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US urges Venezuela talks, sanctions on backburner

  • Market: Crude oil, LPG, Oil products
  • 23/02/21

US president Joe Biden's administration is encouraging the two sides in Venezuela's protracted political dispute to engage in credible negotiations before it considers lifting sanctions, a senior US official said.

"Those who think the US will unilaterally lift the sanctions -- that is not a priority right now because what we want to do is encourage a dialogue between the two sides to reach a democratic result," Juan Gonzalez, the White House national security council's senior director for western hemisphere affairs, said in a recent broadcast interview with journalist Patricia Janiot.

And even though the Biden administration is retaining the sanctions framework installed by its predecessor, Gonzalez was keen to highlight a "big difference" from the previous approach.

"The previous administration talked about an international coalition, but everything it was doing was unilateral," Gonzalez said. "Among our European allies and the countries in the region, the international consensus was breaking up because of the political actions, the unilateral actions of the US."

Gonzalez stressed the need to target corruption and press for the release of political prisoners, citing in particular six jailed executives of Citgo, the US refining subsidiary of Venezuela's national oil company PdV.

"Unilateral sanctions have never worked in bringing about a transition or change of power in a country in the absence of a multilateral coalition and a much wider diplomatic strategy," he said.

The US imposed oil sanctions on Venezuela in January 2019 on top of financial sanctions levied in August 2017 in an effort to force President Nicolas Maduro to step down in favor of an interim government led by opposition leader Juan Guaido. Over 2020, the administration of former president Donald Trump tightened the sanctions, ending the year with a controversial cut-off of crude-for diesel swaps by non-US companies.

Despite the escalating sanctions, Maduro consolidated his political control, isolating Guaido and taking control of the National Assembly that he previously led. The US and the EU continue to recognize the Guaido-led assembly following December 2020 legislative elections that they deemed to be a sham.

Despite the talk of closer trans-Atlantic coordination on Venezuela, the US and EU remain miles apart. The EU has long urged talks between Maduro and his opponents, but recently called on the latter to make "difficult compromises." By contrast, the US still views Guaido as the country's legitimate leader and insists on Maduro's departure.

The opposition is already holding quiet talks with Maduro's health ministry, with the involvement of the Pan-American Health Organization and Unicef, to access and distribute Covid-19 vaccines. But some members of Guaido's coalition are resisting wider talks with Maduro, accusing the government of using previous dialogues to tighten its political control while persecuting its opponents.

In Washington, the US State Department is examining Venezuela's diesel and LPG shortages to determine whether the sanctions are aggravating the humanitarian crisis.


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21/04/25

Calif. refinery resupply rule vote postponed

Calif. refinery resupply rule vote postponed

Houston, 21 April (Argus) — California regulators delayed a vote this week on new refinery resupply rules meant to mitigate retail gasoline price spikes, but refiners are still wary that the state is moving to make the most regulated market in the US even tougher. The California Energy Commission (CEC) had scheduled a vote on refinery resupply rules at its 24 April business meeting but said the meeting is now postponed to allow for additional feedback and consultation with stakeholders. The draft rules under consideration would require refiners to submit resupply plans to the state at least 120 days before any planned maintenance in September and October that would cause California specification gasoline production to decline by 20,000 b/d for at least 21 days or a total of more than 450,000 bl. Large spikes in California prices occurred in the fall of 2022 and 2023. The commission is also planning rulemaking this year on minimum inventory requirements to avoid price spikes in the event of unplanned events, as well as possible rules on setting a refiner margin cap. The timing of the new regulations is precarious, as two major refineries in the state are planning to shut operations within a year. Independent refiner Valero said on 16 April it is planning to shut or re-purpose its 145,000 b/d refinery in Benicia, California and continues to evaluate strategic alternatives for its other refinery in the state – the 85,000 b/d Wilmington facility. In addition, Phillips 66 is planning to shut its 139,000 b/d Los Angeles refinery later this year. Effort to stop gasoline price spikes The California rules stem from two pieces of legislation signed by California governor Gavin Newsom known as AB X2-1 and SB X1-2, part of a multi-year effort to mitigate price volatility in the state, after some of the highest gasoline prices ever recorded in the fall of 2022. US refiners have long opposed the new regulations seeing them as a political attack on the industry, conflicting with other laws and the latest example of an increasingly difficult regulatory environment in the state. The CEC has conducted workshops to help draft the rules with the participation of labor groups, the refining industry, environmental justice groups, community advocates, and the public. The industry was largely represented by the Western States Petroleum Association (WSPA). WSPA told the commission that the resupply rule could conflict with existing statutory requirements for refiners not to withhold fuel from the market and could result in market distortions and undesirable price impacts. The rules could also make it hard for Arizona and Nevada to secure needed supplies in the face of regulations expressly favoring Californians' access to fuel, WSPA said. The rules could also force refiners to use "uneconomic strategies" to secure non-spot market resupplies and additional capital to guarantee inventories that could potentially lead to higher gasoline prices, the group said. AB X2-1 forbids the CEC from adopting any regulation "unless it finds that the likely benefits to consumers from avoiding price volatility outweigh the potential costs to consumers." WSPA said it is concerned that the CEC does not "have the facts in front of it to legitimately support such a finding" with respect to imposing the resupply requirement. Under the draft resupply rules, refiners must show they can secure sufficient supply to ensure that lost gasoline production anticipated during the maintenance does not adversely affect the California transportation fuels market. The plan must show a resupply volume of at least 85pc of the anticipated lost gasoline production during the maintenance and the resupply volumes must match the seasonal specification of the lost production. The resupply plans could include imports and each barrel of resupply obtained by imports will count as 1.3 barrels of resupply. In addition, a plan that includes resupply through the purchase or storage of gasoline blendstocks or gasoline blending components must explain how such materials will result in an equivalent amount of California specification gasoline. Non-compliance could carry a civil penalty of $100,000-$1mn per day. Refineries with capacity under 30,000 b/d are exempt from the resupply regulation. The rules would apply to five major refiners operating in the state — Chevron, PBF Energy, Phillips 66, Valero and Marathon. Phillips 66, however, will be closing its Los Angeles refinery by October and converted a refinery in Rodeo, California, to renewable fuels in 2024. Since the 1980s, 29 refineries in California have been shut or integrated with other refineries that eventually closed or converted to renewable fuels production, according to CEC data. About half of the shut refineries were smaller operations, producing less than 20,000 b/d. Looking at options The CEC caused a stir in August 2024 when it released its Transportation Fuels Assessment, which examined policy options to mitigate price spikes and transition away from fossil fuels including the state of California buying and owning refineries. The assessment said this could range from one refinery to all refineries in the state. But the document also highlighted problems with such a plan, including the high cost of buying refineries, significant legal issues, and the fact that the state has no experience managing complex industrial processes. California is not currently pursuing this option, state officials said. Another idea in the Transportation Fuels Assessment involved state-owned product reserves in the north and south of California to allow rapid deployment of fuel when needed. This could include "up to several hundred thousand barrels." The CEC and the California Air Resources Board are drafting a formal Transportation Fuels Transition Plan which will serve as a road map to move away from fossil fuels. A draft of the report will be released later this year. The Transportation Fuels Assessment and the Transportation Fuels Transition Plan were mandated under SB X1-2. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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IMF anticipates lower growth from US tariffs


17/04/25
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17/04/25

IMF anticipates lower growth from US tariffs

Washington, 17 April (Argus) — Economic growth projections set for release next week will include "notable markdowns" caused by higher US tariffs that have been disrupting trade and stressing financial markets, IMF managing director Kristalina Georgieva said today. The IMF earlier this month warned that the tariffs that President Donald Trump was placing on trading partners could pose a "significant risk" to the global economy. Those higher trade barriers are on track to reduce growth, raise prices for consumers and create incremental costs related to uncertainty, the IMF plans to say in its World Economic Outlook on 22 April. "Our new growth projections will include notable markdowns, but not recession," Georgieva said Thursday in a speech previewing the outlook. "We will also see markups to the inflation forecasts for some countries." Trump has already placed an across-the-board 10pc tariff on most trading partners, with higher tariffs on some goods from Canada and Mexico, a 145pc tariff on China, and an exception for most energy imports. Those tariffs — combined with Trump's on-again, off-again threats to impose far higher tariffs — have been fueling uncertainty for businesses and trading partners. The recent tariff "increases, pauses, escalations and exemption" will likely have significant consequences for the global economy, Georgieva said, resulting in a postponement of investment decisions, ships at sea not knowing where to sail, precautionary savings and more volatile financial markets. Higher tariffs will cause an upfront hit to economic growth, she said, and could cause a shift in trade under which some sectors could be "flooded by cheap imports" while other sectors face shortages. The IMF has yet to release its latest growth projections. But in January, IMF expected global growth would hold steady at 3.3pc this year with lower inflation. The IMF at the time had forecast the US economy would grow by 2.7pc, with 1pc growth in Europe and 4.5pc growth in China. The upcoming markdown in growth projections from the IMF aligns with analyses from many banks and economists. US Federal Reserve chair Jerome Powell on 16 April said the recent increase in tariffs were likely to contribute to "higher inflation and slower growth". Those comments appear to have infuriated Trump, who has wanted Powell to cut interest rates in hopes of stimulating growth in the US. "Powell's termination cannot come fast enough!" Trump wrote today on social media. Powell's term as chair does not end until May 2026. Under a longstanding US Supreme Court case called Humphrey's Executor , Trump does not have the authority to unilaterally fire commissioners at independent agencies such as the Federal Reserve. Trump has already done so at other agencies such as the US Federal Trade Commission, creating a potential avenue to overturn the decision. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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BP defends pivot in face of investor discontent


17/04/25
News
17/04/25

BP defends pivot in face of investor discontent

London, 17 April (Argus) — BP's chairman Helge Lund took the brunt of a mini-revolt against the strategy pivot that the company announced in late February , as he saw support for his re-election slide at the firm's annual general meeting (AGM) in London today. Lund — who already plans to step down from his role as BP's chair — saw the proportion of votes cast in favour of his re-election drop to 75.7pc, well down on the 95.89pc support he secured at last year's AGM. Prior to this year's meeting, climate activist shareholder group Follow This had said that a vote against Lund was still required to signal concern about BP's governance in the absence of a "say-on-climate" vote following the company's recent strategy revamp which included dropping a 2030 limit on its oil and gas production and investing less on low-carbon assets. Institutional investor Legal and General said last week that it would be voting against the re-election of Lund and that it is "deeply concerned" about the company's strategy change. Commenting on today's vote, Follow This said BP's shareholders had "delivered an unprecedented high level of dissent" that signals deep investor concern about climate and governance. The vote "sends a clear signal" that Lund's successor "needs to be climate and transition competent" and show "resistance to short-term activists", the group added. US activist investor Elliott Investment Management, which has a track record of forcing change at resources companies, has reportedly built a stake of around 5pc in BP . Lund told shareholders at the meeting that BP had carried out "extensive engagement" concerning its strategy change, including sounding out 75pc of its institutional shareholder base, and that a majority did not want a "say-on-climate" vote. He also insisted that the recent strategy shift had been very carefully considered by BP's board and leadership team. These considerations involved a review of a broad range of scenarios including the UN Intergovernmental Panel on Climate Change's and BP's own ambition to be a net-zero company by 2050. Earlier in the meeting, BP chief executive Murray Auchincloss conceded that the company had been "optimistic for a fast [energy] transition but that optimism was misplaced", noting that despite many areas of strength within BP it went "too far too fast" so that "a fundamental reset was needed". Asked by an investor about how BP plans to mitigate the effects of the tariffs on imports to the US imposed by President Donald Trump this month , Auchincloss said the company was "tracking the situation carefully". The steel and aluminium tariffs that have been introduced by Washington should not affect BP's onshore business in the US but there are some impacts on the speciality steels the firm brings into the US for its offshore facilities in the US Gulf of Mexico, he said. Auchincloss received 97.3pc of shareholder votes in favour of his re-election, while finance chief Kate Thomson received 98.7pc support for her re-election. All other directors, apart from Lund, received votes greater than 92.9pc in favour of their re-election. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Risks rising for possible recession in Mexico: Analysts


17/04/25
News
17/04/25

Risks rising for possible recession in Mexico: Analysts

Mexico City, 17 April (Argus) — The Mexican finance executive association (IMEF) lowered its 2025 GDP growth forecast for a second consecutive month in its April survey, citing a rising risk of recession on US-Mexico trade tensions. In its April survey, growth expectations for 2025 fell to 0.2pc, down from 0.6pc in March and 1pc in February. Nine of the 43 respondents projected negative growth — up from four in March, citing rising exposure to US tariffs that now affect "roughly half" of Mexico's exports. The group warned that the risk of recession will continue to rise until tariff negotiations are resolved, with the possibility of a US recession compounding the problem. As such, IMEF expects a contraction in the first quarter with high odds of continued negative growth in the second quarter — meeting one common definition of recession as two straight quarters of contraction. Mexico's economy decelerated in the fourth quarter of 2024 to an annualized rate of 0.5pc from 1.7pc the previous quarter, the slowest expansion since the first quarter of 2021, according to statistics agency data. Mexico's statistics agency Inegi will release its first estimate for first quarter GDP growth on April 30. "A recession is now very likely," said IMEF's director of economic studies Victor Herrera. "Some sectors, like construction, are already struggling — and it's just a matter of time before it spreads." The severity of the downturn will depend on how quickly trade tensions ease and whether the US-Mexico-Canada (USMCA) free trade agreement is successfully revised, Herrera added. But the outlook remains uncertain, with mixed signals this week — including a possible pause on auto tariffs and fresh warnings of new tariffs on key food exports like tomatoes. IMEF also trimmed its 2026 GDP forecast to 1.5pc from 1.6pc, citing persistent tariff uncertainty. Its 2025 formal job creation estimate dropped to 220,000 from 280,000 in March. The group slightly lowered its 2025 inflation forecast to 3.8pc from 3.9pc, noting current consumer price index should allow the central bank to continue the current rate cut cycle to lower its target interest rate to 8pc by year-end from 9pc. IMEF expects the peso to end the year at Ps20.90/$1, slightly stronger than the Ps21/$1 forecast in March. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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India's ONGC wins 15 blocks in upstream oil, gas bid


17/04/25
News
17/04/25

India's ONGC wins 15 blocks in upstream oil, gas bid

Mumbai, 17 April (Argus) — Indian state-controlled upstream firm ONGC has won 15 of the 28 blocks offered for bidding in the ninth round under the Hydrocarbon Exploration and Licensing Policy's (HELP's) Open Acreage Licensing Policy (OALP). Three of these were with ONGC's joint venture with state-run Oil India, while another was in a consortium with BP and private-sector refiner Reliance Industries (RIL). This is the first time BP, RIL and ONGC have partnered and won a shallow-water block in the Saurashtra basin. ONGC has a 40pc stake in the consortium, with RIL and BP having 30pc each, a trading source said. RIL-BP had jointly won an ultra-deepwater block in the Krishna Godavari basin in the eighth round. Private-sector Vedanta, which had bid for all 28 oil and gas blocks, won seven blocks. Oil India won six blocks on its own and three in collaboration with ONGC. Private-sector firm Sun Petrochemicals, which had bid for seven blocks in this ninth round, did not secure any blocks. Interest from the private sector was relatively higher in this bidding round, but it remains mostly dominated by state-controlled firms. Foreign participation in the Indian exploration sector remains low. The ninth round saw 28 blocks auctioned(https://direct.argusmedia.com/newsandanalysis/article/2524414) across an area of 136,596.45 km². India has awarded 144 exploration and production blocks comprising a total area of 242,055 km² in eight previous rounds. India in March passed the Oilfields (Regulation and Development) Amendment Bill 2024 , which aims to simplify regulations, attract investment, and enhance exploration and production capabilities. It also allows granting oil leases on stable terms, along with sharing of production facilities and infrastructure. It also scrapped the windfall tax on domestic crude oil production in December 2024. The ministry said it is working on new frameworks to address challenges related to the upstream sector. India imports around 89pc of its crude requirements, despite efforts to reduce its dependency on imports. Crude imports in January-February rose by over 1pc on the year to 5.01mn b/d, oil ministry data show. During the same period, its total crude production fell by over 1pc from a year earlier to 539,000 b/d. By Roshni Devi India OALP blocks ninth bidding round Basin Type Block Area (km²) Awardee Cauvery Basin Ultra-deepwater CY-UDWHP-2022/1 9,514.63 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/2 9,844.72 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/3 7,795.45 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2023/1 5,330.49 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/1 5,585.61 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/2 5,453.96 ONGC - BPXA – RIL Saurashtra Basin Onland GS-ONHP-2023/1 2,939.56 Vedanta Saurashtra Basin Shallow water GS-OSHP-2023/1 ,5408.79 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/1 7,699.00 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/2 8,446.28 ONGC Saurashtra Basin Onland GS-ONHP-2023/2 2,977.28 Vedanta Saurashtra Basin Onland GS-ONHP-2023/3 2,793.08 Vedanta Cambay Basin Onland CB-ONHP-2022/2 7,13.92 ONGC- OIL Cambay Basin Shallow water CB-OSHP-2023/1 1,873.66 Vedanta Cambay Basin Onland CB-ONHP-2023/1 446 OIL Cambay Basin Onland CB-ONHP-2023/2 636 Vedanta Cambay Basin Onland CB-ONHP-2023/3 416 ONGC Cambay Basin Shallow water CB-OSHP-2023/2 477 Vedanta Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/1 9,466.85 ONGC - OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/2 9,425.84 OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/3 9,831.48 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/1 9,495.16 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/2 9,223.22 OIL Mumbai Offshore Shallow water MB-OSHP-2023/1 2,935.19 ONGC Mumbai Offshore Shallow water MB-OSHP-2023/2 1,749.74 Vedanta Assam Shelf Basin Onland AS-ONHP-2022/2 784 ONGC - OIL Assam Shelf Basin Onland AS-ONHP-2022/3 2,168.09 OIL Kutch Basin Shallow water GK-OSHP_x0002_2023/1 3,164.61 ONGC Source: Oil ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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