Permian pipeline work scheduled for March

: Crude oil
26/01/06

Maintenance is planned for the 1.5mn b/d ExxonMobil-operated Wink-to-Webster oil pipeline in Texas in March.

The pipeline is an important conduit of WTI to the Houston, Texas, area, including to the Magellan East Houston (MEH) terminal, now owned by US midstream firm Oneok. MEH is the pricing hub for Argus' WTI Houston assessment, the secondary benchmark for light sweet crude at the US Gulf coast.

Because of scheduled maintenance on the pipeline, Wink-to-Webster supplies "will be delivered ratably out of Oneok's system as they are received into [the] system," Oneok told Argus.

The length of downtime as a result of the maintenance and the work being done has not been confirmed. ExxonMobil did not immediately respond to a request for details on the Wink-to-Webster maintenance, nor did Plains or Energy Transfer, partners in the joint venture project.

The Wink-to-Webster pipeline previously underwent maintenance for 10 days in June 2024. In that instance, Oneok let shippers of WTI from the Wink-to-Webster pipeline to the MEH terminal know that their June volumes would be designated to be shipped following the pipeline work for the remaining days in the month, instead of rateably over the entire delivery month as is typical in the US pipeline market.

Decreased takeaway capacity as a result of the 2024 pipeline maintenance weighed on WTI's value in Midland relative to Houston, pushing the locational value spread averaged for June 2024 deliveries to 90¢/bl, a 50¢/bl increase from its May 2024 average and its widest spread since 2020. For comparison, the WTI Houston premium to WTI Midland has averaged a range of 13-42¢/bl between trade for January 2025 deliveries to January 2026.

Most recently, January WTI in Houston averaged a roughly 25¢/bl premium over Midland.

The Permian-quality light sweet crude in Houston for June 2024 rose to average a multi-month high against Domestic Sweet, while WTI Midland fell to average its lowest at the time in over a year.

The volatility in WTI Houston premiums for June 2024 also incentivized some companies to seek out balmo contracts in the financial market — a pricing mechanism that allows traders to hedge against volatility within a particular hedge month by exposing them to price movements from the day of their transaction through the end of the trade month — omitting any early-month price swings.

By Mykah Briscoe

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26/01/08

US begins issuing Venezuela sanctions waivers: Update

Updates with comments from the US treasury secretary Washington, 8 January (Argus) — The US administration has begun the process of partially lifting sanctions prohibiting Venezuelan crude sales, while maintaining control over destinations. US Treasury Department's sanctions enforcement arm, the Office of Foreign Assets Control (OFAC), has given a waiver to a global trading firm to resume purchases of Venezuelan crude, sources tell Argus . The terms of the license require that any initial shipment must be sold to buyers in the US. OFAC does not comment on issuance of private sanctions licenses. Trafigura and Gunvor declined to comment. Vitol has been approached for comment. Mercuria is considering its Venezuela options, including licensing, sources say. The US is in talks with leading trading firms and banks to immediately move 30mn-50mn bl of Venezuelan oil held in floating and onshore storage, US energy secretary Chris Wright said on Wednesday. As a first condition, OFAC must lift sanctions that since last year allow only Chevron to lift limited volumes of Venezuelan crude. Chevron imported 120,000 b/d from Venezuela in December. Instead of issuing a "general license" to allow state-owned PdV to sell crude cargoes to any legitimate market participant, the US appears to have chosen to issue private waivers that come with conditions attached. The US also plans to remove sanctions from some Venezuela entities, treasury secretary Scott Bessent told the Economic Club of Minnesota on Thursday. The US Treasury Department will oversee the funds generated from the sales of Venezuelan oil, he said. By Aydin Calik and Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Mexico inflation slows to 3.7pc in Dec

26/01/08

Mexico inflation slows to 3.7pc in Dec

Mexico City, 8 January (Argus) — Mexico's inflation decelerated to an annual 3.69pc in December, the lowest reading for the month since 2020, mainly driven by slowing agriculture and energy prices, alongside some easing in core inflation. The consumer price index (CPI) eased from 3.80pc in November, statistics agency Inegi said Thursday, after accelerating from 3.57pc in October. Inflation has trended higher since July, when it stood at 3.51pc — the lowest annual headline reading since December 2020. The annual figure was down from 4.21pc in December 2024 and marked the lowest year-end reading since 3.15pc in December 2020. The result came in below the 3.6pc forecast by Mexican bank Banamex, "interrupting the upward trend recorded since August, which we anticipate will resume in January." The bank added that full-year inflation for 2025 was below the historical average of 4.4pc. Core inflation, which excludes volatile food and energy prices, slowed to 4.33pc in December from 4.43pc in November, after accelerating from 4.28pc in October. This marked an eighth consecutive month above 4pc — the upper bound of the central bank's target range. Within core inflation, consumer goods eased to 4.30pc from 4.37pc in November, while services slowed to 4.35pc in December from 4.49pc. Among the largest contributors to CPI in December, weighted by Inegi, were tourism-related components, particularly airfare and long-distance bus fares ahead of the holiday season. Non-core inflation decelerated to 1.61pc in December from 1.73pc in November, remaining below 2pc in five of the past six months. Agriculture prices — especially fruits and vegetables — have been subdued this year by favorable weather conditions, although pressures are beginning to build. Annual inflation for fruits and vegetables contracted by 5.62pc in December, compared with contractions of 7.79pc in November and 10.27pc in October. The segment has faced rising inflationary pressure, Mexican bank Banorte said, driven by extreme rainfall in several states in November and nationwide roadblocks organized by freight truck associations in December. Energy price inflation slowed to 0.18pc in December from 0.54pc in October and 1.07pc in September. Inflation in the segment has remained contained since President Claudia Sheinbaum in early September renewed an agreement with fuel retailers to maintain a voluntary regular gasoline price cap of Ps24/l ($5.05/USG) for six months. Looking ahead, Banamex expects an increase in merchandise inflation at the start of 2026 due to higher tariffs and taxes, forecasting headline and core inflation to end 2026 at 4.3pc and 4.2pc, respectively. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Canadian crude prices drop with Ven oil sale plan

26/01/07

Canadian crude prices drop with Ven oil sale plan

Houston, 7 January (Argus) — Canadian crude prices have fallen further against the February CMA Nymex, especially in US markets, as Venezuelan heavy sour crude moving under US control is poised to add to already ample near-term heavy sour supplies. Western Canadian Select (WCS) in the Houston and Cushing markets saw deep drops of $2.50-$3.50/bl earlier today from the prior session relative to the basis, followed by narrower discounts that were still at the widest since July 2024. This follows news that US president Donald Trump's administration is planning to taking over oil sales from Venezuelan state-owned oil company PdV "indefinitely". The US plans to partially lifts sanctions on the Venezuelan oil sector, but deposit sales proceeds in US-controlled bank accounts, the US Department of Energy (DOE) said. Initially, the US will take possession of an estimated 30mn-60mn bl of crude held in floating storage or onshore Venezuelan storage. Heavy sour Canadian Cold Lake at the Texas Gulf coast traded at $7.50-$9.60/bl discounts to the basis earlier in the day Wednesday after moving to a $6.60/bl volume-weighted average discount on Tuesday. In US markets, Cold Lake and Canadian heavy benchmark WCS trade at parity. In Cushing, the low-TAN heavy sour has traded at $8.50-$10/bl discounts to CMA Nymex. In Hardisty, Alberta, WCS was heard Wednesday widening its discount by 35¢/bl from the prior session to $14.35/bl. Discounts for all three locations were already $1.20-$1.85/bl wider than a month earlier as values face pressure because of rising heavy sour supply and slower export demand . The US refinery turnaround season in the first quarter further undermines buying interest. Recent developments suggest more Venezuelan heavy crude could flow to the US Gulf coast refinery region, which hosts complex refineries with many built originally to run heavy Latin American crude. But the development of Canadian heavy oils sands has led to high imports from the US' northern neighbor, with which increased Venezuelan oil flows would compete Earlier this week, Phillips 66 said it could process about 200,000 b/d of Venezuelan crude at its two large Gulf coast refineries if available and supported by price economics. Venezuela's crude output was 934,000 b/d in November, according to an average of Opec secondary sources including Argus. Increasing Venezuelan production significantly would likely take many years given long-term underinvestment and neglect. But in the short-term flows could be redirected from Chinese independent refiners to other markets with the partial lifting of US oil sanctions. By Amanda Smith and Mykah Briscoe Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Mexico denies boosting oil shipments to Cuba

26/01/07

Mexico denies boosting oil shipments to Cuba

Mexico City, 7 January (Argus) — Mexican president Claudia Sheinbaum said on Wednesday that the country has not increased oil shipments to Cuba, even as Mexico has become a key supplier following recent disruptions in Venezuela. "We are not sending more oil than we have sent historically," Sheinbaum said during her daily morning press conference. "Of course, with the current situation in Venezuela, Mexico has obviously become an important supplier. Before, this was Venezuela." Sheinbaum was responding to reporters' questions about whether Mexico had become Cuba's main source of crude since the US tightened sanctions on Venezuelan exports in mid-December and detained Venezuelan president Nicolas Maduro on 3 January. Mexico has supplied crude to Cuba for decades under commercial agreements and humanitarian aid programs, Sheinbaum said. Current deliveries remain within those frameworks. "It is part of the contract and also part of the aid that has been provided historically," she said. The president highlighted Mexico's longstanding energy ties with Cuba, including a $350mn investment in the Cienfuegos refinery in 1994 and technical cooperation agreements signed by state-owned Pemex in 2012. Mexico also forgave about 70pc of Cuba's debt with Bancomext in 2013, much of it linked to hydrocarbons trade. Sheinbaum earlier framed the shipments as consistent with Mexico's foreign policy and humanitarian commitments, while acknowledging the geopolitical sensitivity given Cuba's strained relations with the US, Mexico's top trading partner. By Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US details plans to take over PdV sales: Update

26/01/07

US details plans to take over PdV sales: Update

Updates with more details throughout Washington, 7 January (Argus) — US president Donald Trump's administration is in talks with Caracas to "indefinitely" take over oil sales by state-owned PdV and will offer partial sanctions relief for Venezuela's oil sector. The US has already begun marketing Venezuelan crude "in the global marketplace for the benefit of the United States, Venezuela, and our allies", the US Department of Energy (DOE) said. The US will work with leading oil trading companies and major banks to finance those sales, according to a DOE factsheet. The US will partially lift sanctions on the Venezuelan oil sector but the sales proceeds will be deposited in US-controlled bank accounts, the DOE said. As a first step, the US will take possession of an estimated 30mn-50mn bl of crude held in floating and onshore storage in Venezuela, US energy secretary Chris Wright said at the Goldman Sachs Energy, CleanTech and Utilities Conference in Miami, Florida, on Wednesday. Then "indefinitely, going forward, we will sell the production that comes out of Venezuela into the marketplace", Wright said. The US would supply the diluent required to enable the extraction and transportation of the heavy crude Venezuela produces, Wright said. "As we make progress with the government, we'll enable the importing of parts and equipment and services to kind of prevent the industry from collapsing, stabilize the production, and then as quickly as possible, start to see it growing again." The US will authorize Venezuela's imports of select oil field equipment, parts and services, the DOE said. The DOE also committed the US to working with interim Venezuelan authorities to repair Venezuela's dilapidated electricity grid. Taking these steps will eventually lead to the return of more US companies to Venezuela, Wright said. The DOE factsheet provides little detail on how the US will transport the initial batch of Venezuelan crude held in storage or on the marketing arrangements. The US in December imported 120,000 b/d of Venezuelan crude, under a sanctions waiver held by Chevron. The bulk of Venezuelan crude is heading to China, where independent refiners are the only buyers, to the tune of 430,000 b/d in 2025. Cuba imported some volumes as well. The DOE factsheet does not explicitly state whether the US will prohibit Venezuelan sales to specific destinations. Venezuela's crude output was 934,000 b/d in November, according to an average of Opec secondary sources including Argus . "We think short term, you might see [an additional] 250,000 b/d of Venezuelan oil come to the market over the next year," investment bank JP Morgan vice president Stephen Jury said on Wednesday. What's next? The plan outlined by Wright is the result of rapid improvisation of Trump's objectives in Venezuela following the 3 January US special forces operation that captured the country's president, Nicolas Maduro, and transported him to the US on drug trafficking charges. The Trump administration said it is working with interim president Delcy Rodriguez to accomplish its goals. Rodriguez has combined publicly defiant rhetoric with actions that aim to implement Washington's demands, with which PdV and its main foreign partner Chevron are now racing to comply. PdV said on Wednesday it is "negotiating with the US to sell volumes of oil" on "strictly commercial" terms, without specifying the amount. The sale will be carried out "under a framework similar to the one with international companies such as Chevron", PdV said. Chevron already holds a company-specific waiver from the US Treasury Department's sanctions enforcement arm, the US Office of Foreign Assets Control (Ofac). That waiver restricts Chevron to importing Venezuelan crude only into the US, among other conditions. The potential buyers of Venezuelan crude will have to apply for waivers as well, unless Ofac grants a general exemption. Treasury did not immediately comment on plans to provide sanctions relief for Venezuela's oil industry. PdV is not in a position to quickly deliver any volumes beyond those in floating storage because of long-term operational issues and recent major equipment outages. Uncertainty after the recent seizure of Maduro has led some PdV workers to avoid reporting for work. "PdV is working at minimal capacity", a PdV source told Argus . "Operational areas [E&P and upgrading] are half working. Storage is full." Three out of four major upgrading units needed to make Venezuela's extra-heavy crude oil more easily transportable are still down after unexplained explosions and fires in recent weeks, following the US build-up of military forces near Venezuela, the source said. Wright is scheduled to meet with US oil executives on the sidelines of the Goldman conference to discuss details of the US involvement in Venezuela's oil sector. Trump in turn will discuss Venezuela with US oil executives at the White House on 9 January. By Haik Gugarats, Carlos Camacho and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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