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Houthis threaten new Red Sea task force

  • Spanish Market: Crude oil, Oil products
  • 19/12/23

Yemen's Houthi rebels have warned the US and all other member countries of a newly formed maritime security force in the Red Sea that they will become legitimate targets if they interfere in its ongoing operations against Israel-linked vessels in the key waterway.

"Whoever seeks to expand the conflict must bear the consequences of their actions," Mohammed Abdulsalam, a spokesman for the group, said on social media platform X, formerly Twitter.

US defence secretary Lloyd Austin announced the formation of the Operation Prosperity Guardian task force on 18 December, saying that the recent escalation in Houthi attacks on shipping in the Red Sea "demands collective action".

The task force brings together countries including the UK, Bahrain, Canada, France, Italy, the Netherlands, the Seychelles, Norway and Spain to address security challenges in the southern Red Sea and Gulf of Aden, Austin said. It will be managed by Task Force 153, which is one of five task forces under the existing Combined Maritime Forces, a 39-nation naval partnership, and focuses on security in the Red Sea.

"The American-led coalition has been formed to protect Israel and militarize the sea without any justification," Abdulsalam said, vowing that it would not stop the Houthis from "continuing their legitimate operations in support of Gaza".

The Red Sea is one of the world's busiest shipping channels because of its position at the southern entrance of the Suez Canal. Exporting crude and products through the waterway is now fraught with security risks thanks to the Houthis, who have vowed retribution against Israel for its treatment of Gaza's Palestinian population by launching attacks on vessels they claim have links with Israel.

The Houthis began targeting Israeli-linked vessels in the Red Sea last month. The UK Marine Trade Operations (UKMTO) issued four alerts on 18 December about attacks south of Yemen's port of Mokha in the vicinity of the Bab el-Mandeb strait, which links the Red Sea to the Gulf of Aden.

The US Central Command (CentCom) said today that there had been two Houthi militant attacks against commercial shipping on 18 December in the southern Red Sea ꟷ on the Swan Atlantic and the Clara. Earlier today, the UKMTO issued a new alert warning of a "suspicious approach" by four small boats to an unnamed vessel.

The latest spate of attacks has led BP to suspend tanker traffic through the Red Sea. Danish shipping giant Moller-Maersk and Germany-based containership operator Hapag-Lloyd said last week that they would suspend all vessel passages through the Red Sea, the former until further notice, and the latter until 18 December.

Conspicuous absence

Following the announcement of the new task force, the US defence secretary told a virtual meeting of senior representatives from 43 countries that the Houthi attacks on shipping "had already impacted the global economy, and would continue to threaten commercial shipping if the international community did not come together address the issue collectively".

The Houthis have conducted over 100 drone and ballistic missile attacks in recent weeks, targeting 10 merchant vessels linked to more than 35 different countries, making the formation of international coalitions critical to maintaining the security of shipping in the region, according to Austin.

But while the US was able to draft nine other countries into the new task force, it did not manage to secure participation of either of its two main Mideast Gulf allies ꟷ Saudi Arabia or the UAE ꟷ which have both been the target of Houthi attacks in recent years.

Senior Houthi official Mohammed al-Bukhaiti warned in an interview with the France 24 TV channel earlier this month that if Saudi Arabia or the UAE are "part of any coalition for aggression against Yemen… we will target every oil or gas field in Saudi Arabia and the UAE and we will target all the ships transporting oil".


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30/01/25

Trump to impose 25pc tariffs on Canada, Mexico

Trump to impose 25pc tariffs on Canada, Mexico

Washington, 30 January (Argus) — President Donald Trump said today he will proceed with plans to impose tariffs on imports from Canada and Mexico on 1 February and explicitly referenced their potential application to crude imports. "I'll be putting the tariff of 25pc on Canada, and separately, 25pc on Mexico," Trump told reporters at the White House. "We will really have to do that, because we have very big deficits with those countries. Those tariffs may or may not rise with time." Pressed to explain if his tariffs may exempt crude imports, Trump said he was not inclined to exclude them but has yet to make a decision. "We may or may not" exclude oil, Trump said. "It depends on what the price is, if the oil is properly priced, if they treat us properly." Trump added: "We're going to make that determination, probably tonight, on oil." The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico to the US. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from tariffs. US refiner Valero said today that a 25pc tariff on Canadian imports would force it to find alternative sources of crude, potentially resulting in a 10pc cut to throughputs. Valero's refining footprint in the US Gulf coast allows it to source feedstocks from around the world, but there is a point where a limit on heavy feedstocks like those from Canada could affect production of refined products, said chief operating officer Gary Simmons. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Trump frequently makes the case that foreign suppliers are solely responsible for paying tariffs. In reality, US importers pay the tariffs, and such costs are typically passed on to consumers. In the case of Canadian and Mexican crude, the US refiners that buy from those countries would pay a tax on the value of crude imports. Whether the price of Canadian crude falls by a sufficient amount to offset the 25pc tariff would depend on the market power of individual US refiners and Canadian producers, as well as actions by the Alberta government, according to a recent report by the Congressional Research Service. US refineries with access to alternative suppliers could source crude from non-Canadian producers, potentially keeping their additional costs below 25pc. Conversely, import reductions could pressure prices for Western Canadian Select (WCS) crude. In turn, Alberta could reimpose a production curtailment policy in a bid to narrow WCS discounts, the report said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tariffs could cut refinery throughput by 10pc: Valero


30/01/25
30/01/25

Tariffs could cut refinery throughput by 10pc: Valero

Houston, 30 January (Argus) — US refiner Valero is in a strong position to find alternative sources of crude if the US imposes a 25pc tariff on Canadian imports, but the switch could still cut throughputs by 10pc, the company said today. Valero's refining footprint in the US Gulf coast allows it to source feedstocks from around the world, but there is a point where a limit on heavy feedstocks like those from Canada could affect production of refined products, said chief operating officer Gary Simmons during a fourth quarter earnings call. "You might see a 10pc change in throughputs" depending on how long the tariffs go and how fast they are implemented, he said. Valero operates 1.6mn b/d of refining capacity in the US. President Donald Trump has threatened to impose 25pc tariffs on all imports from Canada and Mexico as soon as 1 February. But commerce secretary nominee Howard Lutnick said earlier this week that the tariffs may not be imposed if the countries cooperate on border security. Trump frequently makes the case that foreign suppliers are solely responsible for paying tariffs, while it is actually US importers that pay the tariffs. In the case of Canadian and Mexican crude, the US refiners that buy from those countries would pay a tax on the value of crude imports. Whether the price of Canadian crude falls by a sufficient amount to offset the 25pc tariff would depend on the market power of individual US refiners and Canadian producers, as well as actions by the Alberta government, according to a recent report by the Congressional Research Service. Valero does not have any details on how the tariffs would be applied and will just "have to deal with it when it comes up," Simmons said. The company reported record high throughputs of heavy sour crude in the fourth quarter of 2024. Heavy sour crude runs averaged 608,000 b/d, compared with 485,00 b/d in the same period in 2023. The increase showed the refining system's flexibility and the company's ability to secure and process the most economic crude oils, Valero said. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Marine biodiesel sales drop in Rotterdam port 4Q 2024


30/01/25
30/01/25

Marine biodiesel sales drop in Rotterdam port 4Q 2024

London, 30 January (Argus) — Marine biodiesel demand fell in the final quarter of last year in the port of Rotterdam, while LNG sales picked up ahead of the introduction of FuelEU Maritime regulations at the turn of the new year. Sales of marine biodiesel blends in Rotterdam fell by 13.8pc on the quarter and just under 50pc on the year in October-December. This contrasts with an increase of about 62pc on the quarter for marine biodiesel blend sales in Singapore, pointing to a continued trend of voluntary demand shifting east of Suez. Participants reported this trend throughout last year, with more competitive prices for the blends in Singapore. Argus assessed B24 dob Singapore, a blend comprising very-low sulphur fuel oil (VLSFO) and used cooking oil methyl ester (Ucome), at an average discount of $10.58/t against B30 Advanced Fatty acid methyl ester (Fame) 0 dob ARA in the final quarter of 2024. B24 dob Singapore was marked at an average discount of $119.34/t against B30 Ucome dob ARA. Consequently, shipowners seeking to deliver proof of sustainability documentation to their customers, to offset the latter's scope 3 emissions, shifted their marine biodiesel demand to Singapore when feasible. FuelEU Maritime regulations, which came into effect in January and require a reduction in greenhouse gas (GHG) emissions from vessels every year, will probably incentivise regulatory-driven demand for marine biodiesel blends. But the regional price dynamics between ARA and Singapore will probably remain relevant to regulatory-driven demand as well, as energy consumed from blends bunkered in Singapore can be mass balanced to be fully accounted for under the scope of FuelEU Maritime. The pooling mechanism within FuelEU Maritime would also allow for vessels operating on the east-west route to potentially utilise compliance generated from marine biodiesel blends bunkered in Singapore across other vessels that operate solely in Europe. LNG sales picked up by 19.5pc on the quarter and soared by 76.6pc on the year ahead of the introduction of FuelEU Maritime regulations at the start of 2025. Fossil LNG, depending on the type of engine used on board, can help shipowners with LNG-capable vessels meet their FuelEU compliance targets for 2025. The Gate LNG import terminal is planning to start operations at a second jetty for LNG bunker vessels in 2028, pointing to expectations of greater demand. Bio-LNG sales were reported for the first time in 2024 since small volumes in 2021, ahead of FuelEU Maritime regulations. Conventional bunker fuel sales comprising VLSFO, ultra-low sulphur fuel oil (ULSFO), marine gasoil (MGO), marine diesel oil (MDO), and high-sulphur fuel oil (HSFO) dipped by 4.7pc on the quarter but rose by 17.7pc on the year in October-December. VLSFO sales alone were marked higher than HSFO's for the first time at the port since the last three months of 2023. Total VLSFO volumes traded in the fourth quarter came to nearly 811,000t, down by 3pc from the previous quarter, while HSFO sales totalled 780,500t, down by 14pc. Market participants attribute this retail drop-off to considerable local HSFO supply-side constraints at the end of 2024. Thin volumes produced by CDUs at refineries in the Amsterdam-Rotterdam-Antwerp (ARA) hub meant imported volumes were needed to cover shortfalls. Refineries cut throughput runs, reducing residual byproduct output. Biomethanol sales dropped by over half on the quarter, under pressure from thin trading activity, but were 86pc higher on the year in the final quarter of 2024. Shipping giant Maersk has signed several letters of intent for the procurement of biomethanol and e-methanol from producers such as Equinor , Proman and OCI Global . But the European Commission's proposal to exclude automatic certification of biomethane and biomethane-based fuels for the Union Database for Biofuels if relying on gas that has been transported through grids outside the EU, could slow some negotiations for 2025 imports of biomethanol of US origin into the EU. By Hussein Al-Khalisy, Bob Wigin and Evelina Lungu Rotterdam bunker sales t Fuel 4Q24 3Q24 4Q23 q-o-q% y-o-y% VLSFO & ULSFO 1,004,398 1,045,774 847,862 -4 18.5 HSFO 780,437 906,737 643,218 -13.9 21.3 MGO/MDO 395,903 334,752 361,585 18.3 9.5 Conventional total 2,180,738 2,287,263 1,852,665 -4.7 17.7 Biofuel blends 118,201 137,175 233,108 -13.8 -49.3 LNG (m³) 263,068 220,120 148,933 19.5 76.6 bio-LNG (m³) 575 0 0 na na biomethanol 930 2,066 500 -55 86 Port of Rotterdam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK sets out '1.5°C-aligned' climate plan to 2035


30/01/25
30/01/25

UK sets out '1.5°C-aligned' climate plan to 2035

London, 30 January (Argus) — The UK has released its third national climate plan, reiterating its commitment to Paris climate agreement goals, and to its 2035 target of an 81pc cut in greenhouse gas (GHG) emissions, from 1990 levels. UK prime minister Keir Starmer announced the 2035 target at the UN Cop 29 climate summit in November last year. Countries and jurisdictions that are signatories to the Paris climate agreement commit to submitting new national climate plans — known as nationally determined contributions (NDCs) — every five years, to UN climate body the UNFCCC. The agreement includes a ratchet mechanism, whereby climate targets should become more ambitious over time. Today's NDC — the UK's third — covers 2031-35. The document consolidates plans already in place, and flags upcoming strategies. The government plans for "clean sources" of power to make up 95pc of the country's generation by 2030, cutting carbon intensity of electricity generation to "well below" 50g CO2 equivalent (CO2e) per kWh in 2030. Carbon intensity was 171g CO2e/kWh in 2023. And the plan notes that the UK was the first G7 country to shut down all coal-fired power , closing its last plant in September 2024. The government has pledged "an initial" $3.4bn ($4.24bn) towards decarbonising heat and improving household energy efficiency over the next three years, and will introduce the delayed clean heat market mechanism in April. The scheme will require boiler manufacturers to ensure a proportion of their sales are "low carbon options". The plan sets out the government's manifesto pledge to phase out sales of new cars "relying solely on internal combustion engines" by 2030, and notes that it will consult on issuing no new oil and gas licences to explore new fields. The government also promises "an updated cross-economy plan to meet our climate targets in due course", as well as a new industrial decarbonisation strategy by 2026. The NDC is in line with advice from the UK's independent advisory Climate Change Committee , and with the country's legally binding sixth carbon budget. The latter includes international aviation and shipping emissions, although NDCs do not require this. The UK's third NDC is "a credible contribution towards limiting warming to 1.5 °C and it sits within a range of Paris-consistent equity metrics", the government said. The Paris accord seeks to limit the rise in global temperature to "well below" 2°C above pre-industrial levels, and preferably to 1.5°C. The country's Labour government, which took power in July last year, has repeatedly underlined its commitment to the UK's legally binding target of net zero GHG emissions by 2050. The plan took some direction from the outcome of Cop 28 , in December 2023. Countries agreed at Cop 28 to transition away from fossil fuels and to treble renewable energy capacity to 11,000GW by 2030. The NDC also underlined the UK's commitment to spending £11.6bn in international climate finance over April 2021-March 2026, and will outline future climate finance plans in its spring 2026 spending review. UK international climate finance over April 2011-March 2024 reduced or avoided 105mn t of GHG emissions, the government said. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Syria issues crude, products tenders: Correction


30/01/25
30/01/25

Syria issues crude, products tenders: Correction

Corrects quality of gasoil sought in paragraph 4, from 10ppm to 50ppm. This story was originally published on 22 January Dubai, 30 January (Argus) — The new administration in Syria has issued its first tenders to buy crude and refined products since the fall of Bashar al-Assad's regime in December, as acute fuel shortages continue to cause lengthy blackouts in the country. Tenders seeking 3mn bl of light crude for the 140,000 Banias refinery and 1.2mn bl of heavy crude for the 110,100 b/d Homs refinery close for bidding on 27 January. They have a 10pc flexibility either way on the volumes. The Banias refinery is undergoing maintenance at several of its production units after being taken offline last month because of a lack of crude feedstock. Syria's new administration has also issued its first import tender for refined products — 80,000t of 90 Ron gasoline, 100,000t of 50ppm sulphur gasoil and 100,000t of fuel oil — commencing as soon as possible for delivery over a 30-day period. Offers must be delivered by hand to the oil ministry in Damascus by 14:30 local time on 27 January. A tender seeking 66,000t of LPG has been issued as well. A previous tender for 20,000t of LPG was awarded at mid-teen $/t premiums to fob Lavera west Mediterranean prices. Before Assad was toppled, Syria relied heavily on Iran for its oil supplies, as international sanctions imposed in the wake of the 2011 civil war left the country critically short of feedstock for its refineries. Iran's crude exports to Syria averaged around 55,000 b/d in January-November 2024 and around 80,000 b/d in 2023, according to trade analytics firm Kpler. Iran was also sending around 10,000-20,000 b/d of oil products to Syria in recent years, according to consultancy FGE. But Tehran has halted crude deliveries to Syria since the Islamist group Hayat Tahrir al-Sham took control last month , leaving the new transitional government under pressure to find alternative suppliers. Government-to-government deals are a potential option. "Recent political developments have indicated that Qatar, Saudi Arabia and Turkey could play a role in solving Syria's crude and refined products shortage," FGE analyst Palash Jain said. Saudi Arabia is willing to help for a limited period, but discussions remain in a preliminary phase and are light on details, a source with knowledge of the matter told Argus . Riyadh is waiting to hear more from the Syrians on their energy needs and requirements, the source added. The latest tenders come just two weeks after the US waived sanctions that had previously prohibited energy trade with Syria. The waiver, issued on 6 January, is valid until 7 July. By Rithika Krishna and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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