NW Europe Fuel oil Imports at 3-year High
A rush to replenish scarce supply of high-sulphur fuel oil (HSFO) pushed Northwest European imports of residual fuel oil to their highest in three years in November, analysts told Reuters.The Amsterdam-Rotterdam-Antwerp (ARA) area, Europe's main trading and refining hub, received around 450,000 barrels per day (bpd) of all types of fuel oil in November, the highest monthly volume since November 2021.That compared with an average of 332…
How Refiners Plan to Grapple With Fuel Oil Output After 2020
High-sulphur fuel oil (HSFO), essentially the leftovers of an oil refiner's output, will still flow from refineries around the world even after new rules start up in 2020 curtailing its use in the global shipping fleet, a Reuters survey showed.Sixty percent of the 33 refineries contacted by Reuters in a global survey will still produce HSFO in 2020 although the supply will tighten as 70 percent of these refiners plan to reduce their output.Starting that year…
S.Korean Refiners Look to Cash in on 2020 Mandate
Three refiners to spend more than $5 bln to upgrade or add units. South Korean refiners are planning to spend over $5 billion on plant upgrades in response to tighter rules on shipping fuel, boosting production of low-sulphur fuel oil as well as other high-end products. The refiners hope the investment, which comes ahead of the 2020 introduction of the new rules, will make them one of the biggest beneficiaries of the new regulations, with many competitors still waiting to commit to new spending.
Global Trade Surge Fuel Oil Markets
Global trade is growing at the fastest rate for six years - which is both a symptom and a cause of the recovery in commodity markets. World trade volumes were up almost 5 percent year-on-year from May to July, according to estimates compiled by government economic planners in the Netherlands. Growth was four times faster than at the same point in 2016 (http://tmsnrt.rs/2y89NxC). Global trade and commodity markets are linked in a circular causal relationship…
Coal's Problem is Not Climate Change: Kemp
U.S. coal companies blame climate campaigners and the Obama administration for waging a war on coal that has cost thousands of jobs and threatened struggling mining communities. But coal’s long-term problems stem not from politics but from physical properties that make it an inferior source of energy compared with oil, gas and (arguably) renewables. Coal has been losing the “war” for market share since the middle of the 20th century as other sources of energy have become cheaper and more abundant.
S-Oil, Petronas Ink Long-term LNG Deal
South Korea's third-largest refiner S-Oil Corp signed a long-term liquefied natural gas (LNG) supply contract with Malaysia's Petronas for 15 years starting from next year, the North Asia company said on Friday. S-Oil expects to buy 700,000 tonnes of LNG per year from state-owned Petronas from March 2018 through March 2033, it said in a stock filing exchange. "We have inked the deal on good terms for our company amid the current favourable LNG market conditions," said the refiner in the filing.
Oil Demand Likely Up in Sweltering Middle East
Saudi Arabia raised its oil production to a record last month while much of the kingdom sweltered in record temperatures that have also hit neighbouring countries across the Middle East. There is not enough statistical data to draw a direct connection between the two but it is likely most if not all the extra oil production was burned in the kingdom's power plants to meet electricity demand. Saudi Arabia's power generators…
US Refiners Press On Despite Unbalanced Fuel Demand
Strong growth in consumption of gasoline while demand for other fuels remains more subdued is creating a headache for oil refiners in the United States and around the rest of the world. U.S. refineries are configured to turn just under half of the crude petroleum they process into motor gasoline, according to the U.S. Energy Information Administration (EIA). The precise percentage varies somewhat from refinery to refinery depending on their configuration and the crudes they process.
Trade Slowdown Impacts Fuel Demand: Kemp
Growth in world trade is slowing as the slump in commodity prices and a faltering economy in China combine to restrict shipments of manufactured items and raw materials around the globe. World trade volumes rose by just 1.5 percent in the three months between September and November compared with the same period a year earlier, according to the Netherlands Bureau of Economic Policy Analysis. Volume growth has been much weaker during the current economic expansion than during previous cycles…
U.S. Refineries Returning from Maintenance
Total stocks of crude oil and refined products in commercial storage across the United States dropped for the second week running last week, the first back-to-back fall since May, according to the U.S. Energy Information Administration (EIA). More than 1.4 million barrels per day (bpd) of refinery capacity is still offline for routine maintenance and upgrades after the end of the summer driving season. Turnarounds have…
Diesel Prices Pressured by Poor Demand, High Stocks
Reported stocks of crude and refined fuels continue to climb in the United States, pressuring on oil prices, but the stock build is concentrated in specific parts of the complex. Most of the stock build has occurred in crude petroleum and the middle distillates used for road diesel and home heating oil, while gasoline stocks have remained relatively normal. The result has been a marked weakening of diesel prices relative to gasoline since the second quarter of the year which has spread from the United States to Europe.
A History of U.S. Oil Export Controls
On Oct. 20, 1973, King Faisal of Saudi Arabia imposed a total embargo on oil shipments to the United States among other countries in response to their support for Israel during the Arab-Israeli war. Faisal's decision led directly to the introduction of a ban on U.S. crude exports, which remains in force in a slightly modified form and is now the focus of an intense struggle for reform. Following the U.S. mid-term elections next month…
Intertek Expands, Opens Morocco Petroleum Lab
Leading quality solutions provider to industries worldwide, Intertek, says it has opened a new, state-of-the-art petroleum laboratory to provide expanded local services and capabilities to support growing refined fuel storage, trading and logistical refining business in Morocco. Intertek’s new laboratory is located in the North African “Tanger Med Free Zone” region, located in the north of Morocco and strategically located between Tanger and Ceuta at the Straits of Gibraltar.
US Petcoke Exports Surge
Petroleum coke exports from U.S. refineries hit a near-record 642,000 barrels per day in March as cheap natural gas and emissions regulations have slashed domestic consumption and forced producers to look abroad. Coke consumption by U.S. power producers has dropped to around 5 million tonnes per year from almost 8 million a decade ago, according to the U.S. Energy Information Administration. Total domestic consumption of petroleum coke has fallen from around 525,000 barrels per day to 350,000 since 2004.
U.S. Refiners Struggle with Light Crude
Most of the extra oil produced in the United States in the next two years will be light crudes and condensates that domestic refineries will struggle to process - intensifying pressure for at least a partial relaxation of the country's export ban. U.S. oil production is set to increase by another 2 million barrels per day in 2014-15. More than 60 percent of the forecast growth will consist of light oils with a specific gravity of 40 degrees API or higher, according to the U.S. Energy Information Administration ("U.S.
Stolt-Nielsen Gas Takes Major Stake in LNG Logistics Start-Up
Stolt-Nielsen Limited (Oslo Børs: SNI) announced today that Stolt-Nielsen Gas Ltd. (SNG), SunLNG Holding Ltd. (SunLNG) and LNGaz Ltd. have agreed to form a new start-up focused on the development of small-scale LNG liquefaction and logistics services in Bécancour, Québec, Canada. The new joint venture, to be named Stolt LNGaz Ltd., will have a Canadian operating subsidiary, Stolt LNGaz Inc. The transaction represents an initial investment of US$ 20 million with SNG owning 50% of the venture.
Stolt-Nielsen Takes Stake in LNG Logistics Startup
Stolt-Nielsen Limited has announced that Stolt-Nielsen Gas Ltd. (SNG), SunLNG Holding Ltd. (SunLNG) and LNGaz Ltd. have agreed to form a new startup focused on the development of small-scale LNG liquefaction and logistics services in Becancour, Quebec, Canada. The new joint venture, to be named Stolt LNGaz Ltd., will have a Canadian operating subsidiary, Stolt LNGaz Inc. The transaction represents an initial investment of US$ 20 million with SNG owning 50% of the venture.
