US July ethanol output highest ever: EIA
US production of fuel ethanol in July set a monthly record at 1.09mn b/d as producers were incentivized by low feedstock prices amid robust demand.
July output was up by 5.1pc from the previous month and 5.6pc higher than a year earlier, according to data released by the Energy Information Administration (EIA) on Monday. Output during the month was 2,000 b/d above the previous record set in August 2018.
Low prices for corn feedstock, which arrived during the demand-heavy summer driving season for gasoline — a proxy for ethanol blending and demand — helped bolster production rates.
Front month CBOT corn prices in July averaged 398¢/bushel, the lowest since September 2020 and 28pc less than a year earlier. Value for corn has been under pressure from healthy domestic crop yields.
US supplied finished motor gasoline reached 9.3mn b/d, up by 177,000 b/d from June and about 300,000 b/d higher than a year earlier. Ethanol blending in July was 914,000 b/d – little changed over the month and from a year earlier.
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Lower Mississippi draught restrictions eased
Lower Mississippi draught restrictions eased
Houston, 30 September (Argus) — The US Coast Guard (USCG) loosened daught restrictions on sections of the lower Mississippi River following heavy rains upstream from Hurricane Helene . Traffic moving southbound on the lower Mississippi from Tiptonville, Tennessee, to Greenville, Mississippi, can now have a draught up to 10.6ft, while vessels in the region between Greenville to Tunica, Louisiana, can go up to 11ft, according to 26 September notice from the USCG. Tows traversing Tiptonville to Vicksburg, Mississippi, can have six barges wide, while tows traveling through Vicksburg to Tunica can be up to seven barges wide. Northbound tows cannot draft higher than 9.5ft from Vicksburg up through Tiptonville. The same tows cannot have more than six barges wide and more than four of them loaded. All but two locations on the lower Mississippi River rose above their low water threshold and are forecast to remain that way through mid-October, the National Weather Service said. Restrictions were loosened late last week after Hurricane Helene brought flash floods](https://direct.argusmedia.com/newsandanalysis/article/2612780) to the southeastern US following weeks of drought conditions along the lower Mississippi River. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Greek Corinth crude arrival momentum slows after fire
Greek Corinth crude arrival momentum slows after fire
Barcelona, 30 September (Argus) — Crude receipts at Greek refiner Motor Oil Hellas' (MOH) 180,000 b/d Corinth facility fell in September and arrival momentum has slowed, following a serious fire. Corinth imported 170,000 b/d in September, down from 185,000 b/d in August. The refinery received seven cargoes in the month, but only two were unloaded after the 17 September fire . One cargo of Caspian CPC Blend diverted to BP's 108,000 b/d Castellon refinery in Spain. The fire has damaged crude distillation (CDU) capacity at the refinery, but MOH has not replied to requests for details. The two crude cargoes that unloaded following the fire were staple grade Iraqi Basrah Medium, as are a pair signalling arrival. Both of these departed Basrah prior to the fire. One should arrive on 2 October, and the other is travelling via the Cape of Good Hope and is not slated to arrive until 13 October. No other deliveries are signalling arrival. Around 75pc of the crudes at Corinth are Basrah grades. MOH has previously said it has flexibility in its term contract with Iraq's state-owned Somo and can tailor the pace of deliveries to its needs. Earlier this year MOH said it wanted to buy more Basrah crude from trading firms, but the majority of its cargoes still come direct from Somo, according to Kpler data. This includes the two now on route to Corinth. MOH regularly blends Basrah with CPC Blend and Libyan Es Sider, plus occasional cargoes of Kazakh Kebco and Norwegian Johan Sverdrup. Prior to the fire MOH bought a cargo of Guyanese Unity Gold for the first time . MOH had major works in the summer of 2023 on the older and larger of its two CDUs. On completion deputy managing director Petros Tzannetakis said the refinery would run in excess of 200,000 b/d . Receipts are estimated by Argus at 200,000 b/d in the first three quarters of this year (see chart) . Receipts in September comprised 85,000 b/d of Basrah Medium, 35,000 b/d of Libyan crude split between Es Sider and Sarir, more than 25,000 b/d of Unity Gold and more than 20,000 b/d of CPC Blend. Argus assessed these at a weighted average gravity of 32.3°API and 1.7pc sulphur content, compared with 31.1°API and 2.5pc sulphur in August. The slate averaged 32.1°API and 2pc sulphur in the first nine months of the year, a little lighter and sweeter than 30.3°API and 2.5pc sulphur overall last year. By Adam Porter Corinth crude deliveries mn bl Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Supply issues affect fuel prices in western Germany
Supply issues affect fuel prices in western Germany
Hamburg, 30 September (Argus) — Fuel prices in Germany are diverging as some regions struggle with reduced refinery output. Distillate supply in Cologne, in western Germany, is still tight. A major supplier at Shell's 340,000 b/d Rhineland refinery in Cologne halted spot sales of heating oil and diesel in mid-September. An unplanned unit outage is the reason for the drop in supplies, traders in the region said. The supplier also restricted spot sales of gasoline throughout the month until the beginning of last week. Gasoline supplies at the Rhineland refinery and the nearby Florsheim storage facility are rising but traders in the region are buying gasoline elsewhere due to high local prices. Maintenance works at the 187,000 b/d Godorf plant of the Rhineland refinery are further restricting supply. Last week, the Bayernoil consortium's 215,000 b/d Vohburg-Neustadt refinery in southern Germany experienced an drop in production levels. Sources said unplanned maintenance works at an unspecified unit led to reduced road fuels output, prompting multiple suppliers to halt spot sales of diesel and gasoline. The Miro consortium's 310,000 b/d Karlsruhe refinery and the PCK consortium's 230,000 b/d Schwedt refinery in eastern Germany are oversupplied. Rail works near Schwedt have been restricting transport of product for several months, traders said. This caused a backlog of trains in September, and suppliers at the refinery lowered their prices to incentivise truck loadings and free up inventory space. Diesel imports into northern Germany almost doubled in September compared with August because of a slight increase in domestic demand. By Natalie Mueller Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
PE firm Elliott bids $7.3bn for Citgo assets: Update
PE firm Elliott bids $7.3bn for Citgo assets: Update
Adds reaction from Amber, details throughout. Houston, 27 September (Argus) — An affiliate of private equity group Elliott Investment Management has been selected as the top bidder in an auction for US refiner Citgo, with a bid of $7.286bn. The special master for the auction, being held in the US District Court for the District of Delaware, will need to make a final formal recommendation for the court to choose the Elliott affiliate, Amber Energy, pending a 1 October hearing with parties disputing the auction. But a final hearing to ratify the sale of over 800,000 b/d of refining capacity could be held in November. Final bids for Citgo's US refineries, lubricant plants, midstream and retail assets were submitted on 11 June, with the auction aiming to satisfy debts owed by the company's parent firm, Venezuelan state-owned PdV. If the sale to Amber moves forward following a successful November hearing, it will mark the largest purchase of US refining assets since Andeavor's acquisition by Marathon Petroleum in 2018. "Amber Energy's strategy for growth includes plans to reinvest in the business and potentially pursue strategic investments that enhance the profitability of Citgo," the company said. Citgo was not immediately available for comment. Amber is lead by chief executive Gregory Goff, who was previously chairman, president, and chief executive officer of Andeavor. Company president Jeff Stevens is currently president of Franklin Mountain Energy, which is focused on the Permian basin. He has also been an executive officer of independent refiner and marketer Western Refining. The company plans to keep the Citgo brand, and expects the deal to close by mid-2025. Conditions of the deal include the buyer applying for and acquiring a license from the US Treasury's Office of Foreign Assets Control, because the ultimate owner of Citgo is Venezuelan state-owned PdV, which is subject to US sanctions. "We look forward to partnering with the people of Citgo to ensure that the company continues to operate with the highest standards of safety and reliability," Amber said. Even though it is owned by PdV, Citgo since 2019 has operated under a board appointed by the Venezuelan opposition and vetted by the US government after the US rejected Venezuela's 2018 presidential election as illegitimate. PdV remains under control of President Nicolas Maduro's government. Maduro has rejected the US court proceedings on selling Citgo as "theft" and the issue is likely to feature in his protracted battle with the US-backed opposition, which claims to have defeated Maduro in the July presidential election. The court earlier this year approved a ranking order in which debtors will be paid out of proceeds, rather than allocating them on a pro rata basis. The first in line is defunct Canadian mining firm Crystallex, now owned by New York hedge fund Tenor Capital, with a $990mn claim. ConocoPhillips has a total of three claims approved by court, but only two of those are likely to be satisfied, potentially netting $1.4bn. The next largest is a $1.5bn claim by Russian-Canadian gold miner Rusoro, while energy company Koch's minerals arm is chasing a $457mn claim. Separate US court proceedings involve holders of $3.4bn in PdV 2020 bonds guaranteed by 50.1pc in Citgo Holding — a PdVH-owned legal entity that directly owns Citgo. In theory, the bondholders have the right to be paid first before other claimants are satisfied. The US government has blocked the bondholders' ability to pursue the claim, most recently issuing a ban that is valid until mid-October. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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