Generic Hero BannerGeneric Hero Banner
Latest market news

Mideast contagion risk increases

  • Market: Condensate, Crude oil, Natural gas, Oil products
  • 29/07/24

The risk of Israel's war with the Palestinian militant group Hamas in Gaza spreading into the wider Middle East region appeared to step up a notch at the weekend with Jerusalem saying it is preparing for fighting on its northern border with Lebanon.

The move, announced by the Israeli Defence Force (IDF), came after Israel pinned a 27 July rocket attack that killed 12 people in the Golan Heights on Lebanon-based Hezbollah — like Hamas, an Iran-backed group. The IDF said it is "greatly increasing its readiness for the next stage of fighting in the north." The White House also blamed Hezbollah for the strike, saying its was "their rocket, and launched from an area they control."

Israel and Hezbollah have exchanged fire almost daily since 8 October last year, a day after Hamas first attacked Israel. Those skirmishes had mostly targeted military sites, but the weekend strike was by far the deadliest on civilians inside Israeli territory.

The prospect of violence spreading in the Middle East has been a concern, not least in Washington, since the war began between Hamas and Israel. On 13 April, Iran attacked Israel directly for the first time and Israel retaliated five days later. The Yemen-based Houthi militant group launched a campaign of targeting commercial vessels in the Red Sea in what it said was a direct response to Israel's actions in Gaza, and recently directly hit central Tel Aviv with a drone.

International crude markets did not react to the weekend's events. Ice Brent front-month crude was mostly unchanged today.

Separately, Turkish President Erdogan Recep Tayyip Erdogan on 28 July increased his rhetoric against Israel, hinting at intervention in the Gaza conflict. This may put in doubt Ankara's involvement in any multinational post-war force in Gaza, a "day after" scenario the UAE and the US are attempting to work on.

"We must be very strong so that Israel can't do these things to Palestine," Erdogan said in a televised speech in his hometown of Rize, where he enjoys overwhelming support.

"Just as we entered Karabakh, just as we entered Libya, we might do the same to them," he said. "There is nothing we cannot do. Only we must be strong."

Erdogan has adopted a more aggressive stance towards Israel since his AKP party's poor showing at municipal elections in March, with the Palestinian struggle for statehood being a key cause for his conservative Muslim support base.

His comments were non-specific as to the nature of any potential Turkish involvement in Palestinian territories. In Libya and Nagorno-Karabakh, Ankara provided military hardware — especially unmanned aerial vehicles (UAVs) — and advisors that helped shape outcomes of both conflicts.

Israel's foreign minister Israel Katz said Erdogan was following "in the footsteps of Saddam Hussein" with threats to attack Israel. "Just let him remember what happened there and how it ended," he said on X.

US secretary of state Anthony Blinken on 28 July reiterated Washington's desire to prevent the conflict from escalating.

"We don't want to see it spread," he said in Japan. "The best way to do that in a sustained way is to get the ceasefire in Gaza."


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
08/05/25

FinBalt gas demand down on the year in April

FinBalt gas demand down on the year in April

London, 8 May (Argus) — Combined gas demand across the Finnish and Baltic region fell by 4pc on the year in April despite gas-fired power generation rising by nearly 50pc. Aggregate consumption in Finland, Estonia, Latvia and Lithuania in April fell to 3.42TWh, down from 3.56TWh the previous year and the three-year average of 5.12TWh in 2019-21. That said, it was still higher than in both 2022 and 2023 ( see consumption graph ). Lithuania remained the region's largest consumer, as it has been for every month since June, again driven by an increase in gas-fired power generation. Average gas-fired output soared by nearly 400pc on the year in April to 254MW according to data from Fraunhofer ISE, more than making up for a 43pc drop in Finnish production ( see power table ). Following the de-synchronisation of the Baltic states from the post-Soviet Brell system, gas-fired power plants have become particularly important in the region, not just for producing electricity but also for providing ancillary services such as frequency reserves. Lithuania has the largest gas-fired fleet in the region, and its output jumped despite domestic power consumption falling by more than 5pc on the year and renewable output increasing, which allowed the country to cut its power imports last month to 104MW, from 546MW in the previous year. With power sector gas demand increasing in April but overall gas consumption in the region dropping, demand from households and industries must have been lower on the year. Weather patterns were split across the region, with lower average minimum temperatures than the previous year in Vilnius and Riga, but higher in Tallinn and Helsinki. That said, overnight lows in all four capitals were still above the 2015-24 average last month, limiting strong heating demand in the shoulder month ( see temperature table ). Traded volumes on the region's gas exchange GET Baltic rose to 1.1TWh last month, an "unusually high result for this time of year" according to the exchange's senior account manager Karolis Bagdonas. Of the overall volume, 56pc traded in Lithuania, 28pc in the joint Estonia-Latvia market area, and the remaining 16pc in Finland. The average price on GET Baltic was €39.40/MWh last month, down by around 8pc from March. GET Baltic announced in April that its full integration into the European Energy Exchange (EEX) had been delayed again until 9 September , having previously been planned for 27 May . Across all of January-April FinBalt consumption totalled 18.43TWh, down from 20.04TWh in the same period of 2024. Stocks at the region's only storage facility in Latvia ended the storage year on 1 May at 8.4TWh, below 11.3TWh on the same day last year and 9TWh in 2023, but still above all other years since 2018 ( see data and download ). The entire 100pc of capacity, amounting to just over 23TWh, had been booked for the 2024-25 storage year, but for the new 2025-26 cycle a lower 17TWh has been allocated, representing around 68pc of the cycle's total technical capacity of 24.9TWh. Consistently positive summer-winter spreads over the winter period, which gave no financial incentive to book storage, may have driven lower interest in 2025-26 capacity, although they had normalised by April. Lower overall booked volumes is despite operator Conexus managing to sell all 9TWh of the new five-year capacity product it offered in February and March . Slow start to injection season Injections into Incukalns have been weak so far this year, with not a single day of net injections until 24 April. In the previous year, there had been some brief net injections on 1-4 April at an average of 54 GWh/d, and across all of April they averaged just over 7 GWh/d. In contrast, this year's April averaged net withdrawals of 32 GWh/d across the month, with injections only on 24-30 April. This slow stockbuild has continued in the first week of May, with 35GWh of net injections on 1 May but then a flip back to very minor net withdrawals of 0.2 GWh/d on every day of 2-6 May, the latest data from GIE show. Last year, there were average net injections of 47 GWh/d on 1-6 May, and 39 GWh/d in 2021-23. Despite weak injections, overall LNG sendout across the region's three terminals of Klaipeda, Inkoo and Hamina has increased significantly from April, nearly doubling to 150 GWh/d on 1-7 May from 80 GWh/d in April. Sendout from these terminals averaged 84 GWh/d on 1-7 May last year. Rather than injecting all of the regasified LNG, some of it is being sent southward to Poland at Santaka, with exit flows at the point averaging 22 GWh/d on 1-7 May, switched from net inflows of 2 GWh/d in April. This is likely to be linked to Polish incumbent Orlen's deals to supply LNG to Ukraine's Naftogaz, of which one of the contracts specified that it would be delivered to Klaipeda and transited to the Ukrainian border . By Brendan A'Hearn FinBalt gas-fired power production MW Apr-25 Apr-24 year-on-year % change Finland 118 206 -43 Estonia 6 5 20 Latvia 85 53 60 Lithuania 254 52 388 Total 463 316 47 — Fraunhofer ISE FinBalt average minimum temps °C Apr-25 Apr-24 2015-24 avg Helsinki 0.7 0.1 0.1 Talinn 2.2 2.0 1.0 Riga 4.8 5.0 4.0 Vilnius 3.8 5.2 2.8 — Speedwell FinBalt gas demand by country GWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

Trump to grant partial tariff relief to UK


08/05/25
News
08/05/25

Trump to grant partial tariff relief to UK

Washington, 8 May (Argus) — The US will carve out import quotas for UK-produced cars and, eventually, reduce tariffs on UK steel and aluminum, under a preliminary deal US president Donald Trump and UK prime minister Keir Starmer announced today. The Trump administration will allow UK car manufacturers to export 100,000 cars to the US at a 10pc tariff rate, instead of the 25pc tariff to which all foreign auto imports are subject. The US and the UK will negotiate a "trading union" on steel and aluminum that will harmonize supply chains, US commerce secretary Howard Lutnick said. The US commended the UK government on taking control of Chinese-owned steelmaker British Steel last month. As a result of that action, under yet to be negotiated arrangements, the US would reconsider the UK's inclusion in its 25pc tariffs on steel and aluminum, the White House said. Starmer, speaking after the ceremony, told reporters that US tariffs on the UK-sourced steel and aluminum would, in fact, fall to zero. Trump announced the deal during a ceremony at the White House, with Starmer phoning in. The two leaders suggested that their preliminary deal was as significant as the end of World War II in Europe, 80 years ago. But that deal, which Trump described as "full and comprehensive" hours before its announcement is anything but that. Under the "US-UK Agreement in Principle to negotiate an Economic Prosperity Deal", the US will maintain the 10pc baseline tariff on nearly all imports from the UK that went into effect on 5 April, Trump said. The UK, Trump said, would lower the effective rate on US imports to 1.8pc from 5.1pc. The actual details of the agreement are yet to be negotiated. "The final deal is being written up" in the coming weeks, Trump said, adding that it was "very conclusive". Boeing, beef and biofuel The UK would commit to buying $10bn worth of Boeing airplanes, Trump said. He described the UK market as "closed" to US beef, ethanol and many other products, and said that the UK agreed to open its agricultural markets as a result of his deal. US ethanol exports to the UK, in fact, rose by 23pc year-on-year in March. Under the deal, the UK would expand market access to US ethanol, creating $500mn more in US exports, the White House said. The UK will reduce to zero the tariff on US-sourced ethanol, the UK Department of Business said, adding that "it is used to produce beer". Trump previewed the preliminary deal with the UK as the first of the many trade agreements the US administration is negotiating with many other countries. Trump contended today that there are trade talks underway with the EU and expressed confidence that the US-China trade discussions expected over the weekend would produce results. But Trump added that he will not lower the high tariffs on imports from nearly every US trade partner he imposed last month and described the UK's 10pc tariff rate as a favor to that country. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Sonatrach Augusta refinery restart extends into May


08/05/25
News
08/05/25

Sonatrach Augusta refinery restart extends into May

Barcelona, 8 May (Argus) — Crude deliveries to Algerian state-owned Sonatrach's 198,000 b/d Augusta refinery in Italy were higher in April, but it appears a full restart from planned works will take longer than initially expected. Crude deliveries last month were around 70,000 b/d, up from 20,000 b/d in March. Receipts averaged 95,000 b/d in January-April, down from 160,000 b/d overall in 2024. The refinery has been under a planned five-year maintenance shutdown since the end of January, the first turnaround since shortly after Sonatrach bought the plant from ExxonMobil in 2019. Sonatrach initially said the facility would be back online by 30 April, with units restarting in two phases. But the company in an updated note to local authorities said an atmospheric distillation unit, propane deasphalter, hydro-desulphuriser, propane splitter and other secondary units would potentially flare on restart up to 31 May. One of these segments is the butamer unit, which caught fire in April . It is unclear if the fire added to the length of the overall stoppage. Sonatrach has not replied to queries on the matter. It was anticipated the turnaround would be a little quicker than in 2019 (see chart), but the two periods of maintenance now appear to be roughly similar. Crude delivery last month included over 45,000 b/d of Saudi Arab Light, 15,000 b/d of Kazakh Kebco and over 5,000 b/d of Algerian Saharan Blend. Argus assessed these at a weighted average gravity of 33.7°API and 1.5pc sulphur content, compared with 36.5°API and 0.9pc sulphur in February, before receipts all but stopped for the works. Receipts averaged 34.7°API and 1.2pc sulphur in January-April, compared with 35.2°API and 0.9pc sulphur overall in 2024. The pace of delivery in May is slow. Around 750,000 bl of Arab Light has discharged but no tankers are signalling arrival. By Adam Porter Augusta crude receipts mn bl Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

IMO GHG pricing falls short on green methanol, ammonia


07/05/25
News
07/05/25

IMO GHG pricing falls short on green methanol, ammonia

New York, 7 May (Argus) — The International Maritime Organization's (IMO) proposed global greenhouse gas (GHG) pricing mechanism might not drive significant uptake of green methanol and green ammonia by 2035, given current market prices. Despite introducing penalties on high-emission fuels use and tradable surplus credits for low-emission fuels, the mechanism does not sufficiently close the cost gap for green alternatives. Under the system, starting in 2028 ship operators will face a two-tier penalty: $100/t CO₂e for emissions between the base and direct GHG intensity limit, and $380/t CO₂e for those exceeding the looser base limit. These thresholds will tighten annually through 2035. Ship operators can earn tradable credits for overcompliance when their GHG emissions fall below the direct limit. Assuming a surplus CO₂e credit value of $72/t — mirroring April 2025's average EU emissions trading system price — green ammonia would earn about $215/t in surplus credits in 2028 (see chart) . This barely offsets its April spot price of $2,830/t VLSFO equivalent in northwest Europe. Bio-methanol would receive about $175/t in credits, offering minimal relief on its $2,318/t April spot price. Currently, unsubsidized northwest Europe bio-LNG sits mid-range among bunker fuel options under IMO's emissions framework. While more expensive than HSFO, grey LNG, and B30 bioblends, the bio-LNG is cheaper than B100 (pure used cooking oil methyl ester), green ammonia, and bio-methanol. To become cost-competitive with unsubsidized bio-LNG — priced at $1,185/t in April 2025 — green ammonia and bio-methanol prices would need to fall by 57pc and 49pc, respectively, to around $1,220/t VLSFOe and $1,180/t VLSFOe by 2028. Unless green fuel prices drop significantly or fossil fuel prices rise, the IMO's structure alone provides insufficient economic incentive to accelerate green ammonia and bio-methanol adoption at scale. By Stefka Wechsler NW Europe, fuel prices plus IMO penalties and credits Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

India, Saudi Arabia plan two Indian refineries


07/05/25
News
07/05/25

India, Saudi Arabia plan two Indian refineries

Mumbai, 7 May (Argus) — India and Saudi Arabia are to collaborate on the development of two integrated refinery and petrochemical plants in India. The plan was announced after Indian prime minister Narendra Modi met Saudi counterpart Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 pledged to invest $100bn in India in several sectors including energy and petrochemicals. No further details have been provided but the projects could be Indian state-run BPCL's planned facility in Andhra Pradesh and oil firm ONGC's refinery project in Gujarat, according to industry participants. Plans for a 1.2mn b/d refinery in Ratnagiri alongside the UAE's Adnoc have been abandoned because of logistical and land acquisition challenges, industry participants say. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more