Phillips 66 Bayway refinery locks out union employees

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

US independent refiner Phillips 66 locked out 385 union-represented workers from its 275,000 b/d Bayway refinery in Linden, New Jersey, as contract negotiations fell through between the company and Teamsters' union, the company said today.

The refinery remains operated by engineers and supervisors employed by Phillips 66, according to the company. Phillips 66 did not say if operations would be affected by the lockout.

The contract covering union workers expired on 19 October at 4pm ET. With no agreed upon extension, the company locked out union workers from the refinery and the Linden terminal.

The Teamsters Local 877 previously reached a tentative contract agreement with Phillips 66 but workers voted to reject the company's most recent offer due to disagreements over wages, health care and safety protections, according to a statement from the union's social media page. Union workers earlier this month voted to authorize a strike if a deal was not met on the pending contract negotiation.

The Bayway refinery is the largest in the eastern US.

By Blake Del Papa

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20/10/26

Kalshi seeks to list WTI perpetual contract

Washington, 20 October (Argus) — US prediction market Kalshi is asking the US Commodity Futures Trading Commission (CFTC) for approval to launch a perpetual contract tracking WTI crude futures, which if authorized would become the first energy "perp" available in the US. The proposed contract, WTIPERP, would track the front month price of the Nymex WTI contact and never expire. In a filing on Tuesday to the CFTC, Kalshi said authorizing the contract would give traders continuous exposure to crude prices, without the cost of rolling over contracts or the hazard of having to take delivery of crude in Cushing, Oklahoma, as WTI futures on Nymex require on expiry. The listing will also allow perpetual energy trading to occur under the oversight of the US, Kalshi said, rather than on decentralized overseas platforms such as Hyperliquid. "This activity exists and occurs today outside the commission's supervision," Kalshi said in its filing. Perpetuals track the price of an asset, such as cryptocurrency, by requiring traders to make periodic payments to each other depending on the price of the underlying asset. The CFTC approved its first perpetual this year for Bitcoin, but it has yet to authorize a perpetual in energy markets, which it said could raise novel issues. Kalshi launched a similar oil contract named WTIFUTURE earlier this month, which trades like a perpetual but the company said was "not a perpetual" because it expires after a decade. Kalshi self-certified on 7 October that the contract complies with CFTC rules, clearing the way for a quick launch. That contract already has $57mn in daily volume and allows up to 5.9 times leverage on a trade, according to Kalshi's website. But Kalshi is pursuing a voluntary approval for its perpetual crude contract, under which CFTC will have at least 45 days — and up to 90 days — to decide whether to authorize the contract. For both WTIPERP and WTIFUTURE, Kalshi has limited trading to the same hours that are allowed for the Nymex WTI contract, which trades 23 hours a day on weekdays and after 6pm ET on Sunday. Kalshi did not respond to a request for comment. Perpetual contracts have faced pushback from incumbent exchanges. Earlier this year, US exchange operator CME, which owns Nymex, sued to throw out the CFTC's decision to allow Kalshi to list the first-ever perpetual contract in the US. The CFTC on 16 October asked a federal judge to throw out the lawsuit because it said CME failed to show it was harmed by the authorization of the contract. "CME does not allege that it has suffered any concrete financial injury because of perpetual futures," the CFTC said. "To the contrary, CME's public data shows that trading volumes in its digital asset futures are substantially higher today than before the commission approved perpetual futures." Earlier this month, CME suspended plans to list a 24/7 crude futures contract after facing pushback from the oil sector and the CFTC. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US plan to utilize shadow fleet faces headwinds

20/10/26

US plan to utilize shadow fleet faces headwinds

New York, 20 October (Argus) — The US' proposal to purchase and employ so-called "shadow fleet" vessels to transport mainstream crude to counter high freight costs may struggle to overcome obstacles, including sanctions from outside the US and insurance risks. The plan to use older, often uninsured tankers that move sanctioned oil was described by US energy secretary Chris Wright in speech on 19 October as moving ships from the "bad guy fleet" to the "good guy fleet." Wright suggested that shadow fleet ships could be sold to non-sanctioned owners "to carry legitimate oil in a legitimate fashion". The proposal comes as crude freight rates surged to record highs in October, with the rate for a US Gulf coast-China very large crude carrier hitting an all-time high that was nearly four times higher than its pre-Iran war high . Refined oil products freight rates are also rising after clean tankers were enlisted into the crude trade chasing those same surging freight rates, tightening refined oil products tanker supply overall. But the vessels in the shadow fleet that Wright said the US may tap are often under sanctions not just by the US but also by the EU and UK. They are also typically older, less well-maintained and not properly insured, which limits where they can operate. "The shadow fleet is characterized by limited transparency, opaque insurance arrangements and operation outside well-established industry standards, regulatory oversight and commercial inspection regimes," the International Association of Independent Tanker Owners said last week. Lifting sanctions does not make the vessels safer, and only adds risks to safety at sea, the marine environment and coastal states, the group said. Easing US sanctions on shadow fleet tankers is unlikely to have a significant and immediate impact on tanker freight, as the number of ships which it could impact is "too small to move the needle", shipbroker BRS said on 19 October. There are fewer than 150 tankers that are only sanctioned by the US, equal to about 2.5pc of the global fleet, according to BRS. Vessel tracking firm Vortexa holds a similar assessment of the limited reach of such a move by the US. "Overall, the limited pool of potentially returning vessels suggests that fleet redistribution will remain modest, with limited implications for freight rates," Vortexa said. By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US seeking to re-open shuttered oil refineries

20/10/26

US seeking to re-open shuttered oil refineries

Houston, 20 October (Argus) — The US is looking at "some opportunities" to help re-open refineries that have been shut within the past decade, secretary of energy Chris Wright said today. The administration is engaging with every refinery that has been shut in the last 10 years "to find what's the most practical one to get a refinery up and running" to increase fuel production and lower prices, he said on the sidelines of an event in Houston, Texas. The talks include the most recent US refinery to shut down, Valero's 145,000 b/d Benicia refinery in California, but "that's a tough challenge" because of the difficult business environment in that state, Wright said. Two other large US refineries have shut within the past two years — Phillips 66's 139,000 b/d Los Angeles refining complex and LyondellBasell's 264,000 b/d refinery in Houston, Texas. The US administration's efforts to possibly restart refineries come as President Donald Trump seeks ways to reduce fuel prices ahead of closely contested midterm elections. Diesel and gasoline prices have soared because of global supply shortages caused largely by the US-Iran war. A White House official told Argus last week that the administration is working with "many refineries" to award funds for expansions through the 1950 Defense Production Act. Wright said Tuesday that the expansions would tap into a $1bn fund the Republican-led Congress created through a tax and energy law passed last year. He also said the projects would be "heavily co-funded" with industry. Only one of the expansions has been announced, although details remain scarce. US vice president JD Vance said last week that Delek's 74,000 b/d refinery in Tyler, Texas, would get Defense Production Act funds for an unspecified expansion. Wright said Tuesday that Delek "had a very attractive proposal" to increase throughput at the refinery "to a meaningful amount". The administration is seeking proposals from more companies that can expand refining capacity as quickly as possible and as cost-effectively as possible, he said. Refinery expansions typically are planned many months to years in advance and take equally long to complete, depending on the scope. US refineries regularly make small increases in production capacity and product slates through annual maintenance and occasional large-scale projects. US refiners have been running at high rates this year to fill global supply gaps left by what was a de facto closure of the strait of Hormuz because of the war, taking advantage of the high prices and reporting bumper profits in the second quarter with margins doubling from a year earlier. The Defense Production Act gives the president special powers to require domestic industries to prioritize certain activities related to national defense, such as production of military equipment or, as during the Covid-19 pandemic, to produce medical equipment. In March, Trump used the law for the first time to force the restart of a pipeline in California, which allowed US independent Sable Offshore to start sales of crude in that region. Trump also signed five "presidential determinations" earlier this year that invoked the Defense Production Act to support the development of oil production, pipelines, refineries, LNG export terminals, coal-fired power plants and other energy infrastructure. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Staff at Mexico's Pemex face layoffs, demotions

20/10/26

Staff at Mexico's Pemex face layoffs, demotions

Mexico City, 20 October (Argus) — Mexico's state-owned Pemex has resumed a restructuring drive that is eliminating dozens of jobs and lowering the grades and pay of other employees at its executive tower in Mexico City and across several departments nationwide, multiple sources say. The measures affect employees including managers, technical specialists and other professionals, and who are not represented by the Mexican union of petroleum workers (STPRM). The changes include the closure of entire management departments, while some employees have been dismissed and others moved to lower grades, one Pemex employee told Argus . The layoffs and restructuring began last year, initially affecting legal and information technology departments, before slowing. It has now expanded nationally, although it is unclear how many people will be affected or what criteria Pemex is using, the national union of petroleum technicians and professionals (UNTYPP), which represents some of the employees but which does not have a collective contract with Pemex, told Argus . Pemex is also lowering employees' job grades by between two and seven levels, with no clear criteria and little regard for seniority, another Pemex employee said. Some employees have been moved from grade 39 to grade 30, for example, with their monthly pay cut by at least Ps70,000 ($3,800), the UNTYPP said. Pemex uses numbered job grades to reflect hierarchy and pay. Levels 30-43 cover mid-level and specialized positions, while levels 44-48 include managers, deputy directors and directors. Argus has reviewed two documents dated in October that record changes to individual employees' status. One states that an employee accepted the termination of their employment and agreed not to pursue claims against Pemex. It says the payment covering the termination would be delivered within 60 days. The second document states that an employee accepted a new contract at grade 30 after their previous position was eliminated. It says no severance or other termination payment applies and that the employee's seniority would not be affected. The UNTYPP said employees were being pressured and intimidated into signing documents accepting lower grades or termination. It said it had met with Pemex senior management, which told it the company lacked funds to grant an increase to technical and professional staff. Pemex said in September that it had agreed with the STPRM union to a 4pc increase in ordinary wages and a 2pc increase in benefits. It also agreed to a 3.12pc rise in gasoline benefits. The UNTYPP said its members had not received a comparable increase. Pemex did not immediately respond to an Argus request for comment. Pemex's restructuring comes as the company continues to face severe financial pressure. It reported a net profit of Ps18bn in the second quarter of 2026 and financial debt of $77.5bn at the end of June, but its filings also showed negative working capital of Ps355bn and said the company continued to depend on government support to meet its financial obligations. The current reorganization was formalized in May 2025, when its board approved a new organic statute that took effect on 1 June. Pemex said the changes were intended to integrate its operations vertically, eliminate overlapping roles and reduce administrative structures. By Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Energy markets unlikely to normalise in 2027: IEA Birol

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.

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