Kuwait Launches Full Operation of Al-Zour Refinery

Kuwait’s Emir Sheikh Meshal al-Ahmed al-Sabah (C) participated in the opening of the Al-Zour oil Refinery
Kuwait’s Emir Sheikh Meshal al-Ahmed al-Sabah (C) participated in the opening of the Al-Zour oil Refinery
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Kuwait Launches Full Operation of Al-Zour Refinery

Kuwait’s Emir Sheikh Meshal al-Ahmed al-Sabah (C) participated in the opening of the Al-Zour oil Refinery
Kuwait’s Emir Sheikh Meshal al-Ahmed al-Sabah (C) participated in the opening of the Al-Zour oil Refinery

Kuwait’s Emir, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, on Wednesday kicked off the official celebration for the full operation of the Al-Zour Refinery.

This refinery ranks among the world’s top ten and accounts for 43.5% of Kuwait’s refining capacity. It comprises three smaller refineries.

Dr. Imad Al-Atiqi, Deputy Prime Minister and Minister of Oil in Kuwait, described Al-Zour refinery as one of the key projects in Kuwait’s development plans and a cornerstone of the 2040 Kuwait Petroleum Corporation’s strategic plan.

Al-Atiqi confirmed that the refinery has a significant role in supplying local power stations with clean fuel to meet the increasing demand for electricity due to population growth in the country.

He also explained that the pioneering project embodied the transformation of the developmental vision of “New Kuwait 2035.”

The project provided job opportunities for national labor, with approximately 1,400 recent graduates employed to participate in this monumental national industry, he added.

Al-Atiqi announced that with Al-Zour inauguration, they successfully achieved an extraordinary refining capacity exceeding two million barrels per day, distributed across six oil refineries, three of which located in Kuwait: Mina Abdullah, Mina Al-Ahmadi, and Al-Zour, collectively producing 1.415 million barrels per day.

The other three refineries are located outside Kuwait: Al-Duqm in Oman, Nghi Son in Vietnam, and Milazzo in Italy, with Kuwait’s share of their total production reaching approximately 600,000 barrels per day.

Kuwait Integrated Petroleum Industries Company (KIPIC) Acting CEO Eng. Wadha Al-Khateeb said the inauguration of Al-Zour Refinery was an accomplishment added to the Clean Fuel Project at Al-Ahmadi and Abdullah Ports Refineries, launched in March 2022, which was “a milestone in history of oil and gas industry in our beloved nation, particularly refining industry.”

Al-Zour Refinery will have a production capacity of 615,000 barrels per day, she said, a strong push for Kuwait oil refining in line with international environmental standards, which would also enable KPC and its affiliate companies to expand the export and marketing of their products.

She said Al-Zour Refinery was capable of receiving all kinds of oils and could produce high-quality products like fuel oil, diesel, naphtha and low-sulfur fuel oil.

These products, added Al-Khateeb, could be exported to more than 30 countries in the region and around the world through a pier attached to the refinery.

Al-Zour Refinery also includes the largest complex for sulfur cracking units, said Al-Khateeb.

She said the new refinery would boost the State of Kuwait’s refining capacity from 800,000 bpd to 1.415 million bpd.

Al-Zour Refinery, she went on, would also use treated water for industrial and irrigation purposes. It includes stations to monitor air quality and uses special boilers to reduce emissions.

She said the oil sector was keen on contributing to facing climate change to reach carbon neutrality by 2050.



China Energy Imports Drop in April Amid Iran War as Fuel Exports Hit Decade Low

Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song
Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song
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China Energy Imports Drop in April Amid Iran War as Fuel Exports Hit Decade Low

Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song
Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song

China's oil imports fell to the lowest level in almost four years in April as the closure of the Strait of Hormuz choked off supplies to the world's largest oil importer.

Crude oil imports fell 20% in April to 38.5 million metric tons compared to a year earlier, hitting their lowest level since July 2022, according to customs data released on Saturday.

China imports roughly half of its crude oil from the Middle East, where the closure of the strait has slashed the number of tankers ⁠carrying oil and ⁠refined products to the world.

Saturday's data from China does not distinguish between oil arriving by sea and oil coming in via pipeline. Data from ship-tracking firm Kpler, however, puts seaborne crude imports at 8.03 million barrels per day, also the lowest since July 2022, Reuters reported.

Despite the decline in imports, ⁠ship tracker Vortexa estimates crude inventories rose by 17 million barrels in April, although it said those would fall in May.

The disruption in the Middle East has led China to tightly manage exports of refined products such as gasoline or jet fuel to protect its domestic market.

That policy drove refined oil product exports for April down to their lowest in roughly a decade at 3.1 million tons, down by about a third since March.

This may still overestimate ⁠how ⁠much is going to customers in Asia and elsewhere because the data includes shipments to Hong Kong, typically a major destination for China's refined products and excluded from the export controls.

Natural gas imports also fell by 13% to 8.42 million tons, although the data does not separate seaborne liquefied natural gas (LNG) from gas piped overland. China imports significant quantities of LNG from the Middle East Gulf.

China's crude oil imports for the first four months of the year are still tracking 1.3% above last year's level at 185.3 million tons.


Germany's March Exports Rose Despite Fall of Industrial Output

A general view of the Port of Hamburg, in Hamburg, Germany, October 9, 2023. REUTERS/Wolfgang Rattay
A general view of the Port of Hamburg, in Hamburg, Germany, October 9, 2023. REUTERS/Wolfgang Rattay
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Germany's March Exports Rose Despite Fall of Industrial Output

A general view of the Port of Hamburg, in Hamburg, Germany, October 9, 2023. REUTERS/Wolfgang Rattay
A general view of the Port of Hamburg, in Hamburg, Germany, October 9, 2023. REUTERS/Wolfgang Rattay

German exports rose unexpectedly in March, official data showed on Friday, lifted by higher demand from Europe, as industrial output fell despite a forecast rise, dampened by a drop in energy production.

German exports rose 0.5% in March over the previous month, boosted by an increase of 3.4% in shipments to other European Union countries, the federal statistics office said. Analysts polled by Reuters had expected a 1.7% decrease.

“The string of positive figures ⁠continues,” said VP Bank economist Thomas Gitzel, after the statistics office reported on Thursday higher-than-expected growth in March industrial orders.

The rise in new orders makes the drop of 0.7% in industrial production reported on Friday tolerable, he added.

Analysts polled by Reuters had expected a 0.5% increase.

The statistics office attributed the output decrease to a drop in energy production and in machinery and equipment manufacturing.

“These strong orders are expected to boost industrial production - and, by extension, exports - in the coming months,” Gitzel said, though he warned the well-being of German industry hinged on ⁠how much longer the Iran war will persist.

Sentiment indicators point to a second-quarter contraction in industrial output, because of high energy prices and supply bottlenecks resulting from the blockade of the Strait of Hormuz, said Commerzbank analyst Joerg Kraemer.

A 7.9% month-on-month slump in exports to the United States in ⁠March also showed a clear drag on trade, added Gitzel.

The United States remains the biggest destination for German goods despite the slump, receiving shipments of German goods worth 11.2 billion euros in March.

Imports surged in ⁠March, rising 5.1% compared with expectations for an increase of only 0.8%.

Most imports came from China, accounting for goods worth 15.6 billion euros ($18.31 billion) and marking a 4.9% increase on ⁠the month.

As a result, the foreign trade surplus narrowed more than expected, to 14.3 billion euros ($16.80 billion), from 19.6 billion the month before.


Asia Gets First Mexican Fuel Oil Cargo in 9 Months

FILE PHOTO: Oil tankers in the Singapore Strait in Singapore March 17, 2026. REUTERS/Edgar Su/File Photo
FILE PHOTO: Oil tankers in the Singapore Strait in Singapore March 17, 2026. REUTERS/Edgar Su/File Photo
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Asia Gets First Mexican Fuel Oil Cargo in 9 Months

FILE PHOTO: Oil tankers in the Singapore Strait in Singapore March 17, 2026. REUTERS/Edgar Su/File Photo
FILE PHOTO: Oil tankers in the Singapore Strait in Singapore March 17, 2026. REUTERS/Edgar Su/File Photo

Asia received its first fuel oil cargo from Mexico in nine months on Thursday, with more to follow, as higher Asian prices draw supply after the loss of Middle East cargoes due to the Iran war, according to industry sources and shipping data.

The incoming cargoes from Mexico will ease some concerns about declining inventories in Asia's trading and bunkering hub Singapore, after the Iran conflict choked off most fuel oil supplies from key exporters in the Middle East like Iraq and ⁠Kuwait via the Strait of Hormuz, according to Reuters.

Suezmax tanker Orion, carrying about 160,000 metric tons (1 million barrels) of Mexican high-sulphur fuel oil (HSFO) loaded from the Salina Cruz refinery on the Pacific coast, reached Singapore on May 7, according to traders and ship-tracking data from Kpler.

PMI, the trading arm of Mexican state energy company Pemex, offered another 150,000-ton HSFO cargo to Asia for June delivery via a tender that closed on May 6 with bids valid until May 8, a Singapore-based trader familiar with the matter said. PMI is expected to award the tender later on Friday.

Fuel oil traders said that strong Asian prices are pulling cargoes to Asia while there is ⁠excess supply in the Americas.

“Mexican fuel barrels have to search for more optimal economics due to an influx of Venezuelan oil into the US Gulf Coast,” said Emril Jamil, senior analyst for crude and fuel oil at LSEG.

Most of Mexico's fuel oil exports typically land in the US or the Caribbean Islands, Kpler data showed.

Neither Pemex nor its trading ⁠arm immediately responded to a request for comment.

Traders in Asia have been looking for more arbitrage supplies from the West after the Middle East supply disruption.

The arbitrage is open with front-month 380-cst HSFO East-West spread at near $60 a ton this week, ⁠more than double the level before the conflict, LSEG data showed.

The spread breached $80 a ton on March 9 following the Middle East war, the data showed, a level last seen in September 2019.

A wider East-West price ⁠spread, which measures the price difference between Asian fuel oil versus supply from the Americas and Europe, typically makes it more attractive for cargoes to be shipped from the West to Asia.