Oil & Gas Refining








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Oil & Gas

Trump tariffs on Brazil's chemical exporters lead to order cancellations

Brazilian chemical companies, who exported $2.4 billion in products to the U.S. during the past year, are facing a wave of contract cancellations, as President Donald Trump threatened a new tariff of 50% on Brazil's exports starting August 1. Andre Cordeiro of Brazilian chemical lobby Abiquim said that since Trump's announcement export orders for certain resins, compounds and other materials used in the production of fertilizers have been cancelled. Brazil supplies these products to the U.S. agricultural sector. Cordeiro explained that "fundamentally these decisions are made because it is bet on whether he will apply the tariff." Cordeiro added that...

Oil Refineries

Phillips 66 profits beat estimates due to higher refining margins

The refining margins were higher and turnaround costs lower, helping Phillips 66 to beat Wall Street's expectations for the second quarter profit. Top U.S. refiners were expected to post higher second-quarter profit, rebounding from losses in the prior quarter as stronger-than-expected diesel margins lifted earnings. Valero Energy, for example, exceeded Wall Street expectations thanks to improved margins. Fuel manufacturers have experienced an unexpected increase in profits from certain products, bringing relief to those who saw their earnings fall from the 2022 peak. This was due to a rebound in demand following a pandemic and disruptions in supply after Russia's invasion...

Oil & Gas

Valero Energy's profit margins improved as refinery margins increased, and the company beat Q2 profits estimates

Valero Energy, a refiner, beat Wall Street's expectations for the second quarter profit on Thursday. A rebound in refining profits helped to cushion the loss of its renewable diesel unit. Investors expected top U.S. refining companies to report higher profits in the second quarter. bouncing back Profits increased during the first quarter of the year, despite the fact that diesel prices were unseasonably high. Valero is the first major refiner in this earnings season to report results. Its refining margin was $12.35 per barrel throughput, up from $11.14 a year ago. Lane Riggs, CEO of Lane Riggs Oil Company, said:...

Pollution

Sources say that California has taken a rare step to find a buyer for the Valero refinery in order to prevent its closure.

Three sources familiar with this matter have confirmed that California officials are looking for a buyer to take over the Benicia refinery of Valero Energy, located near San Francisco. This is an unusual move, as the company plans to close the facility by April. California's 28 million drivers, who already pay some of the highest gasoline prices in the nation, are now concerned about protecting the fuel supply in their state. California's efforts to prevent the refinery from shutting down also mark a shift in government policy from recent years, which has focused on championing green initiatives and limiting fossil...

Oil & Gas

Canada's Couche-Tard resumes its share buyback program after cancelling the Seven & I bid (July 21, 2018)

Alimentation Couche-Tard, a Canadian company, announced on Monday that it would resume its share repurchase programme. This comes just days after Circle K's parent company scrapped its $46 billion attempt to purchase Japan's Seven & I. The company announced that it would buy up to 77.1 millions shares, worth approximately $4.2 billion. This is part of its efforts to boost shareholder value following the failure of the long-term effort to purchase the Japan-based convenience-store chain. Couche-Tard with a market cap of $53 billion announced last week it would not pursue its bid to acquire Seven & I because the Japanese...

Natural Gas Utilities

Taiwan's CPC rejects'specifics' US shale-gas acquisition talks

CPC Corp, Taiwan's state owned energy company, said that it was not in negotiations for "specific" shale fields in the United States. However, it did not exclude any potential partners and would make the best decision based on their own evaluations. Three sources with knowledge of the matter said earlier this month that CPC was in early discussions to purchase shale gas producing assets in the United States. The move is part of a plan to secure the supply for natural gas to fuel Taiwan's economic growth. CPC stated in a late Monday statement that the U.S. Shale Gas has...

Refined Products

The chemical industry in Europe is looking for a way to survive.

After years of losses, and the rapid expansion of global capacities led by China, Europe's petrochemical sector is in disarray. The European industry is struggling due to high production costs, and the ageing of plants. This has made the region more dependent on imported primary chemicals, such as ethylene, propylene and ethylene. These are the building blocks used in plastics, pharmaceuticals, and many industrial products. Jim Ratcliffe said at a recent event that Europe was "sleepingwalking" into an industrial decline, referring to a unit found in petrochemical plant. The billionaire, along with other leaders in the industry, has criticised a...

Fossil Fuels

Chevron's entry into Guyana oilfields resolves the company's biggest challenge

Chevron is about to enter Guyana's offshore oilfields, which will solve one of its biggest problems: how it will grow beyond the next couple of years. The U.S. oil company closed a $55 billion deal to acquire Hess, one of the biggest oil and gas transactions ever. It also acquired the stake that Hess held in Guyana's Stabroek Block following a legal battle with Exxon Mobil. Chevron had seen its oil and gas reserves drop to their lowest level in more than a decade. The Stabroek block contains at least 11 billion equivalent barrels of oil and is one the...

Fossil Fuels

Reliance's profits top estimates for energy business rebound

Reliance Industries, owned by Indian billionaire Mukesh Amani, beat expectations for its quarterly profit on Thursday, thanks to strong growth in the company's energy, retail, and digital services businesses. According to LSEG, the combined profit for the quarter ending June 30 was 269.94 billion rupees (3.14 billion dollars), a 78.3% increase over analysts' estimates of 198.59 trillion rupees. Reliance’s oil-to-chemicals division, which accounts for 57% of the company’s revenue, has been under pressure over recent quarters due to a decline in transportation cracks, and a sluggish petrochemical demand. The oil-tochemicals segment, however, has benefited from an improvement in domestic fuel...

Oil & Gas Refining

Netflix's failure to ignite the Wall Street market has led to a tepid start for Wall Street

Wall Street was preparing for a calm start to the weekend, as investors considered a week full of mixed economic indicators and earnings reports. Netflix's record-breaking profit also failed to elicit much enthusiasm. At 8:15 am. S&P E-minis rose 4.5 points or 0.07%. Nasdaq E-minis gained 11.75 points or 0.05%. Dow E-minis increased 52 points or 0.12%. Wall Street's record run continued overnight as the S&P and Nasdaq climbed to new highs on the back of upbeat sentiment. Retail sales Jobless Claims The Federal Reserve can now pause to watch for inflation driven by tariffs. Netflix The success of the...

Oil & Gas

Investors suggest alternatives to YPF in dispute between US and Argentina

The U.S. Government sided with Argentina in its effort to temporarily suspend a court order requiring it to turn over its 51 percent stake in the oil and gas company YPF as part of a $16.1-billion judgment won by two investors. In a late-night filing, the U.S. government informed the 2nd U.S. The 2nd U.S. Circuit Court of Appeals stated that it is in the public's interest to resolve the dispute on its merits "free of the rushed compulsion of a non-stayed turnover order, and any negative impact on U.S. Foreign Relations with Argentina." Petersen Energia Inversora, Eton Park Capital...

Oil & Gas

New York Times Business News - July 17,

These are the most popular stories from the New York Times' business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. After an extended year of negotiations, marked by dramatic turns and twists, Alimentation Couche-Tard announced that it would abandon its multi-billion-dollar bid to purchase the owner of 7-Eleven convenient stores. Indonesian President Prabowo Subianto confirmed Wednesday that the general outline of a new trade agreement between the United States and Indonesia was agreed. Under the agreement, U.S. goods exported to Indonesia will not be subjected to tariffs while Indonesian products in...

Europe

Crude Oil

Sources say that the US is considering limiting authorizations to oil companies in Venezuela

Four sources familiar with the situation said that the U.S. administration of President Donald Trump is in talks with key partners, including Chevron, of Venezuela's PDVSA state-run oil company, to allow them to continue to operate within certain limits, in the sanctioned OPEC nation. The Washington pressure strategy adopted earlier in the year would be radically altered if Chevron and perhaps also PDVSA's European Partners were granted authorizations. In a statement, a senior State Department official stated that they couldn't speak about specific licenses granted to PDVSA partners. However, the U.S. wouldn't allow the government of President Nicolas Maduro to...

Oil & Gas

Minister: Serbia wants to extend the waiver of US sanctions for NIS oil firm

Serbia is seeking an extension of 180 days from the United States for a waiver of sanctions for NIS, a Russian-owned Serbian Oil Company. In a press release, Dubravka Djedovic Handanovic stated that "we have always maintained our position, and we will continue to do so, that sanctions are bad for energy security in Serbia and the surrounding region." She said that continued sanctions against NIS, which is owned by Russia's Gazprom and Gazprom in majority, would also harm Serbia's economic situation. NIS has been granted a fourth reprieve that expires on July 29, but the Office of Foreign Assets...

Fossil Fuels

Bloomberg News reports that One Rock Capital Partners has bid on BP's Castrol division.

Bloomberg News reported Wednesday that One Rock Capital Partners is one of a few bidders left for BP's Castrol lubricants division. The report was based on people familiar with this matter. One Rock refused to comment while BP didn't immediately respond to a?request for comment outside of regular business hours. The report stated that the private equity firm was bidding on the entire asset. Canada Pension Plan Investment Board is another interested party but is only interested in a minority stake. Deliberations continue. According to the report, One Rock and CPPIB may decide not to proceed with their offers. In...

Western Europe

East Asia

Fossil Fuels

Couche-Tard withdraws its $47 billion bid to take over Seven & i

Alimentation Couche-Tard, a Canadian retailer, announced on Wednesday that it had withdrawn its $47 billion bid to acquire Seven & i Holdings. The company cited a lack "constructive engagement" with the Japanese family who founded the Japanese firm. Couche-Tard's attempt to merge Circle K and 7-Eleven into a global convenience-store giant with 20,000 stores ended after a year-long effort. In an effort to reduce regulatory obstacles, it had also agreed on a plan to sell stores. In a letter addressed to the board of directors, Couche-Tard stated that "we have sought to have a dialogue with the Ito Family on...

Fossil Fuels

The Canadian oil sands became one of the lowest-cost plays in North America

The use of giant shovels, driverless vehicles and a robot that looks like a dog have helped Canada's Oil Sands companies, including Imperial Oil and Suncor, become some North America's low-cost oil producers. This has been achieved despite the fact that U.S. Shale costs rose due to the highest inflation rates in decades. Canada's oil sands sector is in a strong position as the global oil market enters a downward spiral due to economic uncertainty caused by U.S. Tariffs and OPEC+ pumping out more barrels. International oil majors such as BP, Chevron, and Total sold their oil sands interests after...

Energy Markets

Reliance claims that India must increase its petchem production to counter China's dominance.

A senior Reliance Industries official stated on Friday that India must increase its petrochemical capacity to meet the local and global market demand, and to contain China's increasing dominance in the sector. The margins on petrochemicals have been shrinking around the globe as China's capacity growth has created an excess. Some refiners can produce petchems up to 40-50% of the total output, which is more than twice what India typically produces. India's petrochemical consumption for now is only a fraction of global average, but it is expected to increase as the nation's economy grows. Many analysts believe that India's economy...

Oil & Gas Refining

Seven & i's profit is boosted by overseas convenience store profits

Seven & i Holdings, a Japanese company, announced on Thursday that its operating profit rose by 9.7% during the quarter from March to May, exceeding analysts' expectations, thanks to an improved performance of its overseas convenience store business. 7-Eleven is being pressured to improve its financial situation in response to a takeover offer of $47 billion from Alimentation Couche-Tard, based in Canada. Six analysts polled at LSEG estimated 58 billion yen as the profit for the first quarter. The Japanese retail giant announced previously a share purchase, that it is selling non-core assets and intends to list its North American...

Fossil Fuels

Australia's Origin Energy lowers its forecast for UK business, shares fall

Origin Energy, Australia, downgraded its annual forecast on Monday due to the unseasonably warm temperatures in Britain during March and April, as well as one-off effects. This sent its shares to an almost one-month-low. The shares of the Sydney-based firm fell by around 4.4% at 0508 GMT after reaching their lowest level since the first of May earlier in the day. The benchmark ASX200 index was flat. Origin now expects to lose up to A$100m ($65.19m) on its annual earnings before taxes, interest and depreciation. Origin estimated that it could contribute up to A$100m, while the EBITDA was only A$55m...

Oil & Gas Refining

Pirelli: Talks over dispute with major shareholder ended without agreement

The Italian tyremaker Pirelli announced on Wednesday that the talks to repair relations with Sinochem, its largest shareholder in China, ended without any breakthrough. Pirelli, and its second-largest shareholder, Italy's Camfin have claimed that Sinochem's stake in the company is hindering Pirelli's ambitions for expansion in the United States. Some lawmakers there are against projects backed by Chinese firms. Pirelli stated in April that Sinochem no longer controls the company because of the Italian government's decision to "golden power" the company by 2023. Sinochem, however, denied this claim. Pirelli announced on Wednesday that "the proposals extended to Sinochem by Pirelli...

Refined Products

Sources say that ADNOC, the UAE's LPG supplier, will supply US LPG in India after China and US tariffs.

Industry sources have confirmed that Abu Dhabi National Oil Company will begin replacing some of its liquefied gas supplies to India from June with cheaper U.S. cargoes, as U.S. China tariffs are reshaping global trade flows. ADNOC will be able to ship more LPG from its own production to China. Buyers in China are paying higher prices to replace U.S. supplies after Beijing raised tariffs on U.S. products. This move also reduces LPG costs for India. 2 importer. India imports more than 80% its LPG from the Middle East including Saudi Arabia and the United Arab Emirates. It also sources...

Oil Refineries

Sources say that ADNOC, the UAE's LPG supplier, will supply US LPG in India after China and US tariffs.

Industry sources have confirmed that Abu Dhabi National Oil Company will begin replacing some of its liquefied gas supplies to India from June with cheaper U.S. cargoes, as U.S. China tariffs are reshaping global trade flows. ADNOC will be able to ship more LPG from its own production to China. Buyers in China are paying a higher price to replace U.S. supplies after Beijing raised tariffs on U.S. products. This move will also reduce LPG prices for India, which is the No. 2 importer. India imports more than 80% its LPG from the Middle East including Saudi Arabia and the...

Fossil Fuels

Sources say Sinopec has resumed its Russian oil purchases after a short break amid sanctions risk

Sinopec, Asia’s largest refiner, has resumed its purchases of Russian crude oil following a short pause in last month to assess the risks posed by sanctions imposed on Russian entities by the United States, according to trade sources on Wednesday. Sources said that Unipec, a trading division of China's state run Sinopec, had purchased Russian Far East ESPO blend oil for May loading, after being absent from the March and April loading ESPO cargoes. Unipec's decision to resume purchases was not immediately apparent. Sinopec didn't immediately respond to an inquiry for comment. Sources claim that the number of cargoes purchased...

Oil & Gas

Republican lawmakers are faced with a clean-energy dilemma as they work on a tax bill

Republican lawmakers who are working to extend President Donald Trump’s tax cut legislation face a clean-energy dilemma at home. Major clean energy investments are being made in their districts, but Trump’s skepticism about the industry is at odds. The Ways & Means committee of the House of Representatives, which is responsible for drafting the tax legislation to extend the 2017 tax cuts, has 11 Republicans who represent regions that have seen green energy investments of hundreds of millions or billions of dollars over the past few years. Clean energy investments boomed after former President Joe Biden's Inflation Reduction Act passed...

Crude Oil

First time ESPO blend oil from Russia dips below the $60/bbl Western cap

On Monday, the price of Russia's ESPO blend oil fell below $60 per barrel Western cap for the first ever time as Brent international benchmark dropped to its lowest levels in many years. Calculations based on data from three trading sources showed this on Tuesday. Brent futures dropped $1.37 or 2.1%, to settle at $64.21 a barrel on Monday. This is the lowest price since April 2021. According to three traders who were involved in the market for ESPO blend oil, the price of the grade was a few dollars below $60 per barrel at the Kozmino port loading basis....

Oil & Gas Refining

Seven & i Japan saw its Q4 profits fall by 24%, increasing takeover pressure

Seven & i Holdings, a Japanese retailer, is expected to report a 24% decline in its quarterly profit on March 28, as the underperformance of its convenience stores hampers its ability fend off a Canadian takeover bid by Alimentation CoucheTard. Seven & i will likely book an operating profit of 94.45 trillion yen (US$639.52 millions) for the period December-February. This is according to a LSEG average of eight analyst predictions. This compares to 124.23 bn yen for the same period last year. 7-Eleven's profits have fallen in recent quarters, as its domestic convenience stores underperformed their competitors. Its North American...