European Bitumen Market Update July 2024
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CFTC extends review of 24/7 oil futures trading
CFTC extends review of 24/7 oil futures trading
Washington, 23 July (Argus) — The US Commodity Futures Trading Commission (CFTC) is taking an extra 30 days to gather input on continuous trading of oil futures, adding another obstacle to CME Group's proposal to launch a 24/7 WTI crude futures contract as early as next month. The CFTC said on Thursday that after having "extensive conversations with industry" on the prospects of around-the-clock, every day trading of energy futures, it had decided to offer more time for comment on the idea . That will delay the comment deadline until 26 August, days before CME's planned 30 August launch of a smaller WTI crude futures contract that would be available 24/7. CME did not immediately respond to a request for comment. The CFTC already intervened earlier this month to block CME from self-certifying the new futures contract, which the agency said would offer more time for a "thorough review". If listed, the new WTI contract — which would be equivalent to 10 bl of crude — would become the first 24/7 energy futures contract available in the US, giving traders the ability to buy and sell futures at night and over the weekends. Oil companies and their lobbyists have raised multiple concerns to CFTC over 24/7 oil trading, fearing the launch of the contract would create new headaches across the industry. Among their concerns is having to staff trading desks around the clock, higher volatility and a detachment from market fundamentals. Earlier this week, the refinery group the American Fuels and Petrochemicals Manufacturers asked the agency to extend the comment deadline until 26 August. The CFTC, as part of the comment extension, raised multiple new questions about 24/7 oil futures trading, including if continuous trading could create incentives for traders to "engage in trading over the weekend in a manner that moves prices" to affect underlying benchmark prices. The CFTC also asked for specific comments on CME's new contract, and for input on what "concrete steps" industry would have to take before they could support 24/7 trading. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Dangote raises $2.5bn for Lekki refinery expansion
Dangote raises $2.5bn for Lekki refinery expansion
London, 23 July (Argus) — Nigerian conglomerate Dangote has raised $2.5bn in new equity through a private placement to help fund the expansion of its 700,000 b/d Lekki refinery and petrochemical complex. The capital raised secures funding "to complement our internal cash flows and external funding, as DPRP [Dangote Petroleum Refinery and Petrochemicals] advances its expansion agenda", company head Aliko Dangote said. Dangote aims to add a new 750,000 b/d crude distillation unit (CDU) and additional secondary units at Lekki by December 2028, Dangote Industries vice-president Devakumar Edwin previously told Argus . Dangote named Nigeria-based Africa Finance Corporation and India Infra Buildco, an investment vehicle facilitated by African Export-Import Bank, as investors in the funding round. Capital was raised "beyond its legacy shareholder base", Dangote said. It was not clear what stakes investors secured in exchange for the capital raised. Dangote did not immediately respond to a request for further comment. The company holds an 80pc stake in the refinery, while Nigeria's state-owned oil firm NNPC holds 7.2pc. NNPC previously expressed interest in securing a 20pc stake in the refinery in 2021. Dangote has previously said it plans to list on the Nigerian stock exchange through the sale of a 10pc stake. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
European naphtha pricing in Red Sea disruption risk
European naphtha pricing in Red Sea disruption risk
London, 22 July (Argus) — European naphtha market participants are increasingly pricing in the risk of disruptions in the Bab el-Mandeb strait, although market participants said the Yemen-based Houthi militant group's threat to Saudi shipping is yet to result in meaningful changes to physical cargo flows. The east-west naphtha swap spread was $72.75/t on 21 July, wider by $18/t on the day and by $30/t on the week, with heightened concern about supply to destinations east of Suez. The possibility of Red Sea disruption comes as Russian naphtha exports are in decline and Chinese buying interest shows signs of improvement. Naphtha exports through Bab el-Mandeb averaged around 388,000t/month in the past two months, roughly double the 2025 monthly average. A trader active in west-to-east naphtha arbitrage trade told Argus that at least one cargo was recently fixed from Europe to Asia via the Suez Canal, providing an early test of shipowners' willingness to continue using the route. The trader said some owners have suspended Red Sea transits, and others are waiting to see how the Houthis will enforce any restrictions. The group has said it will only target vessels carrying Saudi cargo, or that have left or are heading to Saudi ports. The uncertainty has started to affect trading behaviour. A European naphtha broker said liquidity is weakening, with market participants becoming cautious about committing supply until the implications for Asian buying requirements become clearer. "Traders will buy and sell less volume as the market becomes more volatile," the broker said. "There will be less liquidity in the market overall." An Asia-based light-ends analyst said balances "are gradually tightening", with supply risks outweighing concerns about demand. Cargoes can be rerouted around the Cape of Good Hope if the Red Sea situation worsens. But doing so would substantially increase freight costs and voyage times, raising the cost of supplying Asia-Pacific buyers. Argus estimates sending a Long Range 2 (LR2) tanker from the Mediterranean to Japan around south Africa would add around 19 days to the journey and nearly $600,000 to the fuel bill at current prices. Market participants said the naphtha east-west spread may need to widen significantly further before long-haul Cape routing becomes routinely economic. The light-ends analyst estimated the spread may need to approach $80/t, depending on freight costs. Russian exports are likely to fall because of refinery disruptions, while restrictions on gasoline exports could divert additional naphtha into domestic blending, limiting global availability. By Jide Tijani and John Ollett Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Oil futures: WTI up on supply disruption concerns
Oil futures: WTI up on supply disruption concerns
Houston, 21 July (Argus) — US benchmark WTI crude futures advanced today on mounting concerns over supply disruptions caused by the conflict in the Middle East. August Nymex WTI rose by $1.68/bl to $84.91/bl while September Ice Brent rose by $1.79/bl to $91.01/bl. The September Brent-September WTI spread narrowed by 7¢/bl to $6.67/bl. WTI at the Magellan East Houston terminal was discussed at a prompt 25-35¢/bl premium bid-ask spread to the Cushing benchmark at 3pm ET, according to the Argus Crude Market Ticker, above Monday's 17¢/bl volume-weighted average premium. Vessels are continuing to violate a US blockade on Iranian ports, while commercial traffic through the strait of Hormuz remains overwhelmingly controlled by Iran, despite US official's claims to the contrary. The US Central Command (Centcom) said it redirected seven commercial vessels and disabled one to prevent ships from leaving or entering Iranian ports as of 20 July. US president Donald Trump on Tuesday told reporters during a meeting with Lebanese president Joseph Aoun that the blockade is "like a steel wall" and that no ships are getting through. But data from vessel tracking service Vortexa shows that nine vessels departing or heading to Iran ports have transited through the strait of Hormuz since the US blockade was reimposed on 14 July. Separately, several large tankers on 21 July turned away from voyages passing Yemen's coastline or the Bab el-Mandeb strait in the Red Sea, according to AIS data. Three were very large crude carriers (VLCCs) and one was an Aframax. All had either loaded, or were going to load, crude at Saudi Arabian Red Sea ports. This comes a day after the Yemen-based, Iran-backed Houthis militant group said it imposed a maritime ban on Saudi Arabia. The Houthis today said six ships had turned back, although that could not be verified. Elsewhere, CPC Blend crude loadings remain suspended following recent drone attacks on tankers at the Caspian Pipeline Consortium (CPC) terminal on Russia's Black Sea coast, traders say. Loadings were halted on Monday after the tanker Nelsa was hit while loading at the terminal's SPM 1 single-point mooring buoy. Nymex RBOB rose by 1.69¢/USG to $3.4059/USG while Nymex ultra-low sulphur diesel rose by 0.76¢/USG to $4.1266/USG. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.