Missile strikes from east hit Erbil in Iraqi Kurdistan

  • : Crude oil
  • 22/03/13

A dozen ballistic missiles were fired into the capital of Iraq's northern Kurdish region Erbil in the early hours of today, according to Kurdish and Iraqi officials.

The missiles "were launched from across Iraq's eastern border" and "targeted areas around the new US consulate compound" in Erbil, said Lawk Ghafuri, the head of Kurdistan's foreign media office after the incident. "The attack did not result in human casualties, only material damages," he said.

Ghafuri added that "none of the missiles" actually hit the US consulate, which is currently under construction, but "areas around the compound" were. The strikes "resulted in the injury of two people," Erbil's governor Omid Khoshnow said.

Masrour Barzani, the prime minister of the Kurdistan Regional Government (KRG) "strongly" condemned what he labelled a "terrorist attack," but stopped short of assigning blame. His counterpart in Baghdad, Mustafa Kadhimi, said the security forces of the federal Iraqi government are helping to investigate who was behind the attack.

But numerous mentions by Kurdish officials of the attack originating from the east suggests a belief that the missiles may have been launched from Iran — the source of several similar attacks on northern Iraq in recent years

One of the more notable recent ballistic strikes came on two bases that house US troops — one in Erbil, the other in western Iraq — in early January 2020 in retaliation for the targeted killing by the US of senior Iranian military commander Qassem Soleimani on 2 January.

Hiwa Afandi, a deputy minister in the Kurdistan Regional Government, said today that Erbil International Airport, where US military forces are currently stationed, had not been a target in this latest strike.

Tehran has yet to issue any official comment on today's attacks. But Iranian state media has been reporting that several of the locations targeted in the attack were bases that were "unofficially run by Israel."

"The places that were targeted were not public, they were not urban locations, they were not Iraqi bases, but specific locations in Erbil. According to our informed sources in Erbil, these locations were under the supervision of the Zionist regime," Iran's state-owned IRNA reported, referring to the Israeli government.

The attack comes amid heightened tensions between Iran and US as the negotiations in Vienna over a return to the 2015 nuclear deal were paused last week over Russian demands that the sanctions currently being imposed on Moscow over the fighting in Ukraine would not affect its ability to co-operate with Tehran once the agreement is reinstated.

An Israeli airstrike in Syria near the capital Damascus on 7 March killed two members of the Iranian Revolutionary Guard Corps (IRGC), Iran's state media reported last week, for which the IRGC had vowed revenge.

By Nader Itayim


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24/05/14

Saras sees diesel margin improvement later in the year

Saras sees diesel margin improvement later in the year

Barcelona, 14 May (Argus) — Italian independent refiner Saras said today it expects diesel margins to rise later in the year, boosting profits at its 300,000 b/d Sarroch refinery. The comapny said there has been a "drastic decline" in regional diesel margins since the first quarter of the year, caused by cargoes from the US arriving at the same time as supplies from east of Suez that had been delayed by taking the longer Cape of Good Hope route. This is not necessarily bad for Saras' profits, said the firm's chief operating officer Marco Schiavetti. "All these logistic de-optimisations are supporting diesel cracks in particular, volatility in the market is supportive for the business in general," he said. The company expects diesel margins to rise later in the year. Saras said today that some maintenance works on Sarroch's crude distillation units (CDU) would take place in the second quarter and again in the fourth quarter. There will also be works in both periods on the firm's adjacent IGCC power plant. Saras' prospective purchase by trading firm Vitol could close within a couple of months. Saras' chairman Massimo Moratti said there are "no obstacles" to the deal from Italian authorities, with the firm waiting on EU approval including regulations on antitrust law. Deputy chief executive Franco Balsamo said: "We do not have any disclosure on the expected end of the process, but in my point of view in a couple of months we should receive a green light from the EU." There has not yet been co-operation between Saras and Vitol regarding refinery operations, said Balsamo. "Vitol is one of the largest broker in this market so we have regular business with them when there are mutual economic conditions," he said. "But as far as any formal co-operation it is not the right time. We are waiting for all the necessary procedures." The company made a profit of €77.4mn ($83.5mn) in the January-March period, lower by 44pc from the first quarter of 2023. Profits were very similar to €76.6mn in the first quarter of 2022 when refining margins began rising following the Russian invasion of Ukraine at the start of February that year. Company crude throughput forecast has historically been changeable. But 2024 guidance remains the same as previous statements at 265,000-275,000 b/d. The firm said its first quarter crude gravity was 32.5°API almost identical to Argus ' assessment of the refinery slate . By Adam Porter Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Opec leaves 2024-25 supply, demand forecasts unchanged


24/05/14
24/05/14

Opec leaves 2024-25 supply, demand forecasts unchanged

London, 14 May (Argus) — Opec has left its global oil supply and demand forecasts for 2024-25 unchanged. Demand is projected to rise by 2.25mn b/d to 104.46mn b/d this year and by a further 1.85mn b/d to 106.31mn b/d next year, the group said in its latest Monthly Oil Market Report (MOMR). Minor adjustments were made within the 2024 quarters, reflecting actual data received and expected short-term developments. But the overall growth figure for the full year is the same as last month , with an upwards adjustment in Chinese oil demand, mainly in the first quarter, offset by downward revisions for OECD Americas and the Middle East. Opec introduced a new section in last month's MOMR outlining a liquids supply forecast for all countries outside the wider Opec+ alliance. It expects non-Opec+ supplies to grow by 1.23mn b/d to 52.96mn b/d in 2024 and by another 1.1mn b/d to 54.06mn b/d in 2025. This is unchanged from its previous projection. This year's non-Opec+ supply growth is driven by production increases in the US, Canada and Norway. Next year is supported by a further rise in output in the US and Canada, as well as higher production in Latin America. The supply and demand projections leave the call on Opec+ crude at 43.2mn b/d this year, rising to 44mn b/d in 2025. Opec+ production was 41mn b/d in April, according to an average of secondary sources that includes Argus . By James Keates Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

TMX oil specs inappropriate: Valero, Chevron


24/05/13
24/05/13

TMX oil specs inappropriate: Valero, Chevron

Calgary, 13 May (Argus) — Crude quality specifications on the Trans Mountain Expansion (TMX) pipeline in western Canada are not narrow enough and may prevent buyers in California from taking crude shipped on the recently commissioned system, according to two US refiners. The 590,000 b/d TMX pipeline was placed into service on 1 May, a welcome addition for both producers in Alberta and refiners on the Pacific rim, but the upper limits allowed for crude on the line relating to vapor pressure and Total Acid Number (TAN) are problematic, Chevron and Valero said in letters to the Canada Energy Regulator (CER) on 10 May. The specifications, as set out by Trans Mountain's rules and regulations, were already in place for the original 300,000 b/d crude pipeline, or Line 1, which also carries refined products that require a higher vapor pressure. TMX, or Line 2, will primarily cater to heavy crude shippers. But the vapor pressure limit of 103 kPa at 37.8°C on the new line is nearly 40pc higher than tanks allow, according to Valero. "High vapor pressure crude oil simply cannot be accepted in United States internal floating roof tanks," wrote Valero. The current limits are "wholly inappropriate" and will result in crude being transported through TMX that is not suitable for the west coast market. Chevron concurred that the specifications exceed the limit for storage tanks at its own California refineries in Richmond and El Segundo. "Failure to amend the TAN specification and vapor limits for TMPL may prevent Chevron from purchasing or processing crude from [Trans Mountain] for our California refineries," the company wrote. The letters were in support of a 12 April complaint by Canadian Natural Resources (CNRL) to the CER, requesting the regulator intervene. Fellow oil sands producers Suncor, Imperial Oil, MEG Energy and ConocoPhillips also wrote in support, as did industry groups Explorers and Producers Association of Canada (EPAC) and Western States Petroleum Association (WSPA). Current rules state crudes must have a TAN of less than 1.3mg KOH/g to be considered a Low TAN Dilbit, but that is "inappropriately high," according to CNRL, and should be brought down to the same 1.1mg KOH/g threshold set by other export pipelines. Cenovus and Plains Midstream wrote that the CER did not need to intervene as this was a commercial matter. "This is effectively a commercial dispute that should be dealt with between the sophisticated commercial entities involved," said Plains. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Potential strike threatens Vancouver port again


24/05/13
24/05/13

Potential strike threatens Vancouver port again

Calgary, 13 May (Argus) — A labour dispute at the Canadian port of Vancouver could result in another work stoppage, less than a year after a strike disrupted the flow of more than C$10bn ($7.3bn) worth of goods and commodities ranging from canola and potash to coking coal. Negotiations between the British Columbia Maritime Employers Association (BCMEA) and the International Longshore and Warehouse Union (ILWU) Ship and Dock Foremen Local 514 union have stalled as the two sides try to renew an agreement that expired on 1 April 2023. A 21-day "cooling-off period" concluded on 10 May, giving the union the right to strike and the employers association the right to lock out the workers. A vote and 72-hour notice would first need to occur before either action is taken. The BCMEA filed a formal complaint to the Canada Industrial Relations Board (CIRB) the same day, which had to step in last year in another dispute. The BCMEA locked horns with ILWU Canada over a separate collective agreement in 2023 leading to a 13-day strike by the union in July. This disrupted the movement of C$10.7bn of goods in and out of Canada, according to the Greater Vancouver Board of Trade. Vancouver's port is the country's largest — about the same size as the next five combined — and describes itself as able to handle the most diversified range of cargo in North America. There are 29 terminals belonging to the Port of Vancouver. Terminals that service container ships endured the most significant congestion during last year's strike. Loadings for potash, sulphur, lumber, wood pellets and pulp, steel-making coal, canola, copper concentrates, zinc and lead concentrate, diesel and renewable diesel liquids and some agri-foods were also disrupted. The Trans Mountain-operated Westridge Marine Terminal responsible for crude oil exports on Canada's west coast was unaffected. A deal was eventually reached on 4 August. The strike spurred on proposed amendments to legislation in Canada that would limit the effect of job action on essential services. A bill introduced in Canada's Parliament in November would update the Canada Labour Code and CIRB Regulations accordingly. The bill has been progressing through the House of Commons, now having completed the second of three readings. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Chevron books Aframax for TMX cargo to California


24/05/13
24/05/13

Chevron books Aframax for TMX cargo to California

Houston, 13 May (Argus) — Chevron provisionally hired an Aframax to haul a cargo of crude from Vancouver, British Columbia, to the US west coast as the Trans Mountain Expansion (TMX) brings more oil to Canada's Pacific coast. Chevron put the Aframax Garibaldi Spirit on subjects for a Vancouver-US west coast voyage loading from 25 May at WS125, market participants said. That rate is equivalent to $11.16/t or $1.63/bl for heavy sour Cold Lake, according to Argus data. The US west coast historically has been the main destination for crude exported from Vancouver, with 96pc, or about 38,500 b/d, landing at ports in Washington and California in the 12 months ended 30 April, according to data from analytics firm Vortexa. Chevron purchased five cargoes from Vancouver for its 269,000 b/d refinery in El Segundo, California, during that span, most recently in February. The 590,000 b/d TMX project began commercial service on 1 May, tripling the capacity of the Trans Mountain pipeline system to 890,000 b/d. The line creates a larger link from Alberta's growing oil sands production to the west coast port of Vancouver and direct access to Pacific Rim markets, where buyers are eager for heavy sour crude . The first TMX cargo, 550,000 bl of Canadian Access Western Blend which Suncor booked on an Aframax in late April , will load between 18-24 May for June delivery in China. PetroChina and Unipec each control an Aframax near Canada's Pacific coast that would be available to load in Vancouver in the second half of May, though those ships could also be relet to deliver crude to the US west coast. The port of Vancouver's distance from many traditional Aframax trading routes may stretch the global fleet once TMX ramps up. The port cannot accommodate tankers larger than Aframaxes. By Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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