Kenya: First Utility-Scale IPP Solar Project Achieves Financial Close
The 40MWAC (52MWp) Malindi Solar project in Malindi, Kenya has reached financial close and is now ready to commence with construction.
Project developer, Globeleq, a power sector leader in Africa, has advised that the electricity will be sold through a 20-year agreement with the national distribution company, Kenya Power.
The $69 million solar photovoltaic project is located in Langobaya, Malindi District, Kilifi County, about 120km north-east of Mombasa and is one of the first IPP owned utility-scale solar power plants in Kenya to begin construction.
Globeleq has been working with the project originator, Africa Energy Development Corporation (AEDC), who will retain 10% ownership of the project, and its partner, IDEA Power, to bring the project to construction by providing equity, project development and construction management experience.
CDC, the UK’s development finance institution, as the mandated lead arranger, has sourced $52 million in debt financing including $20 million from DEG, the German development finance institution.
Paul Hanrahan, Globeleq’s CEO, said: “The attractive investment climate combined with strong local community support sets the stage for this important project as well as future investments in Kenya. We are extremely pleased to be making this investment into the Kenyan energy sector.’’
Zohrab Mawani, AEDC’s Director added: “AEDC is excited to have reached this significant milestone with the Malindi project. Working with our partners, we are very pleased to contribute to sustainable economic development in Kenya and look forward to continued growth in sub-Saharan Africa.”
The engineering, procurement and construction company Sterling along with Wilson Solar are commencing with civil and electrical construction works.
Land rights, environmental and local permits have been obtained, and the project team has been conducting regular community consultations. Construction will take around twelve months with the plant reaching commercial operations in mid-2020.
It is expected the project will need around 250 workers during construction, many of which will be hired from the local community. Globeleq will oversee the construction and operations of the power plant.
Source: Esi-Africa.com
Springfield CEO, Kelvin Okyere Receives Business Person Of The Year Award
Mr Ernest De-Graft Egyir (L) presented the award to Mr. Kevin Okyere (R)
Chief Executives Network Ghana Limited, has lauded the Springfield Exploration and Production Limited and its Chief Executive Officer, Mr. Kevin Okyere for working hard to make a mark in the upstream petroleum industry in the country.
CEO of the network, Mr Ernest De-Graft Egyir, said it was admirable to find a Ghanaian in the area of oil and gas exploration pushing the frontiers for Ghanaian companies to emulate by building a strong capacity for the future of the sector locally; a feat which has eluded the nation as far as mining is concerned.
He said this when he led a team from his outfit to present the Business Person of the Year 2019, Offshore Petroleum- Oil and Gas Sector Award to Mr. Okyere at his office on Monday 27th May, in Accra.
The Chief Executives Excellence Award was introduced this year to run alongside the 4th Ghana CEOs Summit which took place at the Kempinski Gold Coast Hotel in Accra, from May 20-21st.
Mr Okyere was not available at the time of the Summit to receive his award from the Vice President, Dr. Mahamudu Bawumia, hence the visit.
A citation accompanying the award read in part “This award is to congratulate and recognize your hard work, commitment to quality achievements and help serve as a continual reminder of your achievements in the Ghanaian Business and Entrepreneurship terrain.
Under your sterling leadership, Springfield Group has established itself as a leader in its target markets in Ghana and beyond. Your excellent drive for hard work and business growth has helped you build a multi-faceted Ghanaian energy behemoth which is quite remarkable.” It said.
Mr De-Graft Egyir noted further that as an organization, the Chief Executives Network recognizes the important role synergy plays in shaping the direction and strengthening the capacity of local businesses to grow and contribute to the overall economy of Ghana, hence the annual summit to bring together captains of industry.
He said what Mr Okyere is doing will benefit the entire nation because his success will inspire other Ghanaian entrepreneurs to dare to venture into areas that have for so long been considered the preserve of foreigners, especially the upstream industry.
Touching on the award, he said it was symbolic of an outstanding performance and a statement that Ghanaians had seen Mr Okyere’s efforts and were highly encouraged and pleased to push him to go higher.
Responding to the gesture, Mr Okyere said it was humbling to know that his fellow compatriots believed in what he was doing together with his team and acknowledged that his success or failure would be a lesson to others who believed it was time for Ghana and Africans to play major roles in the exploitation of her resources for the good of the people.
He noted that in other African countries such as Nigeria, deliberate policies were rolled out to attract local Entrepreneurs into the upstream sector and today Nigerian companies collectively produce a significant percentage of the country’s daily oil production.
“That is what drives us at Springfield. We believe that after nearly a decade of oil production in Ghana, it is possible for local companies to play major roles in the sector. With the necessary support and resources, we can do what foreign companies supported by their governments are doing here in Africa”.
Norwegian Embassy Holds Petroleum Resources Conference In Ghana (Photos)
The Norwegian Embassy in the West African nation, Ghana, in collaboration with upstream regulator Petroleum Commission- Ghana, has organized a two-day conference on building high-value sustainable ocean industries from Ghana’s offshore petroleum activities.
The conference brought together major players in Ghana’s oil and gas sector including Norwegian Ambassador to Ghana Mr Gunnar Andreas Holm, and Ghana’s Minister for Energy John -Peter Amewu.
The objectives of the conference were to identify key inputs and success criteria for building high-value sustainable ocean industries from the upswing in Ghana’s petroleum activities, explore how Norwegian and Ghanaian partnership can create sustainable value chains in Ghana, create a platform to promote and strengthen partnerships between Norwegian and Ghanaian ocean industries, as well as raise awareness of Sustainable Development Goals (SDGs), especially SDG 14, which aims at conserving and sustainably using the ocean, seas and marine resources for sustainable development.
Among the topics which were discussed were: ‘How can various Ghanaian instruments and institutions facilitate partnerships’, ‘How can Norwegian instruments and institutions facilitate partnerships’, ‘Policies and strategies to optimize the benefits of Ghana’s petroleum resources’ and ‘Industry perspective on building skills and capacity in Ghana’s petroleum and maritime industries’.
Speakers at the conference were CEO of Aker Energy, Jan Arve Haugan; Managing Director of ENI Ghana, Mr. Roberto Daniele; Managing Director of ExxonMobil Exploration and Production Ghana (Deepwater) Ltd, Ms. Randi Cruz and Vice Chairman of Ghana Upstream Petroleum Chamber, Mr Charles Darku; Provost of Regional Maritime University, Ing. Augustus Addy-Lamptey and Mr Mustapha Hameed from the Accelerated Oil and Gas Capacity Programme (AOGC).
Renewable Power Is The Cheapest Source Of Electricity, Says Report
Renewable power is the cheapest source of electricity in many parts of the world today, the latest report from the International Renewable Energy Agency (IRENA) shows.
The report contributes to the international discussion on raising climate action worldwide, ahead of Abu Dhabi’s global preparatory meeting for the United Nations Climate Action Summit in September.
With prices set to fall, the cost advantage of renewables will extend further, Renewable Power Generation Costs in 2018 says, based on a comprehensive review of data from projects around the world. This will strengthen the business case and solidify the role of renewables as the engine of the global energy transformation.
“Renewable power is the backbone of any development that aims to be sustainable”, said IRENA’s Director-General, Francesco La Camera.
“We must do everything we can to accelerate renewables if we are to meet the climate objectives of the Paris Agreement. Today’s report sends a clear signal to the international community: Renewable energy provides countries with a low-cost climate solution that allows for scaling up action.
“To fully harness the economic opportunity of renewables, IRENA will work closely with our membership and key partners to facilitate on-the-ground solutions and concerted action that will result in renewable energy projects,” La Camera assured.
Costs reductions record
The costs for renewable energy technologies decreased to a record low last year. The global weighted-average cost of electricity from concentrating solar power (CSP) declined by 26%, bioenergy by 14%, solar PV and onshore wind by 13%, hydropower by 12% and geothermal and offshore wind by 1%, respectively.
Cost reductions, particularly for solar and wind power technologies, are set to continue into the next decade, the new report finds.
According to IRENA’s global database, over three-quarters of the onshore wind and four-fifths of the solar PV projects that are due to be commissioned next year will produce power at lower prices than the cheapest new coal, oil or natural gas options. Crucially, they are set to do so without financial assistance.
Onshore wind and solar PV costs between three and four US cents per kilowatt hour are already possible in areas with good resources and enabling regulatory and institutional frameworks.
For example, record-low auction prices for solar PV in Chile, Mexico, Peru, Saudi Arabia, and the United Arab Emirates have seen a levelised cost of electricity as low as three US cents per kilowatt hour.
Electrification on the basis of cost-competitive renewables is the backbone of the energy transformation and a key low-cost decarbonisation solution in support of the climate goals set out in the Paris Agreement.
Source: Esi-Africa.com
US Forces Blow Up Three Oil Tankers In Syria Enforcing Oil Embargo
US-led forces have blown up three oil tankers in Syria as the United States increases its pressure on Syria by thwarting the oil trade between the PKK/YPG and the Assad regime, according to local sources quoted by several media sources.
The strike was carried about by coalition planes, which hit three oil tankers, leaving four dead.
The coalition has not yet made a statement about the attack. In the area controlled by Assad, oil consumption stands at around 136,000 bpd. Production, meanwhile, is only 24,000 barrels per day. This means that the regime must import significant volumes of crude oil at an estimated expense of more than $ 2billion per year.
The attack comes a couple weeks after the EU extended its sanctions on the Assad regime for one year after the Syrian regime upped the ante in repressing the Syrian people, bringing the Syrian crisis to a boiling point.
Reports surfaced weeks ago that Iran had resumed oil shipments to Syria in the wake of US sanctions on the former, with a million barrels arriving in Syria from Iran on May 5. Further illicit oil shipments may be coming, as a new border crossing between Iraq and Syria is currently under construction Fox News reported last week, based on satellite imagery revealing that construction is underway.
In Syria, Arab residents of oil-rich Deir Ezzor area began protests in April against US-backed Kurdish forces that control the region to the East of the Euphrates. The protests disrupted the oil flows from nearby fields, most of which have been controlled by the US-backed Syrian Democratic Forces since the end of 2017.
The fuel and electricity shortages that are occurring now in Syria have soured previous supporters of Assad against his rule. Iran, who has poured billions into Syria to prop up the Assad regime in recent years, is now feeling US pressure on both fronts—one at home as its oil exports are restricted, and another in Syria.
Source: Oilprice.com
Fuel Prices To Go Up In June – IES
The Institute of Energy Securities (IES) has predicted a marginal increase in fuel prices in June. According to the Institute, it foresees fuel prices inching more closely towards Ghs24 per gallon.
This is as a result of the combination of rising international market prices and a marginal depreciation of the Cedi against the Dollar, the Institute said in its projection for June 2019 first pricing-window.
It has therefore “strongly advise the Ghanaian public to take note of Fuel Filling Stations price boards before making purchases as some are priced far below the national average price due to the De-regulation policy.”
This was contained in a statement issued by the Institute on Friday May 31.
Below is the full statement
FUEL PRICE TO INCH CLOSER TO GH¢24 PER GALLON
REVIEW OF MAY 2019 SECOND PRICING-WINDOW
Local Fuel Market
The second Pricing-window for May 2019 saw average fuel prices at the pump remain unchanged as the Institute projected. As a result, average prices of Gasoline and Gasoil at the pump continued to sell at GH¢5.21 and GH¢5.18 respectively. The stable fuel price Ghanaians experienced at the pump is not only attributable to the stability of the local Cedi against the Dollar, but also because the National Petroleum Authority fully forfeited the Price Stabilization and Recovery Levy (PRSL) mechanism in the Petroleum Price Build-Up (PBU) to further cushion the market.
IES Market-scan shows Oil Marketing Companies (OMCs) Benab Oil, Pacific Oil, Frimps Oil, Compass Oil and Goodness Oil sell the least-priced fuel (GH¢5 per litre) on the market while Shell, GOIL and Total sell the highest-priced fuel (GH¢5.25 per litre) relative to other OMCs.
World Oil Market
Whereas Washington has said it is not seeking “regime change” in Tehran directly or indirectly, Mr. Trump has said he will accept nothing short of an end to Iran’s Nuclear program unconditionally. In the sanctions melee, major and minor buyers of Iranian oil have all disappeared following U.S. sanctions against Iran. Coupled with outages in Venezuela, there has been shortages (particularly of heavy oil) cutting into the profits of refiners who rely on such oils.
As refiners ramp up production of gasoline, their margins are narrowing. Average Price of Brent crude has shot up by 1.09 percent rising from $71.28 per barrel to $72.15 per barrel. Gasoline and Gasoil prices also recorded increments according to Standard and Poor’s Platts Assessment. Gasoline increased by 4.38 percent, rising from $718.19 per metric to $749.68 per metric ton. Gasoil increased from $636.97 per metric ton to $639.88 per metric ton. This represents a 0.46 percent increase.
Local Forex
After a good run of appreciation against the U.S Dollar, the Ghana Cedi recorded a loss against the Dollar for the first time in more than seven weeks. IES Economic Desk’s monitoring of the Foreign Exchange market shows the Ghana Cedi lost 2.71 percent of its value against the U.S. Dollar in the window under review. The Ghana Cedi currently trades at GH¢5.29, from a previous average of GH¢5.15.
PROJECTION FOR JUNE 2019 FIRST PRICING-WINDOW
While it is IES’ expectation that the NPA could once again fully apply the element of the PSRL to cushion consumers for the upcoming window as occurred in the previous Pricing-window, we nevertheless foresee the likelihood of fuel prices inching more closely towards GH¢24 per gallon. This will be as a result of the combination of rising international market prices and a marginal depreciation of the Cedi against the Dollar. The Institute wishes to strongly advise the Ghanaian public to take note of Fuel Filling Stations price boards before making purchases as some are priced far below the national average price due to the De-regulation policy.
Signed:
MIKDAD MOHAMMED (Research Analyst)
Hong Kong Dismisses US Warning On Oil Tanker Violating Iran Sanctions
Hong Kong officials have rejected warnings from the U.S. that the autonomous city could face sanctions if it does business with an oil tanker carrying Iranian oil in breach of the U.S. sanctions on Iran.
Hong Kong is strictly enforcing United Nations sanctions which don’t have “any restrictions on the export of petroleum from Iran,” a spokesperson for Hong Kong’s Commerce and Economic Development Bureau told Bloomberg answering a question about the U.S. warning.
Earlier this week, the United States urged Hong Kong to be on the look out for an oil tanker carrying Iranian oil presumably that may be on its way to China, in violation of U.S. sanctions against the Middle Eastern country.
Dismissing the U.S. warning, the spokesperson told Bloomberg on Wednesday:
“Certain countries may impose unilateral sanctions against certain places on the basis of their own considerations.”
“Those sanctions are outside the scope of the UN Security Council sanctions” that Hong Kong is abiding by, according to the Hong Kong official.
The oil tanker, known as the Pacific Bravo (formerly Silver Glory), was originally headed to Indonesia, Refinitive Eikon data showed, according to Reuters, but changed course on Monday to head toward Sri Lanka.
The Pacific Bravo flies under the Liberian flag, but a senior US official claims the oil tanker is owned by China’s Bank of Kunlun, which is the official handler of money between China and Iran. Bank of Kunlun is owned by CNPC’s financial arm, CNPC capital.
“Anyone who does business with this ship, the Pacific Bravo, would be exposing themselves to U.S. sanctions,” the senior official said, adding that the US will “enforce our Iran sanctions quite aggressively and quite consistently.”
China has historically been Iran’s largest crude oil customer, although Beijing has significant increased its crude oil purchases from Saudi Arabia since the onset of U.S. sanctions on Iran.
Source: Oilprice.com
Ghana: Pump Attendants Dying Slowly Due To Exposure To Petroleum Hazards- COPEC Research
A pump attendant on duty
Research findings by Chamber of Petroleum Consumers (COPEC) GHANA has revealed a disturbing state at which most pump attendants in the country finds themselves due to the hazardous substances they are exposed to.
The research, which covered about 100 filling stations across the country, noted that none of the pump attendants had been provided with Personal Protective Equipment (PPE), despite working in a hazardous environment.
COPEC is yet to publish its findings, but its Executive Secretary Duncan Amoah noted that the report highlights physiological problems pump attendants are facing, which are putting their lives in danger.
He said given the chemical composition of petroleum products, including benzene tolougne xylene( btex ) which is very harmful, they had expected that operators of fuel stations would do their best to ensure the safety of the attendants. But that, he said, had not been done.
“Our most recent research on the hazards fuel pump attendants face in line with their day to day operations will be shared with all the relevant institutions, industry players and all other stakeholders in a few days from now. The findings of this report is not only interesting but we believe it will also add to your already commendable efforts towards improving of not only safety from fires and explosions, but also reducing all forms of hazards associated with everyone across the value chain of fuel distribution in the country,” Professor Felix Asante, Director of Institute of Statistical Social and Economic Research (ISSER), at the University of Ghana, Legon, who is also Chairman of the Executive Council of COPEC, said at the Petroleum Safety Week.
“We will continue to impress on government to extend all the necessary assistance this industry needs in order to serve the everyday Ghanaian in a very safe environment, such that the media here can only report only positive stories and landmark improvements in the petroleum downstream of Ghana.”
He concluded that “we end by encouraging the millions of consumers across the country to, at all times, observe the minimum safety arrangements and protocols pasted at all the fuel stations across the country so as not to jeopardize their own safety and that of others, whiles fueling their vehicles or engaged in any form of transaction.”
Hong Kong Dismisses US Warning On Oil Tanker Violating Iran Sanctions
Hong Kong officials rejected on Wednesday warnings from the U.S. that the autonomous city could face sanctions if it does business with an oil tanker carrying Iranian oil in breach of the U.S. sanctions on Iran.
Hong Kong is strictly enforcing United Nations sanctions which don’t have “any restrictions on the export of petroleum from Iran,” a spokesperson for Hong Kong’s Commerce and Economic Development Bureau told Bloomberg, answering a question about the U.S. warning.
Earlier this week, the United States urged Hong Kong to be on the lookout for an oil tanker carrying Iranian oil presumably that may be on its way to China, in violation of U.S. sanctions against the Middle Eastern country.
Dismissing the U.S. warning, the spokesperson told Bloomberg on Wednesday:
“Certain countries may impose unilateral sanctions against certain places on the basis of their own considerations.”
“Those sanctions are outside the scope of the UN Security Council sanctions” that Hong Kong is abiding by, according to the Hong Kong official.
The oil tanker, known as the Pacific Bravo (formerly Silver Glory), was originally headed to Indonesia, Refinitive Eikon data showed, according to Reuters, but changed course on Monday to head toward Sri Lanka.
The Pacific Bravo flies under the Liberian flag, but a senior US official claims the oil tanker is owned by China’s Bank of Kunlun, which is the official handler of money between China and Iran. Bank of Kunlun is owned by CNPC’s financial arm, CNPC capital.
“Anyone who does business with this ship, the Pacific Bravo, would be exposing themselves to U.S. sanctions,” the senior official said, adding that the US will “enforce our Iran sanctions quite aggressively and quite consistently.”
China has historically been Iran’s largest crude oil customer, although Beijing has significantly increased its crude oil purchases from Saudi Arabia since the onset of U.S. sanctions on Iran.
Source: Oilprice.com
UK Oil Production Up 9% In First Quarter By Tsvetana Paraskova –
The UK’s crude and natural gas liquids (NGL) production increased by 9 percent annually to reach 1.18 million bpd in the first quarter of 2019, S&P Global Platts quoted statistics from the UK Department of Business, Energy & Industrial Strategy as showing on Thursday.
The UK’s crude oil production alone increased by 11 percent to 1.08 million bpd in Q1, according to the government statistics quoted by Platts—a welcome sign for the UK oil and gas industry which has managed to reverse a years-long downward trend in recent months, thanks to start-ups of projects in the North Sea.
According to the UK Department of Business, Energy & Industrial Strategy, provisional figures for 2018 showed that UK crude oil and NGL production rose by 8.9 percent compared to 2017, mainly due to multiple new projects on the UK Continental Shelf (UKCS) coming online in late 2017 and 2018 and increasing production through the year.
In November of 2018, BP and its co-venturers started up production at the giant Clair Ridge project in the West of Shetland region offshore UK. The project is targeting 640 million barrels of oil reserves and is expected to have peak production of 120,000 bpd.
The UK’s petroleum reserves remain at a significant level, with overall remaining recoverable reserves and resources ranging from 10 to 20 billion barrels plus of oil equivalent, according to the UK Oil and Gas Authority (OGA). Currently proven and probable reserves on the UKCS can sustain production for another 20 years.
The UKCS yielded 20 percent more oil and gas in the last five years after 14 consecutive years of production declines, the industry’s association, Oil & Gas UK, said in its latest annual Business Outlook earlier this year.
Exploration in the UK’s North Sea is definitely picking up and this year could see the drilling of up to 15 new wells, the association added. This is momentum that needs to be maintained, the association noted, as expectations were for another decline in production to begin after 2020.
Source: Oilprice.com
Teshie Township, Spintex, Others To Experience Power Outage On Saturday
Power Distribution Services (PDS) has released the list of areas which are expected to experience power outage on Saturday, 2nd June, 2019.
The areas area Ashaley Botwe, Islamic University, Spintex, Animal Husbandry, Coca Cola, Hydro Foam, Baatsona, Trassaco Estates, Regimanuel Estates and Nmai Djorn.
The rest are Adjiringano, Papaye and Teshie.
According to PDS, the cut in power supply to the above areas is to enable the expansion works on the Tema Motorway intersection.
Teshie Township, Others To Experience Power Outage On Saturday
Power Distribution Services (PDS) has released the list of areas which are expected to experience power outage on Saturday, 2nd June, 2019.
The areas area Ashaley Botwe, Islamic University, Spintex, Animal Husbandry, Coca Cola, Hydro Foam, Baatsona, Trassaco Estates, Regimanuel Estates and Nmai Djorn.
The rest are Adjiringano, Papaye and Teshie.
According to PDS, the cut in power supply to the above areas is to enable the expansion works on the Tema Motorway intersection.
Devon Energy Leaves Canada, Sells All Oil Assets
U.S. Devon Energy announced on Wednesday an agreement to sell its Canadian business to Canadian Natural Resources for C$3.8 billion, or US$2.8 billion, as part of its plan to focus on growing its oil production in the United States.
As part of the exit from Canada, Devon Energy will sell its heavy oil assets, most of which are located in Alberta, with net production averaging 113,000 oil-equivalent barrels in Q1 2019. Proved reserves at Devon’s assets were around 409 million barrels of oil as of end-2018.
In February this year, Devon Energy said that it would be looking to sell its Canadian assets to become a high-return U.S. oil growth business in what analysts described as a ‘long-overdue’ announcement from the U.S. oil company.
Back then, various analysts expected a wide range for what a potential price tag for Devon’s Canadian assets would be—those ranged from as low as US$2.6 billion (C$3.5 billion) to as high as US$6.66 billion (C$9 billion).
The deal with Canadian Natural Resources announced today is expected to close by the end of this quarter and is contingent upon customary terms and conditions, Devon Energy said in a statement.
Devon Energy will use the proceeds from the Canadian asset sale to cut its debt.
“This transaction creates value for our shareholders by achieving a clean and timely exit from Canada, while accelerating efforts to focus exclusively on our high-return U.S. oil portfolio,” Devon Energy’s president and CEO Dave Hager said.
For Canadian Natural Resources, the acquisition of Devon’s Canadian assets is a good fit to its current asset portfolio.
“These high quality assets complement our existing asset base and provide further balance to our production profile, while not increasing the need for incremental market access out of western Canada, as it is already existing production,” Canadian Natural’s President Tim McKay said in a statement.
Source: Oilprice.com
Saudis Raise Oil Prices To Asia As Demand Spikes
Emboldened by strong prompt demand amid tighter oil supply due to the U.S. sanctions on Venezuela and Iran, the world’s top oil exporter Saudi Arabia is expected to raise the prices of the crude grades it sells on its premium market, Asia, for July, trade sources told Reuters on Thursday.
If the Saudis do raise next week the official selling prices (OSPs) of all their crude oil grade selling in Asia, this would be the third consecutive month in which Saudi Arabia would have increased the prices of its oil for Asian customers.
The tighter supply globally has pushed the Middle East crude benchmarks to multi-year highs, so it’s not unjustified for Saudi Arabia to raise its prices again, especially as demand is strong for prompt supply, according to Reuters.
The Saudis could raise the price of their flagship Arab Light crude grade by up to $1 per barrel, which would lift the price to the highest level since January 2014, according to a Reuters survey of four refinery sources.
Saudi Arabia usually sets the OSPs for its crude grades at the start of each month for deliveries for the next month and as a rule, it doesn’t comment on its monthly oil prices.
Last month, Saudi Arabia increased its prices for all crude grades for Asian buyers with delivery in June as a supply crunch resulting from U.S. sanctions on Iran and Venezuela opened an opportunity to boost revenues.
The price for Arab Light with a June delivery date is now the highest in almost a year, with Arab Medium selling at the highest price since the end of 2013, and Arab Heavy at a six-year high.
Heavy grades are in particularly great demand among Asian refiners and supply is falling because of Venezuela’s continued production decline and political woes that are aggravating the situation.
Source: oilprice.com