US targets Cuba for propping up Maduro

Market: Crude oil, Oil products
05/04/19

The US today targeted Venezuelan oil movements to Cuba in a bid to isolate president Nicolas Maduro from a key ally.

The US Treasury imposed sanctions on the Liberian-flagged Despina Andrianna Panamax tankerthat routinely shuttles Venezuelan crude to Cuba, as well as the vessel´s Liberian owner Ballito Bay Shipping and Greek operator ProPer In Management.

The action is in response to a Venezuelan opposition-controlled National Assembly decision earlier this year to stop crude shipments to Cuba, a senior US administration official said today. Sanctions were levied on 33 other vessels, mostly tugs, owned by Venezuelan national oil company PdV.

Further action is planned for "coming weeks" against Cuba, vice president Mike Pence said today in an address to a small, invitation-only crowd of Venezuelan expatriates in Houston, Texas.

"Cuba's influence has driven Venezuela's failure and the time has come to liberate Venezuela from Cuba," Pence said.

The US has warned that penalties could spread to allies Cuba and Russia, which support Venezuelan president Nicolas Maduro.

The administration planned to continue tightening "the financial noose" on the Maduro government, the US official said. Washington was monitoring both the supply of diluent and PdV's ongoing exports to non-US destinations. Economic sanctions remain the primary tool used by Washington, the official said.

US sanctions on PdV that began on 28 January aim to starve Maduro's government of cash. Crude exports to the US, historically Venezuela's largest customer at more than 500,000 b/d before the sanctions, fell to zero over the past three weeks, based on US Energy Information Administration estimates. The sanctions also prohibit US sales to Venezuela of naphtha that is vital to upgrading and blending the country´s extra-heavy Orinoco crude.

The US, Canada and most Latin American and EU governments no longer recognize Maduro´s presidency, and are seeking a peaceful transition headed by National Assembly head Juan Guaidó, whom they consider Venezuela´s rightful interim president.

US sanctions imposed so far seek a restoration of Venezuelan democracy, not its oil, Pence said at today´s event. Cuba and Russia are the only reason Maduro is able to resist that change.

"Cuba's leaders are the real imperialists in the western hemisphere," Pence said. Havana has been subject to a US economic embargo since the 1960s.

The administration denies it is losing momentum. The senior official, speaking after Pence's remarks, insisted US pressure is working and Maduro is losing his grip on power.

But Guaidó lacks control over other Venezuelan institutions and has not persuaded senior military personnel to switch sides. A failed effort by the opposition to bring humanitarian aid into Venezuela on 23 February ended in violence at Colombia´s border.

Maduro's government has meanwhile imprisoned Guaido's chief of staff and threatened to detain Guaido. The Maduro-controlled Supreme Court and a constituent assembly have acted to strip the opposition leader of his parliamentary immunity, a move Guaidó dismisses as groundless.

"These acts of intimidation will not succeed in delaying the inevitable — the peaceful restoration of democracy, stability and prosperity to the people of Venezuela," the state department said this week.

The 71,637t Despina Adrianna moved crude from Venezuela to Cuba last month, according to the State Department. The vessel is currently traveling from Cienfuegos, Cuba to PdV's Jose terminal, according to Argus vessel tracking. PdV earlier this week ordered vessels waiting to load or discharge cargoes at the terminal to switch off transponders while operating in Venezuelan waters, making them more difficult to track remotely.

Among the invited guests at the Houston gathering today was US representative Michael McCaul (R-Texas), ranking member of the House Foreign Affairs committee, and Carlos Vecchio, Guaido's appointed US ambassador.

The election-minded Republican administration of president Donald Trump is linking the campaign against Venezuela and its Cuban patron to a pledge to block socialist policies that it claims would be ushered in by the opposition Democratic party.

Inside Venezuela, Guaidó has summoned another round of nationwide street demonstrations tomorrow morning, with the eastern Caracas marches to end at state-owned utility Corpoelec to protest ongoing power outages. Maduro has called for simultaneous pro-government marches.

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20/12/24

US House votes to avert government shutdown

Washington, 20 December (Argus) — The US House of Representatives voted overwhelmingly today to extend funding for US federal government agencies and avoid a partial government shutdown. The Republican-controlled House, by a 366-34 vote, approved a measure that would maintain funding for the government at current levels until 14 March, deliver $10bn in agricultural aid and provide $100bn in disaster relief. Its passage was in doubt until voting began in the House at 5pm ET, following a chaotic intervention two days earlier by president-elect Donald Trump and his allies, including Tesla chief executive Elon Musk. The Democratic-led Senate is expected to approve the measure, and President Joe Biden has promised to sign it. Trump and Musk on 18 December derailed a spending deal House speaker Mike Johnson (R-Louisiana) had negotiated with Democratic lawmakers in the House and the Senate. Trump lobbied for a more streamlined version that would have suspended the ceiling on federal debt until 30 January 2027. But that version of the bill failed in the House on Thursday, because of opposition from 38 Republicans who bucked the preference of their party leader. Trump and Musk opposed the bipartisan spending package, contending that it would fund Democratic priorities, such as rebuilding the collapsed Francis Scott Key Bridge in Baltimore, Maryland. But doing away with that bill killed many other initiatives that his party members have advanced, including a provision authorizing year-round 15pc ethanol gasoline (E15) sales. Depending on the timing of the Senate action and the presidential signature, funding for US government agencies could lapse briefly beginning on Saturday. Key US agencies tasked with energy sector regulatory oversight and permitting activities have indicated that a brief shutdown would not significantly interfere with their operations. But the episode previews potential legislative disarray when Republicans take full control of Congress on 3 January and Trump returns to the White House on 20 January. Extending government funding beyond 14 March is likely to feature as an element in the Republicans' attempts to extend corporate tax cuts set to expire at the end of 2025, which is a key priority for Trump. The Republicans will have a 53-47 majority in the Senate next month, but their hold on the House will be even narrower than this year, at 219-215 initially. Trump has picked two House Republican members to serve in his administration, so the House Republican majority could briefly drop to 217-215 just as funding for the government would expire in mid-March. Congress will separately have to tackle the issue of raising the debt limit. Conservative advocacy group Economic Policy Innovation Center projects that US borrowing could reach that limit as early as June. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US government agencies set to shut down

20/12/24

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20/12/24

US government agencies set to shut down

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Viewpoint: More changes for Dated crude benchmark ahead

20/12/24

News

20/12/24

Viewpoint: More changes for Dated crude benchmark ahead

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Shell and Prax call off deal on German refinery stake

20/12/24

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20/12/24

Shell and Prax call off deal on German refinery stake

Hamburg, 20 December (Argus) — Shell's planned sale of its 37.5pc stake in Germany's 226,000 b/d Schwedt refinery to UK energy firm Prax has fallen through. "Both parties have taken the decision not to proceed with the transaction," Prax said, without elaborating. The refinery will continue to operate as normal, it said. Shell said the companies had reached the end of an agreed timeframe for closing the deal. It said it is still looking to sell the stake. The deal with Prax, which was announced a year ago , was initially due to be completed in the first half of 2024. Shell owns its stake in Schwedt through the PCK joint venture, which also includes Italy's Eni and Rosneft Deutschland, one of the Russian firm's two German subsidiaries. Shell previously attempted to sell its PCK share to Austria-based Alcmene in 2021 but that deal failed to complete after Rosneft Deutschland exercised its pre-emption rights later that year. Rosneft was unable to buy the stake after the German government placed its two German subsidiaries under trust administration in 2022 in the wake of Moscow's invasion of Ukraine, forcing Shell to seek an alternative buyer. In October, a court in Germany rejected a complaint by Rosneft Deutschland against Shell's plan to sell its PCK stake to Prax. By Svea Winter Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Trump backs new deal to avoid shutdown: Update

19/12/24

News

19/12/24

Trump backs new deal to avoid shutdown: Update

Adds updates throughout Washington, 19 December (Argus) — 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. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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