Mars, Ursa offshore platforms off line until early June

Spanish Market: Crude oil
02/05/22

Two US Gulf deepwater platforms that feed into the Mars crude stream are off line for planned maintenance until early next month.

The Mars and Ursa platforms started maintenance last week that will last until early June, and the work includes full shutdowns of the platforms as "is common," operator Shell said.

The Mars and Ursa platforms are the same platforms had seen production restored in early November following repairs to fix damage from Hurricane Ida on an offshore transfer station, the West Delta-143 A facility, in August 2021.

The total Mars system carried 488,000 b/d during the first quarter, according to Shell Midstream, up from 408,000 b/d during the first quarter last year.

Spring is a common time for offshore maintenance, coming after turbulent winter weather but ahead of hurricane season, which starts on 1 June.

By Amanda Smith

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06/05/25

Trump unlikely to lift tariffs on Canada

Washington, 6 May (Argus) — President Donald Trump suggested today he would not lift tariffs on imports from Canada and told Canadian prime minister Mark Carney that the US-Canada-Mexico (USMCA) free trade agreement needs to be renegotiated. Trump, who hosted Carney at the White House today, told reporters that there was nothing Canada's leader could tell him to change his mind on stiff tariffs he imposed on Canadian steel, aluminum, cars and auto parts. "It's just the way it is," Trump said. While Trump has altered his tariff levels repeatedly, his administration has imposed a 25pc tariff on Canada-sourced steel and aluminum, and a 25pc tariff on some cars and autoparts imported from Canada. Any product that qualifies for duty-free treatment under the USMCA is exempt from tariffs Trump imposed. The 10pc tariff Trump imposed on Canadian crude and other energy imports only lasted from 4-7 March, causing turmoil in North American energy markets. But even the remaining tariffs are a significant hindrance for the integrated North American auto industry, executives in Canada and the US have said. Trump today described the USMCA, which he negotiated during his first administration, as merely a "transitional deal" and suggested that it could be either terminated or renegotiated completely. The USMCA includes a provision calling for it to be reviewed by all three countries in 2026. The existing free trade agreement is "a basis for broader negotiations," Carney said, adding that "some things about it are going to have to change." Carney made his first trip to Washington just a week after winning the 28 April parliamentary election, following a campaign centered around his opposition to Trump's policies. Trump and Carney offered polite compliments to each other, but there was little visible chemistry between the two men. Trump doubled down on his suggestion that Canada could become the 51st US state, prompting Carney to tell him that "as you know from real estate, there are some places that are never for sale." "Having met with the owners of Canada over the course of the campaign in the last several months, it's not for sale," Carney said. "Never say never", Trump retorted. Trump also repeated his past claims that "we don't do much business with Canada. From our standpoint, they do a lot of business with us." "We are the largest client of the United States," said Carney. "We have a tremendous auto sector between the two of us." By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to end military campaign in Yemen: Update

06/05/25

Trump to end military campaign in Yemen: Update

Updates with details throughout, including Houthi response. Washington, 6 May (Argus) — President Donald Trump said today he will end the US military campaign against Yemen's Houthis, claiming that the militant group pledged to stop attacks on commercial ships passing through the Red Sea. The Houthis reached out with a request to stop the US bombing campaign, and the US will do so immediately, Trump told reporters at the beginning of his meeting with Canada's prime minister Mark Carney on Tuesday. "They don't want to fight anymore," Trump said. "They have capitulated ... And I will accept their word, and we are going to stop the bombing of the Houthis effective immediately." US secretary of state Marco Rubio, who also attended the meeting with Carney, added that if the Houthi attacks "are going to stop, then we can stop." Oman mediated a ceasefire agreement between the US and the Houthis, Oman's foreign minister Badr Albusaidi said in a social media post following Trump's remarks. "In the future, neither side will target the other, including American vessels, in the Red Sea and Bab al-Mandab Strait, ensuring freedom of navigation and the smooth flow of international commercial shipping." It was not clear from Albusaidi's statement whether the Houthis committed to stop their attacks on all vessels passing near Yemen's coastline. The Houthis claimed in late 2023 that, out of solidarity with Gaza's Palestinian population, they would attack any ship that was owned by an Israeli company or made calls at an Israeli port. But the Houthi attacks were indiscriminate, effectively crippling the regular passage of oil, LNG and other commercial vessel traffic through Red Sea waterways. The militant group paused its attacks on commercial shipping following the ceasefire in Gaza in January, but resumed them in March, after Israel stopped allowing humanitarian aid into Gaza. The Houthis also launched attacks against Israel, drawing retaliatory strikes by the Israeli Air Force, and on US naval vessels in the Red Sea. There was no explicit confirmation of a ceasefire from Houthi-controlled information outlets. A Houthi spokesman reposted a social media post suggesting that "America stopped its aggression in Yemen" and that "the one who retreated is America." Another media channel used by the group said that "the Israeli and American aggression will not pass without a response and will not deter Yemen from continuing its position in support of Gaza". US president Donald Trump's administration listed its military campaign against Yemen-based Houthis, which began on 15 March, as a key foreign policy accomplishment in his first 100 days in office even though the militant group continued to launch missile and drone attacks — most recently on 4 May against Israel's main airport. Israel responded to the 4 May attack with air strikes on Yemen's port of Hodeidah and, today, on the main airport in Yemen's capital Sanaa. Israel also vowed to retaliate against Tehran, which is the main provider of weapons to the Houthis. The US separately warned Iran to discontinue its military support for the Yemeni militant group. The Trump administration is engaged in talks with Iran to address Tehran's nuclear program, with Iranian officials hoping to use the diplomatic negotiations to press for relief of oil and other sanctions against Iran. Trump said he will visit Saudi Arabia, the UAE and Qatar next week and is widely expected to also visit Israel on the same trip. "Before then, we're going to have a very, very big announcement to make, like, as big as it gets, and I won't tell you on what," Trump said. "But it will be one of the most important announcements that have been made in many years about a certain subject, very important subject." By Haik Gugarats, Nader Itayim and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US onshore crude output likely peaked: Diamondback

06/05/25

US onshore crude output likely peaked: Diamondback

New York, 6 May (Argus) — US onshore crude production has likely peaked as activity slows in response to the recent decline in oil prices, according to Diamondback Energy. The leading US independent estimates that the US hydraulic fracturing crew count is already down 15pc this year, while the frack crew count in the Permian basin has fallen by about 20pc from its January peak. Moreover, the US oil rig count is expected to be almost 10pc lower by the end of the second quarter with further declines seen. "As a result of these activity cuts, it is likely that U.S. onshore oil production has peaked and will begin to decline this quarter," Diamondback's chief executive officer Travis Stice said in a letter to shareholders. Given the shale sector has matured from the rapid growth seen in the early days of the shale boom, "this is not one of the types of declines that can be offset by improved efficiencies," Stice later told analysts on a conference call. Diamondback Energy also set out plans to cut spending and drill and complete fewer wells in the aftermath of the price slump, which has been driven by the economic fall-out over President Donald Trump's sweeping tariff policy, as well as the Opec+ group's plan to accelerate the return of barrels to the market. Capital spending is now seen at $3.4bn-$3.8bn this year, a decline of 10pc from the midpoint of previous expectations. The company will drop three rigs and one full-time completion crew in the second quarter, and expects to hold steady at those levels through most of the third quarter. If oil prices remain weak or fall further, Diamondback could reduce activity further. Or if prices rebound above $65, it could ramp activity back to previous levels. Under normal circumstances, it would use a period of lower service costs to build more drilled but uncompleted wells. But well casing, its biggest drilling input cost, has increased by 10pc in the last quarter due to steel tariffs. "To use a driving analogy, we are taking our foot off the accelerator as we approach a red light," said Stice. "If the light turns green before we get to the stoplight, we will hit the gas again, but we are also prepared to brake if needed." The impact on oil output is expected to be minimal given volumes have outperformed year to date. The company now sees annual oil production in a range of 480,000-495,000 b/d, down just 1pc from the midpoint of prior guidance. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EIA trims WTI outlook to near $60/bl

06/05/25

EIA trims WTI outlook to near $60/bl

Calgary, 6 May (Argus) — The US light sweet crude benchmark will be roughly $2/bl lower this year than previously expected with a shifting trade war continuing to add uncertainty, the Energy Information Administration (EIA) said today. WTI at Cushing, Oklahoma, is expected to average $61.81/bl in 2025, the agency said in its latest Short-Term Energy Outlook (STEO), lower by $2.07/bl from its April forecast. The US light sweet benchmark will fall further yet to $55.24/bl in 2026, or $2.24/bl lower from the prior STEO. Brent prices were revised downward by similar amounts and are now forecast at $65.85/bl in 2025 and $59.24/bl in 2026. The latest STEO reflects tariffs announced by US president Donald Trump on 2 April but not a subsequent 90-day suspension of tariffs to some countries. The EIA estimates the tariff suspensions will likely have some offsetting effects to a subsequent escalation in Chinese tariffs, which were also not included in the latest outlook. A tariff-induced slowdown in the economy is expected to weigh on oil consumption, which the EIA projects will not keep pace with rising output. Global production of oil and liquid fuels was raised to 104.13mn b/d for 2025 and to 105.43mn b/d for 2026. These are higher from the prior forecast by 30,000 b/d and 80,000 b/d, respectively. Global consumption is now expected to average 103.71mn b/d in 2025, higher by 70,000 b/d from the previous forecast. Consumption in 2026 is forecast at 104.61mn b/d, lower by 70,000 b/d. In the US, domestic consumption is projected to average 20.5mn b/d in 2025, higher by 120,000 b/d compared to last month's STEO. Consumption was lowered for 2026 by 50,000 b/d at 20.44mn b/d. Domestic production will come in at 13.42mn b/d in 2025 and 13.49mn b/d in 2026, the EIA said. This is lower by 90,000 b/d and 70,000 b/d compared to the April STEO. By Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump to end military campaign in Yemen

06/05/25

Trump to end military campaign in Yemen

Washington, 6 May (Argus) — President Donald Trump said today he will end the US military campaign against Yemen's Houthis, claiming that the militant group pledged to stop attacks on commercial ships passing through the Red Sea. The Houthis reached out with a request to stop the US bombing campaign, and the US will do so immediately, Trump told reporters at the beginning of his meeting with Canada's prime minister Mark Carney. "They don't want to fight anymore," Trump said. "We will honor that and we will stop the bombings. They have capitulated." There was no immediate statement by the Houthi group to confirm Trump's comment. US president Donald Trump's administration listed its military campaign against Yemen-based Houthis, which began on 15 March, as a key foreign policy accomplishment in his first 100 days in office even though the militant group continued to launch missile and drone attacks — most recently on 4 May against Israel's main airport. The Houthis resumed attacks on commercial shipping through Red Sea waterways in early March, after a self-declared ceasefire. They also launched attacks against Israel, drawing retaliatory strikes by the Israeli Air Force, and on US naval vessels in the Red Sea. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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