The fragile Middle East truce has knocked down the prices of crops that are tied to oil.
The price of crops around the globe has been impacted by a shaky truce between Iran and Israel, especially those that can be converted into biofuels. Prices are affected by the price for crude oil. The price of crude oil dropped sharply after President Trump announced a ceasefire. This hit futures contracts and stocks for vegetable oils like Malaysian palm, European rapeseed and Chicago soyoil. John Duvenaud, Winnipeg, Canada's crop markets analyst, said that the fall in vegetable oil prices was "totally connected" to the collapse of crude oil futures on Monday and Tuesday.
Russell: Iran tensions are a factor in making thermal coal more affordable than LNG.
The escalating conflict in the Middle East may result in thermal coal being a major winner, since the fuel used for electricity generation is now cheaper than its main competitor, liquefied gas (LNG). The threat of crude oil and refined fuels being shipped through the Strait of Hormuz is a major concern of those who are concerned about the possible fallout of the conflict between Israel and the United States and Iran. All of Qatar's LNG is also transported through the narrow waterway that separates the Gulfs of Persia & Oman.
Russell: Iran tensions are a factor in making thermal coal more affordable than LNG.
The escalating conflict in the Middle East may result in thermal coal being a major winner, since the fuel used for electricity generation is now cheaper than its main competitor liquefied gas (LNG). The threat of crude oil and refined fuels being shipped through the Strait of Hormuz is a major concern of those who are concerned about the possible fallout of the conflict between Israel and the United States and Iran. All of Qatar's LNG is also transported through the narrow waterway that separates the Gulfs of Persia & Oman.
Palm oil prices flatten as Dalian oils outperform weak demand
The price of Malaysian palm oils futures was largely unchanged on Thursday, as Dalian Oils, a stronger competitor, supported the market. However, weak demand, particularly from India, offset the gains. The benchmark palm-oil contract for September delivery at Bursa Malaysia's Derivatives exchange rose by 2 ringgit or 0.05% to 4,102 Ringgit ($963.59) per metric ton. Anilkumar bagani, research director at Mumbai-based vegetable oils broker Sunvin Group, stated that the market was…
Palm oil prices flatten as Dalian oils outperform weak demand
Malaysian palm futures were mostly flat on Thursday, as Dalian oils, a stronger competitor, countered the weak demand in key markets such as India. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for September delivery fell by 4 ringgit or 0.1% to 4,096 Ringgit ($962.41) per metric ton. Anilkumar bagani, research director at Mumbai-based vegetable oils broker Sunvin Group, stated that the market was trading in a sideways direction following the upward momentum in Chinese vegetable oil in Asian hours…
US crude stockpiles slump, products build, EIA says
The Energy Information Administration reported on Wednesday that U.S. crude stockpiles dropped sharply last week while gasoline and distillate stocks rose. The EIA reported that crude inventories dropped by 11.5m barrels, to 420.9m barrels for the week ending on June 13. This was compared to analysts' expectations based on a poll of a 1.8m barrel draw. The EIA reported that crude stocks at Cushing, Oklahoma's delivery hub, fell by 995,00 barrels. Oil futures continued to fall despite EIA figures showing that crude inventories had declined more than expected.
Palm oil gains more than Chicago soyoil
Malaysian palm oil futures rose for the third consecutive session on Monday. They followed gains in Chicago soybean oil after the U.S. proposed increased biofuels blend volumes and elevated crude oil price. The benchmark palm-oil contract for September delivery at Bursa Malaysia's Derivatives exchange gained 171 Ringgit or 4.36% to $4,093 Ringgit ($965.79) per metric ton. The U.S. administration of President Donald Trump proposed on Friday that oil refiners increase the amount biofuels they must mix into the nation's gasoline over the next two-years…
China's refinery output in May is at a 9-month low due to plant overhauls
Official data released on Monday showed that China's crude throughput fell by 1.8% from the previous year to its lowest level since August. This was due to maintenance being carried out at state-owned refineries and independent refineries. According to the National Bureau of Statistics, the world's second largest oil consumer processed about 13,92 million barrels of crude per day in May. In May, the daily processing rate dropped from 14.12 million bpd in April. Chinese consultancies reported a continued decline in the utilization rates of domestic refineries.
Egypt stops fertilizer production after Israeli gas shortages increase energy strain
Industry sources report that Egyptian fertilizer producers had to stop operations Friday because of a decline in natural gas imported from Israel. After Israel's attacks on Iranian nuclear and missile facilities, they said that major Israeli gasfields had halted operations. Egypt's Petroleum Ministry announced that an emergency plan had been implemented to prioritise gas allocations and cut supply to certain industries. The ministry reported that power stations are using fuel oil at maximum levels and switching to diesel is being done to protect the stability and load of the gas grid.
US EPA proposes increased biofuel blend volumes through 2027
NEW YORK - On Friday, the Trump administration proposed that oil refiners increase the amount biofuels they must mix into the nation's gasoline over the next two-years, due to a rise in biomass-based fuel mandates. Biofuels industry welcomed the move which included measures to discourage imports of biofuels. They had been lobbying for this issue for several months. The U.S. Environmental Protection Agency announced on Friday that the total volume of biofuels to be blended in 2026 will be 24.02 billion gallon and 24.46 in 2027.
Sources say that Hokchi Energy, frustrated by Mexico's Pemex and its refusal to buy oil from them, pushed for a change in who purchases their oil.
Three sources said that Hokchi Energy in Mexico, frustrated with months of late payments from the state-owned company Pemex for its oil, gas and natural gas, sought to amend its contract so that it could do business with PMI Comercio Internacional. Hokchi Energy’s attempt to change the buyer of its production shows the difficulties in doing business with Pemex. One source stated that PMI, which imports and exports refined fuels like gasoline and diesel and exports crude oils, is seen as a much more reliable partner than Pemex.
US biodiesel, renewable diesel net imports to drop in 2025 due to tax credit change, EIA forecasts
Energy Information Administration predicted on Tuesday that the U.S. would significantly reduce its imports of biodiesel this year due to a change in federal tax credits. The Section 45Z tax credit, established by former President Joe Biden under his signature Inflation Reduction Act (IRRA), replaced the $1 blender's credit with a credit based on carbon intensity. The EIA stated that Section 45Z only applies to domestic production. This is in contrast to the blenders' tax credit of $1 per gallon, which applied to both domestic and imported biodiesel or renewable diesel.
Profit taking on palm oil as it slips against inferior edible oils
Malaysian palm futures continued to fall on Thursday. They followed the weaker edible oils in Chicago and Dalian, as well profit-taking actions. By midday, the benchmark contract for palm oil delivery in August on the Bursa Derivatives exchange had fallen 29 ringgit or 0.73% to 3,919 Ringgit ($924.29) per metric ton. Anilkumar bagani, the head of research for Mumbai-based Sunvin Group, said that palm oil futures had been trading lower due to profit taking, low energy prices, and weakness in other vegetable oil markets, such as those in China and the U.S.
EIA: US crude stocks fall as refiners increase output
The Energy Information Administration reported on Wednesday that U.S. crude stockpiles dropped last week, as oil refiners increased production to coincide with the start the summer driving season. Fuel inventories, however, rose due to a weaker demand. The EIA reported that crude inventories dropped by 4.3 millions barrels, to 436.1 million in the week ending May 30. This was in contrast with the analysts' polled expectations of a draw of 1 million barrels. The EIA reported that refinery crude runs increased by 670,000 barrels a day. Utilization rates also rose 3.2 percentage points, to 93.4%.
White House to consider plan for clearing record backlog in biofuel waivers for small refineries
The White House is weighing a plan to clear a record backlog of requests from small refineries for exemptions from U.S. biofuel laws, which could include approving many current applications and requesting industry input to deal with older ones, according to three sources familiar with the plans. The U.S. Renewable Fuel Standard requires refiners to blend biofuels like corn-based ethanol into the nation's fuel supply or buy renewable fuel credits, known as RINs, from those who do.
White House to consider plan for clearing record backlog in biofuel waivers for small refineries
Three sources familiar with these plans say that the White House is considering a plan for clearing a backlog of exemption requests from small refineries from U.S. Biofuel Laws. This could include approving current applications and asking industry input on older ones. The U.S. Renewable Fuel Standard (RFS) requires refiners either to blend biofuels such as corn-based ethanol in the nation's fuel supply, or purchase renewable fuel credits known as RINs from those who are doing so.
White House to consider plan for clearing record backlog in biofuel waivers for small refineries
Three sources familiar with these plans say that the White House is considering a plan for clearing a backlog of exemption requests from small refineries from U.S. Biofuel Laws. This could include approving current applications and asking industry input on older ones. The U.S. Renewable Fuel Standard (RFS) requires refiners either to blend biofuels such as corn-based ethanol in the nation's fuel supply, or purchase renewable fuel credits known as RINs from those who are doing so.
China's refinery production in April fell by 1.4% on an annual basis
China's crude throughput in April fell from a year ago, according to official data released on Monday. This was due to maintenance carried out at state-owned refining plants and because independent plants reduced production amid low margins. According to the National Bureau of Statistics, the world's second largest oil consumer processed about 14,12 million barrels of crude per day in April. The daily processing rate for April was lower by 4.9% than in March and 1.3% below the previous year.
WGC-QatarEnergy CEO: Chemical industry is growing rapidly, says WGC
QatarEnergy, according to its chief executive Saad Al-Kaabi, plans to double its global capacity for plastics and raw materials as the company sees a big growth in chemical industries. He told the World Gas Conference that the state-owned company anticipates starting production on its U.S. Ethane Cracker Project in the first quarter 2027. According to the website of the U.S. firm, this joint venture project with Chevron Phillips Chemical was expected to start operations in 2026.
Argentina's YPF suffers a net loss in the first quarter
YPF, the state-owned oil company in Argentina, reported a loss of $10m for the first quarter. This was due to lower demand during the season and lower export volumes. This loss is compared to the net profit of $657 millions in the first quarter 2024. The revenue, on the other hand, increased by 7% over a year earlier to $4.61 billion. This was due in part to higher fuel prices in local markets, but also a decline in oil exports and lower demand for diesel. YPF, Argentina's largest domestic fuel supplier…
