Trump calls off Mexico tariff threat

  • : Crude oil, Fertilizers, LPG, Metals, Natural gas, Oil products
  • 19/06/08

US president Donald Trump today called off his threat to impose tariffs on imports from Mexico after pronouncing himself satisfied with the immigration proposals submitted by the Mexican government.

"The Tariffs scheduled to be implemented by the US on Monday, against Mexico, are hereby indefinitely suspended," Trump announced through Twitter shortly after returning to Washington from a weeklong tour of Europe.

Mexican officials pledged to use the country's National Guard to stem the flow of immigrants from other Latin American countries, a promise that will be finalized in coming weeks.

Trump on 31 May, just before leaving the US, threatened to impose a 5pc tariff on "all goods" from Mexico starting on 10 June, and to ratchet the duties up to 25pc by October unless the country reduced the number of migrants crossing into the US illegally.

A high-level Mexican government delegation headed by foreign minister Marcelo Ebrard, visiting Washington on 4-7 June, submitted proposals on immigration enforcement. US vice-president Mike Pence and other officials said yesterday and earlier today the proposals were not sufficient to address Trump's concerns, but left the decision on tariffs to him.

"Mexico, in turn, has agreed to take strong measures to stem the tide of Migration through Mexico, and to our Southern Border," Trump said in another tweet, noting that the State Department will release details of what Trump dubbed a "signed agreement."

The agreement, which is actually a joint declaration by the US State Department and Mexico's Foreign Ministry, lists broad measures the two countries plan to implement to address immigration. Mexico has pledged to deploy its National Guard throughout its territory to prevent migrants from Central America from traveling to the US border.

The countries will review progress on implementation every 90 days and "in the event the measures adopted do not have the expected results, they will take further actions," according to the declaration. "The US and Mexico will continue their discussions on the terms of additional understandings to address irregular migrant flows and asylum issues, to be completed and announced within 90 days, if necessary," the declaration said.

Mexico's president Andres Manuel Lopez Obrador said that "thanks to the support of all Mexicans, the imposition of tariffs on Mexican products exported to the US was avoided."

The prospect of tariffs on imports from Mexico, including heavy crude, has chilled the US energy industry that operates in an interconnected North American market.

US sanctions on Venezuela and Canadian production cuts already have stressed the heavy crude market and a tariff on imports from Mexico would exacerbate the situation, industry group American Fuel and Petrochemical Manufacturers vice president for government relations Geoff Moody told Argus earlier today. "Our refineries are not going to be running as efficiently as they can be, and therefore are going to be less competitive in this global refined product marketplace," Moody said before the agreement was announced.

Individual refiners said that a 5pc tariff would not severely impact trade between the countries, but were concerned about a potential escalation.

AFPM, the American Petroleum Institute and other business groups have strongly urged the administration to desist from the imposition of tariffs.

The administration dismissed negative implications for US industry and consumers of starting a trade war with the US' largest trade partner as irrelevant. "The president has no higher priority than ending the immigration that is flooding our southern border," Pence said yesterday.

But in the end the decision was Trump's alone.

Even with the Mexico tariffs averted for now, the administration's trade wars with China and disputes with other major trading partners are stressing the industry. The trade actions have created long-term uncertainty for US oil and natural gas producers dependent on access to foreign markets, an energy industry insider said.

Trump in March threatened to shut down the US-Mexico border to commercial traffic over immigration concerns, only to back off the threat.

"He makes these threats, and then he backs off when he sees the danger," Senate Democratic leader Chuck Schumer (New York) said on 4 June. "I have a feeling that this one just popped into his head."


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24/04/26

High inventories pressure Brazil biodiesel prices

High inventories pressure Brazil biodiesel prices

Sao Paulo, 26 April (Argus) — Logistical differentials for Brazilian biodiesel contracts to supply fuel distributors in May and June fell from March and April values, reflecting higher inventories and a bumper crop of soybeans for crushing, which could increase vegetable oil production. The formula for the logistics differential of plants includes the quote of the soybean oil futures contract in Chicago, its differential for export cargoes in the port of Paranagua and the Brazilian real-US dollar exchange rate. It is the portion in the pricing linked to producers' margin. Negotiations for May and June started with plants seeking higher values to recover part of the losses incurred by unscheduled stops , the result of retailers' delays in collecting biodiesel. But the supply glut has not abated, leading to a drop in prices. With higher inventories in the market, fuel distributors stuck close to acquisition goals established by oil regulator ANP for the May-June period. Sales are expected to gain traction over the next two months, as blended diesel demand traditionally gets a seasonal boost from agricultural-sector consumption linked to grain and sugarcane crops. The distribution sector expects an extension of the current supply-demand imbalance, exacerbated by significant volumes of imported diesel at ports and lower-than-expected demand. The situation has generated concern among many participants, who see this trend as a potential sign of non-compliance with the biodiesel blending mandate. ANP data show that the compliance rate with the Brazilian B14 diesel specification dropped to 83.4pc in April from 95.2pc in March, reaching the lowest level since the 2016 start of monitoring. Non-compliance with the minimum biodiesel content accounted for 67pc of the infractions recorded during the period compared to a historical average rate of 47pc. The recent end to a special tax regime for fuel importing companies offered by northern Amapa state's secretary of finance should end a significant source of diesel price distortions and help rebalance supply in the country. Variations The steepest decline in differentials took place in northeastern Bahia state, where premiums for the period ranged from R600-830/m³ (44.35-61.35¢/USG), down from R730-1,020/m³ in the March-April period, according to a recent Argus survey. In the northern microregion of Goias-Tocantins states, the premium range also dropped by around R142/m³ to R300-535/m³ from R440-680/m³. By Alexandre Melo Brazil biodiesel plant differentials R/m³ May/June March/April ± Low High Low High Rio Grande do Sul 110 380 280 450 -120 Sorriso-Nova Mutum 50 340 220 350 -90 Cuiaba-Rondonopolis 80 405 280 450 -123 Northern of Goiás-Tocantins 300 535 440 680 -142 Southern of Goias 350 500 450 650 -125 Parana-Santa Catarina 150 450 400 480 -140 Bahia 600 830 730 1,120 -210 Source: Argus survey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Lyondell Houston refinery to run at 95pc in 2Q


24/04/26
24/04/26

Lyondell Houston refinery to run at 95pc in 2Q

Houston, 26 April (Argus) — LyondellBasell plans to run its 264,000 b/d Houston, Texas, refinery at average utilization rates of 95pc in the second quarter and may convert its hydrotreaters to petrochemical production when the plant shuts down in early 2025. The company's sole crude refinery ran at an average 79pc utilization rate in the first quarter due to planned maintenance on a coking unit , the company said in earnings released today . "We are evaluating options for the potential reuse of the hydrotreaters at our Houston refinery to purify recycled and renewable cracker feedstocks," chief executive Peter Vanacker said on a conference call today discussing earnings. Lyondell said last year a conversion would feed the company's two 930,000 metric tonnes (t)/yr steam crackers at its Channelview petrochemicals complex. The company today said it plans to make a final investment decision on the conversion in 2025. Hydrotreater conversions — such as one Chevron completed last year at its 269,000 b/d El Segundo, California, refinery — allow the unit to produce renewable diesel, which creates renewable naphtha as a byproduct. Renewable naphtha can be used as a gasoline blending component, steam cracker feed or feed for hydrogen producing units, according to engineering firm Topsoe. Lyondell last year said the Houston refinery will continue to run until early 2025, delaying a previously announced plan to stop crude processing by the end of 2023. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Azerbaijan wants certainty from EU on gas needs


24/04/26
24/04/26

Azerbaijan wants certainty from EU on gas needs

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US M&A deals dip after record 1Q: Enverus


24/04/26
24/04/26

US M&A deals dip after record 1Q: Enverus

New York, 26 April (Argus) — US oil and gas sector mergers and acquisitions (M&A) are likely to slow for the rest of the year following a record $51bn in deals in the first quarter, consultancy Enverus says. Following an unprecedented $192bn of upstream deals last year, the Permian shale basin continued to dominate first-quarter M&A as firms competed for the remaining high-quality inventory on offer. Acquisitions were led by Diamondback Energy's $26bn takeover of Endeavor Energy Resources. Other private operators, such as Mewbourne Oil and Fasken Oil & Ranch, would be highly sought after if they decided to put themselves up for sale, Enverus says. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU adopts Net-Zero Industry Act


24/04/26
24/04/26

EU adopts Net-Zero Industry Act

London, 26 April (Argus) — Members of the European Parliament (MEPs) have adopted Net-Zero Industry Act, which plans to allocate funds towards the production of net-zero technologies. The act provides a pathway to scale up development and production of technologies that are critical towards meeting the EU's recommendation of net-zero greenhouse gas (GHG) emissions by 2050. This would include solar panels, electrolysers and fuel cells, batteries, heat pumps, onshore and offshore wind turbines, grid technologies, sustainable biomethane, as well as carbon capture and storage (CCS). The act is designed to help simplify the regulatory framework for the manufacture of these technologies in order to incentivise European production and supply. It also sets a target of 40pc production within the EU for its annual "deployment needs" of these technologies by 2030. Time limits will be instated on permit grants for manufacturing projects, at 12 months if the manufacturing capacity is under 1 GW/yr and 18 months for those above that. It will introduce time limits of nine months for "net-zero strategic projects" of less than 1 GW/yr and 12 months for those above. This is further complemented by the introduction of net-zero strategic projects for CO2 storage, to help support the development of CCS technology. The act was met with positive reactions from the European Community Shipowners' Association (ECSA), which said the bill will set the benchmark for member states to match 40pc of the deployment needs for clean fuels for shipping with production capacity. ECSA said the Net-Zero Industry Act will be instrumental in supporting the shipping industry to meet targets set under FuelEU Maritime regulations , which are set to come into effect next year. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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