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US to withdraw troops from Syria

  • Spanish Market: Crude oil
  • 19/12/18

US president Donald Trump said today he will withdraw US troops from Syria, a move that will relinquish control over the oil-rich part of the country and reduce the risk of confrontation with military forces backed by Russia and Iran.

The decision represents an abrupt change from the strategy White House national security adviser John Bolton and senior State Department officials have outlined in recent months, a plan that envisioned a more or less permanent presence in Syria involving thousands of US troops to combat Iranian influence.

But Trump has persistently spoken out in its favor of a withdrawal since the US-led coalition gained captured back most of the areas held by radical Islamist group Isis late last year. And the Pentagon has insisted defeating Isis remained its primary mission in Syria.

"The US has defeated the territorial (Isis) caliphate," the White House said. "We have started returning US troops home as we transition to the next phase of this campaign." And Trump via Twitter added: "We have defeated Isis in Syria, my only reason for being there during the Trump Presidency."

The US military and its allied forces control roughly one third of Syrian territory, including most of the country east of the Euphrates river. The State Department earlier this year outlined plans to use that presence — and control over oil resources — to establish parallel governance structures in opposition to Syrian president Bashar al-Assad's government. The US-backed structures would have opposed Russia and Iran, which, according to US intelligence officials, are planning for a long-term presence in Syria, securing military basing rights and oil and natural gas exploitation contracts. Syrian crude output stood at 420,000 b/d in 2010, the last full year before the civil war began, according to the US Energy Information Administration. The agency estimates the country's proven reserves at 2.5bn bl of oil and 241bn m³ of gas.

The US administration has long described the removal of Iranian-commanded forces as a key objective in Syria. But the US presence there following military successes against Isis has complicated already tense relations with Russia and Turkey.

The US military inflicted multiple casualties on Russian forces during a 7 February battle near Deir ez-Zour, in an area close to the largest concentration of Syria's oil resources. The US in its campaign against Isis primarily relied on Syrian-Kurdish militias, which are viewed with suspicion by Ankara. The Pentagon has had to contend with Ankara's demand for the removal of US-allied forces from northwest Syria areas on the border with Turkey. Turkish president Recep Tayyip Erdogan reiterated the demand in a phone conversation with Trump last week.

Trump has been pushing for a reduced US footprint in Syria for some time, even though he twice authorized military airstrikes against Assad's forces over their alleged use of chemical weapons. Trump this summer canceled plans to spend $230mn on reconstruction activities in the US-controlled parts of Syria, forcing the State Department to turn, instead, to Saudi Arabia and other donors.

Senior Republicans in the Senate today criticized the withdrawal decision. "President Trump is right to want to contain Iranian expansion. However, withdrawal of our forces in Syria mightily undercuts that effort and puts our allies, the Kurds, at risk," senator Lindsey Graham (R-South Carolina) said.

Senator Marco Rubio (R-Florida) said the decision "was a grave error with broader consequences that may have not been thought through."

The US withdrawal will increase Assad's dependence on Russia and Iran and increase the tempo of Israeli operations in southern Syria against Iran-backed forces, Rubio said. "That will trigger a counter-response, and suddenly we find ourselves in another Israel-Hezbollah war, one that is deadlier and costlier" than the conflict in Lebanon in 2006.


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14/08/24

Major banks ‘far off track’ to hit climate targets: WRI

Major banks ‘far off track’ to hit climate targets: WRI

London, 14 August (Argus) — Major banks are "far off track" to meet their climate pledges, and many of their commitments are not ambitious enough, non-profit the World Resources Institute (WRI) has found. WRI assessed 25 banks in 10 countries, including the four biggest in the US — JP Morgan Chase, Wells Fargo, Citibank and Bank of America — and the world's biggest bank in terms of assets, the Industrial Commercial Bank of China. WRI analysed the institutions' net zero commitments across transparency and ambition, implementation, credibility and nature and equity. Of the 25 banks analysed, just four have a "long-term commitment to phase out or [phase] down oil and gas finance", WRI found. Most of the banks — 16 of the 25 — have committed to phase out coal financing by 2040 or earlier. Although most banks reported "green" financing — albeit using different definitions — this was often significantly lower than financing for fossil fuels, it added. If the world is to meet climate targets in line with the Paris Agreement, investment in "clean energy" must by 2030 outpace fossil fuel investments by 10:1, according to the IEA. But the banks assessed "fell far short of this mark", averaging a ratio of 1.3:1, WRI said. The WRI pointed to "significant blind spots" in banks' plans. The majority of the institutions it assessed do not have a commitment to reduce deforestation, while "high emitting sectors like shipping and real estate are barely covered", it found. Overall, banks' commitments are varied and standardisation is lacking, making comparison difficult, WRI noted. A UN-appointed group in November 2022 set out guidelines to "bring integrity to net zero commitments", while the UK in October last year issued a "gold standard" climate transition plan framework for companies and financial institutions to follow. The focus on private sector finance is intensifying, ahead of the UN Cop 29 summit, set for November in Baku, Azerbaijan. Finance will be the key topic at Cop 29, including discussions around funds to tackle climate change in developing countries. Several jurisdictions, including the EU, are clear that public climate finance will not be enough to address climate change, and that private sector finance must be mobilised. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Iran oil min nominee struggles for parliament approval


14/08/24
14/08/24

Iran oil min nominee struggles for parliament approval

Dubai, 14 August (Argus) — New Iranian president Masoud Pezeshkian's nominee to lead the country's critically important oil ministry is facing an uphill battle to secure a vote of confidence in parliament, largely because of the highly polarized nature of Iranian politics. Mohsen Paknejad, an oil sector veteran with close to three decades of experience in senior leadership roles in Iran's energy sector, was named as Pezeshkian's pick for oil minister early on 11 August, alongside the new president's other cabinet nominees that included former deputy foreign minister Abbas Araqchi to head up the foreign ministry and ex-central bank governor Abdolnaser Hemmati to lead the finance ministry. The response to many of Pezeshkian's cabinet nominees has been mixed, with some of the negative reaction coming notably from those who supported the new president as the sole reformist candidate in the election. Paknejad is no exception. Since his first meeting on 12 August with members of parliament, who must ultimately ratify the president's cabinet picks, Paknejad has been facing criticism from some quarters for a perceived lack of suitable experience and for the absence of a coherent plan for his proposed tenure in the oil ministry. "The nominated ministers of oil and energy appeared at a meeting of the parliament's energy commission yesterday to answer questions… [but] neither had a plan to present," energy commission member Ramezan Ali Sangdovini said on social media platform X on 13 August. There have also been objections over Paknejad's close relationship with ex-oil minister Bijan Zanganeh, who most recently served for the whole of former president Hassan Rohani's two terms in office. Zanganeh, who has had two separate stints as oil minister and one as energy minister, has become a divisive figure in Iranian politics, praised by those who favour opening up Iran's oil industry to foreign investment but reviled by those who consider outside involvement as interference. Zanganeh has also faced allegations of corruption over a gas supply contract that Iran signed with a UAE company in 2001, allegations he vehemently denies. The contract with Crescent Petroleum was to export 1bn ft³/d (10.3bn m³/yr) of gas from Iran to the UAE but the supplies never materialized and Iran was later forced to pay damages. "Zanganeh was in and around the oil ministry for more than 15 years," says one former official at state-owned oil company NIOC. "He made many friends, but also many enemies. And not just in oil circles, but also beyond." Late addition Paknejad held his most senior positions while Zanganeh was oil minister. And it is this close relationship, as well as Zanganeh's strong and public support for Pezeshkian during his election campaign, that has prompted suggestions among some parliamentarians that Paknejad's selection was ultimately Zanganeh's doing. "In terms of political and management policies, he and Zanganeh are like two faces of the same coin," energy commission member Mohammad Kaab-Omir said on X. Others think Zanganeh's role in the nomination should not be overstated. "Was Zanganeh consulted on Paknejad? That is very likely, yes. But to say it is his pick is not accurate," the former NIOC official said. In the days leading up to Pezeshkian's cabinet nominations, Paknejad was not even in the frame, according to the Iranian press, which instead touted a host of other names as likely candidates including former NIOC managing directors Masoud Karbasian and Rokneddin Javadi, former oil minister Gholamhossein Nozari and former deputy oil minister Seyed Emad Hosseini. Nozari had been a leading contender up until late last week, but pushback from the reformist camp saw him fall by the wayside, according to former NIOC officials. Hosseini was then tipped to be the final nominee, only for a last minute change of heart by Pezeshkian. The reason for the shift away from Hosseini is unclear but it could explain why Paknejad appeared so unprepared in his preliminary meetings with members of parliament. Parliament typically has a week to study the president's cabinet picks before taking a vote of confidence. The open sessions to vote on the nominees are due to begin on 17 August. At this point, the cards look stacked against Paknejad but given the role of internal politics in the vetting process, he still has time to turn it around. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Pipeline fire disrupts crude flows to Libyan port


13/08/24
13/08/24

Pipeline fire disrupts crude flows to Libyan port

London, 13 August (Argus) — Crude supplies to Libya's Es Sider export terminal have been disrupted by a fire along a pipeline connecting the port's storage tanks with oil fields, traders and shipping agents told Argus . The fire, which operator Waha Oil said was extinguished today, affected a pipeline 30km south of Es Sider's crude oil storage facilities. The Es Sider terminal is located in the country's east and is connected to the Sirte basin, Libya's oil heartland. Any reduction in crude exports from Es Sider will depend on the severity of the damage. Waha Oil produced 261,000 b/d of crude on 12 August and 271,000 b/d flowed through its pipeline system to the terminal, according to an operational report seen by Argus . One source told Argus that crude flows to the terminal have fallen to around 125,000 b/d, while two others said Waha Oil had been forced to reduce production by 100,000 b/d. The terminal exports Waha Oil's medium sweet Es Sider grade. Loadings in the three months to July averaged 292,000 b/d, according to Kpler data. Waha Oil was scheduled to export 15 cargoes totalling 9.4mn bl this month, according to loading schedules. Six tankers have loaded Es Sider crude from the port so far this month. The last one to do so was the TotalEnergies chartered Pacific Pearl, which is currently just off the terminal. The next tanker due to load at Es Sider is the BP-chartered T.Kurucesme, which was set to arrive on 14 August. Crude stocks at the terminal stood at 1.76mn bl as of 12 August, the operational report said. Waha Oil, which is a consortium of TotalEnergies, ConocoPhillips and state-owned NOC, recently said it boosted production capacity to 322,000 b/d . It produced 280,000 b/d last year. The disruption to operations at Es Sider comes after the country's largest oil field, El Sharara, was forcibly shut down earlier this month. This has led to the shut-in of around 250,000 b/d of production and has prompted NOC to declare force majeure on crude exports from the Zawia terminal . Opec member Libya typically produces around 1.2mn-1.25mn b/d of crude, but its output has been frequently impacted by political unrest and decrepit infrastructure over the past decade. By Aydin Calik, Lina Bulyk, Kuganiga Kuganeswaran and Matthew Mitchell Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

China’s oil demand outlook weakens further: IEA


13/08/24
13/08/24

China’s oil demand outlook weakens further: IEA

The IEA issued updates to its numbers London, 13 August (Argus) — The outlook for China's oil demand growth this year has weakened further, the IEA said today. China's oil demand fell for a third consecutive month in June, with crude oil imports in July hitting their lowest since September 2022 when the country was locked down because of Covid, the Paris-based agency said in its latest Oil Market Report (OMR). China's oil demand is now forecast to grow by 300,000 b/d in 2024, compared with 410,000 b/d in last month's report and well below the 710,000 b/d the IEA had projected in January. For next year, the agency pegs growth at 330,000 b/d, "but with risks skewed to the downside." "Chinese oil demand growth has gone into reverse due to a slowdown in construction and manufacturing, rapidly accelerating deployment of vehicles powered by alternative fuels and comparison to a stronger post-reopening baseline," the IEA said. Lower Chinese consumption data feed into the IEA's narrative that the country's pre-eminence as a source of global demand growth is fading . The IEA's global oil demand growth forecast for 2024 remained unchanged at 970,000 b/d as the downgrade from China was mostly offset by better than expected gasoline consumption in the US. The agency now sees US oil demand growth at 140,000 b/d this year, compared with 70,000 b/d last month. The IEA's demand growth forecast for this year remains well below that of Opec which downgraded its forecast by 140,000 b/d to 2.11mn b/d . Opec sees Chinese oil demand growing by 700,000 b/d this year. For next year, the IEA nudged down its oil demand growth projection by 30,000 b/d to 950,000 b/d, mostly on lower forecast Chinese demand. On global oil supply, the IEA lowered its growth estimate for 2024 by 40,000 b/d to 730,000 b/d. Much bigger growth is forecast next year at 1.95mn b/d, led by gains from the US, Guyana, Canada and Brazil. In terms of supply and demand balances this year, the agency's numbers point to a slightly tighter market than previously thought. It now sees a deficit of 130,000 b/d in 2024, compared with 80,000 b/d in last month's report. The deficit in the second half is seen at 390,000 b/d. The IEA said that after four months of stock builds, global observed oil inventories fell by 26.2mn bl in June and preliminary data showed further draws in July. But the IEA points to an oversupplied market next year, particularly given a plan by some Opec+ members to unwind some of their production cuts from October. But even if those cuts remain in place, the agency says global inventories could build by 860,000 b/d in 2025. By Aydin Calik IEA oil demand and supply balance Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US majors offer up mixed fortunes on M&A


12/08/24
12/08/24

US majors offer up mixed fortunes on M&A

New York, 12 August (Argus) — ExxonMobil's $64.5bn acquisition of shale giant Pioneer Natural Resources is already showing signs of paying off, but Chevron's $53bn takeover of US independent Hess is stuck in limbo because of a simmering dispute with its major rival over a Guyanese oil stake that is likely to drag on into 2025. The contrasting fortunes of the two blockbuster deals that ushered in a frantic round of dealmaking in the shale patch, with billions of dollars of assets changing hands, could have far-reaching consequences for ExxonMobil and Chevron as the two US majors double down on fossil fuels and chase low-cost and lower-carbon barrels that can withstand the challenges of the energy transition. The stakes are high as both have set out ambitious plans to ramp up shareholder returns in the forthcoming years. In a preview of its global outlook due out later this month, ExxonMobil forecasts that world energy demand will be 15pc higher in 2050, with oil demand holding firm around 100mn b/d, even as renewables and natural gas grow. "We anticipate this year will be a record, and then next year will be a record, so demand continues to be fairly healthy from an oil standpoint," chief executive Darren Woods says. ExxonMobil looks set to extend its lead over its smaller rival Chevron after closing the Pioneer deal in record time. Woods is citing "extremely encouraging" early results from the integrated assets to hint at even greater cost savings from the Pioneer takeover than the initially estimated $2bn/yr. ExxonMobil has already started to deploy its more efficient "cube" production strategy to the Pioneer assets, which enables it to drill multiple horizontal wells in stacked intervals from a single location. Pioneer, in turn, is contributing expertise in logistics and procurement. ExxonMobil is now producing more oil than at any other time since the Exxon and Mobil merger in 1999, after achieving record second-quarter output from the Permian and the prolific Stabroek block off Guyana. Output is set to grow further as the latest results only included two months of production from the Pioneer assets. I drink your milkshake The story is different over at Chevron, where chief executive Mike Wirth has had to put on a brave face after having his hopes of closing the Hess deal by the end of the year dashed. International arbitration to resolve a disagreement with ExxonMobil over its right of first refusal to a 30pc stake in the Stabroek block currently held by Hess — and the main impetus behind Chevron's proposed takeover — will now not take place until May 2025. That will likely postpone the deal's closure until late 2025, almost two years after it was first announced. Wirth does not expect the spat to be settled outside of arbitration, saying such a strategy had been tried but "that time has now passed". With the Hess deal on hold, Wirth is talking up Chevron's robust pipeline of projects from the Permian to the Gulf of Mexico and Kazakhstan. Wirth has not ruled out further acquisitions, even as the company waits for the Hess deal to be completed. "If another opportunity were to present itself that was compelling, we're certainly in a position to consider it," he says. But the Hess deal, with its highly prized Guyana asset, is seen as essential by some analysts for the company to answer questions over its long-term growth plans. That ExxonMobil is refusing to back down shows the extent to which the company is determined to protect its rights over one of the biggest discoveries seen in recent decades, with an estimated 11bn bl of recoverable oil. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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