Oil Refineries

Valero Energy Corporation is overhauling its gasoline-producing Fluidic Catalytic Cracking Unit (FCCU) in Memphis, Tennessee, according to people familiar with the plant's operations. Valero's spokesperson was unavailable to comment on the refinery operation Thursday. Sources said that the 65,000 bpd FCCU and the 12,000 bpd unit of alkylation were shut down over the weekend for an overhaul. Sources said that the overhaul should be completed by November 1. Sources claim that the refinery's flaring gas recovery unit and hydrotreater were also taken off production to change a catalyst. The FCCU converts gas oil to unfinished gasoline using a fine powder...

Phillips 66, a U.S.-based refiner, announced on Tuesday that it would acquire the remaining 50% of WRB Refining shares from Cenovus for $1.4 billion. This will give it complete ownership of two major U.S. refining plants. WRB includes Wood River Refinery in Illinois, and Borger Refinery in Texas. These refineries have a combined capacity of 495,000 barrels a day (bpd) for crude oil. The refineries, which would add approximately 250,000 bpd of net refining to Phillips 66’s capacity, can process both heavy and medium sour as well as sweet crudes and produce a large percentage of transportation fuels. Phillips 66...

The crude oil market is now expecting a decline in prices. At the largest gathering of the industry in Asia, the discussion was more about timing rather than direction. The outlook for prices is the main topic of discussion and presentations at the annual APPEC Conference. This week was no exception. The market has changed and this year the bull was the least sighted amongst a sea full of bearish participants. The two factors that dominated APPEC, despite the fact that there are many other factors that influence crude oil prices were the decision of OPEC+ not to continue to...

Goldman Sachs forecasted a slight increase in oil surplus by 2026 as improvements in supply in the Americas will outweigh Russia’s downgrade, and any improvement in global demand. The U.S. Investment Bank kept its Brent/WTI 2025 price forecasts unchanged and projected averages for 2026 at $56/$52 per barrel. "Risks in our 2025-2026 forecast are both upside and downside, but slightly skewed to the top," it said. OPEC+ - which includes the Organization of the Petroleum Exporting Countries, Russia, and other allies - agreed on Sunday that oil production would be increased from October, as Saudi Arabia, its leader, tries to...

Asia's crude oil imports rebounded in august as China and India, two heavyweight buyers, bought more crude from Middle East exporters. According to data compiled and analyzed by LSEG Oil Research, the world's largest importing region experienced arrivals of 27,18 million barrels a day (bpd), up from 24,91 million bpd during July. This is also higher than the 26,39 million bpd for the same month 2024. The 2.27 million bpd rise from July may look impressive, but it is worth noting that the month of July was Asia's weakest imports in a year. August's arrivals also were slightly lower than...

According to documents filed by the officer overseeing sale, a $5.89 billion offer from an affiliate hedge fund Elliott Investment Management was recommended as the winning bid in a U.S.-court-organized auction for shares of the Venezuelan-owned refiner Citgo Petroleum. Robert Pincus, a court officer, made the recommendation despite an attempt by a Gold Reserve subsidiary to sweeten their $7.4 billion deal earlier in the week. Pincus, in a ruling earlier this month said that an improved offer from Elliott's subsidiary Amber Energy was superior. The court then gave the Gold Reserve Group three days to match the bid. Pincus stated...

California's Energy Commission decided on Friday to set aside for a temporary period penalties for excessive refinery profits, which were adopted in response to the rise of gasoline prices over $8 per gallon by 2022. Phillips 66 Los Angeles refinery, which is preparing for a permanent shutdown by the end of next week, has delayed implementing penalties by five years. In an email, the staff of the Commission stated that "the fact is that supply is decreasing faster than demand and we need them to align: this means aggressively pursuing a transition to zero-emission vehicles while slowing down supply loss."...

California's Energy Commission decided on Friday to set aside for a temporary period penalties for excessive refinery profits, which were adopted in response to the rise of gasoline prices over $8 per gallon by 2022. The delay of five years in implementing penalties comes at a time when Phillips 66 Los Angeles refinery prepares to start shutting down production next week, ahead of a complete closure. California's Democratic governor Gavin Newsom proposed the penalties but has now changed direction due to fears of price spikes after 2026 following the closure of a Phillips 66 plant and a Valero Energy Corp....

Trade sources reported that Indian refiners increased their purchases of U.S. crude this month due to the competitive prices. This could help reduce the trade deficit between India and the United States, amid tensions. Indian Oil Corp., the country's largest refiner, purchased 5 million barrels U.S. West Texas Intermediate Crude for delivery between October and November through a tender. Other sources reported that Vitol had sold 2 million barrels to Reliance Industries, while Bharat Petroleum Corporation purchased 2 million from Vitol. Indian refiners and others in Asia increased their purchases following the arbitrage window The door for U.S. crude oil...

Phillips 66 will begin shuttering its 139,000-barrel-per-day Los Angeles-area refinery in September, people familiar with the matter said. Two sources have confirmed that the refinery in Los Angeles will begin to wind down operations next week for a permanent closure. Phillips 66 said last year it would shut down the facility by October 2025 and start winding down its operations. In an email statement sent on Thursday, a spokesperson for the company said that "the refinery units will start idling in Q4 2025 according to plan...our timeline remains unchanged." The company didn't provide a detailed timeline, but did note that...

Goldman Sachs predicts that the price of Brent crude contracts will decline to low $50s per barrel by the end of 2026, due to a rise in oil surplus next year. In a note to clients on Tuesday, the U.S. Investment Bank said that it expects the oil surplus will widen. It is expected to average 1.8million barrels per day from 2025 Q4 through 2026 Q4. This would result in an increase of nearly 800million barrels in global stockpiles by the end of 2026. The Organisation for Economic Co-operation and Development (OECD) estimated that the stored oil in member nations...

Indian Oil and Bharat Oil, India's state run refiners, have purchased Russian oil for delivery in September and October, after the discounts were increased, according to two company officials who are familiar with the matter. Refiners had stopped purchases in July because of smaller discounts, and after Washington criticised India for its purchases Russian oil. Donald Trump has also threatened to levy an additional 25% on Indian goods starting August 27 in order to punish New Delhi for continuing its purchase of Russian oil. The officials stated that the discount for Urals crude, the Russian oil of choice, has increased...

Two industry sources reported on Monday that one of Russia's biggest oil refineries in the town of Kirishi (northwest) had halted an important processing unit after a Ukrainian drone attacked over the weekend. Ukraine intensified its attacks on Russia's infrastructure to damage Moscow's war effort, as the talks to end the conflict have stagnated. Russian officials have said Surgutneftegaz's Kirishinefteorgsintez plant, one of Russia's top two refineries, was among the targets attacked by Ukrainian drones last Sunday. Alexander Drozdenko is the Governor of Leningrad Region. He said that three drones had been destroyed in the Kirishi region and that a...

In August, China's excess crude grew to just under 1 million barrels a day (bpd), as imports and domestic production outpaced an increase in refinery processes. According to the National Bureau of Statistics, data released on Monday shows that China's refiners produced 14.94 million barrels per day in August, an increase of 7.6% compared to the same period last year. This is the second highest month of the past 17. The crude oil imports in August were 11,65 million bpd, and the domestic production rose by 2.4% compared to the same month of 2024. It now stands at 4.3 million....

Three people with knowledge of the situation said that Russian-backed Indian refiner Nayara Energy was seeking Indian government assistance to obtain equipment and materials for maintenance, as European Union sanctions are making it difficult to procure key items. Sources said that the private refiner had approached the Centre for High Technology (a advisory body within the Indian oil ministry) to seek assistance in locating specialised equipment, catalysers, and other raw material. Nayara, and the Centre for High Technology, did not respond immediately to comments. Sources said that Nayara, which is majority owned by Russian companies, including Rosneft oil giant, operates...

Radiy Khabirov, the regional governor of Bashkortostan in Russia, said that a company producing oil will continue to produce despite an attack by drone on Saturday. Ukraine intensified its attacks on Russian energy infrastructure to weaken Moscow's military capability, while peace negotiations are still stuck. The attack caused a fire to break out at an oil refinery operated by Bashneft. Rosneft is Russia's biggest oil producer. Bashneft operates four major oil and petrochemical refineries in the area. Khabirov didn't specify the facility that was targeted. Both drones that were downed fell onto the property of the company. In the first...

Two people with knowledge of the situation said that Berlin was considering extending its trusteeship for the sixth time over the German assets owned by Russian oil producer Rosneft, as the efforts to sell this business continue. The renewed trusteeships put pressure on Berlin to create a more suitable legal structure for Rosneft’s activities in Germany. This situation is emblematic for the challenges Berlin faces when dealing with Russian assets located in Germany, at a moment when efforts are intensifying to end the conflict in Ukraine. In September 2022, the German assets of Rosneft, including the Schwedt refinery, MiRo refinery,...

Two analysts and a trader reported on Tuesday that Chinese refineries had purchased 15 cargoes for delivery in October and November as Indian demand for Moscow’s exports has declined. India is the largest buyer of Russian oil by sea. It has been sold at a discounted price since Western nations have shunned purchasing and placed restrictions on Russian exports due to Moscow's invasion of Ukraine in 2022. Indian state refiners stopped buying Russian oil last month as the discounts shrank. Donald Trump, the U.S. president, has also threatened to punish countries that buy Russian crude. Richard Jones, an Energy Aspects...

According to data and trade sources, India's Russian imports fell in July, after a jump the month before. This was because some refiners reduced purchases due to lower discounts. Indian fuel demand is also known to drop during the monsoon. The third largest oil consumer and importer in the world, India, is likely to see further slowdowns of Russian oil imports during August and September. Indian refiners have halted Urals crude purchases due to smaller discounts while U.S. president Donald Trump has warned India to stop buying Russian oil. The data shows that India imported 1.5 millions barrels of Russian...

China's refiners increased their processing rates in the month of July. However, strong crude oil imports from abroad and domestic production meant that there was still an excess of over half a million barrels a day (bpd). Calculations based on data from the official sources show that crude oil surplus in July dropped to 530,000 barrels per day (bpd) from 1.42million bpd. The key is that despite the drop in oil surplus, refiners will likely continue to add to their stockpiles. This will allow them the ability to reduce imports if prices increase to levels they feel are not justified....

China's refiners increased their processing rates in the month of July. However, strong crude oil imports from abroad and domestic production meant that there was still an excess of over half a million barrels a day (bpd). Calculations based on data from the official sources show that crude oil surplus in July dropped to 530,000 barrels per day (bpd) from 1.42million bpd. The key is that refiners will likely continue to add to their stockpiles despite the drop in oil surplus. This will allow them the ability to reduce imports if prices increase to levels they feel are not justified....

Sources said that despite the export ban, Russia may face gasoline shortages this August due to low stocks at home, a peak in seasonal demand, and repairs being done by domestic refineries. The ban was imposed Monday, and is intended to last through August 31. Its purpose is to stabilize the Russian market and avoid socially sensitive increases in motor fuel prices. Traders say that it is unlikely to be enough to bring the market back to equilibrium, since gasoline export volumes are much smaller than the domestic consumption. They also claim that diverting the fuel to the local market...

Calculations showed that the average Russian oil price in roubles remained below the budget target for 2025. This added pressure to a budget already facing a growing deficit. The weakness of the rouble is due to its strength, which has increased by around 45% in the past year as a result of the easing of geopolitical tensions. The dollar value of international oil prices has dropped by about 10%. Estimations show that the average price for Russia's oil mix, as calculated for taxation, was 4,701 Rubels per barrel during the first two weeks in July. This is about the same...

According to LSEG data and market sources, the volume of Russian seaborne gasoil and diesel exports dropped by 6% in June on a month-to-month basis. This was due to refinery maintenance. Shipping data shows that last month, the two main importers of Russian gasoil and diesel were Turkey and Brazil. Exports of diesel and gasoil from Russian ports to Turkey increased in June by 15%, a month-on-month increase, while those to Brazil dropped by 33% from May, to just 0.47 million tonnes, after a previous influx. Shipping data revealed that Russia's diesel and gasoil sales to African countries in June...