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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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19/02/25

Low water likely to persist at St Louis into March

Low water likely to persist at St Louis into March

Houston, 19 February (Argus) — Low water conditions are expected to persist at St Louis through March, causing barge loading issues for both carriers and shippers. Minimal precipitation coupled with increased ice formation along the harbor decreased water levels to -3.3ft on 19 February at St Louis, according to the National Weather Service (NWS). Some terminals at the harbor have been unable to load and unload barges because of the low water. Carriers expect this to become a larger issue when barges carrying northbound products reach St Louis in March. Although low water has been an issue at the harbor since early January, more barge carriers and shippers began to prepare for slipping water levels when grain barge movement picked up later that month. Some barge carriers have reduced the amount of product placed in barges in order to keep drafts from dipping below 9.6ft this week. Low water levels are anticipated to remain through 4 March, which may hinder barge loadings and increase delays at St Louis. St Louis has received less than an inch of rainfall over the past seven days, according to the NWS. There has been even less precipitation upriver in the Northern Plains over the past week. Larger ice formations have appeared in the harbor on account of freezing conditions. The city of St Louis is under winter weather advisory, and is forecast to receive 1-3in of snow between 18-19 February, according to NWS. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump asserts power over independent agencies


19/02/25
19/02/25

Trump asserts power over independent agencies

Washington, 19 February (Argus) — President Donald Trump has signed an executive order that claims to give him sweeping control over the budgets, policies and regulations of independent US agencies that oversee the energy sector, financial markets, trade and transportation. The order seeks to give the White House unprecedented control over the US Federal Energy Regulatory Commission (FERC), the US Commodity Futures Trading Commission (CFTC), the US Securities and Exchange Commission (SEC) and more than a dozen other independent agencies. Trump's order asserts that "so-called independent agencies" lack sufficient accountability and should be brought under his direct control. "For the federal government to be truly accountable to the American people, officials who wield vast executive power must be supervised and controlled by the people's elected president," according to the executive order, which was signed on Tuesday. FERC, the CFTC and the SEC did not respond to a request for comment. Trump's order would all but end years of attempts by the US Congress to shield agencies that oversee energy markets, trading, finance, maritime trade, railroads, and other businesses from excessive political influence. Congress made those agencies independent — often with a bipartisan board serving years-long terms — to ensure a degree of independence when agencies resolve business disputes, set market rules and issue new regulations. In Trump's first term, FERC's commissioners and Republican chairman rejected the administration's plan to push through market rules to bail out coal and nuclear power plants, based partly on the concerns that doing so would destabilize power markets and cost consumers billions of dollars. It remains unclear if the agency in the future could assert that degree of independence under the order. Trump's order would give the White House the ability to control independent agency budgets and require the appointment of a White House "liaison" in each agency. The order would require agency chairs to align their policies with the White House, subject all significant regulations to review by the administration, and would establish "performance standards" for agency leaders. The order provides an exception for the US Federal Reserve for monetary policy, but the agency's budget and its regulatory actions would come under White House control. Other agencies also covered by the executive order include the US Surface Transportation Board, the US Federal Trade Commission, the US Chemical Safety Board, the US Export-Import Bank, the US Federal Maritime Commission and the US National Transportation Safety Board. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Investor group urges BP to allow new climate vote


19/02/25
19/02/25

Investor group urges BP to allow new climate vote

London, 19 February (Argus) — A group of 46 BP institutional investors has voiced concerns that the company may ditch a target to reduce its oil and gas production to 2mn b/d of oil equivalent (boe/d) by the end of the decade, urging a new shareholder vote be allowed on its net-zero strategy. The letter's signatories include several UK and European pension fund managers and other investors, including Aegon, Investec and Robeco. It comes ahead of BP's capital markets day on 26 February, when the company has said it will "fundamentally reset" its strategy. The group calls on BP to give another opportunity to vote on its net-zero plans at its 2025 annual general meeting, pointing out that shareholders in 2022 endorsed a BP plan to cut hydrocarbon production by 40pc, to 1.5mn boe/d, by 2030. That achieved 88.5pc support from shareholders, but the group of investors behind the letter note that nine months later BP revised upwards its target for 2030 to 2mn boe/d. BP's output averaged 2.36mn boe/d in 2024. The investors are now concerned that increased spending by BP on oil and gas output, due to subsequent strategy tweaks, will raise "potential exposure to stranded assets as the energy transition progresses." The letter notes there is opportunity for BP to explain how emissions budgets in Paris Agreement-aligned scenarios are considered in the sanctioning of new projects. "Showing where projects will sit on the global merit curve of producing assets would also allow investors to assess the relative competitiveness and resilience of BP's portfolio and capital expenditure," it states. In a statement to Argus a signatory to the letter, Royal London Asset Management, said it recognised BP's past efforts toward the energy transition but it is "concerned about the company's continued investment in fossil fuel expansion. "If BP has decided to scrap its production target, we seek clarity on how capital allocation will shift to ensure resilience through the energy transition," it said. "Will BP scale up investments in renewable energy, carbon capture, and emerging technologies to future-proof the business against regulatory, market, and climate risks?" Royal London urged BP "to strengthen governance and transparency around transition planning, ensuring that future capex decisions align with a net-zero pathway rather than locking in further emissions growth." It added: "Robust oversight and clear long-term strategies are essential to delivering value while managing the risks of an accelerating energy transition." A BP spokesman said the company had received the letter and "will respond in due course." Environmental pressure group Greenpeace said BP can expect this kind of pushback and challenge from its shareholders "at every turn if it doubles down on fossil fuels". "Government policies will also need to prioritise renewable power, and as extreme weather puts pressure on insurance models policymakers will be looking to fossil fuel profits as a way to fund extreme weather recovery," Greenpeace said. "BP might want to seriously put the brakes on this U-turn." Earlier this month BP's shares jumped on media reports that activist hedge fund Elliott Investment Management was building a stake in the UK major. Investment bank analysts that follow BP expect Elliott to attempt to bring about a boardroom shake-up as it has at other resources companies, including at Canadian oil sands business Suncor Energy in 2022. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France still net gasoline importer despite export rise


19/02/25
19/02/25

France still net gasoline importer despite export rise

Barcelona, 19 February (Argus) — French gasoline exports increased last year, driven by a rise in shipments to other parts of Europe and west Africa. Domestic gasoline output also went up, in line with a lighter crude slate, but the country remained a net importer. According to latest customs data, exports — including unfinished, 95 Ron and 98 Ron grades — rose to just over 1.9mn t last year (45,000 b/d), up by 29pc compared with 2023. Exports of 98 Ron were 160,000t, the highest in the last 13 years, supported by shipments to other EU countries. Unfinished gasoline exports were 1.65mn t, with an increase in volumes headed to west Africa, although this was lower than unfinished exports in 2021 and 2022. France shifted to being a net importer of gasoline in 2021, hampered by curtailed refinery availability during the Covid-19 pandemic, and it has remained so ever since. The country imported 2.7mn t of gasoline last year — most of it short-haul shipments arriving from Belgium, the Netherlands and Germany. This left net imports at just over 800,000t, compared with 1.05mn t in 2023. Rising domestic demand has supported both imports and domestic refinery output. Demand was around 11.1mn t last year, according to data from domestic fuels association Ufip, 7pc higher than 2023 and the highest in the last 12 years, boosted by consumers buying more gasoline and gasoline-hybrid vehicles and fewer diesel-run cars and vans. Car maker federation the CCFA said last year that diesel cars and light vans took a 7.3pc share of the French market while gasoline and hybrid vehicles took a combined 72pc, the same share that diesel vehicles held back in 2012. Apparent domestic gasoline output — assessed by Argus using demand, import, export and stocks data — was close to 10.5mn t last year, 10pc higher than 2023. This was the highest level of production since 2017, when France had more refining capacity. But in 2017 France exported over 40pc of its output, whereas last year it was under 20pc. The rise in domestic gasoline production was underpinned by a lighter and sweeter crude slate. France is no longer importing any sanctioned Russian Urals and is taking far less Saudi Arab Light. It is replacing these medium sour grades with light sweet US WTI, which was the most popular crude grade among French refineries last year. By Adam Porter French gasoline mn t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK Gulfsands Petroleum eyes return to Syria's upstream


19/02/25
19/02/25

UK Gulfsands Petroleum eyes return to Syria's upstream

Dubai, 19 February (Argus) — London-listed Gulfsands Petroleum plans to return to Syria's upstream as soon as sanctions on the country are lifted and "circumstances allow," the company's managing director John Bell said. "Sanctions discussions are occurring not only in the EU, but also in the UK and US," Bell told Argus . "In summary, we view these developments as generally positive. Gulfsands has always intended to return to its operation in Syria when the circumstances allow." Gulfsands holds a 50pc operating stake in two oil fields in Syria's block 26, in the country's northeast near the border with Iraq, an area long controlled by the Kurdish-led Syrian Democratic Forces (SDF). Chinese state-owned Sinochem holds the remaining 50pc. Force majeure was declared in December 2011 with respect to the contract after the introduction of EU sanctions against Syria. The fields were producing 24,000 b/d at the time. Since then, control of the fields has been unclear at times. By 2017 Gulfsands said production was averaging around 15,000-20,000 b/d, although it added that was without its participation. Bell said the company can only return "if the current relevant energy sanctions in the EU, UK and US as revised and hence international companies are permitted to return to their operations, bringing with them vital investment, people, equipment and know-how." In January, the EU's high representative for foreign affairs Kaja Kallas said the bloc would begin easing sanctions against Syria within weeks , starting with economic and energy restrictions. More recently she said the EU would meet on 24 February to discuss the lifting of sanctions on Syria, and told Argus the prospect of this "is looking promising" albeit internal European politics could slow the process. Road to recovery Once a 600,000 b/d-plus producer, Syria's crude output has been on the decline over the past three decades. Just before the start of the civil war in 2011, production had was below 400,000 b/d, and by May 2012 it had fallen to 200,000 b/d, the Syrian government said. Today it is less than 100,000 b/d, with only around 16,000 b/d or so coming from fields in areas under the former Assad government's control. "At the moment, oil production in Syria is largely opaque, illicit, unsafe, destined for the black market and causing enormous environmental damage… [and] production volumes have decreased recently due to these unsustainable practices," Gulfsands' Bell said. Whether Syria can reverse this downward production trend "will depend on the approach taken by the new Syrian government," he said. If they properly leverage existing centralised government institutions and work with returning international energy companies, Bell said he could see crude output returning to not only pre-2011 levels, but even as high as 500,000 b/d "within several years." By Nader Itayim and Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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