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Trump backs new deal to avoid shutdown: Update

  • Market: Biofuels, Coal, Crude oil, Emissions, Natural gas, Oil products
  • 19/12/24

Adds updates throughout

US president-elect Donald Trump is offering his support for a rewritten spending bill that would avoid a government shutdown but leave out a provision authorizing year-round 15pc ethanol gasoline (E15) sales.

The bill — which Republicans rewrote today after Trump attacked an earlier bipartisan agreement — would avoid a government shutdown starting Saturday, deliver agricultural aid and provide disaster relief. Trump said the bill was a "very good deal" that would also include a two-year suspension of the "very unnecessary" ceiling on federal debt, until 30 January 2027.

"All Republicans, and even the Democrats, should do what is best for our Country, and vote 'YES' for this Bill, TONIGHT!" Trump wrote in a social media post.

Passing the bill would require support from Democrats, who are still reeling after Trump and his allies — including Tesla chief executive Elon Musk — upended a spending deal they had spent weeks negotiating with US House speaker Mike Johnson (R-Louisiana). Democrats have not yet said if they would vote against the new agreement.

"We are prepared to move forward with the bipartisan agreement that we thought was negotiated in good faith with House Republicans," House minority leader Hakeem Jeffries (D-New York) said earlier today.

That earlier deal would have kept the government funded through 14 March, in addition to providing a one-year extension to the farm bill, $100bn in disaster relief and $10bn in aid for farmers. The bill would also provide a waiver that would avoid a looming ban on summertime sales of E15 across much of the US. Ethanol industry officials said they would urge lawmakers to vote against any package without the E15 provision.

"Pulling E15 out of the bill makes absolutely no sense and is an insult to America's farmers and renewable fuel producers," Renewable Fuels Association chief executive Geoff Cooper said.

If no agreement is reached by Friday at 11:59pm ET, federal agencies would have to furlough millions of workers and curtail services, although some agencies are able to continue operations in the event of a short-term funding lapse. Air travel is unlikely to face immediate interruptions because key federal workers are considered "essential," but some work on permits, agricultural and import data, and regulations could be curtailed.

The US Federal Energy Regulatory Commission has funding to get through a "short-term" shutdown but could be affected by a longer shutdown, chairman Willie Phillips said. The US Department of Energy expects "no disruptions" if funding lapses for 1-5 days, according to its shutdown plan. The US Environmental Protection Agency would furlough about 90pc of its nearly 17,000 staff in the event of a shutdown, according to a plan it updated earlier this year.


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11/03/25

Nigeria negotiates Dangote naira crude sales extension

Nigeria negotiates Dangote naira crude sales extension

Lagos, 11 March (Argus) — Nigeria's state-owned NNPC said it is in negotiations with the country's 650,000 b/d Dangote refinery about extending a local currency crude sales arrangement. The six-month programme, which ends this month, has seen NNPC sell Dangote almost 300,000 b/d of crude in naira since October 2024, NNPC said. The programme has also involved Dangote selling gasoline and diesel to the domestic market in naira. It has been "a good arrangement until now by reducing gasoline prices, national inflation and by stabilising the naira", according to sources familiar with the matter. Dangote has relied heavily on NNPC's crude since starting up in late 2023. NNPC said it has sold over 84mn bl to the refinery in that time, and Vortexa data show domestically sourced oil accounted for more than 80pc of total crude deliveries to Dangote between January 2024 and February 2025, albeit some of it supplied by private upstream operators. Under the six-month programme, crude prices are set in dollars and Dangote pays in the naira equivalent at a discounted exchange rate. The discounted rate partly explains why Dangote has made successive cuts to its domestic gasoline prices, according to market participants. But there is no guarantee that NNPC will be willing to continue selling at a discount, given that the company is hemmed in by commitments to finance deals used to service its crude sales, a crude trader told Argus . There may also be constraints on the amount of crude the firm has available for domestic refiners, with some sources suggesting it has secured term supply deals up to 2030. NNPC said crude sales under the programme were "subject to availability". The arrangement has evolved since it began. A source at NNPC told Argus that the programme started with Dangote being entitled to pay in naira for any of the first 10 cargoes loaded in a given month and in dollars for additional cargoes thereafter, but now NNPC offers some cargoes strictly for payment in dollars and others with the option of payment in naira. Any further changes to the terms of the extended programme may put pressure on Dangote to consider increasing the amount of foreign crude in its slate. Refinery sources told Argus in January that the refinery will look to source at least half of its crude requirements on the import market and is building eight storage tanks to facilitate this. Whatever terms are agreed, NNPC may have no choice but to continue offering crude to domestic refiners like Dangote under a right of first refusal set out in the country's Petroleum Industry Act, a crude trader said. Upstream regulator NUPRC's Domestic Crude Supply Obligation (DCSO) system came into force in May 2023 but it has been controversial, requiring the issuance of clarifying guidelines in July 2024 before changes were implemented last month. According to the new rules, NUPRC will meet with domestic refiners each month before it gets together with upstream operators to review production and loading programmes. Commercial negotiations between producers and refiners must be completed or complaints lodged with the regulator within 48 hours of the upstream meeting. In the short term, demand for Nigerian crude exports appears weak. Traders said around 12 March-loading cargoes were still searching for buyers as of 10 March and most of the April export schedule is available as well. Ample supply of more competitively priced Kazakh-origin light sour CPC Blend, US WTI and Mediterranean sweet crudes is weighing on demand for Nigerian grades in Europe, where the spring refinery maintenance season is about to get underway. This is pushing down values of April-loading Nigerian cargoes. By Adebiyi Olusolape, George Maher-Bonnet and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil ignores fossil fuel phase-out in Cop 30 letter


10/03/25
News
10/03/25

Brazil ignores fossil fuel phase-out in Cop 30 letter

Sao Paulo, 10 March (Argus) — Climate activists welcomed Brazil's stance of making the UN Cop 30 summit a "turning point" for real climate change commitments but criticized the presidency's letter for turning a blind eye to fossil fuels' leading role in global warming. The summit's president Andre Correa do Lago released on Monday a letter addressing the event's goals and outlooks, which includes boosting climate financing to $1.3 trillion/yr from the target stipulated at Cop 29 of $300bn/yr. "Lago calls on foreign countries — especially the US — to leave individuality and irresponsibility behind in exchange for cooperation and our planet's future," scientist Karin Bruning — a graduate of the University of Heidelberg and the Massachusetts Institute of Technology — said. "However, the letter has no use if Brazil does not pull its own weight." Bruning recalled Brazilian president Luiz Inacio Lula da Silva's [public feud](http://direct.argusmedia.com/newsandanalysis/article/2657369 with the country's environmentalist watchdog Ibama regarding the exploration in Brazil's equatorial margin region. "A country with so much renewable energy available cannot look at past solutions such as exploring and pushing for fossil fuels," Bruning said. She also highlighted the importance of respecting technical and scientific decisions on matters such as oil exploration. Environmental concerns have always been at the center of the equatorial margin debate, as it stands near a freshwater barrier reef. State-controlled Petrobras has long been trying to explore the area's Foz do Amazonas basin — which holds an estimated 10bn bl of crude, according to energy research bureau Epe — but has struggled to receive the environment licenses to do so. Ibama last denied the company a request to drill in the area in May 2023. Brazilian climate think tank Observatorio do Clima called the letter "inspiring," but added that it "excludes the elephant in the room." It recognized the letter as a "relief for giving the Paris Agreement negotiations to professionals who understand the gravity of the moment" but bashed it for keeping fossil fuels' gradual stoppage out of Cop 30's priorities list. Still, Correa do Lago's letter recognized "the scale of the challenge and the urgency of response," according to climate change think-tank E3G's associate director Kaysie Brown. Holding on to past pledges Correa do Lago's letter focused on progressing previous decisions regarding developing countries and increasing financing for them, which has long been one of the Brazilian government's priorities. This includes working on a roadmap to reach $1.3 trillion/yr in climate finance from all sources by 2035, as agreed at Cop 29 in Baku. But previous Cop agreements and the conclusions of the first global stocktake in Dubai (GST) — a five-yearly checkpoint agreed upon in the 2015 Paris accord — on energy were ignored and pushed back against in Baku's final text. "We do have pending issues to solve at Cop 30, notably the UAE dialogue on implementing the GST outcomes and the just transition work programme," Correa do Lago said. "The GST is an invaluable legacy that unites us. We must all continue to subscribe to it as the ultimate benchmark for climate implementation." By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Vitol's Sarroch refinery crude receipts at 6-year high


10/03/25
News
10/03/25

Vitol's Sarroch refinery crude receipts at 6-year high

Barcelona, 10 March (Argus) — Crude receipts at refiner Saras' 300,000 b/d Sarroch refinery in Italy rose to a six-year high in February, with the plant receiving a trio of new grades in February-March. Receipts were close to 320,000 b/d last month compared with 205,000 b/d in January, according to Argus tracking. Receipts averaged 245,000 b/d in 2024, slightly lower than around 250,000 b/d in 2023. Saras had aimed for 265,000-270,000 b/d last year, without success. In the past decade the unit has consistently underperformed targets, not achieving much more than 260,000 b/d in a year. Former workers said the plant is unable to distill crude in excess of 285,000 b/d. After repeated issues and "technical hiccups" it was unable to run at that pace for extended periods, a problem shared with the large majority of its Mediterranean peers. But Saras appears to have been making efforts to improve availability with a string of planned maintenance programmes in the past 18 months. New owners, trading firm Vitol, may be keen to test the unit's capabilities. Vitol purchased the unit last year in a €1.7bn ($1.84bn) deal and appear to be introducing new grades. Sarroch took receipt of a first cargo of 28°API Guyanese grade Payara Gold in February, having in December sampled Senegal's Sangomar crude for the first time. Receipts in February comprised 125,000 b/d of Libyan crude, split between Amna, Bouri and Zueitina grades, 70,000 b/d of Angolan crude split between Palanca and Pazflor, 50,000 b/d of Azeri BTC Blend, 30,000 b/d of US WTI, 25,000 b/d of Caspian CPC Blend and 20,000 b/d of the Payara Gold. Argus assessed these at a weighted average gravity of 35.4°API and 0.5pc sulphur content, compared with 32.2°API and 0.7pc sulphur in January. The slate averaged an estimated 33.3°API and 0.8pc sulphur last year, almost identical to 2023. The pace of delivery in March appears good, with around 600,000 bl of BTC Blend unloaded. Twi further new grades for Sarroch were received in the form of 1mn bl of heavy sweet Meleck from Niger, and 735,000 bl of the re-branded Kazakh Urals grade, Kebco. Sarroch was not a major buyer of Urals, prior to the imposition of sanctions following the Russia-Ukraine conflict, and received its last Baltic-loaded Urals in April 2022 . A further 1mn bl each of Brazilian Frade and Libyan Attifel are on route. By Adam Porter Sarroch crude receipts mn bl Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US SAF projects will be protected: United Airlines


10/03/25
News
10/03/25

US SAF projects will be protected: United Airlines

Houston, 10 March (Argus) — US sustainable aviation fuel (SAF) projects will move forward despite the US administration pushing back against earlier legislation that supports renewables, the head of United Airlines said today. SAF has bipartisan support in Congress and at the state level and is likely to be protected, United chief executive Scott Kirby said at the CERAWeek by S&P Global conference in Houston, Texas. Electrification is not practical in large scale aviation and hydrogen has a different set of problems, leaving SAF as the better option, Kirby said. The US has provided strong incentives to develop SAF under laws passed during the administration of former-president Joe Biden and will likely produce enough to export to Europe to help that continent meet aggressive targets. US president Donald Trump issued an executive order upon taking office which paused all disbursements of funds appropriated through the Inflation Reduction Act (IRA) passed in 2022 and a complementary infrastructure law passed in 2021. The order called for ending the "Green New Deal", echoing language he used on the campaign trail when criticizing the IRA. Trump said the funding should be held back until federal agencies "review their processes, policies and programs for issuing grants, loans, contracts or any other financial disbursements" to ensure they fit with policy objectives. United announced in December that it agreed to buy SAF from Phillips 66's Rodeo facility in northern California as soon as the product came online. The airline inked a similar deal with Neste last year for SAF as it continues to take advantage of the Illinois SAF buyers' tax credit in supplying its major hub at Chicago's O'Hare International Airport. Other US independent refiners have recently announced that SAF projects are advancing. Specialty refiner Calumet said last month that a project to expand SAF production in Montana is moving forward after it received an initial $782mn loan from the US Department of Energy (DOE). The funding is the first portion of a $1.44bn loan from the DOE that will allow Calumet subsidiary Montana Renewables to expand operations at its Great Falls, Montana, biofuel plant. The loan was paused temporarily earlier this year as the Trump administration conducted a review to confirm "alignment with White House priorities." Another US independent refiner, Par Pacific, said it is seeing strong interest in its planned renewable fuels facility at its 94,000 b/d Kapolei, Hawaii, refinery. The $90mn project, which will produce SAF and other products, is on schedule to start up in the second-half of 2025, Par Pacific said. Meanwhile, US independent refiner Valero said recently that its project to produce up to 15,000 b/d of SAF at its refinery in Port Arthur, Texas, is fully operational. The project allows the plant, jointly owned with Diamond Green Diesel (DGD), to upgrade up to 50pc of its 31,000 b/d renewable diesel refining capacity to SAF. 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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Tanker and cargo vessel collide in North Sea: Update


10/03/25
News
10/03/25

Tanker and cargo vessel collide in North Sea: Update

Adds details from tanker management London, 10 March (Argus) — An oil tanker and a container vessel are on fire in the UK North Sea after colliding earlier today, the UK coastguard said. Shiptracking data appear to show the US-flagged Medium Range (MR) tanker Stena Immaculate was at anchor when it was hit by Portuguese-flagged container vessel Solong. The Stena Immaculate's manager, US-based logistics company Crowley, said the incident resulted in a ruptured cargo tank containing jet fuel. It said all its employees on board are safe and accounted for. Market sources told Argus that the tanker was likely carrying jet fuel and diesel. Vortexa data show the tanker was on route to the UK's port of Immingham on the east coast of England, from the Greek port of Agioi Theodoroi. The Solong was plying a route from the east coast of Scotland to Rotterdam, according to vessel tracking data. "The incident remains ongoing and an assessment of the likely counter pollution response required is being enacted," the coastguard said. By Rhys van Dinther Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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