Tag Archives: Oil refinery

The European lockdown weighs on the global fuel recovery | Instant News


LONDON / NEW YORK / SINGAPORE – Renewed restrictions in Europe and the United States to combat the coronavirus have slowed the pace of recovery in fuel demand, offsetting a rebound in Asian economies where consumption is almost back to pre-COVID levels.

FILE PHOTO: Sun is seen behind the jack of a crude oil pump in the Permian Basin in Loving County, Texas, USA, November 22, 2019. REUTERS / Angus Mordant

As the second wave of the virus hit many Western countries, governments imposed new lockdowns, closed restaurants and bars and banned gatherings. But the action was not as strict as in the first wave.

France, Great Britain, Spain and Poland are under the tightest lockdown in Europe, according to Oxford’s tight index assessing indicators such as school and work closures, as well as travel bans.

Graphics – Updated restrictions in Europe and the United States:

As a result, traffic in London, Paris and Madrid fell sharply in November after reaching a peak in October, according to data provided to Reuters by location technology company TomTom, covering mobility through Sunday evening.

“For now, we estimate roughly a drop in European oil demand of around one million barrels per day (bpd) month-on-month in November, of which around 80% of this decline can be attributed to the lockdown impact and the rest is monthly. seasonality, ”said Rystad Energy’s head of oil market, Bjornar Tonhaugen.

Road demand in November is usually lower than October.

Graphics – Renewed locks weigh on European mobility:

The IEA’s director for energy and security markets, Keisuke Sadamori, told Reuters that a new lockdown in Europe is likely to push the outlook for global oil demand toward a downturn, although less severe than the first round of lockdowns in April.

Analysts said the promising news about COVID-19 vaccine candidate Pfizer raising oil prices by 10% on Monday is unlikely to sway demand crash in Europe until the end of the year, although doing so could delay tougher restrictions in the United States.

Restrictions in Europe are worrying US markets, as some traders see more of the lockdown there as a harbinger for what’s to come in the United States.

“We’re just waiting for another shoe to fall in here,” said John Kilduff, partner at Again Capital in New York. “It looks like a rerun at the beginning of the year.”

The market is tacitly optimistic about a recovery in the US fuel market in late August – as have some schools reopening – but positive sentiment has evaporated.

Gasoline-supplied products – a proxy for demand – have fallen 9% since August, to 8.3 million bpd from 9.2 million bpd, Energy Information Administration data showed.

RESTORATION OF ASIA

By contrast, traffic in the Chinese capital Beijing has recovered significantly compared to the baseline in February and is not far from 2019 levels, according to TomTom data.

Demand for fuel in China, the world’s second-largest oil consumer, has returned to pre-COVID levels and is expected to grow this year as its economy recovers.

SIA Energy, a Beijing-based consultancy, said it expects China’s oil demand to grow 9%, or 1.34 million barrels per day, by 2020 to 16.4 million barrels per day.

In Moscow and Tokyo, road traffic is not far from pre-pandemic levels, according to TomTom data.

Graph – Traffic in Beijing on recovery:

India has suffered badly from the pandemic, but indicators of mobility in the country also remain resilient. Traffic in New Delhi and Mumbai is still increasing, albeit at a slower pace compared to July-August, according to TomTom data.

India’s gasoline and diesel sales in October have also risen above pre-pandemic levels.

Oil Minister Dharmendra Pradhan said at an industry conference on Monday that consumption of diesel and high-speed spirit motors in October last year exceeded last year.

“We anticipate that the recovery path for energy demand growth in India will persist in the coming months,” he added.

Reporting by Bozorgmehr Sharafedin in London, Stephanie Kelly in New York and Florence Tan in Singapore, additional reporting by Nidhi Verma in New Dehli; Edited by Nick Macfie

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The European lockdown weighs on the global fuel recovery | Instant News


LONDON / NEW YORK / SINGAPORE – Renewed restrictions in Europe and the United States to combat the coronavirus have slowed the pace of recovery in fuel demand, offsetting a rebound in Asian economies where consumption is almost back to pre-COVID levels.

FILE PHOTO: Sun is seen behind the jack of a crude oil pump in the Permian Basin in Loving County, Texas, USA, November 22, 2019. REUTERS / Angus Mordant

As the second wave of the virus hit many Western countries, governments imposed new lockdowns, closed restaurants and bars and banned gatherings. But the action was not as strict as in the first wave.

France, Great Britain, Spain and Poland are under the tightest lockdown in Europe, according to Oxford’s tight index assessing indicators such as school and work closures, as well as travel bans.

Image: Updated restrictions on Europe and the United States

As a result, traffic in London, Paris and Madrid fell sharply in November after reaching a peak in October, according to data provided to Reuters by location technology company TomTom, covering mobility through Sunday evening.

“For now, we estimate roughly a drop in European oil demand of around one million barrels per day (bpd) month-on-month in November, of which around 80% of this decline can be attributed to the lockdown impact and the rest is monthly. seasonality, ”said Rystad Energy’s head of oil market, Bjornar Tonhaugen.

Road demand in November is usually lower than October.

Graphics: Renewed lockdowns weigh on European mobility

The IEA’s director for energy and security markets, Keisuke Sadamori, told Reuters that a new lockdown in Europe is likely to push the outlook for global oil demand toward a downturn, although less severe than the first round of lockdowns in April.

Analysts said the promising news about COVID-19 vaccine candidate Pfizer raising oil prices by 10% on Monday is unlikely to sway demand crash in Europe until the end of the year, although doing so could delay tougher restrictions in the United States.

Restrictions in Europe are worrying US markets, as some traders see more of the lockdown there as a harbinger for what’s to come in the United States.

“We’re just waiting for another shoe to fall in here,” said John Kilduff, partner at Again Capital in New York. “It looks like a rerun at the beginning of the year.”

The market is tacitly optimistic about a recovery in the US fuel market in late August – as have some schools reopening – but positive sentiment has evaporated.

Gasoline-supplied products – a proxy for demand – have fallen 9% since August, to 8.3 million bpd from 9.2 million bpd, Energy Information Administration data showed.

RESTORATION OF ASIA

By contrast, traffic in the Chinese capital Beijing has recovered significantly compared to the baseline in February and is not far from 2019 levels, according to TomTom data.

Demand for fuel in China, the world’s second-largest oil consumer, has returned to pre-COVID levels and is expected to grow this year as its economy recovers.

SIA Energy, a Beijing-based consultancy, said it expects China’s oil demand to grow 9%, or 1.34 million barrels per day, by 2020 to 16.4 million barrels per day.

In Moscow and Tokyo, road traffic is not far from pre-pandemic levels, according to TomTom data.

Graph: Traffic in Beijing is on the mend

India has suffered badly from the pandemic, but indicators of mobility in the country also remain resilient. Traffic in New Delhi and Mumbai is still increasing, albeit at a slower pace compared to July-August, according to TomTom data.

India’s gasoline and diesel sales in October have also risen above pre-pandemic levels.

Oil Minister Dharmendra Pradhan said at an industry conference on Monday that consumption of diesel and high-speed spirit motors in October last year exceeded last year.

“We anticipate that the recovery path for energy demand growth in India will persist in the coming months,” he added.

Reporting by Bozorgmehr Sharafedin in London, Stephanie Kelly in New York and Florence Tan in Singapore, additional reporting by Nidhi Verma in New Dehli; Edited by Nick Macfie

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The closure of BP’s refineries threatens hundreds of jobs in Western Australia | Instant News


In late October, British oil and gas company BP announced that over the next six months it would gradually close its refinery in the town of Kwinana near Perth, Western Australia (WA). The shutdown will cost at least 590 jobs.

The refinery, the largest in Australia and the only one in WA, has been operating for more than 65 years. Currently employs 400 permanent staff and 250 contractors. The project will be converted into an import terminal that will employ only 60 people when it is completed in the middle of next year.

Kwinana Refinery (Source: bp.com)

The company’s heartless decision will see Kwinana workers dumped into an increasingly tight job market in conditions where thousands of workers have been laid off across the state since the coronavirus crisis began.

Even before the pandemic began, official unemployment in Kwinana had reached 11.8 percent in the March quarter of this year. This is much higher than the general rate for WA, which has just fallen to 7 percent, down from 8.7 percent in June as COVID-19 restrictions are relaxed.

BP Australia chief Frédéric Baudry told the media that the company’s decision was “not at all the result of local policy settings,” but as “a response to long-term structural changes in regional fuel markets.”

The closings are part of a vicious global restructuring of the sector by major oil companies, to cut costs and offset the impact of falling oil prices. Production is being cut, jobs are being destroyed and old factories closed to facilitate relocation of operations to newer large-scale export refineries in Asia and the Middle East.

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Exxon pressured Australia to release aid to refineries in January | Instant News


MELBOURNE (Reuters) – Exxon Mobil Corp. XOM.N urged the Australian government to start providing assistance to the country’s refineries in January following last week’s decision by BP plc BP.L to shut down the nation’s largest refinery.

FILE PHOTOS: Exxon sign seen at a gas station on the outskirts of Chicago, Norridge, Illinois, USA, October 27, 2016. REUTERS / Jim Young / Photo File / Photo File

Exxon has Australia’s oldest refinery at Altona near Melbourne, which can process 90,000 barrels of oil per day, the smallest of the nation’s four refineries. The site supplies about half of the fuel for the state of Victoria, which has been hit by one of the world’s longest and most stringent coronavirus lockdowns.

Exxon said the prolonged lockdown “has put unprecedented pressure” on Altona, causing the plant to suffer losses.

The Victorian government last week relaxed restrictions restricting people to the 5 km (3 mile) zone around their homes and allowed shops and restaurants to reopen for the first time since August 2.

The Australian Government is in talks with the refining industry about offering A $ 2.3 billion ($ 1.6 billion) of incentives over 10 years to keep refineries open to support national fuel security.

The two other refiners in the country, Viva Energy VEA.AX and Ampol ALD.AX, are considering closing their refinery.

Exxon said the proposed six-month time frame for talks with the government was “too long given the short-term challenges faced by all refineries” and was working with refining industry groups and the government to get the first part of fuel safety. package released in January 2021.

The Maritime Union of Australia (MUA) said the government should take over BP’s plant in Kwinana, Western Australia, the only refinery on the west coast, to prevent fuel supply disruptions.

“More than 90 percent of Australia’s liquid fuel has already arrived via foreign-owned and operated tankers, but that figure will only increase if the Kwinana refinery is allowed to close,” MUA Assistant National Secretary Ian Bray said in a statement.

($ 1 = 1.4259 Australian dollars)

Reporting by Sonali Paul; Edited by Christian Schmollinger

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Petrobras Brasil said a major divestment was nearing the finish line | Instant News


RIO DE JANEIRO (Reuters) – Petrobras is in the advanced stages of several major divestments, executives said on Thursday, suggesting that the company’s ambitious deleveraging program could accelerate after a lull during Brazil’s worst coronavirus outbreak.

PHOTO FILE: PHOTO FILE: Brazil’s state-owned Petrobras oil company logo is seen at their headquarters in Rio de Janeiro, Brazil October 16, 2019. REUTERS / Sergio Moraes / Photo File / Photo File

Speaking to analysts after the company’s third-quarter results, executives at Petroleo Brasileiro SA PETR4.SA, as the state-owned oil company is officially called, said it hopes to complete negotiations to sell the RLAM refinery by the end of the year and recently received a binding offer for the REMAN refinery, in the Amazon city of Manaus.

The company expects to receive binding offers for the REPAR refinery in southern Brazil in December, they added.

Petrobras has sought to sell dozens of non-core assets in recent years in a bid to reduce debt and sharpen its focus on offshore oil production and exploration. Among the divestments are sales of nine refineries which are expected to raise more than $ 10 billion cumulatively for the company.

But the divestment process has struggled in recent months amid falling crude oil prices and a more general slowdown in the global economy.

The company expects Brazil’s antitrust authorities to approve the sale of its Liquigas gas distribution unit in November, said Chief Financial Officer Andrea Almeida.

The company is also continuing to examine initial public offerings for its middle offshore asset collection, he added.

Executives are not very optimistic about some of the other divestments.

Chief Executive Roberto Castello Branco said plans to sell his stake in the TBG gas pipeline unit, which links Brazil and Bolivia, were hampered by regulatory issues.

The company will not sell its stake in the Braskem SA petrochemical company BRKM5.SA until the company makes significant improvements in terms of governance and environmental obligations, he added.

Brazil-listed preferred stock in Petrobras rose 2.3% in afternoon trade, after the company beat margin forecasts late Wednesday, even as profit missed expectations on a one-time fee.

Brazil’s benchmark Bovespa equity index .BVSP up 1.2%.

In terms of production, executives marked a moderate drop in fourth quarter output and an increase in lifting costs due to scheduled maintenance. However, they said, a number of new wells had been operating in some of the company’s most promising offshore fields in the fourth quarter.

The company has noticed a short-term decline in demand for its products in Europe due to the rise of COVID-19 there, said André Chiarini, head of logistics and trading of the company. However, demand for Petrobras fuel in China remains strong, he added.

Reporting by Gram Slattery and Luciano Costa; Edited by Kirsten Donovan and David Evans

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