UK to provide air defence for Saudi Arabia

Spanish Market: Crude oil, LPG, Natural gas, Oil products
20/10/26

The UK will fly military missions over Saudi Arabia to protect infrastructure from attacks, the government said today.

Typhoon jets will operate "in a defensive mode", London said, and will not carry out air strikes against the Yemen-based Houthi militant group.

Riyadh's escalating conflict with Yemen's Houthi rebels has seen that group widen the scope of its targeting to include several fatal missile strikes against King Khalid International Airport in Riyadh, as well as a hit on state-controlled Aramco's headquarters in Dhahran.

The Houthis have claimed successful strikes this week on Aramco facilities at Yanbu, on the Red Sea coast, and on the 1mn b/d Shaybah oil field, but these were not confirmed. The group's most recent successful confirmed hit on Saudi oil infrastructure was on the Riyadh refinery on 3 October.

By Ben Winkley

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20/10/26

Energy markets unlikely to normalise in 2027: IEA Birol

London, 20 October (Argus) — IEA executive director Fatih Birol said today that he does not see "any credible pathway" for a normalisation of energy markets next year and that the crisis in the Middle East could escalate further. "I'm very worried that there will be some overlapping crisis in [the] Middle East… there may be some other crisis and it may further escalate the situation which will have serious implications for the energy markets", he told the Financial Times Energy Transition Summit in London. IEA member countries agreed in March to release 400mn bl of oil from emergency reserves. This was a "cushion", Birol said today. The IEA said earlier this month that around 330mn bl had been released so far. "If there is a need, I am sure our governments will not hesitate to look at the option of releasing further stocks", he said. The IEA said earlier this month that 20mn bl of diesel would be included in a G7-led oil stocks release. "I think we are trying to front-load those diesel deliveries", Birol said today, although he added that the timing is dependent on governments. He expressed concern about winter, when diesel demand typically rises — mostly because of heating fuel needs in the northern hemisphere. Birol noted that, while many expected crude oil prices to have risen further, "we don't use crude oil, we use products". It is "myopic" to assess the gravity of the situation on crude prices alone, when oil products prices have increased faster, he added. Energy security and climate change objectives are "closely aligned" at present, but "climate change is sliding down the international policy agenda", despite an increase in extreme weather events, Birol said today. He expects to see interest in climate change issues "rebound" next year, he added — partly owed to renewables which are cheap and quick to build out. Birol said he expected broad agreement from countries on electrification at the UN Cop 31 climate summit next month. The Turkish Cop 31 presidency has set a goal dubbed 35x35 , to lift electricity's share of final energy demand worldwide to 35pc by 2035. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

QatarEnergy pulls offer for steam turbine LNG carriers

20/10/26

QatarEnergy pulls offer for steam turbine LNG carriers

London, 20 October (Argus) — State-owned QatarEnergy has withdrawn its offer to sell 9-10 older steam turbine LNG carriers, possibly because the company is increasing transits on the strait of Hormuz, for which older carriers are preferred. QatarEnergy initially marketed these LNG carriers in August , but LNG Hormuz transits have ramped up significantly since then. The older, less efficient carriers are near scrap value and have much cheaper insurance for Hormuz transits relative to newbuild carriers, which can be around 10 times the price. Steam turbines carriers have typically been sold for around $11mn-25mn at scrap value, but can be worth up to $48mn if they remain functional for the company. Comparatively, tri-fuel diesel electric (TFDE) can be valued as much as $100mn and newbuild carriers at $250mn, charterers said. Additional war risk premiums to charter steam turbines for loading at LNG terminals in the Mideast Gulf are also much lower than for TFDE and two-stroke vessels. The additional war risk premium is about 10pc of the vessel's outright value. The steam turbine carriers mostly sail to nearby ports such as those in India. But QatarEnergy has also kept older steam carriers near Hormuz, with the 137,000m³ Al Rayyan last month having transshipped a cargo onto a more modern carrier for onward delivery . Initially, market participants thought Russia's Novatek might want the steam turbine carriers because of the upcoming European ban on deliveries from the 17.4mn t/yr Yamal LNG to EU destinations, as well as requirements to serve loadings at the US-sanctioned 19.8mn t/yr Artic LNG 2 terminal. At least eight steam turbine vessels have been sold so far this year for undisclosed business interests, traders said. These ships are likely additions to the Russian LNG fleet. QatarEnergy pulling its steam turbine LNG carriers from sale takes then ships off the market that may have been of interest to Russian buyers. By Anna Pringle Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Trump sought role in Mexican oil: Sheinbaum

19/10/26

Trump sought role in Mexican oil: Sheinbaum

Mexico City, 19 October (Argus) — Mexico's president Claudia Sheinbaum said today that US president Donald Trump had proposed a greater US role in Mexico's oil sector and higher Mexican purchases of US natural gas, but denied that either proposal was a condition for a trade agreement. Trump had offered to help increase Mexico's crude production during their telephone conversations, Sheinbaum said during her daily press conference. She said she had explained that any participation in the sector must comply with Mexican law. The comments follow a 9 October Financial Times report that Trump pressed Mexico for closer energy ties during a 16 September call, raised the possibility of selling Mexican assets to the US and discussed an arrangement modeled on South Korea's commitment to buy $100bn in US energy products. Asked whether Trump sought access to state-owned Pemex's assets in exchange for a trade agreement, Sheinbaum said that was not the case. Sheinbaum said US companies could participate in Mexico's oil sector through contracts permitted under Mexican law, citing oilfield services company Halliburton's longstanding work with Pemex. Sheinbaum also confirmed that Trump had proposed increasing Mexico's purchases of US natural gas. Mexico has five new combined-cycle power plants that require gas, she said, while her administration also intends to expand domestic production. Natural gas imports supply around 75pc of Mexico's consumption. Sheinbaum's administration aims to reduce that dependence to 50pc through higher domestic production and greater use of renewable energy. The two countries are negotiating trade issues ahead of the US-Mexico-Canada (USMCA) free trade agreement review. Sheinbaum announced no new oil investment agreements or additional gas purchase commitments. By Adriana Alarcón Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Attacks on tankers in Mideast Gulf increase

19/10/26

Attacks on tankers in Mideast Gulf increase

New York, 19 October (Argus) — The threat to commercial vessels in the Mideast Gulf has increased following attacks on two tankers inside the Gulf on 16 October, according to the UK Maritime Trade Operations (UKMTO) Centre. Two tankers were attacked northeast of Al Jubayl, Saudi Arabia, with one struck by an unknown projectile and another attacked by a rocket-propelled grenade launched from a small boat, according to the UKMTO. Crews of both vessels have been reported safe. The threat level in the Mideast Gulf was raised to "substantial" by the UKMTO following the incidents, noting that attacks in the region remain a strong possibility. Stationary vessels in the area are advised by UKMTO to consider taking steps to mitigate risks including "periodic repositioning within anchorages" because "even limited movement may complicate adversary targeting cycles". Attacks against vessels in and around the strait of Hormuz continue, including two strikes against a tugboat in the strait on Sunday which caused a minor crew injury reported by the UKMTO, although additional attacks are likely going unreported . Mine hit claims unsubstantiated Attacks against vessels in the region have been reported by the Islamic Revolutionary Guard Corps (IRGC) as vessels hitting mines, rather than as projectile strikes, despite little evidence of this being true. The IRGC Navy issued a statement on Monday, carried by Iranian state media IRNA, stating that a tanker attempting to exit the strait of Hormuz through the "unauthorized southern route in disregard of regulations governing transit through the strait" struck a naval mine, causing a fire in the engine room of the vessel. The US Central Command (Centcom), which oversees US forces in the Middle East, said on 15 October that a vessel the IRGC said hit a mine in the strait of Hormuz was actually hit by an IRGC projectile. The statement added that the primary transit routes through the strait of Hormuz remain free of mines. UKMTO said in a report on Sunday that there is no substantiation to claims made on 17 October by the IRGC that two supertankers hit mines in the strait of Hormuz. By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

EU restates opposition to Arctic oil and gas

19/10/26

EU restates opposition to Arctic oil and gas

Brussels, 19 October (Argus) — The EU has maintained its opposition to Arctic oil and gas development in an updated regional strategy due to be presented on 20 October, days after US president Donald Trump claimed that large-scale oil, gas and mineral exploration would begin in Greenland. The European Commission's revised policy reiterates its preference for renewable energy over Arctic-produced hydrocarbons and says it will work to prevent developments that threaten the region's ecosystems. The position carries forward an EU policy adopted in 2021, when the bloc committed to supporting efforts to keep oil, coal and gas undeveloped, including in the Arctic. In Greenland, the EU will support projects aimed at replacing diesel-fired power generation with renewable energy in Arctic communities. The commission also plans to work with like-minded Arctic partners on raw materials projects intended to strengthen EU supply chains while benefiting local communities. The bloc will continue to oppose deep-sea mining until it can be shown to have no harmful environmental impacts. The policy update comes after Trump said on 14 October that "massive oil, gas, and mineral exploration is getting ready to begin" in what he called "our new and beautiful Greenland". He gave no details of any projects, companies or approvals. Greenland, Denmark and the US signed an agreement on 22 September covering defence, minerals co-operation and broader economic and business issues. But the agreement does not award the US or its companies any oil, gas or mining rights. Denmark's foreign ministry said any US exploration for oil, gas or minerals would have to comply with Greenlandic legislation. The agreement does not give US investors preferential access to Greenland's natural resources, the ministry said. Greenland's government halted "future oil exploration" in June 2021. But the decision does not prevent mineral development, and Greenland continues to approve mining projects under its own legislation. Greenland most recently approved mining and closure plans for US firm Critical Metals' Tanbreez rare earths project through to September 2050. The permit covers 19 elements, including the heavy rare earths terbium, dysprosium and yttrium. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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