Tag: Brent Crude

RIYADH – Amin Nasser, president and CEO of Saudi Arabia’s oil giant Saudi Aramco, has said that the Chinese market is critically important to the company.

The company is continuously deepening cooperation with China, particularly through increased investments in the petrochemical and new energy sectors, Nasser said during a recent telephone press conference on the company’s 2024 earnings.

Calling China a key market for Saudi Aramco’s crude oil exports, Nasser said China is also a crucial partner in the company’s petrochemical strategy.

“We see China’s refining and petrochemical industry, especially in petrochemicals, as having reached world-leading standards, providing significant cooperation opportunities for Saudi Aramco,” he said.

Regarding investment plans, Nasser confirmed that Saudi Aramco is actively progressing with several major investments in China, all of which are advancing smoothly. Additionally, the company is enhancing strategic cooperation with Chinese enterprises such as Sinopec, exploring more joint investment opportunities.

“The Chinese market and Chinese partners will continue to play a central role in Saudi Aramco’s global strategy. We look forward to collaborating with more Chinese partners to achieve mutual growth,” he said. 

By Xinhua / March 8, 2025.

Crude oil inventories in the United States saw an increase of 1.4 million barrels during the week ending March 7, according to new data from the U.S. Energy Information Administration released on Wednesday.

Crude oil prices were trading up prior to the crude data release by the U.S. Energy Information Administration, rebounding from a slide earlier in the week, even after the American Petroleum Institute (API) reported on Tuesday a build of 4.247 million barrels in U.S. crude oil inventories amid strong product draws. The Brent benchmark was trading up 1.32% at 10:20 a.m. ET at $70.48 —a $1 per barrel increase over this time last week. The WTI benchmark, meanwhile, was trading up 1.55% at $67.28—a gain of just under $1 per barrel from last week’s level.

For total motor gasoline, the EIA estimated that inventories decreased by 5.7 million barrels for the week to March 7, with production averaging 9.6 million barrels daily. This compares with an inventory decrease of 1.4 million barrels for the previous week and an average daily production of 9.6 million barrels daily.

For middle distillates, the EIA estimated another inventory decrease, this time of 1.6 million barrels, with production dropping to an average of 4.5 million barrels daily. This compares to an inventory dip of 1.3 million barrels in the week prior, when production stood at a more robust average of 5.2 million barrels daily. The inventory slide is in line with seasonal norms and is now 5% below the five-year average for this time of year.

Total products supplied over the last four weeks were up week over week, averaging 20.7 million barrels per day—a 3.9% increase over this time last year. Distillate products supplied over the last four weeks are up 9.5% compared to this time last year, while gasoline products supplied were up 0.1% from the same period last year.

By Julianne Geiger for Oilprice.com Mar 12, 2025

The first supply of Neste’s renewable diesel has been delivered to the Singapore Cruise Terminal by a tanker operated by Global Energy. The fuel was sourced from Vopak’s Penjuru Terminal, following a strategic partnership between Neste and Vopak to support Singapore’s sustainable fuel development.

Ee Pin Lee, head of commercial APAC, renewable products at Neste, says: ‘This first supply of Neste MY Renewable Diesel to the maritime sector in Singapore is a significant milestone; and demonstrates the versatility of the drop-in product across a wide range of applications where it can replace fossil diesel. It is an effective decarbonisation solution for enabling the maritime sector to be more sustainable and this collaboration sends a clear signal of our commitment to Singapore and the Asia Pacific region. Neste is the world’s leading producer of sustainable aviation fuel and renewable diesel.’

Neeraj Kumar, VP of commercial chemicals & business development new energies for Vopak’s Singapore business unit adds: ‘We greatly value our partnership and collaboration with Neste. Together, we are enabling our customers to leverage our expansive network, advanced infrastructure solutions, and unwavering commitment to safety. We are proud to contribute to the regional and global shift toward more sustainable energy and feedstocks, driving innovation and sustainability in the marine sector. Together with our customers and partners we help the world flow forward.’

By: Tank Storage Magazine / March 06, 205

Refinery closures combined with growing demand for gasoline, diesel, and jet fuel are about to start squeezing available volumes—and this squeeze is about to become marked next year. That’s according to the Energy Information Administration, which warned this would plunge inventories to the lowest levels since 2000.

Two refineries are set to shut down this year, the EIA said in the latest edition of its monthly Short-Term Energy Outlook. One is in Houston, and the other in Los Angeles. The Houston facility, owned by LyondellBasell, which has already begun the process of the shutdown, has a capacity of 263,776 barrels daily. The Los Angeles refinery, property of Phillips 66, can process 138,700 barrels of crude daily. The closure of these two would reduce fuel production capacity in the country by 400,000 barrels daily.

The refining industry globally has been experiencing the effects of a declining supercycle even though demand has continued to grow, and, as confirmed by the EIA, this growth will continue. Even so, the record margins of 2022 and 2023 are gone now. Before the new cycle begins, some belt-tightening is in order.

In the U.S., refiners were also subjected to additional pressure during the Biden administration to join the federal government’s climate change-oriented energy policy and switch to biofuels from petroleum fuels. In California, specifically, pressure has been strong, both on the federal and state level, with the government in Sacramento recently demanding from refiners in California to keep a certain level of fuel inventories to avoid price spikes that the refiners themselves attribute to the state government’s energy policies seeking to phase out vehicles using petroleum fuels.

The closure of the Phillips 66 refinery in Los Angeles is one consequence of that policy. There are even reports that California authorities are considering refinery nationalizations to secure the supply of fuels to drivers in the state. Two refineries in California have already converted to biofuel production plants because biofuel production fetches generous subsidies from the state government: Phillips 66 is closing the L.A. facility by the end of this year, and Chevron and Valero are also considering shutdowns.

As a result of these refinery closures, the supply of fuels will understandably tighten, with diesel and jet fuel especially vulnerable, it seems. The diesel tightness will be global and manifest this year, as an estimated 1 million barrels per day of refining capacity across Europe and the U.S. is set to close permanently. Another 800,000 barrels daily in new capacity is set to come online in China, India, and Indonesia, Reuters estimated at the end of 2024, which leaves a gap of about 200,000 bpd. Demand for fuels, meanwhile, has continued to surprise to the upside.

In the United States specifically, refining output is estimated to decline by 190,000 barrels daily this year, the Energy Information Administration said this week, with a further decline of 180,000 barrels daily in 2026. “To meet the forecast increase in U.S. consumption of petroleum products with less U.S. refinery capacity, we expect refinery utilization to remain relatively high and for net U.S. exports of petroleum products to decrease to meet domestic fuel demand,” the EIA said in its Short-Term Energy Outlook.

If demand for fuels continues growing, a shortage may well be on the way, as suggested by the chief executive of Phillips 66 last year. Mark Lashier said in September 2024 that refinery closures prompted by low margins could shave some 700,000 bpd from global refining capacity. He saw this as a positive for U.S. refiners, however. “The US has become very competitive in refining,” Lashier said. “We’re able to compete out in the world global markets.”

By Oilprice.com / Irina Slav – Mar 04, 2025.

U.S. natural gas futures jumped in Monday’s early trading session, rebounding from recent lows driven by robust export flows and strong demand forecasts. Henry hub gas was trading at $3.98 per MMBtu at 11.25 am ET, up from a two-week low of $3.74 per MMBtu a week ago. U.S. LNG exports hit a fresh record 15.6 bcfd in February, boosted by new units at Venture Global’s (NYSE:VG) Plaquemines plant. The Arlington, Virginia-based LNG exporter commenced LNG production at its Plaquemines LNG plant 30 months after the final investment decision (FID) was made, making the plant with a 20 mtpa nameplate capacity one of the two fastest greenfield projects to reach first production. Once fully operational, Plaquemines will be among the largest LNG facilities in the world, featuring 36 electrically-driven 0.626 million tonnes per annum (mtpa) liquefaction trains, configured in eighteen blocks. 

“Reaching first LNG at Plaquemines at this pace will enable the United States to remain the top exporter of LNG in the world. Between current and planned facilities, Venture Global is prepared to invest $50 billion in energy projects based in the United States which will create jobs, support local economies, strengthen the balance of trade and unleash much-needed US LNG supply to our allies,” remarked Venture Global CEO and Co-Founder, Mike Sabel. 

The U.S. is rapidly developing LNG plants to meet Europe’s surging demand for the commodity. Two weeks ago, Cheniere Energy, for the first time, started producing liquefied natural gas (LNG)  from the first train (Train 1) of its Corpus Christi Stage 3 Liquefaction Project. As of Nov. 30, the overall project completion for the project was close to 76%; however, the company expects substantial completion achieved at the end of the first quarter of 2025. The project consists of seven midscale trains, projected to produce over 10 million tonnes per annum (mtpa) of LNG.

Meanwhile, gas demand in the Lower 48 states is projected to be higher than previously anticipated despite milder weather expected through March 18. Also, stockpiles remain about 12% below the five-year average due to earlier extreme cold. U.S. gas output hit a fresh record of 104.7 bcfd in February.

By Alex Kimani for Oilprice.com / Mar 03, 2025

Shell is considering a potential sale of its chemicals assets in Europe and the United States, the Wall Street Journal reported on Sunday, citing sources familiar with the matter.

The energy group has hired Morgan Stanley to conduct a strategic review of its chemicals operations, the report said.

Shell and Morgan Stanley declined to comment.

Potential buyers could include private equity firms and Middle Eastern entities seeking to expand their Western presence, according to the newspaper.

The review is in its early stages and Shell has not yet made any definitive decisions regarding a potential sale, the Journal reported, adding that one of the assets included in the review was Shell’s Deer Park facility in Texas.

The Deer Park operation is adjacent to a refinery that Shell previously sold its 100% stake to joint-venture partner, Mexican state oil firm Pemex.

Last year Shell sold its refining and chemicals hub in Singapore, one of the world’s largest.

The British company warned earlier this year that it expects trading in its chemicals and oil products division to be significantly lower quarter-on-quarter due to lower seasonal demand.

Shell chief executive Wael Sawan has been focused on cutting costs and pivoting the company back to its most profitable sectors — oil, gas, and biofuels — while shifting away from renewable power.

Last December, Reuters reported exclusively that the oil major was stepping back from new offshore wind investments and is splitting its power division after a review of the business that was once seen as a key driver of the company’s energy transition strategy.

By: Reuters / March 03, 2025.

 U.S. crude oil refinery inputs averaged 15.3 million barrels per day (b/d) during the week ending Jan. 31, 159,000 b/d more than the previous week’s average, according to the weekly report issued by the U.S. Energy Information Administration (EIA) on Wednesday.

Refineries operated at 84.5 percent of their operable capacity last week, said the Weekly Petroleum Data Report.

During the same period, both gasoline and distillate fuel production declined, averaging 9.2 million b/d and 4.6 million b/d respectively.

U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, surged by 8.7 million barrels from the previous week to 423.8 million barrels, about 5 percent below the five-year average for this time of year.

Total motor gasoline inventories rose by 2.2 million barrels last week, slightly above the five-year average for this time of year.

Finished gasoline inventories went down while blending components inventories went up last week.

Distillate fuel inventories dropped by 5.5 million barrels last week, around 12 percent below the five-year average for this time of year.

Propane/propylene inventories shrank by 4.8 million barrels last week, 2 percent below the five-year average for this time of year.

Total commercial petroleum inventories went down by 2.7 million barrels last week.

Total products supplied over the last four-week period averaged 20.6 million b/d, up by 3.3 percent from the same period last year.

Over the past four weeks, motor gasoline product supplied averaged 8.3 million b/d, down by 0.2 percent from the same period last year.

Distillate fuel product supplied averaged 4.3 million b/d over the past four weeks, up by 13.7 percent from the same period last year.

Jet fuel product supplied was up 4.6 percent compared with the same four-week period last year. 

By: Xinhua / February  19, 2025

Canadian pipeline operator Trans Mountain said it expects to see increased interest to ship on its system if the United States slaps tariffs on Cana*dian oil imports in a month.

The pipeline, which can carry up to 890,000 barrels per day of crude from Alberta to Canada’s Pacific Coast, has been about 80% utilized, with about 20% capacity available for spot shipping at more expensive rate.

While exports of crude oil that flowed through Trans Mountain’s pipelines represented only 9% of Canada’s total crude exports, it has come in the spotlight after U.S. Presi-*ent Donald Trump said he would slap 10% tariffs on Canadian oil imports by the United States.

The tariffs, which were due to take effect on Tuesday, were paused for 30 days on Monday.

Nearly all of Canada’s oil exports – some 4 million barrels per day – head to the United States to be processed by refiners or re-exported from U.S. Gulf Coast ports to Asia.

The Trans Mountain pipeline expansion, which started operations in May, provided Canada an alternative route to export more volumes of crude directly, primarily to Asia, and reduced the country’s reliance on the United States.

“We anticipate there will be increased interest to ship on our system in the face of U.S. tariffs, but it is too early to predict what the volumes will be,” Trans Mountain said in an emailed statement.

Deliveries to Asia are also likely to increase, the company said, adding that deeper discounts for Canadian crude were likely.

The company said it was investigating ways to improve the throughput efficiency and increase the capacity of the expanded system, ideally in the next four to five years under the current regulatory regime.

Exports from Vancouver averaged about 370,000 barrels per day in the last eight months, according to data from ship tracking firm Kpler. About 51% of that headed to Asia, primarily China, in 2024, while the rest went to the United States.

By Reuters / February 4, 2025

Dutch tank storage group Vopak (VOPA.AS), opens new tab said on Wednesday it expected to see little change in 2025 earnings, even as strong demand for energy storage infrastructure buoys its results.

“Gas terminals performance showed firm throughput levels, backed by growing energy demand and energy security considerations around the globe,” Vopak said in a statement.

Shares of the company, which operates terminals and storage facilities for fuels and chemicals worldwide, fell 7% by 0927 GMT, with analysts citing a quarterly core profit miss and a cautious outlook.

For the final quarter of 2024, Vopak flagged a negative one-off effect related to technical issues at one of its LNG terminals in the Netherlands, and an impairment in Mexico due to local legislation significantly reducing imports of crude oil and related products.

“The impact of these items will continue into FY25 and have led to a cautious outlook for FY25,” ING analysts wrote in a note to clients.

Fuel distribution is difficult in Mexico at the moment and the limited amount of permits has resulted in empty capacity there, Vopak’s finance chief Michiel Gilsing told Reuters.

“We invested six years ago to an amount of 58 million euros so there was a significant write off,” Gilsing said.

A policy shift under the current administration is unlikely, he added, which means continued negative market outlook for imports of clean petroleum products into Mexico.

Vopak expects its proportional earnings before interest, taxes, depreciation and amortisation (EBITDA) to land between 1.15 billion and 1.20 billion euros in 2025.

The metric grew by 9% to 1.17 billion euros ($1.22 billion) in 2024, but fell 2% to 277 million in the fourth quarter.

Vopak said it would launch a share buyback of up to 100 million euros on Thursday and propose a dividend of 1.60 euros per share, thanks to its strong cash generation.

By Alban Kacher and Anna Peverieri, Reuters / February 19, 2025