Oil prices slump as Israel spares Iran’s energy assets

: Crude oil
24/10/28

Crude futures fell sharply in Asian trading on 28 October after Israel avoided targeting energy facilities in its weekend attack on Iran.

Brent and WTI futures both fell by around 5pc soon after markets opened, as Israel's retaliatory strike on Iran appeared more limited than had been expected. The attacks involved "targeted and precise strikes on military targets in Iran", the Israel Defense Forces said.

The possibility that the Israeli attack could target energy facilities had sent oil prices strongly higher earlier this month.

Iran's leaders have yet to make clear whether, or how, they will respond to the latest Israeli strikes.

The front-month December crude contract on Ice fell by $4.06/bl or 5.3pc to $71.99/bl in early trading, before recovering slightly to trade at $72.68/bl at 10.54am Singapore time (02:54 GMT).

The Nymex front-month December crude contract fell by as much as $3.99/bl or 5.5pc to $67.79/bl. The contract was trading at $68.50/bl at 10.54am in Singapore.

By Kevin Foster

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24/10/26

Israel launches strikes on Iran: Update

Adds details throughout Washington, 26 October (Argus) — Israel launched what its military described as "precise strikes on military targets" in Iran early Saturday local time. In a statement posted on the social media platform X, the Israel Defense Forces (IDF) said the strikes were in response to "months of continuous attacks" from Iran and its proxies in the region. Gaza-based militia group Hamas attacked Israel on 7 October 2023, prompting a year of fighting in Gaza and escalating tensions throughout the region. "Our defensive and offensive capabilities are fully mobilized," the IDF said. Shortly after 06:30 local time (03:30 GMT), the IDF said it had "concluded the Israeli response to Iran's attacks against Israel" which involved "targeted and precise strikes on military targets in Iran." Israel dubbed the operation "Days of repentance". Iran's defence forces confirmed the attacks early on Saturday, referring to them as "attempts by the Zionist regime to target some sites… in several places around Tehran and elsewhere in the country." It said the country's air defences "had responded to the attempts," without saying whether any of its sites had been hit. Following the conclusion of the Israel strike, however, the defence forces confirmed that some "military centers in Tehran, Khuzestan and Ilam provinces" had been targeted by the strike. "While the country's integrated air defence system successfully intercepted and countered this aggressive act, some sites did incur limited damage," the forces said. Khuzestan province, in the west of the country and on the border with Iraq, is home to a significant portion of Iran's oil and gas production, which appears to have been spared in this exchange. US president Joe Biden had been urging Israel in recent weeks not to target Iran's oil infrastructure, which would put 1.7mn b/d of Iranian crude exports at risk and could prompt Tehran to retaliate by attacking oil trade in the region. Today's attack comes after Israeli prime minister Benjamin Netanyahu had vowed to take military action against Iran since Tehran conducted a large-scale ballistic missile attack on Israel at the start of October . Iran's missile strike was in response to Israel's killing of Hassan Nasrallah, the leader of the Lebanese militia group Hezbollah, a number of other commanders in an airstrike in Beirut late last month, and the assassination of Hamas leader Ismail Haniyeh in Tehran in late July. The Israeli military killed Haniyeh's successor, Yahya Sinwar, earlier this month. Israel and Iran also engaged in tit-for-tat strikes in April. Hamas and Hezbollah are part of the so-called Axis of Resistance, a group of regional militia groups that are backed by Iran. Draw a line Immediately after its 1 October strike on Israel, Iran stressed that it considered that particular exchange closed. And Iranian officials had since been warning Tel Aviv against any further attacks, or else they would face an even stronger response from Iran. IDF spokesman Daniel Hagari today issued a similar warning to Tehran. "If the regime in Iran were to make the mistake of beginning a new round of escalation, we will be obligated to respond," Hagari said. "Our message is clear: All those who threaten the state of Israel and seek to drag the region into wider escalation will pay a heavy price." Iranian officials are yet to react formally to the overnight strikes, meaning it is as yet unclear how Iran may ultimately choose to respond. Recent history suggests that any Iranian response, if there were to be one, would not be immediate. But the limited and targeted nature of Israel's response, with no reported casualties so far, could provide the off-ramp needed to avoid an all-out war at this particular time. By David Ivanovich and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Israel launches strikes on Iran

24/10/26

Israel launches strikes on Iran

Washington, 25 October (Argus) — Israel launched what its military described as "precise strikes on military targets" in Iran early Saturday local time. In a statement posted on the social media platform X, the Israel Defense Forces (IDF) said the strikes were in response to "months of continuous attacks" from Iran and its proxies in the region. Gaza-based militia group Hamas attacked Israel on 7 October 2023, prompting a year of fighting in Gaza and escalating tensions throughout the region. "Our defensive and offensive capabilities are fully mobilized," the IDF said. There were no indications that Israel was attacking Iran's oil facilities. US president Joe Biden has urged Israel not to target Iran's oil infrastructure, which would put 1.7mn b/d of Iranian crude exports at risk and could prompt Tehran to retaliate by attacking oil trade in the region. Israeli prime minister Benjamin Netanyahu had vowed to take military action against Iran since Tehran conducted a large-scale ballistic missile attack on Israel at the start of October. Iran's missile strike was in response to Israel's killing of Hassan Nasrallah, the leader of the Lebanese militia group Hezbollah, and a number of other commanders in an airstrike in Beirut late last month. Hamas and Hezbollah are part of the so-called Axis of Resistance, a group of regional militia groups that are backed by Iran. The Israeli military earlier this month killed Hamas leader Yahya Sinwar. Israel and Iran also engaged in tit-for-tat strikes in April. By David Ivanovich Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Pemex budget cuts freeze vendor orders

24/10/25

Pemex budget cuts freeze vendor orders

Mexico City, 25 October (Argus) — Mexico's state-owned company Pemex stopped requesting or receiving new work orders from vendors in the past three to four weeks, likely linked to the company's plan to cut its budget by about $1bn in the last quarter, three industry sources and a Pemex source. "Upper management has issued clear instructions: No new projects until 2025," one Pemex source told Argus . Vendors report that these reductions are affecting all Pemex regions, with significant impacts on major well maintenance — such as pipeline renewals, valve replacements and secondary recovery techniques — essential for safe and efficient oil production. Without these services, oil service companies may need to shut down wells, risking oil spills or even explosions. The halt in work orders took effect in late September and has primarily hit orders related to maintenance in Pemex's exploration and production (E&P) operations. According to vendors, Pemex issued an internal directive on 11 October, instructing units to implement budget reductions across all E&P activities to save an estimated $1bn. Despite these cuts, vendors claim Pemex's new administration has not formally notified them about the halt — a pattern they say has become typical over the last six years. Adding to vendors' worries is Pemex's ongoing payment backlog. As of 2 October, Pemex's upstream division (PEP) owed Ps99bn ($5bn) to suppliers, with Ps81bn related to 2024 projects, Ps10.5bn from 2023 and Ps1.9bn from 2022, according to an internal document. Pemex's overall overdue payments peaked at Ps126.4bn in July. "The current situation is extremely worrisome," one Pemex supplier told Argus . "And there is no indication thatthere will be any new payments to vendors this month." Some top vendors, including Protexa, Marinsa, Naviera Integral and Solar Turbines, are weighing partial or complete work stoppages by early November unless payment issues are resolved. Drilling company Opex recently announced a "temporary adjustment" in its services because of payment delays, two other vendors said. A year ago, Pemex vendors discussed a general halt over similar payment delays, with some major suppliers like SBL, Halliburton, Weatherford and Baker Hughes eventually securing payments and continuing work. Now, with budget cuts looming into 2025, vendors are increasingly concerned that continued cuts and payment delays will severely impact Pemex's oil production, which hit a 40-year low of 1.45mn b/d in September. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Pennsylvania drilling drops to 17-year low

24/10/25

Pennsylvania drilling drops to 17-year low

New York, 25 October (Argus) — Pennsylvania oil and natural gas drilling this week fell to the lowest in 17 years, signaling dimming producer sentiment in the second-largest US gas producing state. The number of rigs drilling for oil and gas in Pennsylvania this week fell to 12, the lowest since July 2007, as the state's rig count lost one from a week earlier and fell by 10 from a year earlier, according to oil field services company Baker Hughes. There were 101 gas-directed rigs in the US this week, down by 16 from a year earlier, implying that the majority of the gas-rig decline was due to the drop in Pennsylvania, where wells produce plentiful dry gas but little crude and natural gas liquids (NGLs). The 17-year-low rig count in the regional gas-producing powerhouse, home to the prolific Marcellus shale, is due to three factors: expectations of lower US gas prices after the 2024-25 winter heating season, a lower share of currently more profitable crude and NGLs in Pennsylvania's output compared to nearby West Virginia and Ohio, and the June start-up of a new gas pipeline in West Virginia , where some Pennsylvania production may have shifted. Rig counts reflect expected prices roughly six months in the future, accounting for the lag between when the drilling of a well begins and when its production is sold. The April 2025-March 2026 strip price at the Leidy Line trading hub, a bellwether for Marcellus shale output in northeast Pennsylvania, was $2.63/mmBtu, according to Argus forward curves. Prices for crude and NGLs in 2024 have been more resilient than US gas prices, which have languished after a warmer-than-normal 2023-24 winter left the US gas market oversupplied. This price dynamic may be why the other two main Appalachian gas producing states have not mirrored Pennsylvania's drilling slowdown. The Ohio rig count rose by one this week to 10, the same number as a year earlier, while the West Virginia rig count was unchanged at 10, up by three from a year earlier. Drilling productivity has also improved dramatically in the past 17 years, surging to 21 Bcf/d (595mn m³/d) in July from 471mn cf/d in July 2007, according to the US Energy Information Administration. Above-average temperatures were expected to blanket the US from November to January, according to the National Weather Service, portending another winter with lower gas demand. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US charges Venezuelan in PdV money-laundering scheme

24/10/23

US charges Venezuelan in PdV money-laundering scheme

Houston, 23 October (Argus) — A US federal grand jury has indicted a fugitive Venezuelan television news network owner for allegedly participating in a scheme to launder $1.2bn in funds from Venezuelan state-owned oil company PdV. Raul Gorrin, 56, and his co-conspirators allegedly paid millions of dollars in bribes to high-level Venezuelan officials to obtain foreign currency exchange loan contracts with PdV over a period ranging from 2014-2018, the US Attorney's Office for the Southern District of Florida said today. They are then alleged to have laundered the proceeds of about $1bn through means including buying real estate, yachts and other luxury items in southern Florida. The group used shell companies and offshore bank accounts, the US Department of Justice investigation found. Gorrin, owner of pro-government network Globovision, is charged with one count of conspiracy to commit money laundering and could face up to 20 years in prison. Gorrin is a fugitive in a separately charged matter and remains at large. The case comes as fallout continues from Venezuela's own scandals over PdV funds. Venezuela again recently arrested a former oil minister , alleging that Pedro Tellechea passed key information to US intelligence services over PdV operations. Tellechea, in turn, took over the role in the wake of allegations that his predecessor, Tareck El Aissami, had been involved in billions in missing PdV cryptocurrency funds. By Carla Bass Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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