The Malaysian palm is poised to gain a weekly profit on the strength of physical demand
The price of Malaysian palm oils rose for the third session in a row on Friday. This was due to strong demand before Eid al-Fitr, an Islamic holiday. Also, rival vegetable oil prices were strong. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for June delivery had gained 80 ringgit or 1.86% to $4392 ringgit (US$991.20) per metric ton. The contract is expected to gain 0.39% this week, the first weekly gain for three weeks. Bursa Malaysia is closed Monday and Tuesday, if Eid falls Monday, March 31.
TotalEnergies warns that indirect emissions may increase as the company aims to sell gas
TotalEnergies, a French energy company, said in its sustainability report on Thursday that plans to sell more gas in the coming years would increase indirect CO2 emissions. TotalEnergies said that global emissions will also fall as a result of its clients moving away from dirty fuels. In 2024, the French oil giant emitted 376 millions metric tons CO2-equivalent. Of this, 342 million tons was indirect emissions so-called Scope 3, which comes from clients burning fuels purchased. This is a slight decrease from the 386 tons CO2-equivalent that was produced in 2023.
Exports of crude oil by Mexico's Pemex rose 33% from January to February
The crude oil exports of the Mexican state energy company Pemex increased 33% from January to February, recovering from the drop in the previous month but still being down 25% when compared with February 2024. Pemex published data late Tuesday showing that crude exports reached 709,793 barrels a day (bpd) in February. About 60%, or 428 357 bpd of these exports went to the United States. The majority of this was the Maya heavy crude blend. Crude exports fell by 44% in January compared to the same period last year, reaching their lowest level for decades.
EIA: US crude stocks fall as refining increases.
The Energy Information Administration reported on Wednesday that U.S. crude inventories dropped last week, as refiners increased production. Gasoline and distillate stocks also fell. The EIA reported that crude inventories dropped by 3.3 millions barrels, to 433.6 million in the week ending March 21. This was a far cry from the 956 thousand barrels analysts had predicted in a survey. Refinery crude production increased by 87,000 barrels a day. The refinery utilization rate also rose, by 0.1 percent, to 87%, for the third consecutive week, as refiners finished their seasonal maintenance.
Glencore refinery in South Africa invests in cleaner fuels
Astron Energy, an affiliate of the global commodity trader Glencore will invest up six billion rands ($328 million) in order to install new equipment, and to become compliant with South Africa’s cleaner fuel specification before a 2027 deadline. Astron officials have said that the foundations for a Gasoline Hydrotreating Process, which will reduce petrol to Euro 5 specifications has already been laid in the 100,000 barrels a day crude oil refinery near Cape Town. The Clean Fuels II regulation in South Africa…
Sinopec's net profit for 2024 plunges 16.8% because of falling oil prices
China Petroleum & Chemical Corp, also known as Sinopec reported a 16.8% drop in net profit for 2024 on Sunday. The company cited lower crude oil prices, and the accelerated growth of the new energy vehicles (NEV) sector. This decline in net income is comparable to a drop of 9.9%, which also occurred in 2023 due to falling oil prices. Diesel sales dropped 4.8% and gasoline fell 0.7%. Aviation fuel sales rose 7.3%. Both domestic and export sales were included in the figures. The refinery's throughput dropped by 2.14% to 252 millions metric tons last year…
EIA: US crude oil inventories are rising, but fuel is being drawn down due to ongoing maintenance.
The Energy Information Administration (EIA), which tracks seasonal refinery maintenance, reported on Wednesday that U.S. crude stockpiles increased and fuel inventories decreased last week. The EIA reported that crude inventories increased by 1.4million barrels, to 435.2million barrels for the week ending March 7. This was compared to analysts' expectations in an online poll of a 2million-barrel increase. The EIA reported that crude stocks at Cushing, Oklahoma's delivery hub, fell by 1.2 millions barrels in the past week. The report prompted a rise in oil futures.
Leader of the Greens says, "We'll See" on support for German lending bonanza
On Wednesday, the plans for Germany to increase state borrowing massively were questioned by a Greens co-leader who was non-committal on whether an agreement could be reached. Friedrich Merz, the election winner, is trying to push through debt reforms as well as a new infrastructure fund of 500 billion euros ($545 billion) in the upcoming parliament. These initiatives depend on the support of the Greens but could be derailed also by court rulings. Franziska Brantner, co-leader…
CERAWEEK - Mexico's Pemex prioritises refining while diverting heavy oil from the Gulf
Margarita Perez of PMI, Mexico's company that handles trading, said Tuesday that Pemex, Mexico's state-owned oil company, expects to divert barrels of heavy crude from U.S. Gulf Coast refining companies as it ramps up its Olmeca refinery. Pemex began prioritizing refining in favor of its traditional export markets around six years ago, when the previous Mexican government sought to increase domestic supplies, especially diesel, while weaning Mexico off its dependence on motor fuels imported from U.S. refinedrs.
Gunvor CEO: Global oil supply is growing faster than demand.
Gunvor's CEO, one of the largest oil traders in the world, stated on Monday that global oil supply is growing faster than demand. Last week, oil prices fell to a three-year-low due to a slowdown in demand growth in China as well as concerns over the global impact of President Donald Trump’s protectionist trade policy. "That's the issue." Tornqvist stated that the demand for diesel and gasoline has plateaued in China, which is the second-largest consumer of these fuels. In China, the rapid growth of electric vehicles has slashed gasoline demand.
Gunvor CEO: Global oil supply is growing faster than demand
Gunvor, one of the largest oil traders in the world, said that the global oil supply is growing faster than the demand. Last week, oil prices fell to their lowest level in three years due to a slowdown in demand growth and concern about the global economic impact of President Donald Trump's protectionist policies. Torbjorn Tornqvist, CEO of Gunvor, said that the demand for energy is still growing in the world but not by a large amount. He made this statement in an interview on the sidelines an industry conference in Houston.
After Trump's tariffs on crude oil, Mexico is seeking Asian and European buyers
Pemex, the Mexican state-owned oil company, is currently in discussions with buyers in Asia and Europe. This is because it's looking for alternative markets to sell its crude oil after U.S. president Donald Trump imposed import tariffs. This week, Trump implemented tariffs of 25% on goods imported from Mexico and Canada. Canadian crude was exempted from the 25% tax, but Mexican crude will be charged at a 10% rate. Pemex exported 806 000 barrels of crude per day (bpd), of which 57% were shipped to the United States. Exports in January fell by 44% on an annual basis to 532 404 bpd.
After Trump's tariffs on crude oil, Mexico is looking for Asian and European buyers
Pemex, the Mexican state-owned oil company, is currently in discussions with buyers in Asia and Europe. This is because it's looking for alternative markets to sell its crude oil after U.S. president Donald Trump imposed import tariffs. This week, Trump implemented tariffs of 25% on goods imported from Mexico and Canada. Canadian crude was exempted from the 25% tax, but Mexican crude will be charged at a 10% rate. Pemex exported 806 000 barrels of crude per day (bpd), of which 57% were shipped to the United States.
EIA: US crude stocks fall as refining increases, fuel inventories increase
The Energy Information Administration (EIA), which released its report on Wednesday, said that U.S. crude stockpiles dropped unexpectedly as refining activity increased, while gasoline and distilate inventories showed a surprise build. The EIA reported that crude inventories dropped by 2.3 millions barrels, to 430.2 million in the week ending February 21. This was in contrast with the analysts' polled expectations of a rise of 2.6 million barrels. Cushing, Oklahoma's delivery hub for U.S. Crude Futures, saw its stocks rise by 1.3m barrels. They now total 24.6m barrels.
As alternatives gain market share, palm oil prices will be pressured by a slowing demand.
Prices are expected to fall as palm oil production recovers and imports drop due to price-sensitive consumers. This will reduce the advantage of tropical oil over its rivals even though top producer Indonesia increases biodiesel production. Benchmark palm futures have lost market share due to the shift of top importers such as India to cheaper alternatives like soybean and sunflower oil. In recent months, palm oil has traded at a premium to other oils due to the disruptions in supply from top producers Indonesian and Malaysia caused by flooding.
Officials from the palm oil industry say that rising biodiesel mandate will dent Indonesian palm oil exports in 2025.
A senior industry official stated on Wednesday that Indonesian palm oil exports in 2025 are likely to fall 7.3% from the previous year to 27,35 million metric tonnes despite increased production. The world's largest producer of edible oil is increasing biodiesel production. Fadhil Hazan, the head of the Trade and Promotion Division at the Indonesian Palm Oil Association said that the country's crude oil production will likely rise to 50,000,000 metric tons by 2025, from 48,16,000,000 metric tons one year earlier.
The cold weather in the US boosts diesel prices, but masks economic challenges
Since the beginning of the year, the cold temperatures in the Northeast U.S. have led to an increase in demand for heating oil. This has helped to offset the slowdown in recent years due to reduced industrial activity. The Energy Information Administration (EIA), according to its data, reported that the U.S. inventory of distillate fuels - including diesel and heating oil - fell this month to its lowest seasonal level in 2014. The sharp increase in heating oil consumption is reflected by the decline.
Indonesia is expected to complete the full implementation of B40 Biodiesel by March
Eniya Listeiani Dewi, an official with the energy ministry, said that Indonesia is expecting its B40 Biodiesel Programme, which aims to reduce its dependence on diesel fuel imported from abroad, to be fully implemented next month, after initial delays. She stated that distribution of palm oil-based Biodiesel in this year had reached approximately 1.2 million Kilolitres by Friday. Indonesia planned to introduce the mandatory B40 blend, which contains 40% palm oil fuel, on January 1, but regulatory issues caused some delays. Fuel distributors received until the end February to transition.
Neste Finland to cut 600 jobs due to quarterly profits slumping
Neste, a Finnish biofuel and oil refiner, announced on Thursday that it would cut 600 jobs after its core profit for the fourth quarter fell below expectations. Heikki malinen, CEO of Heikki Group, said that "our current financial performance is not sustainable". The Finnish group has cut its forecast for the margin of sales from renewable fuels three times by 2024 due to the falling prices, which are a result of weak demand and an oversupply. In a poll conducted by the company, analysts estimated that EBITDA for the company in its fourth quarter would be 308 million euro.
Russians warned not to panic about a 'gas cloud" in a city near a plant that was struck by Ukraine
The Governor of Russia's Astrakhan Region told its residents to not panic after the main city was covered in a natural gas cloud on Wednesday. Its main city is located near a large gas chemical complex which was attacked this week by Ukrainian drones. The gas smelled by the public was caused by the restart of production at a plant in the south of the city of Astrakhan. Astrakhan has about 475,000 residents. "Dear Citizens, this morning, the city was covered with a cloud that smelled like natural gas. It is produced after processing, and it has a distinct smell," he wrote in Telegram.
