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Brazil to keep pushing biofuels in Cop 31
Brazil to keep pushing biofuels in Cop 31
Sao Paulo, 14 August (Argus) — Brazil is hoping for breakthroughs in promoting biofuels as a bigger part of climate change policies during this year's UN Cop 31 climate summit in November, panelists at a preparatory event held last week in Sao Paulo said. Brazil is second only to the US in biofuels output and consumption. It wants its biofuels to be a bigger part of the global energy transition. But European environmental and energy groups have long pushed back against biofuels as a central climate change solution, given issues with land cleared for crops and limited expansion availability for biofuels from waste oils and fats. Brazil launched last year during Cop 30 — which it hosted — the Belem 4X pledge , a global effort to quadruple global output and use of sustainable fuels, including biofuels, by 2035. The consolidation of biofuels "as an absolutely crucial alternative for the energy transition" will continue to be one of Brazil's priorities at Cop 31, the foreign affairs ministry's energy, climate and environment secretary Mauricio Lyrio told attendees. The Cop 31 presidency has already laid out its focus areas for this year's summit in Turkey. The most prominent is a global goal for electricity to reach 35pc of global energy consumption by 2035 , up from around 20pc. "[The biofuels and electricity expansion agendas] are complementary — as mechanisms, instruments, and technologies — for the economic transition that needs to take place," Brazil's environment minister Aloisio de Melo told Argus . "But it is important for Brazil to bring this input [of biofuels] and rally countries that view it as an option, helping to advance this agenda." That echoes comments made by Brazil's environment and climate change minister Joao Paulo Capobianco during the Petersberg Climate Dialogue, held in April. While electrification is essential for reducing greenhouse gas emissions, viable and scalable short-term alternatives — such as biofuels — must also play a significant role, especially in developing countries, he said then. Hybrid solutions using ethanol or biodiesel can help reduce immediate emissions at a lower cost, helping countries facing fiscal constraints and substantial investment needs. Capobianco cited the renewal of Brazil's urban bus fleets as an example. Replacing the entire fleet with fully electric vehicles would require massive public investment, which could delay the modernization of public transport, he said. But hybrid models powered by biofuels such as ethanol and biodiesel would allow for significant emission cuts while leveraging existing infrastructure. Fossil fuels roadmap Biofuels will also be key in the Cop 30 presidency's ongoing roadmap on the phase-out of fossil fuels , another of Brazil's centerpieces during Cop 30. The roadmap will only work if the world can accelerate supply of energy sources other than fossil fuels, the Cop 30 presidency's coordinator for the roadmap Pedro Brancate said. Cop 30 ended without a final deal on a plan to shift away from fossil fuels, but the summit's Brazilian leadership vowed to oversee creating a roadmap on the issue outside of the official framework. It will present the plan during Cop 31. And although electrification will no doubt be a key part of that transition, it alone will not be able to replace every usage of fossil fuels, Brancate said. "We sometimes forget that fossil fuels globally account for 95pc of the transport sector's energy demand," Brancate said. "So, even with accelerated electrification of light vehicles in various markets, sustainable fuels will remain highly relevant to the transition away from fossil fuels." The Cop 31 presidency has not put the phasing out of fossil fuels on the summit's agenda yet, but sources have told Argus that it is unlikely that it would block talks on the issue. The Cop 30 presidency will also present a roadmap focusing on deforestation during Cop 31. By Lucas Parolin Brazil's avoided emissions from biofuels mn tCO₂ Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Citgo sees record ULSD exports at Texas terminal
Citgo sees record ULSD exports at Texas terminal
Houston, 13 August (Argus) — US-based refiner Citgo reported record high exports of ultra-low sulphur diesel (ULSD) from its terminal in Brownsville, Texas, in the second quarter, as the prolonged US-Iran war limited global supplies of the fuel. ULSD export sales at Brownsville in the second quarter more than doubled the previous high set in the third quarter of 2025, Citgo said in an earnings release. The company did not disclose specific volumes. US fuel prices, especially distillates, have soared since late February because of global supply shortages caused by the US-Iran war. The higher distillate prices have led many US refiners to maximize diesel yields, with Citgo saying its 471,000 b/d Lake Charles refinery in Louisiana reached record distillate production in April. US independent refiner Marathon Petroleum also recently cited demand in Latin America and Europe for its booming diesel business, while Chevron pointed to an increase in European diesel demand as one reason for an expected tighter products market in the third quarter. Citgo said on Thursday that its overall international market activities in the second quarter were led by cargoes delivered to Europe, the Caribbean and South Africa. Citgo reported a profit of $936mn in the second quarter, up from $100mn in the second quarter of 2025 on strong refining margins. Auction and arrest limbo Citgo's status has been unclear for many years as its three US refineries, lubricant plants and midstream and retail assets are being auctioned off in a US court to satisfy debt defaults and expropriations owed by its parent company, Venezuelan-owned PdV. A US federal judge in November affirmed a $5.9bn bid from Amber Energy, an affiliate of New York hedge fund Elliott Investment Management, as the winner in the auction. Amber's bid included a separate agreement to settle litigation claims with 75pc of a group of PdV bondholders for $2.13bn. The sale is not finalized and appeals in the case are pending in a US court. The US' arrest of former Venezuelan president Nicolas Maduro on 3 January and the lifting of sanctions on Venezuela's oil exports have added new uncertainties to Citgo's fate. Even though it is owned by PdV, Citgo has operated under a board appointed by the Venezuelan opposition and vetted by the US government since 2019, after the US denounced Venezuela's 2018 presidential election as illegitimate. Since then, the US has recognized the government led by interim president Delcy Rodriguez, a long-time Maduro ally, and restarted diplomatic relations. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Rhine hits record lows, halts shipping south of Mainz
Rhine hits record lows, halts shipping south of Mainz
Hamburg, 13 August (Argus) — Rhine River water levels have again dropped to record lows, and barge operators said most traffic is now halted south of Mainz. Navigation is also increasingly restricted further north, as water levels continue to fall. Freight rates from the Amsterdam-Rotterdam-Antwerp (ARA) hub to Rhine destinations have hit record highs. The water gauge at Kaub, the Rhine's key bottleneck, was at 11cm on 13 August. The Federal Waterways and Shipping Administration forecasts a drop to 6cm by the weekend, another all-time low. At this level, river transport from ARA to the Upper Rhine and Main River is near-impossible. Only a few specialised barges can pass through Kaub under extremely challenging conditions, shipowners said. Storage sites along the Main, including Frankfurt, Hanau and Aschaffenburg, and depots on the Upper Rhine in Karlsruhe, Mannheim, Kehl and Basel, Switzerland, are effectively cut off from ARA. Shipping south of Kaub, to Basel, is barely feasible because of shallow water at the Maxau gauge south of Karlsruhe. Shipowners said quoted spot freight rates for ARA-Karlsruhe cargoes are largely theoretical, as volumes are too low to ascertain a reliable market price. The Argus rate for ARA-Karlsruhe route is a record €215/t, but urgent cargoes that still move to the Upper Rhine on specialised vessels are commanding even higher lump-sum rates. Most transport is confined to the Lower Rhine. Duisburg, Dortmund and Neuss remain accessible from ARA, shipowners said. Of the Cologne terminals — Köln-Molenkopf, Köln-Niehl, Godorf and Wesseling — only the former can still theoretically be served by conventional barges. The others are already too shallow for regular operations. Water levels are also dropping on the Lower Rhine. On 13 August, the Duisburg gauge was 136cm, another historic low. Barges can reach Duisburg from ARA at only about 15pc of capacity, according to shipowners. If Duisburg falls below 130cm, inland shipping could be halted on parts of the Lower Rhine. Forecasts show little short-term relief. While local thunderstorms are expected, dry soils mean these may not raise river levels significantly. A sustained recovery would need widespread, prolonged rainfall across the basin. By Johannes Guhlke and Marc Hauschild Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Hormuz traffic low despite US claims of control
Hormuz traffic low despite US claims of control
New York, 12 August (Argus) — Vessel traffic through the strait of Hormuz remains severely disrupted, weighing on global oil demand despite US president Donald Trump's recent claims of the US' total control over the narrow waterway. Vessel traffic through the strait of Hormuz stood at 16 vessels total on 11 August, split between 11 inbound and five outbound transits, data from maritime security firm Windward show. There were six total transits — including three transits into the Mideast Gulf and three transits out — that took place on the southern US-supported transit lane, including a Sinokor-controlled very large crude carrier (VLCC) carrying 2mn bl of Iraqi crude destined for Rotterdam, Windward data show. "The USA has total control over the strait of Hormuz. I THINK WE WILL KEEP IT!" Trump posted on social media on 12 August. "Our naval blockade is being called, by everyone, 'A WALL OF STEEL' and there is nothing Iran can do about it." Trump's claim of the US' total control over the strait of Hormuz came the same day that the International Energy Agency (IEA) described an agreement enabling the reopening of the strait of Hormuz as "still elusive" in its latest Oil Market Report (OMR). It also lowered its global oil demand forecast "as the continued closure of the strait of Hormuz disrupts international supply chains and curtails product availability". The latest remarks by Trump come as the US and Iran appear to be moving further away from the potential for diplomatic resolution to reopen the strait of Hormuz, based on recent escalations in rhetoric from both countries. Iran continues to heighten its demands for the reopening of the strait of Hormuz, linking it to the end of the US' blockade, the release of frozen Iranian assets and a region-wide ceasefire that includes Lebanon and Gaza. Meanwhile, Trump in an 11 August post on social media floated the idea that Iran "should be responsible for the damages and death caused to the people of Lebanon, Syria, Yemen, and Gaza!" Wright or wrong? US Energy Secretary Chris Wright said on 11 August that thanks to the US and its Gulf allies the seven-day average for oil leaving the strait of Hormuz is up to almost 9mn b/d, a figure much higher than available information. Data from vessel tracking firm Vortexa places the weekly average for oil leaving the strait of Hormuz between 31 July and 7 August at 3.34mn b/d, with the UAE, Iraq and Kuwait as the leading exporters. It is unclear whether the vessels transited on the US-supported southern lane or the northern Iranian-controlled transit lane. Iran had previously exempted its ally Iraq from paying tolls to transit the strait in June. The IEA confirmed in its latest OMR that "following significant gains in May and June, crude and condensate flow through Hormuz (…) collapsed in July." Wright doubled down on his claims on 12 August stating that "many private businesses undercount the number of ships leaving the strait of Hormuz due to ships moving covertly through the waterway". The US Central Command (Centcom) has repeatedly claimed that US-assisted transits through the strait of Hormuz have been averaging around 20 vessels a day, even on days where vessel tracking and satellite information detected only 10 vessels making it through the waterway. Centcom has declined to respond to multiple requests for additional details on the transits from Argus . By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.