EIA: US crude stocks fall as refiners increase output
The Energy Information Administration reported on Wednesday that U.S. crude stockpiles dropped last week, as oil refiners increased production to coincide with the start the summer driving season. Fuel inventories, however, rose due to a weaker demand. The EIA reported that crude inventories dropped by 4.3 millions barrels, to 436.1 million in the week ending May 30. This was in contrast with the analysts' polled expectations of a draw of 1 million barrels. The EIA reported that refinery crude runs increased by 670,000 barrels a day.
Japan's oil refiners reduce decarbonisation and refocus on fossils fuels
Japanese oil companies have scaled back their decarbonisation projects, including ammonia and hydrogen, as the world shifts towards fossil fuels that are more cost-effective and stable. This move is a reflection of the growing concerns about energy security and U.S. policies risks. It also reflects rising costs for materials due to inflation. All these factors undermine project profitability. Companies that had reoriented portfolios in order to combat climate change, are now refocusing their attention on oil and natural gas.
US refiners are unlikely to spend large amounts to process more domestic crude oil
It can be expensive and time-consuming to change refinery configuration. The margins and yields of refineries can be affected by using different types of crude. By Arathy S. Analysts and industry sources said that U.S. refiners do not plan to invest heavily to process more crude oil domestically and less oil imported from Canada and Mexico. This is a major obstacle to President Trump’s plan to increase oil production. Trump's pledge of unleashing U.S. production and lowering prices for consumers focused on increasing domestic drilling.
Oil trade group calls for national ethanol policy in the US after EPA approves Midwest expansion
The American Petroleum Institute, a trade group, pushed for a national policy on gasoline blends with higher ethanol levels on Monday after President Donald Trump’s administration announced on Friday that it would expand sales of this product in certain Midwestern States. The U.S. Environmental Protection Agency announced on February 21 that it would support an April 28th implementation date in response to a request by eight Midwest Governors for year-round sale of gasoline containing 15 percent ethanol (also known as E15).
Executives say oil refiners are adding renewable feedstocks to produce cleaner fuels.
To meet the global demand for cleaner fuels, oil refiners are increasing efforts to blend in renewable feedstocks like used cooking oils into their crude refining streams. Maurits Van Tol, Chief Executive of Johnson Matthey, a provider of catalyst technologies, stated that the demand for additives and catalysts to remove impurities from feedstocks has increased. He said that in recent years, refineries have been blending some components into biomass feedstocks. Van Tol added that the demand for additives and catalysts has also been boosted by the use of heavy crude oil…
US Bill Would Allow Year-Round E15 Sales
An upcoming U.S. government funding bill is expected to include a plan that would allow year-round sales of gasoline with a higher ethanol blend, a major win for the corn and ethanol lobbies, according to two sources familiar with the matter.This would be a victory for the Ethanol industry who has been fighting for year-round E15 to increase demand for their products.Sources said that the plan also provides credits to refiners who can prove that they are in compliance with the U.S. Renewable Fuel Standard.
New refineries bring down profits for global refiners
Oil refiners across Asia, Europe, and the United States have seen their profitability drop to multi-year-lows. This is a significant downturn in an industry which had previously enjoyed booming returns following the pandemic. It also highlights the global slowdown. This weakness is another sign of a softening consumer and industrial demand in China due to the slowing of economic growth and increasing penetration of electric cars. The pressure on prices has been exacerbated by the addition of new refineries in Africa, Asia and the Middle East.
Saudi Arabia Remains China's Top Crude Supplier
Russia remained China's second-largest source of crude oil in 2022, following repeat top supplier Saudi Arabia, as Chinese refiners snapped up low-cost Russian barrels while Western countries shunned them after the Ukraine crisis.China's crude oil imports from Russia jumped 8% in 2022 from a year earlier to 86.25 million tonnes, equivalent to 1.72 million barrels per day (bpd), data from the General Administration of Customs showed on Friday.Russian crude has been trading in widening discounts to global oil benchmarks following Western sanctions over its invasion of Ukraine…
India Asks Refiners to Cut Reliance on Middle East Oil after OPEC+ Decision
India has asked state refiners to speed up the diversification of oil imports to gradually cut their dependence on the Middle East after OPEC+ decided last week to largely continue production cuts in April, two sources said.India, the world's third biggest oil importer and consumer, imports about 84% of its overall crude needs with over 60% of that coming from Middle Eastern countries, which are typically cheaper than those from the West.Most of the OPEC+ producers, led by world's top exporter Saudi Arabia…
Global Crude Market Finds Support From China Demand
China, the global oil market's lifeline this year, has stepped up purchases from exporters like Russia, the United States and Angola in recent weeks, while buyers elsewhere pare orders as coronavirus infections surge and fresh lockdowns are put in place.China, the world's largest importer of crude, is the only major buyer expected to see increased oil demand this year as the pandemic destroyed consumption globally.With China's imports expected to reach 12 million barrels per day (bpd) next year…
Oil Rises from 18-Year Lows after U.S., Russia Agree to Talks
Oil recovered ground on Tuesday after U.S. President Donald Trump and Russian President Vladimir Putin agreed to talks to stabilize energy markets, with benchmarks climbing off 18-year lows hit as the coronavirus outbreak cut fuel demand worldwide. Brent crude was up by 30 cents, or 1.3%, at $23.06 a barrel by 0635 G5MT, after closing on Monday at $22.76, its lowest finish since November 2002. U.S. crude was up by $1.21, or 6.0%, at $21.30 a barrel, after settling in the earlier session at $20.09, lowest since February 2002.
Japan's Oil Refiners Keep Running Even as Coronavirus Curbs Fuel Sales
Sales of petroleum products are slumping in Japan as the coronavirus outbreak worsens in the world's fourth-biggest importer of crude, but the country's biggest refiners say they are not planning to cut production.Oil product sales, including gasoline and jet fuel, slumped more than a quarter last week, the most recent period for which figures are available. Jet fuel sales sunk nearly 80% as Japanese and global airlines cancelled flights to China and other destinations.The coronavirus outbreak that started in China late last year is spreading across the world at an increasing rate…
Shutdown Risks Delays to US Energy Initiatives
The partial government shutdown is increasing the chances of delays in U.S. energy initiatives from the release of President Donald Trump's proposed offshore drilling plan to allowing higher levels of ethanol in gasoline during summer months, energy industry groups said on Friday.The U.S. Department of Interior had been expected to release its highly anticipated 2019 to 2024 offshore oil and gas drilling plan in early January.The Trump administration has made opening up greater areas to offshore drilling…
Oil Refiners Face Rollercoaster Ride as Fuel Margins Seesaw
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.
Valero, Marathon Beat Profit Estimates as Refining Margins Rise
Two of the biggest independent oil refiners in the United States beat Wall Street profit estimates on Thursday as greater processing of cheap, light crude from West Texas helped boost margins.Shares of Findlay, Ohio-based Marathon Petroleum gained as much as 7 percent to $79.43, while those of San Antonio, Texas-based Valero Energy Corp rose 4 percent to touch $113.53.Most refiners in the United States process heavy crude from countries such as Venezuela or Canada into diesel, gasoline and other products, but the U.S.
EPA Scraps Plan to Force US Refiners to Blend More Biofuels
The U.S. Environmental Protection Agency ditched a detailed plan that would have forced refiners to blend more biofuels into their gasoline and diesel in 2019 to compensate for volumes likely to be exempted under the agency's small refinery hardship waiver program, according to newly released EPA documents.The plan would have boosted the renewable fuel blending obligation for the refining industry to 11.76 percent from 10.88 percent to offset volumes lost under the waiver program…
Buyers Seek US Waivers to Buy Iranian Oil amid New Sanctions
South Korea said on Wednesday it would seek U.S. exemptions to buy Iranian oil, a path many big oil consumers are likely to follow in the wake of new U.S. sanctions on Tehran, which will tighten world oil markets and push up prices.Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and a key supplier, especially to refiners in Asia.The United States plans to impose new unilateral sanctions after abandoning an agreement reached in late 2015 which limited Iran's nuclear ambitions in exchange for removing joint U.S.-Europe sanctions…
Asia's Gasoline Glut Drags on Refining Margins
Asia's gasoline crack on Thursday hit lowest since 2016; recent high refinery throughput countered maintenance season. Gasoline profits for Asia's oil refiners hit their lowest since 2016, while refining margins have touched a three-month low, pulled down by high crude oil prices and an oversupply of fuel. The slump in profit margins comes as prices for crude oil , which is the most important feedstock for refiners in Asia, hit their highest since late 2014 of almost $75 per barrel.
Essar UK to Buy More US Crude in 2018
Essar UK, one of Britain's biggest oil refiners, will buy more U.S. crude this year after testing it last year, showing how rising output from the United States is squeezing out traditional European suppliers from the North Sea and Africa. Essar took at least three cargoes U.S. crude in 2017 for its 200,000 barrel-per-day (bpd) Stanlow oil refinery. "We will continue to take U.S. cargoes because we find value in them," Chief Executive Officer Srinivasalu Thangapandian told Reuters at a Platts middle distillates conference in Antwerp.
Idemitsu, Showa Shell to Combine Crude Liftings
The two companies expect to finish this loading integration in the second-half of 2018, Idemitsu CEO Takashi Tsukioka told reporters on the sidelines of an industry event to mark the New Year. Idemitsu said last month that it and Showa Shell would combine management of their key businesses, pursuing a merger bitterly opposed by a core investor - Idemitsu's founding family. Japan's second- and fourth-biggest refiners by sales aim to win over Idemitsu's founding family by showing successful examples of "synergies" between the two companies, Tsukioka said.
