FINWIRES · TerminalLIVE
FINWIRES

Essar, IRH Sign $500 Million Crude Sourcing, Product Supply Agreement

By

Essar Energy Transition Fuels and IRH Global Trading completed a $500 million crude sourcing and product supply facility, Essar Energy said Tuesday.

The agreement gives Essar Energy Transition Fuels greater flexibility in sourcing crude and marketing refined products while improving working capital efficiency, according to the companies.

The facility will strengthen feedstock security and enhance the company's ability to capture value across its refining and trading activities amid volatile energy markets.

By partnering with IRH Global Trading, Essar aims to strengthen its network of strategic industry relationships, while the agreement also highlights IRH's role in supporting efficient cross-border energy trade and refining operations, Essar said.

IRH Global Trading, a wholly owned subsidiary of Abu Dhabi-based International Resources Holding, will support the arrangement through its role as a global energy trader and liquidity provider, according to the companies.

"We are delighted to partner with IRH Global Trading on this strategically important transaction for our Stanlow refinery in the UK," Essar Energy Transition Chairman Prashant Ruia said.

Related Articles

Oil & Energy

US Oil Update: Crude Slides on Iran Deal Progress, Analysts Caution on Supply Outlook

Crude futures extended losses in after-hours trading on Monday as traders assessed the implications of a US-Iran agreement for global oil supplies.Front-month West Texas Intermediate crude futures fell 4.38% to $81.16 per barrel, while Brent futures declined 4.56% to $83.35/bbl.US President Donald Trump said the deal with Iran is "all signed, and the Strait is already partially opened," adding that the waterway will be fully operational by Friday. The official signing is expected to take place in Switzerland on Friday.Trump made the remarks in a bilateral meeting with French President Emmanuel Macron at the G7 Summit in France.Trump said he expects the details of the memorandum to be released after it is officially signed on Friday.In a post on X, Iranian President Masoud Pezeshkian said the memorandum reflects months of negotiations and could become a source of national pride if both sides fully implement its provisions.Pezeshkian described the arrangement as an initial step toward ending the conflict and beginning broader negotiations, while emphasizing that a final agreement has not yet taken shape and that Iran remains prepared for all possible outcomes.European governments continue preparing for a potential mine-clearing mission in the Strait of Hormuz, with more than 15 countries reportedly offering personnel and equipment to support the effort.Lebanon has emerged as a key component of the broader agreement, with several leaders arguing that any lasting settlement must address ongoing tensions between Israel and Hezbollah.French President Emmanuel Macron and German Chancellor Friedrich Merz said the arrangement should help support peace in Lebanon, while Trump said, "We want to see if we can resolve the issue of Lebanon."Analysts cautioned that even if the agreement moves forward, the recovery in shipping activity and commodity flows is likely to take longer than the diplomatic process itself.Sheel Bhattacharjee, head of freight pricing at Argus Media, said shipping companies continue to prioritize security over speed, with many operators unwilling to return vessels until confidence in the region improves. Bhattacharjee added that doubts remain over a sustained recovery in traffic through the waterway.Francis Osborne, head of oil analytics at Argus Media, said reopening the Strait of Hormuz alone will not quickly restore commodity flows, with Argus Consulting's Oil Fundamentals Outlook estimating that regional crude production could take four to six months to recover to pre-crisis levels.Cyril Widdershoven, senior advisor at Blue Water Strategy, said tanker movements could rebound within weeks of a successful agreement, but shipping constraints, insurance reviews and security assessments will likely delay a return to pre-crisis volumes for several months, with elevated risk perceptions potentially lasting into 2027.Claudio Galimberti, chief economist at Rystad Energy, said improved sentiment alone will not eliminate supply disruptions, as production ramp-ups, logistics normalization and the unwinding of crude's risk premium will take time.Galimberti added that the agreement represents an important step forward but remains "a step rather than a destination."

Oil & Energy

Iran Deal Framework Advances Sanctions Rollback, Hormuz Reopening Plan, TPH Energy Says

The US and Iran plan to sign a memorandum of understanding in Switzerland on Friday, launching a 60-day process toward a broader agreement as Brent crude drops about 5%, according to TPH Energy.The accord would formally end the conflict and start negotiations on a final settlement. Preliminary discussions will continue before Friday, while both sides focus on the signing that triggers the agreement timeline, TPH Energy said.The US is removing its blockade, and Iran is reopening the Strait of Hormuz to commercial shipping under Iranian and Omani oversight. Shipping firms, however, continue to seek assurances that mines no longer threaten the route, according to TPH Energy.President Donald Trump has described the reopening as a "toll-free" arrangement, though uncertainty remains over whether Iran will charge management fees, TPH Energy said.Iranian media reports indicate that formal negotiations will begin only after Tehran confirms that Washington has ended military operations, lifted the blockade, and released about $25 billion in frozen Iranian assets, according to TPH Energy.A senior Iranian official also indicated that the US plans to suspend oil sanctions for an unspecified period. Tehran views those steps as prerequisites before entering substantive talks on a permanent agreement, according to TPH Energy.While the memorandum reportedly excludes Iran's ballistic missile program, negotiators are focusing on freezing nuclear activities, including limits on enrichment and the dilution of highly enriched uranium under strict international monitoring, according to TPH Energy.Backed by Washington and regional allies, the parties could negotiate a reconstruction and economic development plan for Iran, while the US and the United Nations would lift sanctions under an agreed timetable, according to TPH Energy.The agreement also assigns the US responsibility for preserving the Lebanon ceasefire. Recent clashes between Israel and Hezbollah, including Sunday's strike on Beirut, threatened negotiations, while Israel continues to support security zones in Lebanon, Syria, and Gaza, TPH Energy said.

Oil & Energy

US SPR Inventories Drop to 340.3 Million Barrels, Lowest Since 1983

The US Department of Energy's Strategic Petroleum Reserve data on Monday showed the current SPR inventory as of June 12 at 340.3 million barrels.Of the total, sour crude was at 211.9 million bbls while sweet crude was at 128.3 million bbls.SPR levels have fallen to a near-record low, falling to their lowest level since 1983, according to a Bloomberg analysis.The decline reflects the Trump administration's ongoing move to release 172 million bbls of oil, part of a coordinated worldwide effort by nations following the US-Israel joint campaign on Iran in late February.According to Bloomberg, once the release is complete, the SPR will hold about 243 million bbls, representing almost a third of its authorized capacity of 700 million bbls.The drawdown would mark the second-largest release in the stockpile's history, according to the report.In an emailed response to, a US Department of Energy spokesperson said the Trump administration exchanged the barrels for lower-cost barrels that will be delivered back to the SPR."These exchanges will more than replace the 172-million-barrel release," the DOE spokesperson told, adding, "To date, the premium return rate has been about 26%, which is over 34 million barrels of oil, and potentially over $3 billion in taxpayer savings."