Chevron exceeds expectations for quarterly profits on the back of higher oil production
Chevron Corp. beat Wall Street expectations for the third quarter profit on Friday. However, its earnings dropped from a previous year. Chevron Corp, which has had its proposed $53 billion takeover of Hess delayed by Exxon Mobil Ltd and CNOOC Ltd due to their challenge, reported a profit adjusted of $4.53 billion. This compares to $5.72 million a year earlier. The shares rose by 2.6% ahead of normal trading hours. The oil industry has seen profits fall this year as a result of lower crude prices and a weaker growth in fuel demand. Oil futures for the quarter ending Sept.
US crude, fuel inventories fall last week, EIA says
The Energy Information Administration (EIA), which released its report on Wednesday, said that the U.S. crude, gasoline, and distillate inventory fell last week. The EIA reported that crude inventories dropped by 515,000 barrels, to 425.5 millions barrels for the week ending October 25. This was in contrast with the analysts' polled expectations of a rise of 2.3 million barrels. Crude oil stocks at Cushing, Oklahoma's delivery hub, rose by 681,000 bbls. Exports increased by 149,000 barrels per day, to 4,26 million bpd. The futures for U.S.
Reeves, UK's Reeves, announces that fuel duty will not increase
In her first budget address on Wednesday, British Finance Minister Rachel Reeves announced that the temporary five-pence reduction in fuel duty will remain in effect. She said it would be unfair to increase it in a period of global uncertainty and high living costs. "I have decided today to freeze fuel duties next year... and I will also maintain the current 5p reduction for another year." Reeves, Reeves's deputy in the House of Commons, said that there would be no increase in fuel taxes next year.
Canada's renewable fuel projects are hit by a surge in US imports
Canadian renewable fuel producers will see lower returns from new facilities as a result of a slump in British Columbia’s low-carbon fuel standard (LCFS). This trend is expected to continue amid an influx of US exports. The weakness in British Columbia's LCFS Credit Market reflects the growing pains of the international biofuels sector, where many regulators are clamping down on imports in order to protect their nascent national markets from an oversupply. Low-carbon fuels cost more to produce than gasoline or diesel based on petroleum.
Sinopec's Q3 profits fall by 52.1% due to lower oil prices and refining margins
Sinopec, a Chinese refiner, reported a 52.1% drop in its net profit year-on-year to $8.54 billion yuan (US$1.2 billion) during the third quarter due to lower oil prices. Sinopec, the world's biggest refiner based on capacity, reported 790.4 billion Yuan in revenue for its third quarter, a 9.8% drop from the year before, according to a filing made by the company. CNOOC Ltd, a domestic oil and gas company that operates offshore and is a major competitor in China, reported an increase of 9% in its quarterly profit at 36.93 billion Yuan due to higher production and lower prices.
EIA: US crude and gasoline inventories increase, while distillates are drawn down.
The Energy Information Administration (EIA), which is responsible for the U.S. Energy industry, announced on Wednesday that crude oil and gasoline stocks in the United States increased while distillate stockpiles fell. The EIA reported that crude inventories increased by 5.5 millions barrels, to 426,000,000 barrels for the week ending October 18. This was compared to analysts' expectations based on a poll of 270,000 barrels. The EIA reported that crude stocks at Cushing, Oklahoma's delivery hub, fell by 346,000 barrels. U.S. Crude and Brent Futures extended losses following the data.
US fuelmakers report lower profits in Q3 due to weaker margins and fuel demand
Energy analysts predict that the third quarter profits of U.S. refiners will be lower than last year due to a decline in margins, as fuel demand has slowed and more refining capacity is coming online. After the pandemic, and Russia's invasion in Ukraine, which boosted margins at record levels, refiners are now reversing their favorable pricing and high demand. The difference between the product price and the crude oil price for U.S. gasoline, diesel, and jet fuel declined in the third quarter.
GAPKI reports that Indonesian palm oil exports in August were up 15% year-on-year.
GAPKI, Indonesia's largest palm oil industry association, said Tuesday that the country's palm oils stock will remain around 2.5 million metric tonnes at end-2024. This is after production was affected last year by dry weather. GAPKI data show that palm oil exports from the world's biggest producer rose by 15% in August compared to a year ago, to 2,38 million metric tonnes. This lowered its end-August stock of palm oil to 2,45 million tons down from 2.51 millions tons a month before. GAPKI data shows that this was the lowest stockpile of Indonesian rice since March 2019.
Prabowo wants to increase Indonesia's energy independence through biofuels and oil and gas reforms
Officials have stated that Indonesia's new Government aims to revitalize oil and gas production. They plan to reduce regulations, reactivate inactive wells, and increase output in producing assets to reverse a decades-long drop in output.The new president, Prabowo Subianto, took his oath on Sunday. He also plans to continue the efforts of the previous administration to exploit the massive gas finds in South Andaman, and to increase the use of biofuels.Indonesia, a former member of the Organization of the Petroleum Exporting Countries(OPEC)…
Petrobras signss agreement to supply Vale fuel with renewable content
Petrobras and Vale have agreed to sell Vale diesel containing renewable content. The two Brazilian giants announced the agreement on Friday. The agreement represents a concrete step by Vale in decarbonizing its operations. It also marks a victory for Petrobras, the state-owned oil company that is working to create a market for its sustainable fuels. Petrobras and Vale, two of Latin America’s largest companies in terms of market value, are both owned by Petrobras. Magda Chabriard…
US crude, fuel inventories fall last week, EIA
The Energy Information Administration reported on Thursday that U.S. crude, gasoline, and distillate stocks fell last week. The EIA reported that crude inventories dropped by 2.2 millions barrels, to 420.6 million in the week ending Oct. 11. This was in contrast with the analysts' polled expectations of a 1.8-million barrel increase. Crude oil stocks at Cushing, Oklahoma's delivery hub, rose by 108,000 barrels during the past week. Crude production increased by 100,000 barrels per daily (bpd), reaching a record of 13.5 million bpd. Meanwhile, net U.S.
Phillips 66 is hit with a $604.9 mln US judgment in fuel trade secrets case
A California state court jury ruled on Wednesday that energy company Phillips 66 owes Propel Fuels 604.9 million dollars in damages after stealing Propel’s trade secrets in order to improve its renewable fuel capabilities. The jury in Oakland agreed that Phillips, based in Houston, stole Propel's secrets to gather information for an acquisition. They then used the information to create a rival business. A spokesperson from Propel confirmed that the award had been given. Phillips 66 spokespersons did not respond immediately to a comment request.
US offers conditional loans guarantees of up to $3 billion for two sustainable aviation fuels projects
The U.S. Department of Energy announced on Wednesday that it had approved conditional loan guarantees totaling almost $3 billion for two projects involving sustainable aviation fuel. Loan Programs Office of the agency said that the funding up to $1.44billion to Calumet would support its expansion in Montana. The facility will use vegetable oils, fats and greases in order to produce SAF (renewable diesel) and renewable naphtha. The agency stated that if the loan guarantee is finalized…
Brazil's Potencial will invest $109 Million to make the world's biggest biodiesel factory.
Grupo Potencial, a Brazilian company, announced Tuesday that it would invest 600 million reais (108.86 millions dollars) in order to increase the biodiesel production at one of their plants. This will give the facility the largest capacity of biofuel based on soy oil anywhere in the world. The Brazilian government has been working to expand the use of biofuels on local markets. The President Luiz inacio Lula da So will sign into law a bill called Fuel of the Future on Tuesday, to promote the gradual addition of biodiesel to diesel.
EIA: Harvest season will boost US demand for distillate fuel oil in autumn
The U.S. Energy Information Administration stated on Friday that the consumption of distillate fuel oil is expected to rise in autumn, as diesel-powered equipment is used for harvesting and transporting crops. EIA stated that the EIA has found that the harvest peaks in mid-October, and continues through November. This coincides with the beginning of winter heating season, which also drives demand for distillate fuel oil. The weak demand for diesel in the United States has led to a sharp decline in refiners' margins.
Gunvor chair: Mideast conflict will not affect oil supply but demand is a concern
The CEO of trading firm Gunvor is confident that the conflict in the Middle East won't impact oil supply. He said this on Tuesday. He told the Gulf Intelligence Energy Markets Forum, held in Fujairah that the situation in the Red Sea and Yemen was a nuisance but not disruptive. The market, he said, was more concerned about the weak demand. Brent crude prices dropped by over 2% on Tuesday, to about $70. The prospect of increased supply and a tepid growth in global demand outweighed concerns regarding the escalating conflict and its impact on crude oil exports from Middle East.
New refineries bring down profits for global refiners
Oil refiners across Asia, Europe, and the United States have seen their profitability drop to multi-year-lows. This is a significant downturn in an industry which had previously enjoyed booming returns following the pandemic. It also highlights the global slowdown. This weakness is another sign of a softening consumer and industrial demand in China due to the slowing of economic growth and increasing penetration of electric cars. The pressure on prices has been exacerbated by the addition of new refineries in Africa, Asia and the Middle East.
The US Renewable Diesel Production Capacity has experienced its largest monthly decrease in history
Data from the Energy Information Administration on Monday showed that the U.S. renewable-diesel production capacity decreased in July at the highest rate since the industry's rapid expansion began three years ago. The capacity to produce biomass-based biofuels and renewable diesel, excluding biodiesel, has fallen by 299 million gallons annually from June, to 4.60 billion gallons in July. This is the second decline since the EIA started keeping records in the year 2021. The EIA didn't immediately respond to an inquiry seeking further inputs about the reasons for the decline.
Sources say that Indonesia's Pertamina is looking for up to 1.1 million bbls Oct gasoil with high sulphur content.
Three trade sources on Wednesday said that Indonesia's Pertamina was seeking up to 1.1 millions barrels of gasoil with a sulphur content of 2500ppm for delivery in October's first half. They added that this could be because of refinery production issues. The state-owned firm wants to load up to two 200,000 barrels of cargo from Singapore or Malaysia between Sept. 28 and Oct. 6. It also wants to deliver a 300,000 to 500,000 barrel cargo to Tuban, on Oct. 3 to 5, as well as a 300,000 to 500,000-barrel shipment to Balikpapan, on Oct. 5 to 7, via its trading division.
EIA reports that US crude, gasoline, and distillate stocks are falling.
The Energy Information Administration reported on Wednesday that U.S. crude, gasoline, and distillate stocks fell last week. The EIA reported that crude inventories dropped by 4.5m barrels, to 413m barrels for the week ending Sept. 20. This was in contrast with the analysts' polled expectations of a 1.4m barrel draw. Last week, U.S. crude oil inventories, excluding the Strategic Petroleum Reserve (SPR), were at their lowest level since April 2022. The EIA reported that stocks at Cushing, Oklahoma's delivery hub for U.S. Crude Futures increased by 116,000 barrels.
