US Refiners Grab HSFO on Back of IMO 2020
U.S. refiners are scooping up cheap high-sulfur fuel oil for processing from Russia and the Baltic states as they take advantage of new shipping rules that have cut demand for the dirtier marine fuel, according to oil traders and shipping data.U.S. refiners Valero Corp, Chevron Corp and Phillips 66 have been buying HSFO, traders said, taking advantage of their complex operations to turn HSFO blended with crude oils into products like diesel, gasoil and gasoline.This month…
Cosmo Oil Builds IMO-compliant Fuel Stocks at Chiba Port
Japan’s third-largest oil refining company, Cosmo Oil, , has started building stocks of very-low-sulfur fuel oil (VLSFO) for supply to domestic marine fuel markets from next month (October 2019) ahead of the IMO 2020 mandate requiring ships globally to reduce their bunker fuel sulfur content to 0.5% from the current 3.5% from January 2020.Cosmo Oil is using VLSFO produced at its residue desulfurizer (RDS) unit at its Chiba refinery near Tokyo to build the stocks, Cosmo Oil’sPresident Shunichi Tanaka said on Sunday…
Fuel Futures: Diesel Will Spike on IMO2020
New marine fuel rules to boost diesel prices for at least a year -analystsGlobal prices for diesel and marine fuels should rise by October ahead of a January switchover to new, very low-sulfur marine fuels, and remain higher for at least a year as refiners shift production to make more of the new fuels, analysts said.Marine fuels containing no more than 0.5% sulfur by weight, down from the 3.5% currently used, to power ocean-going vessels will be required for ships without exhaust scrubbers on Jan.
Rystad Expects Oil Price Rally in H1 of 2020
The energy research and business intelligence company Rystad Energy expects that a short-lived price rally through the first half of 2020 as oil prices approach $70 a barrel.It will then lose momentum and be replaced by a need for additional production cuts by Russia and the cartel of oil producing countries, OPEC, the Norway-headquartered firm said.“We retain our bullish stance for the second half of 2019 and first half of 2020 as we anticipate OPEC+ to extend production cuts through 2019…
IMO 2020: Exxon Mobil Projects 25% Decline in High-Sulfur Fuels
Exxon Mobil Corp expects high-sulfur fuel oil demand to fall 25 percent by 2025, as a new set of emission regulations from the International Maritime Organization capping sulfur content in shipping fuel at 0.5% kicks in in 2020, a top-level official at the U.S. oil and gas company said on Monday.The International Energy Agency has forecast high-sulfur fuel oil demand to fall 60 percent next year, while marine gas oil demand to more than double.Exxon's forecast comes as its refining business is struggling to find enough heavy crude to make fuel oil and other distillates…
IMO 2020: Shell, HES to Resurrect Refinery
Royal Dutch Shell has struck a deal with Dutch tank terminal firm HES International to partially restart a German oil refinery mothballed since 2011 in response to new restrictions on marine fuels, two trading sources told Reuters.A new cap set by the International Maritime Organization (IMO) that will cut the sulfur content in shipping fuel to 0.5 percent from 3.5 percent from next year is set to be one of the biggest fundamental events to hit oil markets in years.HES…
ExxonMobil Readies IMO 2020 Compliant Fuel
ExxonMobil said that all its International Maritime Organization (IMO) compliant 0.5% sulfur bunker fuels developed to date are residual grades.The oil giant has also announced specification details and confirmed that the formulations are all compatible with each other, provided that bunkering, storage and handling best practice guidance is followed.All of ExxonMobil’s announced low sulphur compliant fuels will be residual grades and will also be compatible with each other…
New Rules on Ship Emissions Herald Sea Change for Oil Market
New rules coming into force from 2020 to curb pollution produced by the world's ships are worrying everyone from OPEC oil producers to bunker fuel sellers and shipping companies.The regulations will slash emissions of sulfur, which is blamed for causing respiratory diseases and is a component of acid rain that damages vegetation and wildlife.But the energy and shipping industries are ill-prepared, say analysts, with refiners likely to struggle to meet higher demand for…
Petroperu Offers Fuel Oil Cargo for April
Peruvian state-run oil company Petroperu has launched a tender to sell a 220,000-barrel cargo of fuel oil for delivery April 19-23 at its Talara refinery, according to a document seen by Reuters on Monday. Bids must refer to high-sulfur-fuel oil (HSFO) prices from the U.S. Gulf Coast. They will be received through March 21 Petroperu last month offered to buy two cargoes of a Latin American or West African crude, while selling a cargo of Peru's Loreto crude for April delivery Reporting by Marianna Parraga
Vitol, Aegean Marine trade First DME-Listed Fuel Oil Derivatives
Energy trader Vitol and shipping fuel company Aegean Marine Petroleum Network swapped 7,000 tonnes of July 180-centistoke in the first-ever trade of fuel oil derivatives on the Dubai Mercantile Exchange, the DME said on Monday. Middle East 180cst and 380cst high-sulfur fuel oil (HSFO) first became available for trading on the Dubai exchange on May 16, settling against value assessments for the two shipping and industrial fuels by oil pricing agency Platts. The listing…
Saipem Awarded Engineering and Construction Contracts
Saipem has won four new engineering and construction contracts, onshore in Saudi Arabia and offshore in Brazil, for a total amount of approximately $4 billion. Saipem has been awarded by Saudi Aramco three contracts in Saudi Arabia for onshore engineering and construction activities. Two EPC contracts relevant to the Jazan Integrated Gasification Combined Cycle project are to be located near the city of Jizan, in southwestern Saudi Arabia. Package 1 contract comprises the Gasification Unit, the Soot/Ash Removal Unit, the Acid Gas Removal and the Hydrogen Recovery Units.
