logo
Austria's OMV finds chloride contamination in Azeri crude

Austria's OMV finds chloride contamination in Azeri crude

Reuters4 days ago
LONDON, July 28 - Austrian energy group OMV has found organic chloride contamination in Azeri crude cargoes planned for delivery to its oil refineries, it said, adding it had prevented it from causing any disruption.
Organic chloride contamination in Azeri BTC crude cargoes was discovered last week, sending price differentials to a four-year low and causing several days' delays to loadings from Turkey's BTC Ceyhan terminal.
In its statement on Friday, OMV said the contaminated crude had been discovered through its quality control procedures. It said it had not reached its refineries, and there had been no disruption of its refining operations or of its supply of fuel to the market.
OMV said it had worked to secure alternative crude from other sources to "ensure continuity and security of fuels supply," but it did not clarify what it planned to do with the contaminated Azeri crude.
Organic chlorides are used in the industry to boost extraction from oilfields by cleaning oil wells and to accelerate the flow of crude, but the compounds must be removed before oil enters pipelines.
In large concentrations, they can pose risks to refinery equipment, OMV said.
Italy's Eni told Reuters last week that it had detected organic chloride contamination in oil already in its systems.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Turkey, Italy and Libya leaders discuss Mediterranean migration route, cooperation
Turkey, Italy and Libya leaders discuss Mediterranean migration route, cooperation

Reuters

time2 hours ago

  • Reuters

Turkey, Italy and Libya leaders discuss Mediterranean migration route, cooperation

ANKARA, Aug 1 (Reuters) - The migration route from Libya across the Mediterranean, used by thousands seeking a way to get to Europe, was a top issue at a meeting on Friday between the leaders of Turkey, Italy and Libya in Istanbul, Turkey's presidency said. President Tayyip Erdogan met Italian Prime Minister Giorgia Meloni and Libyan Prime Minister Abdulhamid al-Dbeibah to discuss migration and other potential cooperation areas. "Erdogan pointed to the importance of the cooperation between the three countries against the tests that the Mediterranean basin is facing, including irregular migration flows," the presidency said in a statement. He added that "long-term and sustainable solutions" were needed to stop such migration flows, and that a multilateral coordination was needed to achieve this, it said. Major energy exporter Libya, long split between rival eastern and western factions, is one of the main jumping off points for migrants crossing the Mediterranean from North Africa. Rival regional powers - Russia, Turkey, Egypt and the United Arab Emirates - have also been drawn into its political divisions. NATO member Turkey has militarily and politically supported Libya's Tripoli-based internationally-recognised government. In 2020, it sent military personnel there to train and support its government and later agreed a maritime demarcation accord, which has been disputed by Egypt and Greece. In 2022, Ankara and Tripoli also signed a preliminary accord on energy exploration, which Egypt and Greece also oppose. NATO allies Turkey and Italy meanwhile have strong ties, and have pledged to boost cooperation in the defence industry, while also increasing their reciprocal trade. Italy's Leonardo ( opens new tab and Turkey's Baykar announced in March that they were setting up a joint venture to produce unmanned aerial vehicles, while Ankara has been inching closer to securing a procurement of 40 Eurofighter Typhoon fighter jets from a consortium that includes Italy. Erdogan's office also said the three leaders agreed to meet to evaluate any decisions taken by their cooperation committees later.

US light crude falls more than $1 on possible OPEC production boost
US light crude falls more than $1 on possible OPEC production boost

Reuters

time4 hours ago

  • Reuters

US light crude falls more than $1 on possible OPEC production boost

HOUSTON, Aug 1 (Reuters) - U.S. light crude oil prices fell more than $1 a barrel in early trade in New York on a possible increase in production by OPEC and its allies. Brent crude futures were down 88 cents, or 1.23%, at $70.82 a barrel by 9:09 a.m. CDT (1409 GMT). U.S. West Texas Intermediate crude was down $1.53, or 2.21%, at $67.73. Three people familiar with discussions among OPEC members and its allies like Russia said an agreement to boost production by 548,000 barrels per day in September could come as early as Sunday. A fourth source familiar with OPEC+ talks said discussions on the volume were ongoing and the hike could be smaller. Prices had stabilised in trading earlier on Friday after losing more than 1% in the previous session, though Brent and WTI remained on course for weekly gains of 4.6% and 6.5% respectively. Investors have focused on the potential impact of U.S. tariffs on oil prices this week, with tariff rates on U.S. trading partners largely set to take effect from next Friday. Trump signed an executive order on Thursday imposing tariffs ranging from 10% to 41% on U.S. imports from dozens of countries and foreign territories that failed to reach trade deals by his August 1 deadline, including Canada, India and Taiwan. Partners that managed to secure trade deals include the European Union, South Korea, Japan and Great Britain. "We think the resolution of trade deals to the satisfaction of the market – more or less, barring a few exceptions – has been the key driver for oil price bullishness in recent days, and further progress on trade talks with China in future could be a further confidence booster for the oil market," said Suvro Sarkar at DBS Bank. Prices were also supported this week by Trump's threats to impose 100% secondary tariffs on Russian crude buyers as he seeks to pressure Russia into halting its war in Ukraine. This has stoked concern over potential disruption to oil trade flows and the removal of some oil from the market. "It is not possible to completely replace Russian oil supplies in any case, which is why effective sanctions would lead to significantly higher oil prices," said Commerzbank analyst Carsten Fritsch. JP Morgan analysts said on Thursday that Trump's threatened penalties on China and India over their purchases of Russian oil potentially put 2.75 million barrels per day (bpd) of Russian seaborne oil exports at risk. China and India are the world's second and third-largest crude consumers respectively.

Russian pipeline gas exports to Europe rose 37% m/m in July, data shows
Russian pipeline gas exports to Europe rose 37% m/m in July, data shows

Reuters

time10 hours ago

  • Reuters

Russian pipeline gas exports to Europe rose 37% m/m in July, data shows

MOSCOW, Aug 1 (Reuters) - Russian energy giant Gazprom's ( opens new tab average daily natural gas supplies to Europe increased by 37% in July from a month earlier when maintenance work reduced them, Reuters calculations showed on Friday. Turkey and the TurkStream undersea pipeline is the only transit route left for Russian gas to Europe after Ukraine chose not to extend a five-year transit deal with Moscow when it expired on January 1. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. Calculations based on data from European gas transmission group Entsog showed that Russian gas exports via the TurkStream pipeline rose to 51.5 million cubic metres (mcm) per day in July from 37.6 mcm per day in June. That was 4.7% more than July 2024 when they stood at 49.2 mcm. Total Russian gas supplies to Europe via TurkStream stood at around 9.93 billion cubic metres (bcm) in the first six months of this year, compared to 9.3 bcm during the same period a year earlier, according to Reuters calculations. Gazprom's exports to Europe in January-July last year amounted to 18.3 bcm, a figure which included volumes transited through Ukraine. The company, which has not published its own monthly statistics since the start of 2023, did not respond to a request for comment. Russia supplied about 63.8 bcm of gas to Europe by various routes in 2022, Gazprom data and Reuters calculations show. That plummeted by 55.6% to 28.3 bcm in 2024, but increased to around 32 bcm in 2024. At their peak in 2018-2019, annual gas flows to Europe reached between 175 and 180 bcm.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store