Tuesday, December 10, 2019

Crude Processing News

U.S. Refiners Control Gasoline, Diesel Oversupply

File Image: AdobeStock / © Sharrif Chi'lah

U.S. refiners have cut seasonal crude processing sharply since the start of the second quarter, averting a potential oversupply of gasoline and distillates, but worsening the build up of crude stocks.U.S. refiners have processed an average 16.64 million barrels per day (bpd) of crude since the start of the year compared with 16.94 million bpd at the same point in 2018 (https://tmsnrt.rs/2N9ziVH).Some of the loss can be attributed to the destruction of the 335…

India's Oil Imports at 3-year Low

© Björn Wylezich / Adobe Stock

India's oil imports fell to their lowest in more than three years in September to 3.82 million barrels per day (bpd), data obtained from industry and shipping sources showed, as some refiners cut purchases due to shutdowns for maintenance and fuel upgrades.Last month, Saudi Arabia replaced Iraq as top oil supplier to India after a gap of about 13 months, the data showed.September oil imports, which dropped below 4 million bpd for the first time since June 2016…

Oil Soars 10%

© viking75 / Adobe Stock

Oil futures jumped 10% on Monday after an attack on Saudi Arabian crude oil processing facilities over the weekend sliced the kingdom's production in half and threatened to hamper shipments from the world's largest crude exporter.Prices initially surged more than 20% after the open on Sunday evening, with Brent crude posting its biggest intraday gain since the 1990-1991 Gulf crisis, before pulling back as various nations have said they would tap emergency…

Asia: Pertamina, Petronas Join Forces

Image: Petronas

Indonesian state-owned energy company PT Pertamina and Petroliam Nasional Berhad (Petronas) of Malaysia have signed a Memorandum of Understanding (MoU) to develop oil and gas business – upstream and downstream, not only in Indonesia or Malaysia but also in other countries.As per MoU, Pertamina will swap crude produced in its Malaysian fields of Kikeh, Kimanis and Kidurong with crude from Petronas' Indonesian fields of Jabung and Ketapang, said a Reuters report quoting Pertamina sources.Meanwhile…

Pemex Shrugs off Losses; Eyes New Oilfields

file Image: AdobeStock / © Mike Mareen

Mexico's national oil company Pemex narrowed its multibillion-dollar losses last year, executives said on Wednesday, as it seeks to fast-track the development of 20 new fields this year in a bid to bring new streams of crude online.Long a source of Mexican pride and a potent political symbol, the state-owned company faces an increasingly uncertain future as oil output slides, leaving it with a $7.6 billion loss in 2018."In 2019, Pemex's main objective is to stabilize crude oil production…

Oil Refiners Face Rollercoaster Ride as Fuel Margins Seesaw

© Zhu Difeng / Adobe Stock

Oil product margins have been tossed around on a wild rollercoaster ride in October, as factors like impending Iran sanctions, the China-U.S. trade war and upcoming shipping regulations yank fuel profits up, down and back again.Some profit margins, known as crack spreads in the industry, including for Asian fuel oil and gasoil have boomed, while others, such as Asian and European gasoline cracks, have plunged.Crack spreads are the difference between the price of crude oil and the price of the products such as diesel and gasoline refined from it.

U.S. Energy Chief Applauds Mexico's Plan to End Fuel Imports

File Image: Adobestock / © Sharrif che'lah

U.S. Energy Secretary Rick Perry praised the goal set out by Mexico's incoming president to end massive gasoline and diesel imports, nearly all of which come from the United States, as a measure that will boost prosperity in its southern neighbor.During a visit on Wednesday to the Mexican capital in which he met with both current officials as well as key advisers to President-elect Andres Manuel Lopez Obrador, Perry brushed off concerns that U.S. refiners stand to lose their biggest foreign market."It's a good goal for Mexico.

Mexico's Obrador Pledges More Than $11 Bln for Refineries

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Mexican President-elect Andres Manuel Lopez Obrador said on Monday his administration will invest more than $11 billion to boost refining capacity in order to curb growing fuel imports.Lopez Obrador, who will take office on Dec. 1, told reporters his government plans to invest $2.6 billion to modernize existing domestic refineries owned and operated by national oil company Pemex, and spend another $8.4 billion to build a new one within three years.The…

Crude Processing in Mexico Up 9% -Pemex CEO

Carlos Trevino (Photo: PEMEX)

Mexican national oil company Pemex is currently processing about 9 percent more crude oil at its domestic refineries than it did in 2017, Chief Executive Officer Carlos Trevino said on Tuesday.Trevino told reporters that current processing levels stand at about 834,000 barrels per day (bpd), which compares to crude processing of about 767,000 bpd last year, according to Pemex data.The executive, who took the reins of the state-run company in November, said he expects processing levels to reach about 900,000 bpd once maintenance plans at two facilities are com

Hedge Funds Now Taking Profits After Oil Rally

File Image (CREDIT: AdobeStock / (c) Gear STD)

Hedge fund managers have started to take profits from the big rise in crude oil and refined products prices since June now the rally has lost momentum and inventories are showing signs of stabilising. Portfolio managers cut their combined net long position in the five major futures and options contracts linked to petroleum prices by the equivalent of 34 million barrels in the week to Dec. Net long positions were reduced to 1,120 million barrels, from the previous week’s record of 1…

Crude Oil Rally Stalls as Fuel Prices Soften

File Image (CREDIT: AdobeStock / (c) Leeylutung)

Surging prices for refined products, especially distillate fuel oil, led crude prices higher between June and November, but now fuels are slipping and putting crude under pressure. Gross refining margins for producing distillate fuel oil from U.S. crude rose from $14 per barrel in June to more than $25 per barrel in the middle of November. The U.S. distillate market started the year in substantial oversupply, with inventories well above the long-term average (http://tmsnrt.rs/2joA5Cw).

Oil Firms as Gulf Refineries Restart

File Image (CREDIT: AdobeStock / (c) Sharrif Che'Lah)

Hurricane Harvey's impact on oil industry slowly fading. Brent oil prices firmed on Thursday, hovering near 3-1/2-month highs as U.S. refiners restarting after Tropical Storm Harvey increased their crude processing and the U.S. dollar declined. Brent crude futures were up 28 cents at $54.48 a barrel by 1143 GMT, close to their highest since May 25. U.S. West Texas Intermediate (WTI) crude futures eased by 11 cents to $49.05 a barrel, near a four-week high. U.S.

Fire Out at Dalian PetroChina Refinery

A fire that broke out on Thursday at state oil major PetroChina's plant in northeastern China, one of the country's largest refineries, has been put out with no reported casualties, state media reported. The fire came just two months after the Dalian refinery finished a planned major maintenance. More than 600 firefighters extinguished the blaze at the plant's 1.4 million-tonnes-per-annum catalytic cracker just after 9:00 p.m. (1300 GMT), and stayed on the scene to make sure equipment at the refinery remained cool, state broadcaster CCTV said on Friday.

Higher-cost Crude Could Squeeze Margins at US Refiners

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U.S. refiners could face a continued squeeze on profit margins in the months ahead as dwindling supplies of heavy crude from Venezuela and elsewhere are leading several to switch to higher-priced but easier-to-refine light, sweet crude. The shift also could mean higher prices for consumers in the last weeks of the summer driving season and into the fall if refiners are able to pass along those higher costs to drivers, analysts said. PBF Energy Inc, Valero Energy Corp…

Oil Bulls Encouraged by Falling U.S. Crude Stocks

File Image (CREDIT: AdobeStock / (c) Leeylutung)

U.S. crude stocks have shown a sustained decline over the last five weeks, giving oil bulls new inspiration that the market is rebalancing. Commercial crude inventories have fallen by 13 million barrels since the end of March, according to data from the U.S. Energy Information Administration (http://tmsnrt.rs/2r39psy). Crude stocks generally follow an annual cycle driven by seasonal variations in fuel consumption and the maintenance schedule for U.S. refineries.

Record U.S. Refinery Runs Fail to Lift Crude Price

File Image (CREDIT: AdobeStock / (c) Sharrif Che'Lah)

U.S. refineries processed a record volume of crude last week, making a small dent in the country’s bloated crude stocks but resulting in a big build-up of refined product inventories. U.S. refineries have ramped up crude processing by 1 million barrels per day (bpd) over the last four weeks and 2 million bpd over the last nine weeks, according to the U.S. government's Energy Information Administration. Refineries processed an average of almost 17.3 million bpd of crude in the week to April 21…

Brent Curve Signals Oil Tanks Will Start Emptying in H2 2017: Kemp

OPEC and non-OPEC oil producers have agreed to reduce their combined output by more than 1.7 million barrels per day for six months from January 2017. But the agreement contains a provision that it can be extended for a further six months, subject to market conditions. Oil traders are betting on an extension, with most of the rebalancing of the oil market expected to occur in the second half of 2017. Storage tanks are expected to remain fairly full throughout the first six months of the year and only start emptying from June.

U.S. Refiners Carry on Despite Gasoline Glut

Fears that U.S. refiners will cut crude processing in response to deteriorating margins and rising gasoline stocks have haunted the oil market for the past two months. But so far there are few signs that U.S. refiners are actually making voluntary "economic run cuts" as a result of the glut of gasoline and sharp falls in gasoline prices (http://tmsnrt.rs/29PsarD). U.S. refiners processed an average of 16.7 million barrels of crude per day in the last four weeks, unchanged from the same period in 2015, according to the U.S. Energy Information Administration.

Venezuelan Crude Sales to the US Jump 4% in May

Venezuelan crude oil sales to the United States rose nearly 4 percent in May to 762,000 barrels per day (bpd) after declining since January amid falling output and delays at the country's main oil port, according to Thomson Reuters data on Tuesday. The United States last month received 47 cargoes of Venezuelan crude, a 3.7 percent increase versus the previous month, but still a 2 percent decline versus May 2015, according to trade flows data made with preliminary figures.

Rosneft, Pertamina Poised for Indonesian Refinery Deal

Rosneft, Russia's largest oil producer, and Indonesia's Pertamina will sign a framework agreement later this week on an oil refinery in Indonesia, Russian presidential aide Yuri Ushakov told reporters on Tuesday. He did not elaborate. Pertamina has been looking for a development partner for the $12 billion Tuban refinery project. The deal is expected to be signed in the Russian Black Sea resort of Sochi, on the sidelines of a conference there. Last month…