Brazilian crude exports retreat in August
Brazilian crude exports fell by around 30pc to 5.47mn t (1.29mn b/d) in August compared with July, partly reflecting congestion at Chinese ports caused by severe floods in the Yangtze basin.
But crude outflows were up almost 15pc compared with August 2019, according to preliminary data from Brazil's trade ministry MDIC.
In terms of crude export receipts, China accounted for around 88pc in August compared with 73pc of the around 1.94mn b/d dispatched in July, according to the MDIC data.
The Netherlands, Portugal and France increased their share of export receipts compared with August 2019, with the US reducing its share in the same period.
Exports could retreat further starting in September as Brazil's state-controlled Petrobras launches major upstream maintenance that could reduce the company's monthly production by around 200,000 b/d. The delayed campaign, which was originally scheduled for January 2020, will be coupled with downstream maintenance that is not expected to significantly impact domestic fuel production, a Petrobras executive tells Argus.
In late August, Petrobras, which accounts for around 75pc of domestic oil production, said that lower price premiums and floods had disrupted crude flows to China, the main destination for its light sweet pre-salt grades.
"The lineups in China are going down from 30 days, less than 15 days, some ports less than one week. With the floods part of the river basin stopped. Demand is slightly lower, more on premium than demand, but we believe it will come back in the coming weeks," Petrobras' head of international trading Alexandre Leite told Argus in a recent interview.
Brazil produced 3.078mn b/d of crude in July, confirming a steady climb off of an April trough caused by the pandemic, according to data from oil regulator ANP.
Petrobras has said its decision to retain a 2020 domestic production target of around 2.7mn b/d of oil equivalent (boe/d) is associated with a Chinese economic rebound, but the firm is also monitoring recovering domestic fuel demand and the production of low-sulfur fuel oil for export.
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New Libyan firm starts exporting crude
New Libyan firm starts exporting crude
London, 16 July (Argus) — A little known Libyan upstream company has begun exporting crude with its first shipment heading to China, according to sources, official documents and ship-tracking data seen by Argus . Arkenu Oil Company, which describes itself as a private oil and gas development and production firm, exported 1mn bl of Sarir/Mesla blend crude from Libya's Marsa El Hariga oil terminal on 10 July on Suezmax-class tanker Zeus . Shipping agent and port reports list Chinese trading firm Unipec as the vessel's charterer. The tanker's bill of lading lists Libyan state-owned NOC as the sender of the consignment on behalf of Arkenu. Libyan crude sales have historically been the reserve of NOC and a handful of international oil companies that hold equity stakes in production assets in the country, including Italy's Eni, TotalEnergies and Austria's OMV. Turkey-based commodities trader BGN, which does not have any upstream production in Libya, also regularly appears on loading programmes as a seller of the country's crude. A document dated 10 July showed NOC had allocated to Arkenu an unspecified share of production from its subsidiary Agoco's Sarir and Mesla fields, in return for carrying out upstream development work on the fields. The arrangement implies Agoco is paying for Arkenu's services in the form of crude. Arkenu's 1mn bl cargo is worth around $84mn at current market rates, Argus estimates. Arkenu, set up in early 2023 in the eastern city of Benghazi, says it owns modern drilling rigs and has a team of experts "who have held high positions in major oil production and development companies". It is unclear what work Arkenu has carried out for Agoco. Sarir and Mesla accounted for most of Agoco's 279,000 b/d of output in 2023. Libya is politically divided between an internationally recognised administration in the west, which has historically controlled oil revenues, and a rival administration in the east, which is home to around three-quarters of the country's oil production capacity. Agoco is based in the east, and NOC in the west. Libya produces just over 1.2mn b/d of crude. Its oil export revenues were $30.7bn in 2023, according to Opec. Arkenu, NOC and Unipec have been contacted for comment. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Trump taps Vance as running mate for 2024
Trump taps Vance as running mate for 2024
Washington, 15 July (Argus) — Former president Donald Trump has selected US senator JD Vance (R-Ohio) as his vice presidential pick for his 2024 campaign, elevating a former venture capitalist and close ally to become his running mate in the election. Vance, 39, is best known for his bestselling memoir Hillbilly Elegy that documented his upbringing in Middletown, Ohio, and his Appalachian roots. In the run-up to the presidential elections in 2016, Vance said he was "a never Trump guy" and called Trump "reprehensible." But he has since become one of Trump's top supporters and adopted many of his policies on the economy and immigration. Vance voted against providing more military aid to Ukraine and pushed Europe to spend more on defense. Trump said he chose his running mate after "lengthy deliberation and thought," citing Vance's service in the military, his law degree and his business career, which included launching venture capital firm Narya in 2020. Vance will do "everything he can to help me MAKE AMERICA GREAT AGAIN," Trump said today in a social media post. Like Trump, Vance has pushed to increase domestic oil and gas production and criticized government support for electric vehicles. President Joe Biden's energy policies have been "at war" with workers in states that are struggling because of the importance of low-cost energy to manufacturing, Vance said last month in an interview with Fox News. Trump made the announcement about Vance on the first day of the Republican National Convention in Milwaukee, Wisconsin, and just two days after surviving an assassination attempt during a campaign event in Pennsylvania. Earlier today, federal district court judge Aileen Cannon threw out a felony indictment that alleged Trump had mishandled classified government documents after leaving office. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Iraq's Opec+ compliance challenges are not going away
Iraq's Opec+ compliance challenges are not going away
Dubai, 15 July (Argus) — Iraq's crude production fell in June but not by enough to stave off heat from the Opec+ alliance. State-owned marketing firm Somo said output dropped by 26,000 b/d on the month to 3.83mn b/d, excluding that from the semi-autonomous Kurdistan region. Production levels in the northern region are unclear, but are probably enough to take the overall country output to above the 4mn b/d limit imposed by the Opec+ agreement. Iraq has failed to meet this target in any month this year, and as the Opec+ alliance's least compliant member it agreed in May to make additional cuts to compensate for prior overproduction. The Opec+ secondary sources, which include Argus , put Iraq's output at 4.19mn b/d in June. Iraq's oil ministry on 14 July reiterated its commitment to meeting the 4mn b/d limit and reaffirmed its willingness to compensate for the excess production since the beginning of the year. Baghdad's mission is made more difficult by a lack of visibility in Kurdistan, where 400,000 of crude exports were taken off international markets in March 2023. Argus estimates output from the region at between 250,000 b/d and 300,000 b/d, much of which ends up in Turkey or Iran, but the Kurdistan Regional Government (KRG) has stopped providing any oil-sector data. Baghdad says a drop in its crude exports is evidence of attempts to improve compliance — shipments from the southern Basrah oil terminal averaged 3.29mn b/d in June, down from 3.36mn b/d in May and 3.41mn b/d in April, according to Somo. Kpler data put Iraq's crude exports at 3.24mn b/d in June, the lowest since the beginning of the year. Somo said the amount of crude supplied to domestic refineries increased to 475,000 b/d in June from 441,000 b/d in May and 421,000 b/d in April. It said 10,000 b/d were exported to Jordan. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Trump survives apparent assassination attempt: Update
Trump survives apparent assassination attempt: Update
Updates with changes throughout Washington, 14 July (Argus) — Former US president Donald Trump was grazed by a sniper bullet during a campaign rally in Pennsylvania on Saturday but survived what appears to have been an assassination attempt. The suspected shooter was killed by US Secret Service agents. A rally attendee was also killed, and two other spectators were critically wounded in the incident at a campaign stop in Butler County, Pennsylvania, the Secret Service said. Televised images showed Trump with what appeared to be blood on his right ear and face being escorted from the stage by Secret Service agents. Trump managed to pump his fist while being rushed off the stage. He was taken to a local medical facility for treatment. "I was shot with a bullet that pierced the upper part of my right ear," Trump said later on his social media platform Truth Social. "I knew immediately that something was wrong in that I heard a whizzing sound, shots, and immediately felt the bullet ripping through the skin. Much bleeding took place, so I realized then what was happening." Trump said "it is incredible that such an act can take place in our Country." President Joe Biden said he was grateful to hear Trump was "safe and doing well" and said he was trying to reach out to his political opponent. "There's no place for this kind of violence in America," Biden said. "We must unite as one nation to condemn it." The suspected shooter fired multiple shots toward the event stage from an "elevated" position outside of the rally security perimeter, the Secret Service said. Secret Service personnel "neutralized" the shooter, the Secret Service said. Trump is scheduled to accept his party's nomination for president next week at the Republican national convention in Milwaukee, Wisconsin. By Haik Gugarats and David Ivanovich Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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