Latest market news

Saudi Arabia foils missile attack on its oil facilities

  • : Crude oil, Oil products
  • 21/09/05

Saudi Arabia said early today that it intercepted a ballistic missile and several armed drones fired by Yemen's Houthi rebels at the country's oil-rich eastern province.

One of the missiles intercepted over the eastern city of Dammam overnight scattered shrapnel that injured two children and caused minor damage to 14 houses, according to the Saudi defence ministry.

Yemen's Iran-aligned Houthi group, which has been fighting a Saudi-led coalition in Yemen since 2015, said it had fired the missiles, targeting state-controlled Saudi Aramco facilities in Ras Tanura, close to Dammam, as well as in Jizan and Najran provinces. The Houthi movement said its attack on Ras Tanura, which is home to Aramco's largest oil export loading facilities and a 550 b/d crude and condensate refinery, involved firing eight armed drones and a missile.

Both the Saudi defence ministry and Aramco made no mention of any damage to oil facilities as a result of the attack.

A missile attack in 2019 on Aramco's largest 7mn b/d crude oil processing Abqaiq plant in eastern Saudi Arabia and on the 1.2mn b/d Khurais field forced the temporary shut-in of over 5.5mn b/d of crude output. Although the Houthis claimed responsibility for that attack, it is widely accepted that those missiles were fired from a location north-west of Saudi Arabia, rather than from Yemen to the south of the country.

The Houthi group has stepped up its drone attacks on Saudi Arabia recently, with the Saudis announcing interceptions on an almost daily basis.

Saudi Arabia and its allies, chiefly the UAE, intervened in Yemen in 2015 following the Houthi movement's 2014 ouster of the country's Saudi-backed president Mansour Abd Rabbo Hadi. The UAE has largely withdrawn from the conflict, pursuing its own agenda in southern Yemen through proxy forces.

Saudi Arabia's role is confined to an air campaign and to enforcing a blockade under the UN Verification and Inspection Mechanism for Yemen, which was established in 2016 at the request of Hadi's internationally recognised Yemeni government. It covers vessels sailing to ports not under its control, such as Hodeidah and Saleef, with the aim of preventing arms reaching the Houthis. The Hadi government must approve all vessels for entry to the ports. Civilian casualties have been high, and the blockade has contributed to widespread hunger and malnutrition in Yemen.

UN and US-backed peace talks, which have stalled in recent months, have focused on lifting the blockade on Houthi-controlled ports and Sana'a airport in return for a commitment by the Houthis to holding peace talks.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

24/12/16

Viewpoint: Asia bio-bunkers to gain from EU regulations

Viewpoint: Asia bio-bunkers to gain from EU regulations

London, 16 December (Argus) — New regulations in Europe should support Asian demand for marine biodiesel in 2025. The scope of emissions covered under the EU's Emissions Trading System (ETS) will rise to 70pc next year from 40pc this year, and this will be accompanied by the introduction of the FuelEU Maritime regulations at the turn of the year. FuelEU Maritime requires a reduction of greenhouse gas (GHG) intensity of fuels by 2pc in 2025 and up to 80pc by 2050, against a 2020 baseline level of 91.16 grammes of CO2 equivalent (gCO2e) per MJ. These upcoming regulatory changes in Europe should support buying interest for marine biodiesel blends because biofuels compliant with the EU's Renewable Energy Directive (RED) will have a zero CO2 emissions factor under the ETS next year. And waste-based biodiesel produced from feedstocks such as used cooking oil (UCO), which typically provide higher GHG emissions against fossil comparators under RED than crop-based biofuels, will be a viable alternative for many shipowners looking to reduce the GHG intensity of their conventional vessels. The regulations will not only support demand for marine biodiesel in Europe. They encompasses various flexibility mechanisms, aimed at supporting shipowners in meeting the required reductions, including a system that allows two or more vessels to create a pool in which compliance can be achieved across all vessels within the group as long as the total overall compliance balance of the pool is positive. Vessels operating between Asia and Europe will have half of energy consumed on those voyages subject to FuelEU Maritme regulations. The energy consumed from a marine biodiesel blend bunkered in Singapore, for example, could be mass balanced to be fully accounted for under this scope. Shipowners with vessels operating on the east-west route could therefore look to bunker marine biodiesel in Singapore or other parts of Asia, and then pool that vessel along with other vessels in their fleet that operate solely within Europe to achieve compliance using a non-European bunkered product. This dynamic will be supported by anti-dumping duties (ADD) imposed on Chinese biodiesel imports into Europe. The European Commission announced earlier this year provisional ADD measures on China-origin biodiesel and hydrotreated vegetable oil (HVO), with definitive measures set for mid-February 2025. In anticipation of the provisional duties, exports of Chinese biodiesel to the EU fell by over 50pc to 563,440t in the first half of this year compared with the same period of 2023. At the same time, exports of Chinese biodiesel to Singapore hit a monthly high of 16,500t in August, which was mainly attributed to marine biodiesel blends being bunkered at the port. This pushed Argus price assessments of B24 dob Singapore, a blend comprising used cooking oil methyl ester (Ucome) and very low sulphur fuel oil (VLSFO), to an average discount of about $90/t against B30 Ucome dob ARA in August-October. The more competitive pricing led to a shift in voluntary demand for marine biodiesel blends away from the Amsterdam-Rotterdam-Antwerp (ARA) hub in northwest Europe and towards Singapore. Marine biodiesel blend sales in Singapore hit a monthly high of 116,200t in October, according to data from the local maritime and port authority. The option to bunker marine biodiesel blends in Asia to meet European regulations will not be limited to Singapore. China's Zhoushan Port Authority said it will obtain a domestic blend permit by the end of this year, which will pave the way for suppliers to provide marine biodiesel blends to local and international shipowners. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Shell takes FID on Nigeria’s Bonga North oil project


24/12/16
24/12/16

Shell takes FID on Nigeria’s Bonga North oil project

Lagos, 16 December (Argus) — Shell has taken a final investment decision (FID) on Nigeria's Bonga North field, aiming for first oil from the deepwater project by 2030. The firm expects crude production from Bonga North to peak at 110,000 b/d but it has not given a timeframe. Bonga North — which currently has estimated recoverable resources of over 300mn bl of oil equivalent (boe) — will involve drilling up to 16 wells and will be tied back to the existing 225,000 b/d Bonga floating production, storage and offloading (FPSO) facility. The FPSO already handles output from the Bonga Main and Bonga North West fields, which started up in 2005 and 2014, respectively. Crude production from the FPSO averaged 120,000 b/d in January-November, with output in November rising by 9pc on the month to 135,000 b/d, according to Nigeria's upstream regulator NUPRC. Shell said modifications to the FPSO will be required to accommodate Bonga North, but a source told Argus today that these will largely be limited to the facility's topsides. The company previously told Argus that a separate and more thoroughgoing FPSO life-extension programme, which "will run well into 2029", had been put in place because the facility was originally designed to operate only until 2025. Shell's Nigerian offshore subsidiary operates the Bonga North project with a 55pc stake under a production-sharing contract with state-owned NNPC. ExxonMobil, TotalEnergies and Italy's Eni are the other project partners with 20pc 12.5pc and 12.5pc stakes, respectively. The Bonga fields are located in Nigeria's OML 118 licence at water depths exceeding 1,000m. In addition to Bonga Main, Bonga North West and Bonga North, the block also holds the undeveloped Bonga South West oil field, which NNPC said will be developed in three phases. Bonga South West will have its own separate FPSO and produce 150,000 b/d at peak between 2027 and 2031, NNPC said. By Adebiyi Olusolape Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Libya declares force majeure at Zawiya refinery


24/12/15
24/12/15

Libya declares force majeure at Zawiya refinery

London, 15 December (Argus) — Libya's state-owned NOC declared force majeure at its 120,000 b/d Zawiya refinery today following clashes between armed groups near the facility. NOC said a number of storage tanks were hit, causing fires. These were subsequently brought under control, it added. Zawiya is Libya's largest operational refinery, with most of its production absorbed domestically. It runs on crude from Libya's Repsol-led El Sharara oil field. The rest of the field's crude is exported as the Esharara grade from a nearby loading terminal which forms part of the wider Zawiya complex. Any prolonged fighting and wider damage to the Zawiya complex could threaten production at El Sharara, particularly if exports are forced to stop. Zawiya exported 160,000 b/d of Esharara crude last month, according to Kpler, and is scheduled to load eight cargoes also worth about 160,000 b/d in December. Political instability has led to several forced shutdowns of oil production facilities over the past decade or so. El Sharara only just returned to production in early October following a forced outage which also affected other fields throughout the country. Libya produced 1.24mn b/d of crude in November, Argus estimates. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexico’s industrial output falls 1.2pc in October


24/12/13
24/12/13

Mexico’s industrial output falls 1.2pc in October

Mexico City, 13 December (Argus) — Mexico's industrial production dropped by 1.2pc in October, driven by declines in manufacturing and mining, statistics agency Inegi said today. The seasonally adjusted industrial activity indicator (IMAI) reversed a 0.6pc increase recorded in September, surprising analysts who had expected a smaller contraction. Banorte had forecast a 0.1pc decline, while the market consensus pointed to a 0.6pc decrease. The sharper-than-expected downturn was largely attributed to a 1.9pc drop in manufacturing, which accounts for 63pc of the IMAI. This followed growth of 1pc in September and 0.4pc in August. Within manufacturing, transportation manufacturing — a key segment making up 12pc of the sector —fell by 4.3pc, reversing a 2pc increase in September and a 1pc uptick in August. Despite this decline, light vehicle production reached 382,101 units in October, up from 378,583 in September, on track to set a new annual record . Mexican auto industry association AMIA told Argus the drop in transportation manufacturing was unrelated to light vehicle production. Instead, Alejandro Cervantes, director of quantitative economic research at Banorte, suggested the decline could be linked to trucks and heavy-duty equipment manufacturing. "Despite [being] a negative month for industrial activity and possibly for aggregate economic activity, the fact is that we have seen a strong rebound in the production of vehicles," said Cervantes. Mining, which makes up 12pc of the IMAI, contracted by 1.9pc in October, following a 1.2pc decline in September. Oil and gas extraction fell by 0.9pc, marking its fourth consecutive month of contraction. In contrast, construction — accounting for 19pc of the IMAI — increased by 0.5pc in October after a 1.1pc increase in September. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Syria faces fuel supply conundrum


24/12/13
24/12/13

Syria faces fuel supply conundrum

London, 13 December (Argus) — The overthrow of Syrian president Bashar al-Assad has left the country's trading relationship with Iran on an uncertain footing, putting pressure on the new transitional government to upgrade refining infrastructure and find alternative sources of fuel supply. As the Assad regime's closest ally, Iran has been Syria's main source of both crude and oil product imports since western sanctions were imposed on Damascas in the early stages of its civil war in 2011. The product shipments are difficult to track as they are carried out by Iran's 'dark fleet', but consultancy FGE estimates Iran has been sending around 10,000-20,000 b/d to Syria in recent years. Those trade flows are no longer guaranteed, given that Hayat Tahir al-Sham (HTS), the main militant group behind the armed revolt to topple Assad, has close ties to Iran's regional rival Turkey. Syria is now likely to import oil products from other local sources, a trading analyst told Argus . Turkey itself is an option, although one Turkish trader ruled out any immediate business plans to supply Syria. Watad, HTS' affiliated oil trading arm, has previously imported oil and gas from Turkey and has marketed gasoline thought to have come from Ukraine via Turkey, according to a regional analyst. Egypt is another possible supplier. It has enough capacity to export refined products to Syria for the time being, according to a refining source in the country. Vortexa data show gasoil was last loaded from Egypt's Sidi Kerir terminal in July. Syria's transitional government may also attempt to increase domestic supply, although that will require rehabilitating the country's 140,000 b/d Banias and 110,000 b/d Homs refineries. Run rates have halved since 2011, the IEA estimates. Only the Banias refinery is operating at a reasonable level, according to sources. Iran earlier this year proposed a €140mn revamp of the Homs refinery, which has been operating below capacity for years because of infrastructure damage incurred during the civil war . Syrian demand for oil products has seen a structural decline since the civil war, with consumption dropping by around 60pc between 2011 and 2022, according to the IEA. But with Assad's overthrow signalling a potential return of refugees from neighbouring Turkey, Lebanon and Jordan, demand may pick up in the coming months, intensifying pressure on the transitional administration to seek new trade flows and repair the country's refining infrastructure. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more