Global Refining & Fuels Report

Shareholders Ask ExxonMobil for Climate Change Meeting

A group of ExxonMobil shareholders, including several U.S. state treasurers and comptrollers, have signed a letter to independent ExxonMobil board member Michael Boskin, asking for a meeting regarding the company’s position on climate change.

The signatories include the treasurers of California, Pennsylvania, Maryland, Maine and Vermont, and the comptrollers of New York and California.

Saudi Aramco, Total Sign Agreement for 400,000 b/d Refinery

Saudi Aramco and Total announced recently they have signed a memorandum of understanding for a 400,000 b/d refinery to be located in Jubail, Saudi Arabia.

IEA: Weaker U.S. Demand Sends Demand Projection Down 15%

The International Energy Agency has revised its global oil product demand growth in its latest Monthly Oil Market Report down 15% from its April projection, to 1.3 million b/d. The reduction is due to weaker demand in the U.S. and unexpectedly strong exports from former Soviet Union countries.

“Although the global economy posted strong growth in the first quarter of 2006, mild temperatures and high prices weighed on demand in most key consuming areas,” IEA said. “Global oil demand grew by only 370,000 b/d year-on-year in the first quarter, but it is expected to rebound in the second half of the year, in part reflecting a weak hurricane-impacted 2005 baseline.”

Futures Price Graphs

Crude futures and gasoil futures prices declined during the past two weeks.

Futures

Crude Futures Jump Above $71/bbl

The price of the July crude oil futures contract on the New York Mercantile Exchange (NYMEX) climbed 2.6% Tuesday, to $71.76/bbl.

Port Arthur Expansion has Saudi Refining Support

Saudi Refining announced it supports the proposed expansion project at the 275,000 b/d Port Arthur, Texas, refinery it owns with Shell through joint venture Motiva Enterprises.

Citgo to Invest $500 Million in U.S. Refineries, May Cut Back Retail Stations

Citgo, the North American subsidiary of Venezuela’s state oil company PDVSA, will invest $500 million into its refineries this year, the company’s president said in an interview with Venezuelan newspaper El Universal.

Petrobras Earnings Jump 33%

Brazilian state energy company Petrobras announced its first quarter earnings increased 33%, to 6.7 billion reals ($3.1 billion).

“These results are based mainly on strong progress in exploration, production and refining, higher international prices, the strengthening Brazilian real and stable operating costs,” the company said.

Western Refining Loses Nearly $20 Million in First Quarter

Western Refining announced first quarter losses of $19.7 million. The company earned $1.4 million in the first quarter 2005.

Western said it had a one-time charge of $21.3 million relating to income taxes due to a restructuring of the corporate holding company during the quarter. It also spent $22.2 million on a maintenance turnaround at its refinery in El Paso, Texas.

Alon Earnings Jump 142%

Alon USA Energy announced its first quarter earnings increased 142% to $54.2 million.

Indonesia, Iran Sign Agreement for New Refinery

As expected, Indonesia’s state oil company Pertamina and National Iranian Oil have agreed to jointly build a $5 billion, 300,000 b/d refinery in Indonesia, AFX reported.

The refinery will likely be located on the east coast of Java Island and process Iranian crude oil exclusively.

Report: China, Pakistan Sign Refinery Agreement

China and Pakistan last month signed a letter of intent enabling Chinese companies to invest in a new refinery in Pakistan, China’s Economic Information Daily reported.

Dispute Could Result in Shortage of Oil in Israel

A dispute between Israel’s state Oil Refineries company and Eilat-Ashkelon Pipeline could result in shortages of oil and oil products in Israel, United Press International reported, citing Israeli media.

Sri Lankan Government Approves Refinery Expansion Study

Sri Lanka’s cabinet gave its approval for a feasibility study for a refinery expansion at the country’s Sapugaskanda refinery, owned by state oil company Ceylon Petroleum, Lanka Business Online reported.

Fifteen Companies Interested in Rotterdam Refinery

Kuwait Petroleum said 15 companies have shown interest in the company’s Rotterdam refinery, Dutch News Digest reported.

Lukoil Looking to Acquire 300,000 b/d in European Refining Capacity

Russian oil company Lukoil wants to buy up to 300,000 b/d in refining capacity in Europe, the company’s CEO said, according to a Reuters report.

Petrol Ofisi to Build New Refinery

Turkey’s Petrol Ofisi is planning to build a new 100,000 b/d refinery, which will increase the country’s refining capacity 18%, Reuters reported.

Turkey currently has four refineries, all of which are owned by former state oil company Tupras.

Iran May Build New Refinery in Kenya

Iran may build a new refinery in Kenya to replace its Kenya Petroleum Refinery, which is obsolete, Kenya’s chairman of Parliament’s Departmental Committee on Energy and Roads said, The East African Standard reported.

IEA Director: Demand Needs to Come Down

International Energy Agency director Claude Mandil said he is surprised high oil prices have not reduced demand, and that it would be a “good thing” for demand to go down, Reuters reported.