Future Fuels: The Pros and Cons of Methanol
To say there is uncertainty regarding 'future fuels' in the maritime sector is a big understatement. With numerous options evolving, we asked William Stoichevski to produce the 'future marine fuel manifesto' for the May 2022 edition of Maritime Reporter & Engineering News. Here we look at methanol.In just 12 years, the EU has moved from compelling the use of LNG to renouncing it in favor of battery power and then putting LNG partly back on the mantle of clean fuels.
Belships Hedges 2020 Fuel Oil Prices
Norwegian shipping company Belships has has entered into an agreement to hedge the price differential between compliant 0.5% sulphur fuel oil (VLSFO) and 3.5% sulphur fuel oil (HSFO).The secured exposure is for 24,000 tons of bunkers for the full calendar year 2020. The volume equals the annual fuel consumption of about four vessels. The fixed price differential is USD 198 per ton, with monthly settlements in 2020.The company's trading fleet will be physically ready by January 2020 to comply with the IMO Sulphur Cap 2020…
Iraq's Fuel Oil Exports Soar Despite OPEC Cut
Increased exports intended to help maintain oil revenues; March exports more than triple 2016 monthly average. Iraqi fuel oil exports have soared since January despite a reduction in the country's crude production in line with OPEC supply cuts, industry sources said, in what could be a way to boost output of refined products and maintain oil revenues. Iraq on average exported between 80,000 and 160,000 tonnes of fuel oil per month in 2016, data collected by Thomson Reuters Oil Research showed.
Shipping Fuel Change Threatens OPEC Crudes
A switch to cleaner fuels in the world's ships in 2020 could double the profits of the world's most advanced oil refineries - but threatens to put older ones out of business and punish those countries, including prominent OPEC members, that produce the wrong kind of crude. In less than four years, ships worldwide will have to cut their sulphur emissions to 0.5 percent from 3.5 percent now. Many had expected a five-year extension, but the now on-target deadline has floored some ship owners and refiners…
Asia Fuel Oil-Traders on Sidelines Awaiting Price Drop
Asian fuel oil traders sat on the sidelines on Tuesday as a fall in crude prices made them wary of taking positions in case prices moved lower. Fuel oil prices have fallen by $11-12 per tonne since Friday's close, continuing a volatile period that saw fuel oil prices gain by more than 5 percent at the start of last week. See-sawing fuel oil prices have unnerved traders who see no clear direction in the market. Oil prices have lost more than 4 percent since Sept. 8, partly on renewed concern about global oversupply following an increase in U.S.
Asia Fuel Oil Faces Further Price Pressure
Asia fuel oil prices edged slightly lower in Friday. trade amid worries of further downward potential over the next few weeks given the fundamental oversupply from expected January arbitrage flows and growing weakness in crude oil markets, traders said. Trading activity was typically slow for this time of year with most traders having already locked in positions for December and most of January. "We are now in a sideways trading cycle driven by market consolidation," said one Singapore-based trader.
Asia fuel Dips to 11-Year Low
Asia fuel oil falls to 11-yr lows on expectations of Western arbitrage inflows. Fuel oil prices fell for a fifth consecutive session, dropping to 11-year lows amid expectations of significant Western arbitrage inflows in January and no signs of a reduction in the oversupply of crude oil. Asia fuel oil prices are now at levels not seen since January 2005. Differentials however remained unchanged from yesterday's trading. Activity was typically quiet for this time of year, but the market is looking weaker, said one Singapore-based trader.
Fuel Oil Supply into Asia to Rise in January
Fuel oil supply from the West into Asia is expected to rise more than 27 percent to at least 4.5 million tonnes in January, up from December shipments estimated at 3.6 million tonne as traders in Europe and the Atlantic seek to clear inventories. Although figures based on cargo arrivals range from 4.5 million tonnes to 5.3 million tonnes, most traders agree that January inflows will be notably higher than in the previous month. "We're seeing a bit more flow from the Mediterranean and Black Sea regions…
Asia Fuel Oil Dragged Down by Crude Drop
Asia's fuel oil prices continued their downward trend towards new seven-year lows and at levels not seen since early 2005 amid a growing global oil glut that saw benchmark crude prices extend their losses for the 7th session and nearing their eleven-year trough. The contango curve for the more actively traded 380-cst fuel widened while its differentials deteriorated after Monday trading. Conversely, the contango curve for the 180-cst fuel oil narrowed and its differentials improved.
Global LNG Prices Fall on Lacklustre Demand
Asian spot liquefied natural gas prices for March delivery fell sharply for a second week as traders said supply disruptions failed to derail the market's downward trajectory weighed by weak demand. The price of spot LNG fell to $8 per million British thermal units (mmBtu) on Friday from $9.00 last week. One bullish factor for the market was Yemen declaring force majeure on LNG deliveries from its Balhaf plant, as security deteriorated after the collapse of the government.
Chinese Refiners Crude Buy Could Hurt Fuel Oil
China is poised to allow more private companies to directly import oil, a move that will have only a marginal impact on crude markets but may have a disproportionate impact on fuel oil prices. The vast majority of China's crude imports come via the two state giants, PetroChina and Sinopec , which account for about 90 percent of the imports of the world's second-largest oil user. Last year, China dipped its toes into deregulation by allowing some smaller, independent refiners to have import quotas of their own.
