Marine fuel global weekly market update
A weekly Argus news digest of interest to the conventional and alternative marine fuel markets.
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Alternative marine fuels
24 Mar Cosco shipping receives LNG carrier Chinese state-owned shipowner Cosco Shipping Energy Transportation (CSET) received a new LNG carrier…
24 Mar Nuclear may weigh on South Korean LNG demand South Korean LNG demand may fall this summer as firmer nuclear output could help meet stronger...
24 Mar Europe could face tighter biodiesel supply While stocks in ARA and the Mediterranean remain high and demand low for crop, waste and advanced biodiesel, the lowest prices in more than…
24 Mar REG ordered to pay SK Eco Prime for off-spec Pome The Court of Amsterdam has ordered biofuels company Renewable Energy Group (REG) to pay a fine to South Korean biodiesel producer SK Eco Prime…
23 Mar EU agrees on shipping sector GHG fuel intensity cuts The European Parliament and EU member states have today agreed that the greenhouse gas (GHG) intensity of fuels used in ships over 5,000 gross tonnage (GT) should be cut by…
23 Mar Brazil biodiesel blending hike to curb diesel imports The flow of foreign diesel into Brazil is likely to slow starting …
23 Mar US methanol spot prices slide to three-month low Methanol spot prices in the US Gulf coast sank to three-month lows this week amid …
23 Mar South Korean methanol trades below SE Asian prices Methanol prices in South Korea have slipped below southeast Asian values since the start of this year, undermined by…
23 Mar Japan's Mol to develop methanol-fuelled coastal ship Japanese shipping firm Mistui OSK Line (Mol) and its partners have placed an order to build a methanol-fuelled…
23 Mar Guangzhou Shipbuilding receives order for three PCTCs Chinese state-owned shipbuilder CSSC subsidiary Guangzhou Shipbuilding International has received an order to build three…
22 Mar Italian biodiesel imports, exports hit record in 2022 Italian imports and exports of biodiesel hit record levels in 2022, largely as a result of...
22 Mar Indonesian palm oil stocks to fall in 2023-24: USDA Increased domestic consumption with higher on-road biodiesel blending is expected to...
22 Mar China Energy plans $1.5bn H2, ammonia, methanol plant State-owned China Energy Engineering Company (CEEC) has outlined plans for a plant at Jilin in northeast China producing...
22 Mar Unchartered waters in the bunkering world: FTlive Pressure is mounting on the shipping sector to decarbonise, a tall order for an industry that relies almost entirely on heavy fuel oil…
21 Mar Acme mulls options for green ammonia offtake deals Indian solar power company Acme is expanding into green fuels and is developing projects in Oman, India, Egypt and elsewhere. Argus spoke to its president…
21 Mar European refiners may turn back to natural gas Sustained lower European natural gas prices alongside the recently implemented embargo on Russian oil products could …
21 Mar Samskip orders two H2 ships Dutch container ship firm Samskip ordered two…
21 Mar Japan's NYK hastens marine fuel transition Japanese shipping firm NYK Line is accelerating the launch of new vessels using…
20 Mar Lukoil prepares for LNG debut in west Africa Lukoil's Marine 12 offshore joint venture with Italy's Eni in…
20 Mar Portugal's biofuel blending dropped in JanuaryPortuguese biofuels blending and ticket trading dropped sharply in January, suggesting that fuels retailers were holding out for lower prices before attempting to meet the…
20 Mar Gas prices to remain stable in 2023: Eesti Gaas Gas prices have come down and will remain stable for at least the next year…
19 Mar OCI inks deal to supply S Korea's LFC with bio-ammonia Chemical firm OCI Global and South Korean producer Lotte Fine Chemical (LFC) have signed an agreement for the supply of…
Conventional marine fuels
24 Mar Middle East ups Russian product imports Russian product exports to the Middle East more than doubled on the month on a daily average basis to…
24 Mar Tuapse product exports to rise Product exports from Russia's Black Sea port of Tuapse are scheduled 30pc higher…
24 Mar Fos-Lavera cut off from oil product markets by strikes No oil product tankers of Handysize class or larger have loaded or unloaded in almost…
24 Mar India's February diesel exports fall, gasoline rises India's exports of diesel in February fell from a year earlier, likely because of a surge in domestic fuel demand to at least…
23 Mar Singapore middle distillate stocks hit 1½-year high Singapore's middle distillates stocks rose further to a fresh 1½-year high of 9.63mn bl in the week…
22 Mar French strikes have muted impact on diesel prices The industrial action that has swept across France in recent weeks has left the wider European market better supplied with diesel than…
21 Mar Singapore February bunker sales firm from year earlier Singapore's bunker sales in February totalled 3.79mn t…
21 Mar Weaker Asia-Pacific demand to cap MR freight rates Freight rates for clean Medium Range (MR) tanker vessels in the Asia-Pacific could…
20 Mar China's diesel exports hit four-month low in February China's diesel exports fell to a four-month low in February as...
20 Mar Prices for newbuild oil tankers on the rise Prices for newbuild crude and oil product tankers are beginning to rise, with demand boosted by strong…
27 Mar Australia's Ampol shuts FCC unit at Lytton refinery Australian refiner Ampol has shut a fluid catalytic cracking unit (FCC) at its Lytton refinery for…
Related news posts
US southbound barge demand falls off earlier than usual
US southbound barge demand falls off earlier than usual
Houston, 1 May (Argus) — Southbound barge rates in the US have fallen on unseasonably low demand because of increased competition in the international grain market. Rates for voyages down river have deteriorated to "unsustainable" levels, said American Commercial Barge Line. Southbound rates declined in April to an average tariff of 284pc across all rivers this April, according to the US Department of Agriculture (USDA), which is below breakeven levels for many barge carriers. Rates typically do not fall below a 300pc tariff until May or June. Southbound freight values for May are expected to hold steady or move lower, said sources this week. Southbound activity has increased recently because of the low rates, but not enough to push prices up. The US has already sold 84pc of its forecast corn exports and 89pc of forecast soybean exports with only five months left until the end of the corn and soybean marketing year, according to the USDA. US corn and soybean prices have come down since the beginning of the year in order to stay competitive with other origins. The USDA lowered its forecast for US soybean exports by 545,000t in its April report as soybeans from Brazil and Argentina were more competitively priced. US farmers are holding onto more of their harvest from last year because of low crop prices, curbing exports. Prompt CBOT corn futures averaged $435/bushel in April, down 34pc from April 2023. Weak southbound demand could last until fall when the US enters harvest season and exports ramp up southbound barge demand. Major agriculture-producing countries such as Argentina and Brazil are expected to export their grain harvest before the US. Brazil has finished planting corn on time . unlike last year. The US may face less competition from Brazil in the fall as a result. Carriers are tying up barges earlier than usual to avoid losses on southbound barge voyages. Carriers that have already parked their barges will take their time re-entering the market unless tariffs become profitable again. The carriers who remain on the river will gain more southbound market share and possibly more northbound spot interest. By Meghan Yoyotte and Eduardo Gonzalez Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Fed signals rates likely to stay high for longer
US Fed signals rates likely to stay high for longer
Houston, 1 May (Argus) — Federal Reserve policymakers signaled they are likely to hold rates higher for longer until they are confident inflation is slowing "sustainably" towards the 2pc target. The Federal Open Market Committee (FOMC) held the federal funds target rate unchanged at a 23-year high of 5.25-5.5pc, for the sixth consecutive meeting. This followed 11 rate increases from March 2022 through July 2023 that amounted to the most aggressive hiking campaign in four decades. "We don't think it would be appropriate to dial back our restrictive policy stance until we've gained greater confidence that inflation is moving down sustainably," Fed chair Jerome Powell told a press conference after the meeting. "It appears it'll take longer to reach the point of confidence that rate cuts will be in scope." In a statement the FOMC cited a lack of further progress towards the committee's 2pc inflation objective in recent months as part of the decision to hold the rate steady. Despite this, the FOMC said the risks to achieving its employment and inflation goals "have moved toward better balance over the past year," shifting prior language that said the goals "are moving into better balance." The decision to keep rates steady was widely expected. CME's FedWatch tool, which tracks fed funds futures trading, had assigned a 99pc probability to the Fed holding rates steady today while giving 58pc odds of rate declines beginning at the 7 November meeting. In March, Fed policymakers had signaled they believed three quarter points cuts were likely this year. Inflation has ticked up lately after falling from four-decade highs in mid-2022. The consumer price index inched back up to an annual 3.5pc in March after reaching a recent low of 3pc in June 2023. The employment cost index edged up in the first quarter to the highest in a year. At the same time, job growth, wages and demand have remained resilient. The Fed also said it would begin slowing the pace of reducing its balance sheet of Treasuries and other notes in June, partly to avoid stress in money markets. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Norwegian Cruise swings to 1Q profit
Norwegian Cruise swings to 1Q profit
New York, 1 May (Argus) — US-based cruise ship operator Norwegian Cruise Line's (NCL) swung to a profit in the first quarter on record bookings. The company posted a $69.5mn profit in the first quarter, compared with a $127.7mn loss during the same period of 2023. Revenue rose by 20pc to $2.19bn in the quarter from a year earlier as the cruise operator reported record quarterly bookings. Cruise operating expenses were up by 8pc at $1.39bn in the quarter from a year earlier. Norwegian rerouted some of its voyages that were previously expected to sail through the Red Sea. But demand from other regions offset the effect of the redeployed voyages. The company spent $197.7mn on marine fuel in the first quarter, 1pc up from $194.9mn in the first quarter of 2023. The company burned 269,000t of marine fuel and did not disclose its fuel consumption for the first quarter of 2023. It expects to burn about 245,000t in the second quarter and 995,000t for full 2024, split evenly between residual fuel oil and marine gasoil. Currently, it has hedged about 35pc of its fuel oil consumption at $395/t and 75pc of its marine gasoil consumption at $746/t for the entire 2024. Starting this year, Norwegian had been applying to the EU innovation fund with the goal of accelerating the transition of six of its vessels from being methanol ready to being fully methanol capable. Biomethanol was pegged at $2,223/t very low-sulphur fuel oil equivalent (VLSFOe) or 3.7 times the price of VLSFO average in April in the Amsterdam-Rotterdam-Antwerp bunkering hub, Argus assessments showed. Methanol was assessed at $699/t VLSFOe or 1.2 times the price of VLSFO. The company also has half of its fleet equipped with shoreside technology allowing it to use port electricity and minimize emissions during port stays. Norwegian has ordered eight new vessels for delivery from 2025-2036. Separately, its subsidiaries Oceania Cruises and Regent Seven Seas will take delivery of three new vessels from 2025-2029 and two new vessels from 2026-2029, respectively. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
FERC OK’s Virginia Transco gasline expansion
FERC OK’s Virginia Transco gasline expansion
New York, 1 May (Argus) — The US Federal Energy Regulatory Commission (FERC) today gave Williams the green light to expand natural gas capacity to Virginia by 101mn cf/d (2.9mn m3/d) on its Transco pipeline. The project, called the Commonwealth Energy Connector, involves the construction of 6.3 miles of new pipeline within Transco's existing right-of-way in southeast Virginia, near the border with North Carolina. The project also includes adding horsepower at compressor station 168, west of the new pipeline segment. Williams plans to begin construction this winter and put the project into service by the end of 2025. Environmental advocacy group Sierra Club opposed the project, arguing FERC failed to assess its potential greenhouse gas emissions, rendering its National Environmental Policy Act analysis moot. FERC disagreed, conceding that although the project's final Environmental Impact Statement demonstrated it would contribute to greenhouse gas emissions, the effects of those emissions on the environment could not be measured because FERC lacks the methodology to do so. The US south-Atlantic gas market has become more volatile in recent years as gas and power demand have soared, outpacing pipeline capacity expansions in the region. The combined gas consumption of Virginia and North and South Carolina in 2022 averaged 4.7 Bcf/d, up by 69pc from a decade earlier, US Energy Information Administration data show. Regional gas and power consumption is widely expected to continue climbing through the end of the decade on a massive build-out of data centers , especially in Virginia. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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