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In January, Occidental Petroleum announced it had accomplished something no oil company had done before: It sold a shipload of crude that it said was 100% carbon-neutral.While the two-million-barrel cargo to India was destined to produce more than a million tons of planet-warming carbon over its lifecycle, from well to tailpipe, the Texas-based driller said it had completely offset that impact by purchasing carbon credits under a U.N.-sponsored program called CORSIA.
Oil prices dropped for a fifth day on Thursday after official data showed a sustained rise in U.S. crude and fuel inventories, while the ever-present pandemic clouded the demand outlook. Stocks of gasoline and diesel increased against expectations among analysts for a decline.
NEW DELHI: Amid record-high fuel prices, finance minister Nirmala Sitharaman on Monday said there is no proposal as of now to bring crude oil, petrol, diesel, jet fuel (ATF) and natural gas under the Goods and Services Tax (GST).This meant that the central government continued to levy excise duty on them while state governments charged VAT. These taxes, with excise duty, in particular, have been raised periodically.
Oil surged above $71 a barrel in Asian trading after Saudi Arabia said the world’s largest crude terminal was attacked, although output appeared to be unaffected after the missiles and drones were intercepted. Futures in London jumped as much as 2.6% at the open after rising 4.9% last week. The attacks follow a recent escalation of hostilities in the Middle East region after Yemen’s Houthi rebels launched a series of attacks on Saudi Arabia.
Saudi Arabia raised pricing for its crude for shipment to Asia and the U.S. next month after OPEC+ extended oil supply constraints, pointing to a tightening physical market. State oil producer Saudi Aramco increased pricing for Arab Light crude for Asia, its largest regional market, by 40 cents a barrel to $1.40 more than the benchmark. Aramco raised all other pricing to Asia, except for its Heavy crude which remained unchanged.
As governments and industries seek less-polluting alternatives to hydrocarbons, the world’s biggest crude exporter doesn’t want to cede the burgeoning hydrogen business to China, Europe or Australia. So it’s building a $5 billion plant powered entirely by sun and wind that will be among the world’s biggest green hydrogen makers when it opens in the planned megacity of Neom in 2025.
Iran is reaching out to its old customers in Asia to gauge interest in its crude as the Persian Gulf oil producer ramps up diplomacy in a bid to get US sanctions lifted. Iran’s crude shipments dwindled to a trickle after sanctions by the former US administration in 2018 and the end of waivers for some countries in 2019, although a number of Chinese refiners continued to take some oil.
American oil exports from Louisiana’s offshore supertanker port jumped to record as Asian buyers are stocking up U.S. crude for a post-pandemic rebound in fuel consumption. Eight vessels carrying nearly 15million barrels of crude transported to South Korea, China and India, according to ship-tracking data. Total U.S. Gulf crude outflows to Asia rose to nearly 51 million barrels in January.
Iraq has reduced annual supplies of Basra crude oil to several Indian refiners by up to 20 per cent for 2021. The supply cuts to India followed a $2.5 billion oil prepayment deal between SOMO and Chinese state oil trader Zhenhua Oil Corp for 48 million barrels of Basra crude.
"The recent breakthrough on a Covid-19 vaccine is a hope for the swift recovery of global energy demand next year. HSBC Bank analyst Gordon Gray recently stated-"The recent news around Covid-19 vaccines has boosted crude prices as markets start to look to a return to some sort of normality in 2021, also we expect OPEC+ to err on the side of caution as it evaluates how the market evolves.”
A supertanker carrying about 2 million barrels of oil caught fire in the Indian Ocean off the east coast of Sri Lanka. The tanker was sailing towards India’s Paradip refinery when it caught fire. One of the 23 crew members is found missing and one injured. The navy personnel at the scene have reported that fire was under control.
Energy researcher, IHS Markit has forecasted a huge crude oil storage crunch in the coming time, with the situation close to becoming a reality in as little as three months. The consultant said that current rates of supply and demand indicate an increase in inventories by 1.8 billion barrels over the first half of 2020. There are only an estimated 1.6 billion barrels in storage capacity currently available.
Energy Ministry of Kazakhstan, KazTransOil has informed that it has reduced its exports to China and is changing the supply schedules to domestic refineries. Organic chloride contamination was found earlier this month in crude supplied by a Kazakh. This step has been taken to restrict the spread of contaminated oil. According to sources, oil transit via Russia has also been brought down by 100,000 tonnes for February.
On Sunday, Numaligarh Refinery Limited (NRL) of Assam got its first consignment of imported Miri Crude Oil from PETRONAS, Malaysia. This is the first occasions when NRL has imported crude oil to be processed in the refinery. MD of NRL stated, "This landmark development would assist us in enhancing Refinery throughput and as our distillate yield is high, this will increase our margins".
Government data released yesterday indicated that Chinese crude oil throughput ramped up in April to hit record daily levels. The rising production levels at private refineries buoyed up the crude oil production in the country. Refinery runs saw an increase of 5% from the previous year to 52.1 million tonnes, matching the record throughput of 12.68 million barrels per day (bpd).
Canada-based Suncor Energy has reported a profit in its first quarter of this fiscal year. The company has been benefitted by the improved Canadian heavy crude pricing because of production cutback by Alberta. Suncor's net earnings increased to $899.62 million. Suncor has been largely profited from the crude oil and refined product inventory valuation. The earnings of the company have beaten the estimates of the analysts.
Saudi Aramco has informed that its subsidiary, Aramco Trading has signed an agreement with Poland's leading refiner, PKN Orlen. Under the scope of this agreement, Aramco will supply Arabian crude oil to Poland's PKN in exchange of which it will receive a similar volume of high sulfur fuel oil from the refiner. Aramco said that the company wants to position a set volume of crude in different geographies.
Saudi Aramco being the world's top crude exporter might also become the biggest user of fossil fuel. It is planning to double its refining network in order to handle as much as 10mn barrels a day by 2030. Currently, Aramco's more than a third oil is being fed to its own fully-owned and joint venture refineries. The expansion “would make it the biggest refiner in the world by some margin”.