Iran swapping gasoline for Venezuelan jet fuel

: Crude oil, Oil products
21/03/01

Iran delivered more gasoline to Venezuela late last month, picking up jet fuel in exchange.

The Iran-flagged Forest, one of Iranian state-owned NIOC's vessels that has supplied irregular shipments of gasoline to Venezuela since mid-2020, unloaded 277,000 bl of gasoline at Venezuelan state-owned PdV's El Palito terminal on 20 February, according to shipping data obtained by Argus.

The tanker is currently loading 130,000 bl of jet-A1 at PdV's Cardon terminal for transport to Malaysia.

Two other Iranian tankers, the Faxon and the Fortune, delivered over 400,000 bl of gasoline to PdV at the end of January and departed with jet fuel cargoes earmarked for delivery to Iran, according to PdV bills of lading seen by Argus.

PdV is using Iranian tankers that travel to and from Venezuelan terminals with their transponders switched off in what the oil ministry describes as "controlled fleet operations" meant to defy US sanctions against the two countries.

PdV has substantial jet fuel stocks since the Covid-19 pandemic grounded nearly all Venezuelan domestic and international commercial flights almost a year ago. Jet-A1 stocks at the 940,000 b/d CRP refining complex in Falcon state, which includes the 305,000 b/d Cardon refinery and 635,000 b/d Amuay refinery, also have been increasing since PdV repair crews on 22 February restarted a kerosene treatment unit which had been out of service since the end of 2019.

PdV and NIOC expect to expand their swap trade volumes this year including refined products and crude as PdV brings more downstream capacity back on stream and raises crude production, a senior Venezuelan oil ministry official said.

"The US sanctions are hurting the Venezuelan people but will not prevent us from strengthening oil relations with Iran," the ministry official added.

Caracas paid for initial deliveries of Iranian gasoline to Venezuela in May-June 2020 with gold, Venezuelan officials have said.

Since December, Venezuela has restored some flights to a handful of destinations, including the Dominican Republic, Panama, Mexico, Bolivia and Turkey.

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24/10/03

Libya lifts force majeure as oil blockade ends

London, 3 October (Argus) — Libya has begun to ramp up crude production after state-owned NOC lifted force majeure on all fields and terminals today. This should restore Libya's crude production to more than 1.2mn b/d, from an estimated 500,000 b/d. NOC declared force majeure after much of Libya's output was forced offline by a blockade imposed by the country's eastern-based administration in late August. Libya's eastern-based parliament earlier this week approved an agreement to resolve a leadership crisis at the central bank, which had prompted the blockade. NOC also lifted force majeure at the El Sharara oil field, which was shut down before the blockade. Output at the field, which normally produces about 260,000-270,000 b/d, has started, a source told Argus . By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

California adds oilseed limits as vote nears: Update

24/10/02

California adds oilseed limits as vote nears: Update

Updates throughout with more detail on revisions. Houston, 2 October (Argus) — California regulators advanced stricter limits on crop-based biofuels as revisions to a key North American low-carbon incentive program drew closer to a vote. The California Air Resources Board (CARB) late yesterday added sunflower oil — a feedstock with no current approved users or previous indicated use in the program — to restrictions first proposed in August on canola and soybean oil feedstocks for biomass-based diesel. The new language maintained a proposal to make the program's annual targets 9pc tougher in 2025 and to achieve by 2030 a 30pc reduction from 2010 transportation fuel carbon intensity levels. Board decisions that could come as early as 8 November may reconfigure the flow of low-carbon fuels across North America. The state credits anchor a bouquet of incentives that have driven the rapid buildout of renewable diesel capacity and dairy biogas capture systems far beyond California's borders, and inspired similar, but separate, programs along the US west coast and in Canada. CARB staff's latest proposals, published a little before midnight ET on 1 October, offer comparatively minor adjustments to the shock August revisions that spurred a nearly $20 after-hours rally in LCFS prompt prices. Prompt credits early in Wednesday's session traded higher by $3 than they closed the previous trading day before slipping back by midday. LCFS programs require yearly reductions in transportation fuel carbon intensity. Higher-carbon fuels that exceed these annual limits incur deficits that suppliers must offset with credits generated from the distribution to the market of approved, lower-carbon alternatives. California's program has helped spur a rush of new US renewable diesel production capacity, swamping west coast fuel markets and inundating the state's LCFS program with compliance credits. CARB reported more than 26mn metric tonnes of credits on hand by April this year — more than enough to satisfy all new deficits generated in 2023. Staff have sought through this year's rulemaking to restore incentives to more deeply decarbonize state transportation than thought possible during revisions last made in 2019. Participants have generally supported tougher targets, with some fuel suppliers warning about potential price increases and credit generators urging CARB to take a still more aggressive approach. But proposals to limit credit generation to only 20pc of the volume of fuel a supplier made from canola, soybean and now sunflower has found little public support. Environmental opponents have argued that the CARB proposals fall short of what is necessary to add protections against cropland expansion and fuel competition with food supply. Agribusiness and some fuel producers have warned the concept, proposed in August, ran counter to the premise of a neutral, carbon-focused program and against staff's own view last spring. The proposal exceeded what CARB could do without beginning a new rulemaking, some argued. CARB yesterday proposed a grace period for facilities already using the feedstocks to continue generating credits while seeking alternatives. Facilities certified to use those feedstocks before changes are formally adopted could continue using those sources until 2028, compared to a 2026 cut off proposed in August. No facilities currently supplying California have certified sunflower feedstock, and it was not clear that any were planned. "We're not aware of any proposed pathway or lifecycle analysis for sunflower oil, so that addition is just baffling," said Cory-Ann Wind, Clean Fuels Alliance America director of state regulatory affairs. "Clearly not based in science." The latest revisions include a change to how staff communicate a new, proposed automatic adjustment mechanism (AAM). The mechanism would automatically advance to tougher, future targets when credits exceed deficits by a certain amount. Supporters consider this a more responsive approach to market conditions than the years of rulemaking effort already underway. Opponents argue such a mechanism cedes important authority and responsibility from the board. Staff proposed quarterly, rather than annual, updates on whether conditions would trigger an adjustment, and to use conditions during the most recent four quarters, rather than by calendar year. Obligations and targets would continue to work on a calendar-year basis. CARB staff clarified that verifying electric vehicle charging credits would not require site visits to the thousands of charging stations eligible to participate in the program. Staff also clarified how long dairy or swine biogas harvesting projects could continue to generate credits if built this decade, with a proposed reduction in credit periods only applying to projects certified after the new rules were adopted. California formally began this rulemaking process in early January after publishing draft proposals in late December. Regulators initially proposed adjusting 2025 targets lower by 5pc for 2025 — a one-time decrease called a stepdown — to work toward a 30pc reduction target for 2030. CARB set its sights on 21 March for adoption. But staff pulled that proposal in February as hundreds of comments in response poured in. Updated language released on 12 August proposed a steeper stepdown for 2025 of 9pc while keeping the 30pc target for 2030. Public comment on yesterday's publication will continue to 16 October. By Elliott Blackburn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US tries to shape Israel's response to Iran: Update

24/10/02

US tries to shape Israel's response to Iran: Update

Updates with additional comments by President Biden starting in second paragraph. Washington, 2 October (Argus) — US president Joe Biden today called on Israel to keep its expected retaliatory strike proportionate after an Iranian missile attack on Tuesday. "We'll be discussing with the Israelis what they're going to do," Biden told reporters. The US and other G7 countries agree "that they have a right to respond, but they should respond in proportion", he said. The US would not support an attack by Israel on sites associated with Iran's nuclear program, Biden said. For its part, the immediate US response would include new sanctions, he said. Biden reached out to fellow leaders of the G7 group of advanced democracies on Wednesday "to coordinate on a response to this attack, including new sanctions", the White House said. The US Treasury Department today imposed sanctions on two additional tankers allegedly engaged in transporting Iranian crude to China. The Gabon-flagged Izumo and the Marshall Islands-flagged Frunze allegedly also transported Russian crude in contravention of the G7 price cap on Russian exports, Treasury said. Including today's action, the US sanctions list now totals 302 tankers and other vessels accused of facilitating Iran's oil and other commodity exports since 2019, including 68 tankers added by Treasury's sanctions enforcement arm this year. That has not succeeded in stopping the flow of Iranian crude to China, as Tehran has developed a sophisticated network of intermediaries and "shadow fleet" tankers to bypass US sanctions. Biden, who ordered US naval and military assets in the region to shoot down Iranian missiles aimed at Israel, promptly declared Tehran's barrage of missiles to have been ineffective. The nearly 200 missiles launched by Iran appeared to be targeting military sites but did not cause significant damage, and the only reported fatality is of a Palestinian civilian in the West Bank, according to the White House. The White House is holding consultations with Israel to help shape its response to the attack. "Iran made a big mistake and it will pay for it," Israeli prime minister Benjamin Netanyahu said following the Iranian attack, which came hours after Israel launched a ground invasion of Lebanon. Netanyahu referenced the aerial strikes that decapitated the leadership of the Iran-backed Hezbollah militant group in Lebanon, noting that "the regime in Tehran does not understand our determination to defend ourselves and to exact a price from our enemies". Tehran, in turn, said "we will respond in a more severe manner" if Israel retaliates with strikes against Iran. A previous Iranian missile attack on Israel in April led to a restrained Israeli retaliation on targets inside Iran, with the US, China and other regional powers intervening to prevent a further escalation. The Biden administration has tried to balance support for Israel's self-defense with efforts to prevent an escalation of the conflict that could engulf the world's largest oil producing region on the eve of the 5 November US presidential election. The Iran-Israel confrontation featured at Tuesday's televised debate between the US vice-presidential candidates, but neither offered an explicit plan for how the US should respond to the Iranian attack. The response from US lawmakers similarly fell along partisan lines, with the Democrats backing efforts by the White House to prevent further escalation, while the Republicans called for a stronger response. Iranian "oil refineries need to be hit and hit hard because that is the source of cash for the regime to perpetrate their terror", senator Lindsey Graham (R-South Carolina) said. Graham made similar calls in April and in October 2023, at the outset of the Gaza conflict. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US tries to shape Israel's response to Iran attack

24/10/02

US tries to shape Israel's response to Iran attack

Washington, 2 October (Argus) — US president Joe Biden's administration is working to moderate a likely retaliatory strike by Israel after an Iranian missile attack on Tuesday. The US would not support an attack by Israel on sites associated with Iran's nuclear program, Biden told reporters today. Biden reached out to fellow leaders of the G7 group of advanced democracies today "to coordinate on a response to this attack, including new sanctions," the White House said. The US Treasury Department today imposed sanctions on two additional tankers allegedly engaged in transporting Iranian crude to China. The Gabon-flagged Izumo and the Marshall Islands-flagged Frunze allegedly also transported Russian crude in contravention of the G7 price cap on Russian exports, Treasury said. Including today's action, the US sanctions list now totals 302 tankers and other vessels accused of facilitating Iran's oil and other commodity exports since 2019, including 68 tankers added by Treasury's sanctions enforcement arm this year. That has not succeeded in stopping the flow of Iranian crude to China, as Tehran has developed a sophisticated network of intermediaries and "shadow fleet" tankers to bypass US sanctions. Biden, who ordered US naval and military assets in the region to shoot down Iranian missiles aimed at Israel, promptly declared Tehran's barrage of missiles to have been ineffective. The White House is holding consultations with Israel to help shape its response to the attack. "Iran made a big mistake and it will pay for it," Israeli prime minister Benjamin Netanyahu said following the Iranian attack, which came hours after Israel launched a ground invasion of Lebanon. Netanyahu referenced the aerial strikes that decapitated the leadership of the Iran-backed Hezbollah militant group in Lebanon, noting that "the regime in Tehran does not understand our determination to defend ourselves and to exact a price from our enemies." Tehran, in turn, said "we will respond in a more severe manner" if Israel retaliates with strikes against Iran. The previous Iranian missile attack on Israel, in April, led to a restrained Israeli retaliation on targets inside Iran, with the US, China and other regional powers intervening to prevent a further escalation. The Biden administration has tried to balance support for Israel's self-defense with efforts to prevent an escalation of the conflict that could engulf the world's largest oil producing region on the eve of the 5 November US presidential election. The Iran-Israel confrontation featured at Tuesday's televised debate between the US vice-presidential candidates, but neither offered an explicit plan for how the US should respond to the Iranian attack. The response from US lawmakers similarly fell along partisan lines, with the Democrats backing efforts by the White House to prevent further escalation, while the Republicans called for a stronger response. Iranian "oil refineries need to be hit and hit hard because that is the source of cash for the regime to perpetrate their terror," senator Lindsey Graham (R-South Carolina) said. Graham made similar calls in April and in October 2023, at the outset of the Gaza conflict. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US dockworkers, shippers strike positions entrenched

24/10/02

US dockworkers, shippers strike positions entrenched

New York, 2 October (Argus) — The US dockworker strike gripping east coast and Gulf coast container terminals may not be short-lived given the wide gap between union demands and the offer from an alliance of containership owners, terminal operators and port associations. The United States Maritime Alliance (USMX) said its latest proposal for a 50pc wage increase, made on 30 September just before the strike started, "exceeds every other recent union settlement while addressing inflation". But the International Longshoremen's Association (ILA) rebuked USMX's characterization of the offer late Tuesday, saying it fails to address the many years it takes for the port workers it represents to realize the higher wages, and factors like workers being on unpaid on-call status. The last-minute timing of the 50pc wage increase offer itself undermines the USMX's position as good faith negotiators, ILA said. "[The] USMX's claim that they are ready to bargain rings hollow when they waited until the eve of the potential strike to present this offer," the ILA said. "The last offer from [the] USMX was back in February 2023." Dockworkers started to picket container terminals in New England, New York, New Jersey, Houston, Texas, New Orleans, Louisiana, and other locations on 1 October . Containership loading and unloading has come to a halt at those terminals, while no trucks where queued at unmanned loading checkpoints. The union has pointed to a perceived unfairness in record profits reported by shipping companies since the Covid-19 pandemic not being shared with ILA members who were "keeping ports open and the economy moving" during that time. The union is also sticking to demands for no new automation technology at US ports that would replace workers, describing this position as "non-negotiable", and the right to 100pc of the "container royalties" funds, a type of welfare paid out by employers to protect US longshoremen from the loss of work brought on by the containerization of cargo. No fed intervention expected US president Joe Biden continued to indicate the federal government would not intervene in the strike, saying collective bargaining between the ILA and the USMX is the best way for workers to achieve their goals. In a statement this week Biden also pointed out that the USMX "represents a group of foreign-owned [ocean] carriers" and insisted that they should "present a fair offer" to the ILA. "It is time for [the] USMX to negotiate a fair contract with the longshoremen that reflects the substantial contribution they've been making to our economic comeback," Biden said. Vice-president Kamala Harris, who is running to replace Biden, doubled-down on that position today. "This strike is about fairness," Harris said in a statement. "Foreign-owned shipping companies have made record profits and executive compensation has grown. The Longshoremen, who play a vital role transporting essential goods across America, deserve a fair share of these record profits." Few commodities curtailed for now Ports and the companies that rely on them have been anticipating the strike for many weeks . Movements of dry bulk cargo, such as coal and grains, are expected to be less affected by the work stoppage, though there could be side effects from the congestion of other products being rerouted to ports not affected by the strike. Movement of crude, refined products and many petrochemicals are not expected to be interrupted, but some polymers that are moved by container, including polyvinyl chloride (PVC), polyethylene (PE), and polypropylene (PP), could be disrupted. A segment of US steel imports could also be disrupted by the strike, as about 9pc of those imports come in via containers , according to data from Global Trade Tracker. A prolonged strike could begin to curtail some downstream manufacturing of equipment that requires parts that move by containers. By Ross Griffith Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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