Latest News
-
Chevron's tankers that were chartered to transport Venezuelan crude oil are looking for other work
Sources say that some tankers Chevron chartered this month to transport crude oil from Venezuela to the U.S. are now being sold for spot contracts in other countries after the state company PDVSA cancelled loading permits and ordered them to return the cargoes due to payment uncertainty associated with sanctions. Chevron's marketing for the vessels suggests that it does not expect all of its cargoes to be loaded in one month, even if the dispute with PDVSA is resolved. Agelef Maritime Services was marketing the Tanker Sea Dragon that discharged Venezuelan Boscan heavy oil in Philadelphia. Two sources familiar with this matter confirmed it. Sources confirmed that Chevron's Andromeda was the vessel marketing Andromeda which discharged Venezuelan Hamaca crude earlier this month at Port Arthur. Six more tankers that Chevron chartered in order to transport Venezuelan crude oil to the U.S. as part of winding down its U.S. licence through May 27, are stranded in the Caribbean Sea awaiting directions. Last week, PDVSA ordered the return of two cargoes and cancelled loading permits for others. According to sources and ship tracking data, the Chevron chartered tanker Dubai Attraction was still waiting for customs paperwork in order to return its cargo as of Wednesday. The tanker had loaded some 300,000 barrels Venezuelan Boscan oil early in April. LSEG shipping data revealed that Carina Voyager was near Aruba last week after returning its 500,000 barrel cargo to PDVSA. According to a PDVSA document, the loading window for Sea Jaguar at Venezuela's Jose Terminal, originally scheduled for late April, has been canceled. According to tracking data, the ship hovered around Aruba on Wednesday. Chevron and PDVSA didn't respond to requests for comments. Venezuela Oil Minister Delcy Rodriguez stated in a post on social media that PDVSA maintains its commitments to Chevron, but Chevron has been "victimized" by U.S. sanctions. The data and documents show that other tankers chartered through Vitol are loading and unloading normally in Venezuelan ports. Meanwhile, vessels chartered for India and Maurel & Prom to deliver to Europe have left on time, before the deadline of May 27 to wind up cargoes. Reporting by Arathy S. Somasekhar, Houston. Editing by Franklin Paul & David Gregorio.
-
Venezuela exports Blend 22 crude oil ahead of US expiration of licenses
Trading documents revealed that Venezuela will export a new medium blend of crude oil this month. This is part of a strategy to prevent a collapse in its revenue-generating sales of oil once the licenses of the U.S. sanctioned OPEC members expire next month. Washington revoked a few licenses in March that it had issued in the past to partners and customers of Venezuelan state company PDVSA for cargoes of Venezuelan oil bound for Spain Italy India and the U.S. The U.S. Treasury Department has given the companies until May 27, to complete their operations in Venezuela and ship all shipments. PDVSA began preparing for a reorganization of oil production, upgrading and exports after the announcement. This is especially true at the projects run by joint ventures that were affected by the license cancellations. One of these measures is to produce and sell "Blend 22", a new crude grade from the PDVSA Western fields. PDVSA increased its Blend 22 production and storage in recent months to attract customers in Europe, Asia and other regions that are looking for a medium-sour grade to refine. Sources said that the Venezuelan company actively markets the crude oil so it can ship it to other destinations including China once the licenses expire. Documents seen by.com show that the first two Blend 22 export cargoes were delivered by La Salina Port in Western Zulia to France's Maurel & Prom as part of a swap with heavy naphtha, which was delivered by PDVSA to this month. The swap had been authorized by a U.S. licence since last year. Trading house Vitol chartered the vessels to transport crude oil that arrived in Venezuelan water earlier this month. One document shows that the first tanker will carry around 250,000 barrels. The U.S. Treasury revoked the license of Paris-based M&P in late March, with a deadline of May 27 for the completion transactions. PDVSA and M&P have not responded to requests for comments. Vitol was not available for immediate comment. It wasn't immediately clear who would buy the new crude after Vitol. PDVSA is also trying to refine crude oil domestically in order to avoid fuel crises like the ones that caused day-long queues at stations during previous years when U.S. sanctions were being tightened. Venezuelan crude oil and fuel exports increased by about 11% last year to 770,000 barrels a day (bpd), the highest level since Washington imposed energy sanctions in 2019. The U.S. President Donald Trump’s tougher stance against the oil producer will likely stop the increase in exports, if both countries are unable to find solutions for current issues such as migration and democracy. Venezuela declared an economic emergency as a response to U.S. tariffs and sanctions. Officials reject the sanctions and say they are an "economic warfare."
-
Morocco expresses interest in LNG terminal
Morocco, in an effort to diversify the energy sector that is heavily dependent on coal, made the first steps toward the location of a terminal for liquefied gas near the Mediterranean City of Nador. The Moroccan energy industry has expressed interest in the LNG terminal. Morocco is also pushing forward with a plan to increase renewable energy from 45% of installed capacity now to 52% by 2030. In a press release, the ministry announced that the terminal would be connected to an existing pipeline linking Morocco with Spain, as well as to industrial zones in Mohammedia, and Kenitra in the northwest of the country. According to estimates by the ministry, Morocco's gas demand is expected to grow to 8 billion cubic meters in 2027. It currently stands at 1 billion cubic metres. In addition, the statement said that the new infrastructure would also be connected to a project in development that aims at connecting Morocco to Nigerian natural gas fields. According to the energy ministry's responses sent to, the pipeline between Morocco and Nigeria, which was agreed in 2016, will cover 6800 km including 5100 km of offshore, and cost 25 billion dollars. The same source stated that Morocco and Nigeria were preparing to set up a special-purpose company which would look at the technical and legal aspects. It said that the project, which is backed by the West African grouping ECOWAS has completed the feasibility study and Front End Engineering stages (FEED). First phases of the project will connect Morocco with gas fields off Senegal, Mauritania and Ghana as well as Ivory Coast to Ghana. According to the ministry, the second phase will connect Nigeria with Ghana and the final phase will link Ivory Coast with Senegal. (Reporting and editing by David Gregorio; Ahmed Eljechtimi)
-
Mexico exports its first ULSD shipment from Olmeca Refinery amid infrastructure problems
According to data from tanker tracking and a reliable source, Mexico exported its first cargo of ultra low sulfur diesel (ULSD), reprocessed at the new Olmeca Refinery, in early April. The infrastructure needed to transport this much-needed motor gasoline across the country was not yet ready. A source familiar with operations at the Madero refinery said that the Olmeca refinery received high-sulfur unfinished diesel from Tamaulipas, to convert it into ULSD. However, its own production remains marginal. Mexico is one of the world's largest crude oil producers, but it imports hundreds and thousands of barrels every day due to Pemex, its state-owned energy company struggling to convert heavy crudes it pumps into fuels. Olmeca was Pemex's seventh refinery, located in Mexico. It has a processing capacity of 340,000 barrels of oil per day. The facility is designed to help the country become energy independent. LSEG data revealed that the tanker Torm Singapore, flying the Danish flag, loaded about 300,000 barrels ULSD at Dos Bocas in early April, on a single buoy moored off of port. The vessel discharged the first parcel a few days later in Port Canaveral, Florida. A second parcel was then delivered to Yabucoa, Puerto Rico. According to LSEG's data, which has been compiled since the beginning of 2024, this was Mexico's very first shipment from Dos Bocas. According to data, a second tanker with the Italy flag, Valleblu, also loaded ULSD in Dos Bocas late last week, but it hasn't left yet. It was not possible to determine if Pemex will export more from Olmeca after the two cargoes. PMI Comercio Internacional (the commercial arm of Pemex) did not respond immediately to a comment request. Olmeca has so far produced petroleum coke and unfinished fuels, as is typical for refineries that are in the start-up phase. Last year, it was revealed that its first export was to India. One source stated that the diesel was exported because the refinery did not have enough pipelines and rail routes for large volumes to be transported domestically. They also said there were insufficient fuel trucks to distribute the diesel throughout the rest of the nation. A document that was shared with highlighted the fact that the construction of the refinery would be expensive and time-consuming. Pemex distributes small quantities of diesel from Olmeca's refinery via fuel trucks. It would have taken at least 1,300 fuel trucks to transport the same volume as what was exported. Former Mexican President Andres Manuel Lopez Obrador inaugurated in July 2022 a part of the refinery infrastructure in Tabasco. He hailed it as vital to the energy independence for the country. The delay in completing the refinery has cost more than doubled, reaching $16,8 billion. It will now be up to Claudia Sheinbaum to finish the project. (Reporting from Marianna Pararaga and Stefanie Eschenbacher, Mexico City. Additional reporting by Ana Isabel Martinez in Mexico City. Editing by Mark Porter.)
-
Chevron's tankers that were chartered to transport Venezuelan crude oil are looking for other work
Sources say that some tankers Chevron chartered in order to transport crude oil from Venezuela to the United States last month are being sold for spot contracts on other markets after the state company PDVSA cancelled loading permits and ordered them to return the cargoes due to payment uncertainty resulting from sanctions. Chevron's marketing for the vessels suggests that it does not expect all of its cargoes to be loaded in one month, even if the dispute with PDVSA is resolved. Agelef Maritime Services was marketing the Tanker Sea Dragon that discharged Venezuelan Boscan heavy oil in Philadelphia. Two sources familiar with this matter confirmed it. Sources confirmed that Chevron's Andromeda was the vessel marketing Andromeda which discharged Venezuelan Hamaca crude earlier this month at Port Arthur. Six more tankers that Chevron chartered in order to transport Venezuelan crude oil to the U.S. as part of winding down its U.S. licence through May 27, are stranded in the Caribbean Sea awaiting directions. Last week, PDVSA ordered the return of two cargoes and cancelled loading permits for others. According to sources and ship tracking data, the Chevron chartered tanker Dubai Attraction was still waiting for customs paperwork in order to return its cargo as of Wednesday. The tanker had loaded some 300,000 barrels Venezuelan Boscan oil early April. LSEG shipping data revealed that Carina Voyager was near Aruba last week after returning the 500,000 barrels of cargo to PDVSA. According to a PDVSA document, the loading window for Sea Jaguar at Venezuela's Jose Terminal, originally scheduled for late April, has been canceled. According to tracking data, the ship hovered around Aruba on Wednesday. PDVSA and Chevron have not responded to our requests for comment. The data and documents show that other tankers chartered through Vitol are loading and unloading normally in Venezuelan ports. Meanwhile, vessels chartered for India and Maurel & Prom to deliver to Europe have left on time, before the deadline of May 27 to wind up cargoes. Reporting by Arathy S. Somasekhar, Houston; Editing and proofreading by Franklin Paul
-
Sources say that oil loadings in Russia's western ports are expected to increase by 5-10% this May.
Sources in the trade and industry said that oil exports from Russia's western port are expected to increase this month due to lower crude production at Russian oil plants. However, the OPEC+ production limits may only have a small impact on Moscow’s export plans. The port of Primorsk may increase its daily loadings to an average of 2.0-2.1 million barrels next month, up from the 1.9 million barrels planned for April. Calculations showed that this is an increase of 5-10% per day. On account of low margins, refinery runs could fall by 80,000 to 100,000 barrels per a day. The impact of a stronger rouble, and lower damper payment is negative. Oil prices for domestic oil plants are also falling, but at a slower pace," said an industry source. According to calculations based upon data from industry sources and despite the extension of stoppages, Russia's primary oil refining offline capacity is expected to remain unchanged from April, at approximately 3.0 million metric tons. The higher OPEC+ oil output quotas could have a limited impact on Moscow's May export plans, as Russia would compensate to a great extent for a planned rise. Eight OPEC+ nations agreed to accelerate their plan to phase-out oil production cuts by increasing output 411,000 barrels a day in May. The Russian oil production quota rose to 9,083 million bpd in May, and its updated plan from OPEC required it to compensate 85,000 bpd for oil overproduction. According to OPEC, Russia's crude output fell to 8,963 million barrels a day in March, from 8,973 million bpd a month earlier. Jan Harvey (Reporting and Editing)
-
South Dakota regulators deny Summit Carbon Solutions a carbon dioxide pipeline permit
The South Dakota regulators denied Summit Carbon Solutions permit application on Tuesday to run 700 miles (1126km) of their carbon dioxide pipeline in the state. This is the second time that the state has rejected the company's bid to build the largest carbon pipeline in the world to combat climate changes. This denial is just one of many setbacks for the project. Another was South Dakota's ban in March on using eminent realm to build carbon dioxide pipelines. The state denied its first permit application for 2023. Summit plans to build 2,500 miles (402 km) of pipeline in Iowa, Minnesota and Nebraska. It will also run through South Dakota, North Dakota, South Dakota, and South Dakota. The pipeline will capture and store carbon dioxide produced by 57 ethanol factories. Landowners on the route have refused to sign easements because they are worried about possible pipeline leaks or their land value being affected. Members of the Public Utilities Commission of New York said in a meeting on Tuesday that Summit had failed to adequately demonstrate a viable route without using eminent Domain - the compulsory purchase of land for projects of public interest. Sabrina Zenor, Summit's spokesperson, said: "We will take all necessary steps to resubmit an application with a smaller scope and continue engagement with landowners. The groups that opposed the pipeline have celebrated this decision. The application of Summit relied on using eminent-domain to force landowners who were unwilling into the project. The route was no longer feasible, now that South Dakotans can say "no thank you", said Chase Jensen in a Dakota Rural Action statement. Carbon capture and storage is supported by the ethanol industry because it would allow them to receive lucrative tax credits on fuels with lower emissions. Carbon storage projects are costly and have not been tested at scale. Summit's permit requests have been approved by Iowa, North Dakota, and Minnesota. Nebraska has no state-approved process for carbon dioxide pipes.
-
GE Aerospace CEO Culp advocates tariff-free regime for aviation industry
GE Aerospace CEO Larry Culp stated on Tuesday that he advocated a re-establishment of a tariff-free régime for the aerospace sector under the 1979 Civil Aircraft Agreement, when he met U.S. president Donald Trump. Culp told in an interview that the administration "understood the company's view" and added that the zero-duty system has allowed the U.S. Aerospace industry to generate a $75 billion trade surplus each year. Culp said: "I've argued it would be good for our country." Trump's trade conflict has caused the most uncertainty in the aerospace industry since COVID. The trade war has led to the breakdown of decades-old duty free status for the aerospace industry, which puts aircraft deliveries on hold. GE Aerospace customers are struggling to forecast their business accurately due to the uncertainty. Howmet Aerospace, one of GE Aerospace's most important suppliers, has warned it could halt some shipments in the event that tariffs are implemented. Culp stated that the company had not experienced any interruptions in delivery from Howmet. The Pittsburgh-based provider is currently working on a new high-pressure turbo blade for the Leap 1A engines, which GE Aerospace and France's Safran SA produce in a joint-venture. He said, "That ramp is doing very well here in 2025." GE Aerospace is facing supply chain issues, which has led to a decrease in engine deliveries during the last year. Airbus announced last week that it was having problems with engine deliveries because CFM was "significantly lagging behind." Culp stated that the company was "well aligned with" the European planemaker’s needs for this coming year. However, he added that the tariffs had created supply chain risk. Tariffs will cost GE Aerospace over $500 million in tariffs this year. To reduce the impact, GE Aerospace is making better use of available trade programs and foreign trade zones. The company is using cost controls as well as a tariff surcharge in order to protect its margins. The trade-induced uncertainty in the economy has also affected travel demand. Travel spending is softening and there's a risk that airlines will start to delay their engine orders. Culp stated that other airlines would step up if a particular airline decided to stop its deliveries. He said that there are many other people who would step in and take their position. (Reporting and editing by David Evans; Rajesh Kumar Singh)
What is the issue in US discussions with Ukraine and Russia
U.S. officials will meet with negotiators in Saudi Arabia from Ukraine and Russia to discuss details of the proposed 30-day ceasefire for strikes on energy infrastructure as well as an overall peace agreement. Negotiators from Russia and Ukraine will not be present in the same meeting room. On Sunday night, officials from Kyiv will meet with the U.S. delegation in Riyadh. Then, on Monday, the Russian and U.S. negotiators will meet. Last week, U.S. president Donald Trump met with Russian President Vladimir Putin as well as Ukrainian President Volodymyr Zelenskiy in order to promote his efforts to end the three year war in Ukraine. Here are some issues that Russia and the U.S. are currently discussing:
ENDING ATTACKS ENERGY INFRASSTRUCTURE
According to the White House, Trump and Putin agreed last week that "the movement towards peace will begin", with a 30 day pause on attacks against Russian and Ukrainian energy installations.
The ceasefire, which was narrowly defined, has been cast into doubt. Moscow claims that Ukraine struck an oil depot in southern Russia, while Kyiv says Russia struck hospitals, homes and knocked power out to some railways.
Zelenskiy stated that Kyiv will draw up a listing of facilities which could be included in the partial ceasefire. He said that the list could not only include energy infrastructure but also rail or port infrastructure. A moratorium on energy-infrastructure strikes may favour Moscow over Kyiv. This is because it will prevent Ukraine from launching long-range attacks on Russian oil installations, which has been a major way to inflict pain on its adversary.
NUCLEAR POWER PLANTS
In a U.S. press release, Trump said that during his phone call with Zelenskiy, he had suggested the U.S. might help manage, and even own, Ukraine's energy infrastructure and nuclear power plants.
Zelenskiy stated that he and Trump had discussed the Russian-occupied Zaporizhzhia plant in Ukraine, Europe’s largest nuclear facility. Russia and Ukraine both accuse each other of putting the nuclear plant at risk by their actions.
Zelenskiy stated that Kyiv was ready to discuss U.S. participation in modernizing the facility if it returned to Ukraine.
Ukraine will benefit long-term from regaining the control of this facility that generated 20% of all its power production before the war.
Zelenskiy warned that it would take at least two and a quarter years to bring the plant up and running due to the numerous technical problems it faces. According to industry sources, it would take huge amounts of investment.
BLACK SEA SHIPPING The Kremlin stated that Putin had "responded in a constructive manner" to a Trump proposal on protecting Black Sea Shipping and they have agreed to start negotiations.
The United Nations and Turkey helped to mediate a deal in July 2022, the so-called Black Sea Grain Initiative. This allowed for the safe exportation of 33 million metric tonnes of Ukrainian grain across Black Sea despite war.
After a year of protesting that the exports of its food and fertilizer were severely hindered, Russia resigned from the agreement.
According to the World Bank's Global Commodities Outlook for April 2024, despite Black Sea shipping risk, both Russia & Ukraine shipped grain to global markets with no major issues. The World Bank also stated that the Black Sea Grain Initiative collapse had minimal consequences.
PRISONER EXCHANGES Russia & Ukraine each exchanged 175 prisoners-of-war on Wednesday. Russia also handed over 22 severely wounded Ukrainian prisoners as part of a gesture of goodwill, according to the Russian Defence Ministry.
Zelenskiy said that the exchange was one of the biggest of its kind, and the 22 Ukrainians who were involved in it were "severely injured warriors" and people whom Russia had persecuted because of fabricated crimes.
NATO MEMBERSHIP
Putin wants Ukraine to drop its official ambitions to join NATO.
In its constitution, Ukraine states that joining NATO is a priority and that this would be the most effective and efficient form of security that it could receive as part a peace agreement. John Coale said last month that the United States has not ruled out a potential NATO membership for Ukraine, or a negotiated re-entry to Ukraine's pre-2014 border. This contradicted comments made by Pete Hegseth, the U.S. defense secretary, a day before.
Hegseth told Ukraine's allies in Brussels that a return to Ukraine’s borders prior to 2014 was unrealistic, and that the U.S. didn't see NATO membership as part of a resolution to the war. This sparked concerns that the U.S. made concessions before the talks began.
Trump said that he did not believe Russia "would allow" Ukraine to join NATO. Trump has blamed Joe Biden, his predecessor for pushing this idea. However, it was originally backed by Republican president George W. Bush back in 2008.
UKRAINE POST-WAR SECURITY
Ukraine wants guarantees about its security in the future, but this is at odds with what Kremlin demands.
Kyiv, and its European backers, agree that the key to Kyiv's security is an unfettered Ukrainian army. Moscow has said that a reduced military in Ukraine is one of the conditions for a peace agreement. Britain and France have a plan for a deterrent force made up of foreign ships, planes and troops that will be stationed in or around Ukraine following the signing of a peace agreement. The details of the force's operation and its members are still unclear.
Some Russian officials, however, have stated that they would not be able to accept such a force.
WESTERN SANCTIONES, ELECTIONS Putin said that he wanted the Western sanctions to be eased as well as a presidential vote in Ukraine.
Kyiv is yet to hold any elections in 2019 due to the martial law that governs wartime. Ukrainian officials say that it would be impossible to hold elections during the war.
Officials in Ukraine say that they are a sovereign country and it's not Moscow’s place to tell them when their elections will be held.
Biden led the United States in broad sanctions against Russia. These steps include measures to limit its oil and natural gas revenues. They also include a $60 cap per barrel for Russia's oil. Sources say that since Trump returned to power, he has studied ways to ease sanctions in exchange for Moscow ending the conflict. Trump also hinted at the possibility of large-scale tariffs and banking restrictions on Russia until peace was achieved.
RUSSIAN HOLDED TERRITORY
Russia wants control of all four eastern Ukrainian regions that it claims as its own. It also wants the Crimean Peninsula, which it annexed and seized in 2014. Unnamed sources at a private business meeting with Putin in Moscow on Tuesday told Russia's Kommersant that Putin wants the U.S. formally to recognise Luhansk and Donetsk as part of Russia, along with Crimea.
Ukraine has already acknowledged that it is not possible to recapture some of the occupied Ukrainian territories by force, and that they will need to be returned diplomatically in due course. Kyiv, however, says that it will not recognise Russian sovereignty on Ukrainian territory.
On Sunday, Trump's National security adviser Mike Waltz answered a question about whether the U.S. was willing to accept a deal that allowed Russia to retain Ukrainian territory. He replied:
We must ask: Is it in our national interests? Is this realistic? "Are we going to force every Russian from every inch of Ukrainian territory?"
UKRAINIAN RESOURCES Kyiv has been in talks with Washington about a deal that would give the United States a financial reward for the development of Ukrainian resources, namely rare earths which are used to make electronics. The deal fell apart after the disastrous White House meeting that took place between Trump and Zelenskiy towards the end of the last month. Trump announced on March 21 that a rare earths deal would be signed in the near future. The White House may be interested in Ukraine's infrastructure for gas beyond that deal. Ukraine has the third largest underground storage capacity in the world. The country could import liquefied gas from the United States and store it before shipping it to Europe.
(source: Reuters)