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Francine set for Wednesday landfall as hurricane

  • : Crude oil, Natural gas
  • 24/09/10

Tropical storm Francine is expected to become a hurricane today, as it continues on a path north through offshore US Gulf of Mexico oil and gas production areas on its way to a Louisiana landfall Wednesday.

Francine was located about 395 miles south-south west of Cameron, Louisiana, according to an 8am ET advisory from the National Hurricane Center. It is expected to remain off the coast of Texas and intensify to a Category 2 hurricane with winds of up to 100 mph, before landfall.

The storm will track through an offshore region that accounts for about 15pc of US crude output and 5pc of US natural gas production. Oil and gas producers started to evacuate personnel from offshore facilities earlier this week and shut in some production. Ports are starting to restrict traffic and offshore lightering operations were paused off of Galveston, Texas, starting Monday night due to high seas.

Shell said late Monday it was in the process of shutting in production at its Perdido platform after earlier pausing drilling operations from the facility located about 190 miles south of Houston. Drilling has also been suspended at its Whale facility, which is not scheduled to start operations until later this year. Non-essential personnel have been evacuated from Shell's Enchilada/Salsa and Auger assets, located about 120 miles south of Vermillion Bay, Louisiana.

Chevron initiated shut-in procedures for its Anchor and Tahiti platforms 190 miles south of New Orleans and began transporting all personnel from the facilities. Production from its other operated platforms in the Gulf of Mexico remained at normal levels. Non-essential staff were also being removed from the Big Foot and Jack/St. Malo platforms.

ExxonMobil said all staff had been transported off the Hoover platform, located about 200 miles south of Houston, and operations shut-in. So far, no major problems are expected at BP's offshore facilities in the region.

Ports in the northwestern Gulf of Mexico — including the Texas ports of Corpus Christi, Houston, Galveston, Texas City, Freeport, Beaumont and Port Arthur and the Louisiana ports of Cameron, Lake Charles and New Orleans — were set at port condition Yankee today, meaning gale force winds (39-54 mph) are expected within 24 hours and inbound vessel traffic over 500 gross tons is prohibited.

The US Coast Guard's captain of the port of Houston suspended lightering operations at the Galveston Offshore Lightering Area (GOLA) at 11pm ET Monday. Lightering, the process in which crude or refined products are transferred from one ship to another, likely will be delayed off the Texas ports of Corpus Christi and Houston until Thursday due to sea conditions.


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US light vehicle sales surged in September


24/10/03
24/10/03

US light vehicle sales surged in September

Houston, 3 October (Argus) — Domestic sales of light vehicles rebounded in September, increasing to a seasonally adjusted rate of 15.8mn on the strength of greater truck purchases. Sales of light vehicles — trucks and cars — rose from a seasonally adjusted annual of rate 15.3mn in August, the Bureau of Economic Analysis reported today. Sales have whipsawed the previous four months, but September's rate largely was in line with the 15.7mn unit rate in September 2023. The US Federal Reserve last month cut its target rate for the first time since 2020, bringing it down by 50 basis points from its 23-year highs as inflation has been easing. Lower inflation and Fed easing, which ripples across credit markets, make it more affordable for people to purchase new vehicles. Fed policymakers have penciled in another 150 basis points worth of cuts through 2025, as they hope to head off any weakening in the labor market that could scuttle the wider economy. Higher overall sentiment about the US economy, fueled by a robust 3pc growth in gross domestic product (GDP) in the second quarter, healthy labor conditions and consumer spending also have encouraged consumers to spend. Sequentially, light truck sales increased by 3.1pc to a 12.8mn unit rate in September, while sales of cars rose by 4.4pc to a 3mn unit rate in the same time period. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Libya lifts force majeure as oil blockade ends


24/10/03
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.

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


24/10/02
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
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.

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