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Two hopefuls drop out of Iran presidential race: Update

  • : Crude oil
  • 21/06/16

Mohsen Mehralizadeh, the only reformist candidate approved to participate in this week's Iranian presidential election, has withdrawn from the race leaving former central bank governor Abdolnaser Hemmati as the sole non-conservative on the ballot.

Former member of parliament Alireza Zakani, a conservative, also dropped out today and thrown his weight behind the strong favorite, chief justice Ebrahim Raisi.

Mehralizadeh, who served as vice-president during former president Mohammad Khatami's second term in 2001-05, announced his withdrawal in a letter to the ministry of interior in the early hours of today. He did not explicitly say why he pulled out, although his move came one day after Hadi Khamenei — a prominent reformist cleric and brother of supreme leader Ayatollah Ali Khamenei — called on either Mehralizadeh or Hemmati to drop out of the race in support of the other.

"I ask you… to form an alliance with each other, so that with the presence of one of you in the competition, you can sow the seeds of hope in the hearts of the supporters more than before," Khamenei said.

Mehralizadeh has yet to publicly back Hemmati, who has been making a late push to win over voters on ahead of the 18 June election by announcing he will invite foreign minister Mohammad Javad Zarif to serve in his cabinet either as vice- president or foreign minister.

"Iran's economic development will not be possible without strong diplomatic engagement with the international community," Hemmati said. "My administration will be after the removal of sanctions and the use of foreign policy to achieve political development."

Hemmati also secured an indirect endorsement from former president and reformist heavyweight Mohammad Khatami today in an open letter commending Mehralizadeh for dropping out so that the reformist and centrist votes would not be split.

But with just two days until voting begins and with continued signs of bias within the political establishment towards Raisi, the office still appears to be his to lose. Latest polls from state-linked Iranian Students Polling Agency (ISPA) show Raisi with 61pc of the vote, well ahead of his closest challenger Mohsen Rezaei, another conservative, with 8pc.

Zakani's decision to drop out will also strengthen Raisi's chances, particularly after securing his public endorsement. As of 14 June, Zakani was being projected to win around 3pc of the vote.

"Considering the great success of Ayatollah Raisi, I consider him to be righteous and I will vote for him," Zakani said. "I hope that with his election, fundamental reforms will be implemented in the country."

Should any of the other two remaining conservative candidates — former nuclear negotiator Saeed Jalili, and first deputy speaker of parliament Amir-Hossein Qazizadeh Hashemi — also withdraw from the race, that would again boost Raisi's chances further.

Campaigning began on 28 May and will continue until 24 hours before the start of voting on 18 June. If no candidate secures at least 50.1pc of the vote, the two highest polling candidates will compete in a runoff on 25 June.


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25/04/24

Eni cuts capex on macro headwinds, tariff uncertainty

Eni cuts capex on macro headwinds, tariff uncertainty

London, 24 April (Argus) — Italy's Eni has cut its spending plans for this year in response to macroeconomic headwinds, uncertainty around trade tariffs and a lower oil price outlook. The company is planning a series of "mitigation measures" worth over €2bn [$2.28bn], a key element of which is a reduction in 2025 capex to below €8.5bn from previous guidance of €9bn. Eni now expects net capex — which takes into account acquisitions and asset sales — to come in below €6bn this year, compared with its initial plan of €6.5bn-7bn. Other savings will come from "mitigating actions" around its portfolio, operating costs and "other cash initiatives", the firm said. Eni's plan reflects a tariff-driven deterioration in the outlook for the global economy and, in turn, global oil demand and oil prices. The company has revised its Brent crude price assumption for 2025 down to $65/bl from $75/bl previously. It has also lowered its refining margin indicator assumption for the year to $3.5/bl from $4.7/bl. The lower oil price assumption has not changed the company's upstream production forecast — it still expects 2025 output to average 1.7mn b/d of oil equivalent (boe/d). But Eni's production in the first quarter was only 1.65mn boe/d, 5pc lower than the same period last year. The firm's gas production took the biggest hit, falling by 9pc on the year to 4.5bn ft³/d (861,000 boe/d) as a result of divestments and natural decline at mature fields. Liquids output fell by 1pc year on year to 786,000 boe/d. Eni reported a profit of €1.17bn for January-March, 3pc lower than the same period last year. Underlying profit— which strips out inventory valuation effects and other one off-items — fell by 11pc on the year to €1.41bn. Eni said the fall in profits was mainly due to lower oil prices. The company also had to contend with weaker refining margins and throughputs, as well as a continuing downturn in the European chemicals sector. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Taiwan’s CPC buys Vincent crude ahead of CDU turnaround


25/04/24
25/04/24

Taiwan’s CPC buys Vincent crude ahead of CDU turnaround

Singapore, 24 April (Argus) — Taiwanese state-controlled refiner CPC has purchased a rare cargo of Australian heavy sweet Vincent crude, ahead of a June crude distillation unit (CDU) turnaround that is expected to tighten blendstock component availability at its refinery. CPC recently bought the end-May loading Vincent from Japanese trading firm Mitsui at around a $5-5.50/bl premium to North Sea Dated, traders said. Vincent is usually sold in volumes of 550,000 bl. An upcoming CDU maintenance at a CPC refinery in June, expected to last 1-2 months, will limit production of other blendstock components needed for fuel oil production, market sources told Argus . It is unclear which refinery — the 200,000 b/d Taoyuan or 400,000 b/d Dalin — is having the maintenance. Production constraints, arising from the upcoming turnaround, may have prompted CPC to seek alternative blendstocks like Vincent to help meet its fuel oil supply obligations during this period. CPC is responsible for supplying the majority of Taiwan's bunker fuel at domestic ports. The Vincent deal marks CPC's first crude purchase from Australia since November 2023, when it received heavy sweet Van Gogh crude, data from oil analytics firm Vortexa show. Van Gogh is similar in quality to Vincent. The last time CPC took Vincent was in March 2023. CPC has mainly relied on US light sweet WTI in the past year, supplemented by medium sour Saudi Arab Light and Abu Dhabi Upper Zakum. Vincent and Van Gogh, as well as Australian heavy sweet Pyrenees, are valued as blendstocks for very low-sulphur fuel oil production in the Singapore strait region. These grades' heavier density relative to other sweet crude grades make them less economical for refining, and better suited for direct use in fuel oil blending. By Asill Bardh and Reena Nathan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US states including New York sue Trump over tariffs


25/04/23
25/04/23

US states including New York sue Trump over tariffs

New York, 23 April (Argus) — A coalition of 12 states including New York is suing the administration of President Donald Trump for imposing "illegal" tariffs that threaten to raise inflation and derail economic growth. The lawsuit, filed by attorneys general from the 12 states, argues that Congress has not granted the president the authority to impose the tariffs and the administration violated the law by imposing them through executive orders, social media posts, and agency orders. "President Trump's reckless tariffs have skyrocketed costs for consumers and unleashed economic chaos across the country," said New York governor Kathy Hochul (D). "New York is standing up to fight back against the largest federal tax hike in American history." The lawsuit alleges the tariffs will increase unemployment, threaten wages by slowing economic growth and push up the cost of key goods from electronics to building materials. The lawsuit, which was filed in the United States Court of International Trade, seeks a court order halting the tariffs. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tariffs could cut FY profit $100mn-$200mn: Baker Hughes


25/04/23
25/04/23

Tariffs could cut FY profit $100mn-$200mn: Baker Hughes

New York, 23 April (Argus) — Oilfield services giant Baker Hughes expects a cut in its annual profit of as much as $200mn from tariffs, if current levels applied under President Donald Trump's 90-day pause stay in place for the rest of the year. That hit to profits does not include secondary effects, such as the impact of Trump's trade wars on slower global economic growth, as well as a renewed bout of weakness in oil prices. While the company is taking steps to mitigate tariff impacts, its "strong weighting" to international markets helps reduce its overall financial exposure, according to chief executive officer Lorenzo Simonelli. Increased oil price volatility due to tariffs , as well as the return of Opec+ barrels to the market, have resulted in a softening outlook for the market. As such, Baker Hughes now expects global upstream spending will be "down by high single digits" this year. The company forecasts a low-double digit decline in North America spending by its clients, and a mid-to-high single digit drop internationally. "A sustained move lower in oil prices or worsening tariffs would introduce further downside risk to this outlook," said Simonelli. "The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels." The company has identified three areas of tariff exposure within its industrial and energy technology division, including volumes exported to China, critical equipment supplies from its facilities in Italy, and an expected modest impact from steel and aluminum tariffs as well as US-China trade activity. Mitigation efforts include exploring domestic procurement alternatives to reduce input costs and improving its global manufacturing footprint. In relation to its oilfield services and equipment segment, Baker Hughes has been working to boost domestic sourcing and is working with customers to recover some costs. Elsewhere, the repeal of an US LNG permitting moratorium under the Trump administration has resulted in higher orders. Baker Hughes has booked about $1.7bn in LNG orders in the US over the past two quarters, and several LNG customers in the Gulf Coast have signaled plans to expand capacity beyond 2030. Profit of $402mn in the first quarter was down from $455mn in the year-earlier period. Revenue held steady at about $6.4bn. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US wants IMF, World Bank to drop climate focus


25/04/23
25/04/23

US wants IMF, World Bank to drop climate focus

Washington, 23 April (Argus) — US president Donald Trump's administration today called on the IMF and the World Bank to focus resources away from climate action and energy transition and to make lending available to fossil fuels programs. The IMF "devotes disproportionate time and resources to work on climate change, gender, and social issues," US treasury secretary Scott Bessent said in remarks today timed to coincide with the two international lending institutions' annual meeting in Washington. "Like the IMF, the World Bank must be made fit for purpose again," he said, during an event hosted by trade group Institute of International Finance. The IMF and the World Bank in recent years have followed the preferences of their largest shareholders — the US and European countries — in incorporating the effects of climate change in their analysis and to facilitate energy transition in the emerging economies. The World Bank, together with other multilateral development banks globally, announced at the UN Cop-29 climate conference last year that they could increase climate financing to $170bn/yr by 2030, up from $125bn in 2023. "I know 'sustainability' is a popular term around here," Bessent said. "But I'm not talking about climate change or carbon footprints. I'm talking about economic and financial sustainability." Bessent urged the World Bank to "be tech neutral and prioritize affordability and energy investment," adding that "in most cases, this means investing in gas and other fossil fuel based energy production." "In other cases, this may mean investing in renewable energy coupled with systems to help manage the intermittency of wind and solar," Bessent said. The US is the largest shareholder at both the IMF and the World Bank, with a 16pc stake in both institutions. The Trump administration, which has slashed climate programs at US government institutions and withdrew the US from climate-focused international efforts, has so far refrained from interfering in the operations of the IMF and the World Bank. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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