy ministry ordered the re-export of a gasoline cargo that may not have met regional fuel standard. The cargo was imported outside of the government-to-government agreements between Kenya and Mideast Gulf NOCs, under which Kenya sources majority of its diesel, gasoline and jet fuel from the Saudi state-controlled Aramco, and the UAE's state-owned Adnoc and Enoc. But supply security on this route has significantly deteriorated since Iran's de facto closure of the strait of Hormuz in March locked in Mideast Gulf production. Kenya sourced around 66pc of its diesel and 24pc of its gasoline imports from the Gulf in 2025, but received none of either from that region in April according to Kpler data. Kenya's reversion to importing lower quality fuels mirrors efforts of the wider east African region to ensure supply stability. Fuels have been arriving from unusual supply regions like the US or Nigeria to replace lost supplies from the Middle East, but this in turn reflects in higher retail prices. Diesel and gasoline prices surged in the latest monthly fuel price review done by Kenya's energy and petroleum regulatory authority EPRA on 14 April. The diesel price rose by 24pc on the month to 206.84 Kenyan shillings/l ($1.59/l), while gasoline price rose by 16pc to KSh206.97/l. EPRA cited the cost of imported products, which they said had risen by as much as 68pc for diesel and 42pc for gasoline between March and April. The price increase already accounts for the government's decision to cut value added tax on both fuels to cushion consumers from the price surge. "The ministry [of energy and petroleum] wishes to reassure Kenyans that country has adequate fuel stocks and there should be no cause for alarm", said Kenya's cabinet secretary Opiyo Wanday on 6 May. But the country may struggle to replace all lost supplies from the Mideast Gulf if the closure of the strait of Hormuz continues. By Ieva Paldaviciute Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US base oil output rises 12pc in February: EIA

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