In a strategic move to enhance its operations, Glencore Plc has significantly increased its oil procurement from the Middle East, purchasing multiple cargoes in December 2024. This includes three cargoes of Qatar’s Al-Shaheen grade and at least one cargo of Abu Dhabi’s Upper Zakum, all intended for the Bukom refinery in Singapore, which Glencore acquired from Shell Plc earlier this year [882aaaa0]. The shipments, each comprising 500,000 barrels, are scheduled to load in February 2025 and are expected to arrive in Asia shortly thereafter [882aaaa0].
The Bukom refining and chemicals complex has a capacity of 237,000 barrels per day, and Glencore's recent hiring of Aditya Ravavarapu from BP Plc to lead its Asian oil trading team signals a strategic shift towards deeper engagement in physical oil markets [882aaaa0]. This move aligns with the company's broader strategy to optimize its operations based on prevailing market conditions [882aaaa0].
Meanwhile, the Southern Refineries Company in Basra, Iraq, continues to bolster its export capabilities, recently announcing that its exports of white oil and civil aviation fuel meet the highest international specifications. Director General Hussam Wali confirmed the operation of a new refining unit with a capacity of 70,000 barrels per day, which is expected to enhance the refinery's output significantly [2840110b]. A recent contract has been signed for the export of 180,000 tons of civil aviation fuel (GTE One), with a daily export rate of 1,000 tons, following a previous contract for 52,000 tons of aviation fuel [2840110b].
In addition to aviation fuel, the Southern Refineries Company is also exporting kerosene, ensuring that local market needs are met before sending products abroad [2840110b]. The Iraqi government aims to achieve self-sufficiency in gasoline by next year, reflecting a broader strategy to bolster domestic production and reduce reliance on imports [2840110b]. The first shipment of kerosene to Egypt, ranging from 800 to 1,000 tons, marks a significant step in expanding Iraq's export capabilities [2840110b].
Meanwhile, the Imperial Oil pipeline in southern Manitoba has been fully repaired and is operating at full capacity after earlier integrity concerns [df1dc3ff]. This restoration is crucial for maintaining stable gasoline, diesel, and aviation fuel supplies in Manitoba, where retail prices remain the lowest in Canada [df1dc3ff].
In Libya, the Waha Oil Company has resumed crude oil pumping operations through the main crude oil transportation pipeline after extinguishing a fire that had temporarily halted operations [de148284]. The company has completed all necessary maintenance and is expected to return to normal production rates shortly [de148284].
On a broader scale, the U.S. Gulf Coast refineries processed 9.31 million barrels of crude oil daily last week, marking the highest output for this time of year since 1992. The U.S. is projected to export 2.96 million barrels of refined products daily this month, the highest level in over seven years [3453f3b2]. This surge in refining activity comes amid increasing demand, particularly as Brazil's diesel consumption has reached a 24-year high, driven by 12 consecutive quarters of economic growth [3453f3b2]. Profit margins for gasoline and diesel are also at their highest since August, reflecting a robust market environment [3453f3b2].
In contrast, Mexico's Olmeca refinery is struggling to ramp up production ahead of the December driving season, highlighting challenges in the regional refining landscape [3453f3b2]. The interdependence between U.S. and Canadian oil supplies remains vital, as Canadian crude oil supplied over 23% of the feedstock for U.S. refineries in 2022 [d1e125fb]. As the U.S. refining industry continues to invest heavily in its infrastructure, the relationship with Canadian crude oil suppliers is crucial for North American energy security [409bf405].