Tropical storm Bill lands on Texas coast: Update

: Crude oil, Oil products
15/06/16

Tropical storm Bill caused minimal shipping disruptions and offshore evacuations as it hit the Texas coast south of Houston today.

Shell evacuated non-essential staff from the western US Gulf of Mexico and pilots expected no traffic in the Houston Ship Channel for two days. But Bill, the first named storm to make landfall on the Gulf coast during the 2015 Atlantic hurricane season, is not expected to bring major energy supply impacts.

The storm made landfall at 12:45pm ET at Matagorda Island, 138 miles (222km) southwest of Houston. The storm had sustained winds of 60 mph (96 kph) and was expected to drop 4-6 inches of rain, the National Weather Service said.

The Houston area braced for potential flooding.

US refiners operate 4.6mn b/d of capacity on the Texas coast and almost 4mn b/d of that in the Houston area.

Pilots operating in the Houston Ship Channel, home to one of the largest US liquefied natural gas export terminals, suspended loadings last night ahead of the storm. A notice to customers reported 15 incoming and 17 outgoing vessels waiting for conditions to clear. Pilots expect the channel to remain closed to 18 June.

Energy traders keep a close eye on storm activity as it can affect production or damage infrastructures in the US Gulf of Mexico. Storm activity has had less influence on oil and natural gas prices in the years since Hurricanes Katrina and Rita wreaked havoc in the Gulf because so much domestic production has moved onshore.

But storms can still take a toll on refineries and gas processing plants through power outages and flooding, leading to price spikes for refined products and NGLs. Storms that make landfall can also cause power losses, cutting into demand for generation fuels.

The Energy Information Administration estimates the lighter 2015 Atlantic hurricane season could shutter 53,000 b/d of crude and 87mn cf/d (2mn m³/d) of natural gas production in the US Gulf of Mexico. The shut-ins would represent about 2.8pc of US Gulf natural gas output and 3.5pc of projected crude input.

Federal forecasters predict this year's season will bring six to 11 named storms, but two or less major storms, according to the US National Oceanic and Atmospheric Administration.

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25/05/13

Trump offers to make a deal with Iran

Washington, 13 May (Argus) — US president Donald Trump today appealed to Iran's leaders to accept his offer of "peaceful engagement" and economic cooperation by giving up its nuclear program. "I want to make a deal with Iran," Trump said. "If I can make a deal with Iran, I'll be very happy. We're going to make your region and the world a safer place." The White House cast Trump's speech at a US-Saudi business forum in Riyadh as "a major foreign policy address outlining an optimistic vision for the future of the Middle East". Trump appears to be limiting his demands on Iran, calling for a halt to its nuclear program in exchange for US sanctions relief — a negotiating posture that he once disparaged. "We want [Iran] to be a wonderful, safe, great country, but they cannot have a nuclear weapon," Trump said today. "This is an offer that will not last forever. "If Iran's leadership rejects this olive branch and continues to attack their neighbors, then we will have no choice but to inflict massive, maximum pressure and drive Iranian oil exports to zero like I did before," Trump said. Trump upon returning to office has ratcheted up enforcement of oil sanctions against Iran, by also targeting independent refiners in China that for years have relied on discounted Iranian crude. In the latest action, the US Treasury Department today announced sanctions against China-based trader Qingdao Fushen and against Hong Kong- and Singapore-based companies allegedly engaged in concealing the origin of Iranian oil sold in China. Trump during his first term set a goal of reducing Iranian oil exports to zero. But Iran since 2019 has developed a sophisticated network of intermediaries and "shadow fleet" vessels, enabling it to continue exporting crude to buyers in China. Recent US sanctions measures have added costs along that supply chain, but China still imported close to 1.5mn b/d of Iranian crude in April. Availability of oil storage in Shandong, China, is the only factor limiting imports this month. Many buyers in China built up Iranian crude stocks earlier this year. In a major change from his first administration, Trump has authorized diplomatic negotiations with Tehran that both countries say have made progress. Trump since returning to the White House has barred his former Iran advisers from serving in his administration. And his top negotiator with Iran, former real estate developer Steve Witkoff, appears to have discarded the previous Trump administration's approach of adding other complex issues to nuclear talks, such as Iran's missile and drone capabilities or its network of regional proxies, although secretary of state Marco Rubio has suggested that all those issues should be addressed. A narrow focus on Tehran's nuclear program and an offer of sanctions relief is quite similar to former president Barack Obama's approach to Tehran, which resulted in a nuclear agreement that Trump once blasted as "the worst deal in history". Whether deliberately or not, Trump's speech today stood out as the antithesis to Obama's 2009 address in Cairo, where the former US president called for a reset of relations between the US and the Middle East. Unlike Obama, who 16 years ago called on the region to fulfil democratic aspirations as the best way to remedy economic failings, Trump in his remarks today praised the region's autocratic leaders for their economic development skills and said that the US under his leadership would be minimally involved in the region's political future. "The gleaming marvels of Riyadh and Abu Dhabi were not created by the so-called nation-builders, neo-cons, or liberal non-profits like those who spent trillions failing to develop Kabul and Baghdad," Trump said. "The so-called 'nation-builders' wrecked far more nations than they built, and the interventionists were intervening in complex societies they did not understand." Iran, too, can build infrastructure projects like its Arab neighbors if it gives up "stealing people's wealth to fund terror and bloodshed abroad", Trump said. "Yet I'm here today not merely to condemn the past chaos of Iran's leaders, but to offer them a new path and a much better path toward a far better and more hopeful future," he said. Trump cited his short-lived campaign of bombing against Yemen's Houthis as an example of the limited US involvement in the Middle East he will try to practice as president. "My preference will always be for peace and partnership, whenever those outcomes can be achieved," he said. Trump on 6 May declared an end to his bombing campaign in Yemen that began on 15 March, leaving key questions unanswered, such as whether his ceasefire with the Houthis will fully reopen Red Sea waterways to international shipping. But in Trump's words, his campaign in Yemen was a complete victory. "We hit them hard, we got what we came for and then we got out," he said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US to lift sanctions on Syria: Update

25/05/13

US to lift sanctions on Syria: Update

Adds that US, Syrian presidents will meet on Wednesday Washington, 13 May (Argus) — US president Donald Trump said today he will lift all US sanctions on Syria, a move that will allow the new government in Damascus to access global oil markets and banking systems and to advance energy projects. "I will be ordering the cessation of sanctions against Syria in order to give them a chance at greatness," Trump said in Riyadh, while addressing a US-Saudi business forum. Trump said he was ordering the sanctions relief at the urging of Saudi Crown Prince Mohammad bin Salman and Turkish president Recep Tayyip Erdogan. US secretary of state Marco Rubio will meet his Syrian counterpart in Turkey later this week, Trump said. Trump will have a brief meeting with Syria's new leader, Ahmed al-Sharaa, in Riyadh on Wednesday, the White House said. Former president Joe Biden's administration in January issued a sanctions waiver through 7 July to enable previously prohibited energy trade with Syria. The EU in February suspended a range of sanctions against Syria, including restrictions related to the energy, banking, transport and reconstruction sectors. A permanent relief of US sanctions would require Trump to remove Syria's previous designation as a "state sponsor of terrorism". Al-Sharaa's group, Hayat Tahrir al-Sham, is separately classified by the US as a "foreign terrorist organization". The US also has imposed a series of sanctions against Syria by statute, rather than executive action, which Trump would have to waive. Before Syrian president Bashar al-Assad's fall from power in December, the country relied heavily on Iran for crude and product supplies. Syria issued its first tenders to buy crude and refined products in January, but it attracted limited interest. The country then received cargoes of Russian crude and diesel in March-April, including some cargoes delivered aboard tankers that are under US sanctions. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nigeria loads first cargo of new Obodo crude

25/05/13

Nigeria loads first cargo of new Obodo crude

London, 13 May (Argus) — The first cargo of Nigeria's new medium sweet crude, Obodo, has loaded and could be headed for Germany, according to sources. The Suezmax Atlanta Spirit loaded on 25 April from the floating production, storage and offloading vessel Tamara Tokoni , according to tracking data from Kpler. Nigerian energy firm Oando, which marketed the shipment, has sold it to an undisclosed buyer, according to traders. A source at Nigeria's state-owned NNPC said the cargo could be headed for the North Sea port of Wilhelmshaven, but this was unconfirmed. Obodo has a gravity of 27.65°API and a very low sulphur content of 0.05pc, according to an assay seen by Argus . Details on Obodo's production levels are not immediately available. Nigerian independent Continental Oil and Gas is producing Obodo at onshore oil block OML 150 in the Niger delta. NNPC restarted production of similar-quality Utapate in 2024 and launched Nembe a year earlier. Obodo could find favour with European refineries, as Nigerian medium sweet grades — including Forcados, Escravos and Bonga — have gone predominantly to Europe, the largest market for the country's crude. By Sanjana Shivdas and George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US to lift sanctions on Syria

25/05/13

US to lift sanctions on Syria

Washington, 13 May (Argus) — US president Donald Trump said today he will lift all US sanctions on Syria, a move that will allow the new government in Damascus to access global oil markets and banking systems and to advance energy projects. "I will be ordering the cessation of sanctions against Syria in order to give them a chance at greatness," Trump said in Riyadh, while addressing a US-Saudi business forum. Trump said he was ordering the sanctions relief at the urging of Saudi Crown Prince Mohammad bin Salman and Turkish president Recep Tayyip Erdogan. US secretary of state Marco Rubio will meet his Syrian counterpart in Turkey later this week, Trump said. The White House did not confirm whether Trump plans to meet with Syria's new leader, Ahmed al-Sharaa, during his visit to the Mideast Gulf this week. Former president Joe Biden's administration in January issued a sanctions waiver through 7 July to enable previously prohibited energy trade with Syria. The EU in February suspended a range of sanctions against Syria, including restrictions related to the energy, banking, transport and reconstruction sectors. A permanent relief of US sanctions would require Trump to remove Syria's previous designation as a "state sponsor of terrorism". Al-Sharaa's group, Hayat Tahrir al-Sham, is separately classified by the US as a "foreign terrorist organization". The US also has imposed a series of sanctions against Syria by statute, rather than executive action, which Trump would have to waive. Before Syrian president Bashar al-Assad's fall from power in December, the country relied heavily on Iran for crude and product supplies. Syria issued its first tenders to buy crude and refined products in January, but it attracted limited interest. The country then received cargoes of Russian crude and diesel in March-April, including some cargoes delivered aboard tankers that are under US sanctions. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US budget bill would prolong 45Z, boost crops

25/05/13

US budget bill would prolong 45Z, boost crops

New York, 13 May (Argus) — A proposal from House Republican tax-writers would extend for four additional years a new tax credit for low-carbon fuels and adjust the incentive to be more lenient to crops used for biofuels. Republicans on the House Ways and Means Committee on Monday introduced their draft portion of a far-reaching budget bill, which included various changes to Inflation Reduction Act clean energy subsidies. But the "45Z" Clean Fuel Production Credit, which requires fuels to meet an initial carbon intensity threshold and then ups the subsidy as emissions fall, would be the only incentive from the 2022 climate law to last even longer than Democrats planned under the current draft. The proposal represents an early signal of Republicans' plans for major legislation through the Senate's reconciliation process, which allows budget-related bills to pass with a simple majority vote. The full Ways and Means Committee will consider amendments at a markup this afternoon, and House leaders want the full chamber to vote on the larger budget bill before the US Memorial Day holiday on 26 May. Afterwards, the proposal would head to the Republican-controlled Senate, where lawmakers could float further changes. But the early draft, in a chamber with multiple deficit hawks and climate change skeptics that have pushed for a full repeal of the Inflation Reduction Act, is remarkable for not just keeping but expanding 45Z. The basics of the incentive — offering benefits to producers instead of blenders, throttling benefits based on carbon intensity, and offering more credit to sustainable aviation fuel (SAF) — would remain intact. Various changes would help fuels derived from US crops. The most notable would prevent regulators measuring carbon intensity from considering "indirect land use change" emissions that attempt to quantify the risks of using agricultural land for fuel instead of food. Under current emissions modeling, the typical dry mill corn ethanol plant does not meet the 45Z credit's initial carbon intensity requirement — but substantially more gallons produced today would have a chance at qualifying without any new investments in carbon capture if this bill were to pass. The indirect land use change would also create the possibility for canola-based fuels, which are just slightly too carbon-intensive to qualify for 45Z today, to start claiming some subsidy. Fuels from soybean oil currently qualify but would similarly benefit from larger potential credits. Still, credit values would depend on final regulations and updated carbon accounting from President Donald Trump's administration. Since the House proposal does not address the current law's blunt system for rounding emissions values up and down, relatively higher-carbon corn and canola fuels still face the risk of falling just below 45Z's required carbon intensity threshold but then being rounded up to a level where they receive zero subsidy. The House bill would also restrict eligibility to fuels derived from feedstocks sourced in the US, Canada, and Mexico — an attempt at a middle ground between refiners that have increasingly looked abroad for biofuel inputs and domestic farm groups that have lobbied for 45Z to prioritize US crops. That language would make more durable current restrictions on foreign used cooking oil and significantly reduce the incentive to import tallow from South America and Australia, a loss for major renewable diesel producers Diamond Green Diesel, Phillips 66, and Marathon Petroleum. The provision would also hurt US biofuel producer LanzaJet, which has imported lower-carbon Brazilian sugarcane ethanol as a SAF feedstock to the chagrin of domestic corn ethanol producers. The bill would also require regulators to set more granular carbon intensity calculations for different types of animal manure biogas projects, all of which are treated the same under current rules. Other lifecycle emissions models treat some dairy projects at deeply negative carbon intensities. Those changes to carbon intensity calculations and feedstock eligibility would kick in starting next year, meaning current rules would remain intact for now. The proposal would however phase out the ability of clean energy companies without enough tax liability to claim the full value of Inflation Reduction Act subsidies to sell those tax credits to other businesses. That pathway, known as transferability, would end for clean fuel producers after 2027, hurting small biodiesel producers that operate under thin margins in the best of times as well as SAF startups that were planning to start producing fuel later this decade. Markets unresponsive, but prepare for new possibilities There was little immediate reaction across biofuel, feedstock, and renewable identification number (RIN) credit markets, since the bill could be modified and most of the changes would only take force in the future. But markets may shift down the road. Limiting eligibility to feedstocks originating in North America for instance could continue recent strength in US soybean oil futures markets. July CBOT Soybean oil futures closed 3pc higher on Monday at 49.92¢/lb on the news and have traded even higher today. The spread between soybean oil and heating oil futures is then highly influential for the cost of D4 biomass-based diesel RIN credits, which are crucial for biofuel margins and have recently surged in value to their highest prices in over a year. The more lenient carbon accounting will also help farmers eyeing a long-term future in renewable fuel markets and will support margins for ethanol and biodiesel producers reliant on crops. Corn and soy groups have pushed the government for less punitive emissions tracking, worried that crop demand could wane if refiners could only turn a profit by using lower-carbon waste feedstocks instead. The House bill, if passed, would still run up against contradictory incentives from other governments, including SAF mandates in Europe that restrict fuels from crops and California's efforts to soon limit state low-carbon fuel standard credits for fuels derived from vegetable oils. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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