Spain crude imports off lows in June, US volumes surge

Spanish Market: Crude oil, Oil products
10/08/23

Spain crude imports edged higher on the month in June as integrated energy firm Repsol prepared to bring units back online after maintenance and outages. Crude shipments from the US surged to 11-month highs.

Imports remained subdued on maintenance including unplanned work at the larger of the two crude distillation units (CDUs) at Repsol's 120,000 b/d Coruna refinery. The facility did not come back online until July, while planned maintenance on conversion units including a hydrocracker at the firm's 220,000 Cartagena refinery lasted until the 19 June.

Abu-Dhabi controlled Cepsa also carried out eight days of planned maintenance on the hydrocracker at its 220,000 b/d Huelva refinery mid-month, according to traders. This could also have contributed to the dip in crude receipts at the refinery in June.

Imports rose by 52,000 b/d, or 5pc, to 1.18mn b/d on the month in June, partly recovering from falls of 17pc in May from April. But they were 12pc lower than a year earlier, according to state-owned petroleum reserves agency Cores.

Receipts were also 14pc below pre-Covid 19 levels for the same month of 2019, compared with 17pc below them in May and were around 310,000 b/d below Spanish nameplate crude distillation capacity.

The US replaced Nigeria as Spain's top crude supplier in June, with receipts from the country climbing by 28pc to 205,000 b/d, their second highest level since exports from the country resumed in 2016. WTI blend featured on at least half of Spanish refineries slates, according to Argus Tracking.

Shipments from Nigeria dropped by 16pc from May to 161,000 b/d, while among other competing light sweet crude suppliers, imports of Algerian Saharan Blend fell by a third to 21,000 b/d, and shipments from Norway fell to zero, while the UK sent 15,000 b/d.

Mexico dominated sour crude imports, with 152,000 b/d, up by 9pc from May. They consisted largely of heavy Maya, with some smaller volumes of medium sour Isthmus blend delivered at Cepsa's Huelva terminal.

Shipments from Venezuela returned after a month's hiatus, with some 37,000 b/d delivered to Repsol's refineries as part of the firm's crude-for-debt deal with Petroleos de Venezuela. They continued in July with a further 33,000 b/d deliveries, according to the company's chief executive Josu Jon Imaz.

Among other sour crude suppliers, Canada sent 65,000 b/d, up by 4,000 b/d on the month, and likely a mixture of heavy sour WCS used at Repsol's refineries and light sour Hibernian blend used at BP's 110,000 b/d Castellon refinery.

Imports from Brazil climbed by 85pc to 115,000 b/d in June. They were mostly medium sweet subsalt grades, but included some volumes of heavy sour Peregrino blend delivered to Repsol's Cartagena refinery. BP is another regular consumer of Peregrino in Spain.

Spain's crude imports likely recovered sharply in July after the conclusion of refinery turnarounds, but a fire at Repsol's Bilbao refinery at the end of last month closed the larger of the two CDUs at the unit and could impact imports in August.

By Jonathan Gleave

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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.

US government agencies set to shut down

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

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

Shell and Prax call off deal on German refinery stake

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Trump backs new deal to avoid shutdown: Update

19/12/24

Trump backs new deal to avoid shutdown: Update

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