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Mideast contagion risk increases

  • Spanish Market: Condensate, Crude oil, Natural gas, Oil products
  • 29/07/24

The risk of Israel's war with the Palestinian militant group Hamas in Gaza spreading into the wider Middle East region appeared to step up a notch at the weekend with Jerusalem saying it is preparing for fighting on its northern border with Lebanon.

The move, announced by the Israeli Defence Force (IDF), came after Israel pinned a 27 July rocket attack that killed 12 people in the Golan Heights on Lebanon-based Hezbollah — like Hamas, an Iran-backed group. The IDF said it is "greatly increasing its readiness for the next stage of fighting in the north." The White House also blamed Hezbollah for the strike, saying its was "their rocket, and launched from an area they control."

Israel and Hezbollah have exchanged fire almost daily since 8 October last year, a day after Hamas first attacked Israel. Those skirmishes had mostly targeted military sites, but the weekend strike was by far the deadliest on civilians inside Israeli territory.

The prospect of violence spreading in the Middle East has been a concern, not least in Washington, since the war began between Hamas and Israel. On 13 April, Iran attacked Israel directly for the first time and Israel retaliated five days later. The Yemen-based Houthi militant group launched a campaign of targeting commercial vessels in the Red Sea in what it said was a direct response to Israel's actions in Gaza, and recently directly hit central Tel Aviv with a drone.

International crude markets did not react to the weekend's events. Ice Brent front-month crude was mostly unchanged today.

Separately, Turkish President Erdogan Recep Tayyip Erdogan on 28 July increased his rhetoric against Israel, hinting at intervention in the Gaza conflict. This may put in doubt Ankara's involvement in any multinational post-war force in Gaza, a "day after" scenario the UAE and the US are attempting to work on.

"We must be very strong so that Israel can't do these things to Palestine," Erdogan said in a televised speech in his hometown of Rize, where he enjoys overwhelming support.

"Just as we entered Karabakh, just as we entered Libya, we might do the same to them," he said. "There is nothing we cannot do. Only we must be strong."

Erdogan has adopted a more aggressive stance towards Israel since his AKP party's poor showing at municipal elections in March, with the Palestinian struggle for statehood being a key cause for his conservative Muslim support base.

His comments were non-specific as to the nature of any potential Turkish involvement in Palestinian territories. In Libya and Nagorno-Karabakh, Ankara provided military hardware — especially unmanned aerial vehicles (UAVs) — and advisors that helped shape outcomes of both conflicts.

Israel's foreign minister Israel Katz said Erdogan was following "in the footsteps of Saddam Hussein" with threats to attack Israel. "Just let him remember what happened there and how it ended," he said on X.

US secretary of state Anthony Blinken on 28 July reiterated Washington's desire to prevent the conflict from escalating.

"We don't want to see it spread," he said in Japan. "The best way to do that in a sustained way is to get the ceasefire in Gaza."


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29/07/24

Venezuela claims Maduro wins disputed election

Venezuela claims Maduro wins disputed election

Caracas, 29 July (Argus) — Venezuela's election authority declared that Nicolas Maduro won a third six-year presidential term starting in 2025 but opposition leadership denounced widespread fraud. Maduro won with 51.2pc of the vote which was tallied "after resolving an attack against the results transmission system," said Elvis Amoroso, president of Venezuela's administration-aligned national electoral council (CNE). CNE data indicated 44.2pc of the vote for his main rival Edmundo Gonzalez, who ran in the place of main opposition coalition leader Maria Corina Machado after Maduro's government blocked her from running. The council said 80pc of the votes were counted, indicating an "irreversible" trend that would allow another six years in office for the government party that has ruled the country since 1999. The first data shown by CNE on live television late Sunday indicated voting shares that totaled 132pc, with eight opposition candidates other than Gonzalez each getting an identical 4.6pc of the vote. CNE's final results contrasts with independent opinion polls and data from opposition observers that forecast a victory for Gonzalez. Machado said her team's review of voting data indicated a win for Gonzalez with 70pc of the vote compared with 30pc for Maduro, in line with results from independent opinion polls. The US, which has implemented broad oil and mining sanctions on Venezuela on accusations of unfair elections and other issues, questioned the result. "We have serious concerns that the result announced does not reflect the will or the votes of the Venezuelan people," US secretary of state Antony Blinken said. "The international community is watching this very closely and will respond accordingly." Machado's team denounced that it was denied access to the council's center to scrutinise data. Opposition leader Delsa Solorzano also said that witnesses had been kicked out of polling stations and denied required copies of vote tallies . Violence hit polling stations and at least two people were killed overnight after a relatively calm election day. "All the international community, all, even those who once were [government] allies, they know what happened in Venezuela and how the people voted for a change," Machado said. Brazilian president Luiz Inacio Lula da Silva said his government would not recognise the outcome until the government investigates opposition claims. Leftist Chilean president Gabriel Boric said the CNE's results were "difficult to believe." In a joint statement , the governments of Argentina, Costa Rica, Ecuador, Guatemala, Panama, Paraguay, Peru, the Dominican Republic and Uruguay also called on the government to respect its citizens' decision. Maduro would continue the legacy of late former president Hugo Chavez, who died in office in 2013 after ushering in massive changes that have contributed to reducing the country's oil output to about 900,000 b/d to more than 3mn b/d at its peak. By Isabella Reimi and Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Product demand surges in Germany after prices dip


29/07/24
29/07/24

Product demand surges in Germany after prices dip

Hamburg, 29 July (Argus) — Demand for heating oil and road fuels rose on the week in Germany after falling Ice gasoil futures caused domestic distillate prices to dip. The increase in demand, particularly on 22 July, was partly caused by the global IT problems on 19 July after a faulty update by cybersecurity company Crowdstrike. Loadings at Shell's 334,000 b/d Rhineland refinery and the Bayernoil consortium's 215,000 b/d Vohburg-Neustadt refinery were interrupted by the IT problem and some traders had to postpone trades until 22 July. Overall demand remains short of traders' expectations, however, which is reflected in the comparatively low storage levels in private heating oil tanks and industrial diesel tanks. Both are more than one percentage point below levels at this time last year, according to data from Argus MDX. The lower storage levels despite retreating prices have been partly attributed to the current holiday season, traders said. Domestic refining output continues to cover buying interest sufficiently, so Germany's diesel imports also remain low. Rising import margins and receding oversupply could make imports more profitable soon. Prices in western and southern Germany remain higher. Technical problems at the Rhineland and the Vohburg-Neustadt refineries had caused prices to surge earlier in July. The refineries' operators have since been able to fix the technical problems, which could soon lead to prices falling again. Gasoline is already being traded below the national average again in the south. By Natalie Mueller Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Queensland to fund SAF project, studies


29/07/24
29/07/24

Australia’s Queensland to fund SAF project, studies

Sydney, 29 July (Argus) — Australia's Queensland state government has earmarked around A$1.5mn ($980,000) to support two new sustainable aviation fuel (SAF) proposals, while backing a multi-seed crushing and processing facility with separate funding. The government's Industry Partnership Program will contribute to Australian grains processing firm Energreen's multi-seed crushing and processing facility near the central Queensland cotton-growing town of Emerald, although a government spokeswoman declined to quantify the state's financial support for the project describing it as "commercial in confidence." The A$22mn plant plans to have capacity for 70,000 t/yr, with Energreen considering pongamia oil production in the longer term as a potential SAF feedstock. Queensland will also grant both private-sector domestic firm Wagner Sustainable Fuels and Australian-owned energy company Liquid Power A$760,000 each for feasibility studies to develop the case for investment in their own SAF proposals. Wagner announced in April a partnership with aircraft manufacturer Boeing Australia to develop a SAF blending facility at its Wellcamp Airport near the inland city of Toowoomba, west of state capital Brisbane. Liquid Power is aiming to develop sustainable fuels projects for hard to transition sectors totalling 250 megalitres, according to the firm. Australia's largest airline Qantas has a target of using 10pc SAF by 2030, or around 10,000 b/d, and is investing in a $200mn fund to accelerate global production . Australian bioenergy developer Jet Zero is emerging as the likeliest initial SAF project in Australia with its planned 102mn litres/yr SAF plant in north Queensland where significant feedstock supplies are located. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Tension builds after Venezuela vote


29/07/24
29/07/24

Tension builds after Venezuela vote

Caracas, 29 July (Argus) — Violence after polls closed in Venezuela's election late Sunday evening pointed to more uncertainty as President Nicolas Maduro seeks a third term in a race marred by harassment of the opposition and amid reimposition of US oil sanctions. One man was shot and killed at a voting center and the main coalition of parties running against Maduro denounced severe irregularities during tallies after the vote. The electoral authority (CNE) ordered some polling stations to stop transmitting vote counts to CNE headquarters in Caracas, opposition leader Delsa Solorzano said. Solorzano also said opposition witnesses had been kicked out of polling stations and denied required copies of vote tallies. "The transmission of results, of the tallies, has been paralyzed", Solorzano, the top opposition representative before CNE, said on social media. Maduro has not spoken publicly since midday in Venezuela and he has not claimed victory. Opposition candidate Edmundo Gonzalez, running in the place of blocked candidate Maria Corina Machado, said that he would defend the results. Exit polls indicated that 65.8pc of voters supported Gonzalez, with 13.5pc voting for Maduro, out of 52pc of eligible voters participating, pollster Meganalisis said. "The results are impossible to hide, the country has chosen peaceful change," Gonzalez said. The election began auspiciously, with long lines since Saturday night, uneventful voting and heavy turnouts. But nighttime brought some violence once rumors of Maduro losing the election began circulating. In addition to the one person shot at a voting center, pro-Maduro motorcycle gangs threatened polling stations and opposition members and witnesses, and some ballots have been burned, opposition representatives said. The US administration has said it would be prepared to provide guarantees for Venezuela's government leaders if Maduro loses the election and lets the winner take power. The opposition also said this week that it would move to open the energy sector to outside investment if it takes power, and the sector faces massive repairs after decades of underinvestment in its infrastructure. Maduro in the last days of the campaign touted energy plans such as signing an agreement to explore for and produce natural gas in the offshore Cocuina-Manakin fields that straddles Venezuela's maritime border with Trinidad and Tobago. Gasoline and electricity shortages continued to plague the country with some of the world's largest oil reserves throughout the campaign. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Mereenie JV signs gas supply deal with NT


29/07/24
29/07/24

Australia’s Mereenie JV signs gas supply deal with NT

Sydney, 29 July (Argus) — The joint venture (JV) partners at Mereenie, the Northern Territory's (NT's) largest onshore operating gas field, have entered a six-year deal to supply the NT government from 1 January 2025. The 40.5PJ (1.08bn m³) take-or-pay gas sales agreement (GSA) mitigates the risk incurred by closures to the 90 TJ/d (2.4mn m³/d) Northern gas pipeline (NGP). It does this by contracting all firm production capacity and expanding by up to 16 TJ/d on any day in 2025 when the NGP is unable to deliver to the east coast network, operator Australian independent Central Petroleum said on 29 July. The GSA underwrites the JV's potential investment in two new production wells at Mereenie, said Central, which holds a 25pc stake, by increasing firm sales to the NT by up to 6 TJ/d. The NT is dependent on gas-fired power supply but supply problems at Italian oil firm Eni's offshore Blacktip field led it to signing a GSA with Mereenie for 2024 supply earlier this year. The issues at Blacktip resulted in the NGP ceasing flows in early February, cutting Mereenie off from its customers. The NT this week also signed a GSA with Australian independent Empire Energy for supply from the proposed 25 TJ/d Carpentaria project in the onshore Beetaloo subbasin. A unit of Australia's Macquarie Bank owns 50pc of Mereenie, located in the Amadeus basin, with upstream firm New Zealand Oil and Gas holding 17.5pc and the remaining 7.5pc is owned by Australian independent Cue Energy. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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