Generic Hero BannerGeneric Hero Banner
Latest market news

BZ Credits near 5 year high after 2023 blending

  • Market: Biofuels, Oil products, Petrochemicals
  • 12/09/24

Higher volumes of ethylbenzene (EB) into gasoline blending a year ago has led to a credit shortage, pushing prices to their highest levels since March 2021.

In 2022 and 2023, US Gulf coast (USGC) naphtha inventories were long as US naphtha exports declined from 400,000-500,000b/d pre-pandemic to 100,000-200,000b/d.

Over the same span of time, refiners and blenders dropped excess naphtha, a sub-octane blendstock, into the gasoline pool. This blend of gasoline spurred demand for high-octane blendstocks like EB, toluene and mixed xylenes into gasoline blending.

The US Environmental Protection Agency (EPA) requires gasoline with benzene content above a certain threshold to be offset by a credit generated by refining compliant gasoline.

The elevated blending of EB exhausted the supply of benzene credits on the open market, which bled into 2024. Credits traded near 100¢/USG early in 2024 and rose to as high as 190¢/USG over the summer. Values now span buyer interest at 160¢/USG and seller interest at 190¢/USG.

The compliance deadline for benzene credit submission is set for 31 March 2025, in which refiners must mass-balance their production over a given year and either face a credit surplus for being over-compliant or a shortage and therefore will need to procure credits on the open market.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
11/02/25

California aims to expand alternative bunkers

California aims to expand alternative bunkers

New York, 11 February (Argus) — California lawmakers will consider expanding alternative marine fuels use by ocean-going vessels on the state's coast. State senate bill 298, introduced by state senator Anna Caballero (D), would require the California State Energy Resources Conservation and Development Commission (Energy Commission), the California Transportation Agency and the state board to develop a plan by 31 December 2030 for the use and deployment of alternative fuels at California's public seaports. The plan should identify significant alternative fuel infrastructure and equipment trends, needs, and issues and describe how the state will facilitate permitting and construction of infrastructure to support alternative fuels. The plan should also identify locations for alternative fuel infrastructure, provide a reasonable timeline for its installment and estimate the costs, including public or private financing opportunities. The bill also calls for the Energy Commission to convene a working group consisting of representatives of seaports, marine terminal operators, ocean carriers, waterfront labor, cargo owners, environmental and community advocacy groups, the Transportation Agency, the state board, the Public Utilities Commission, and air quality management and air pollution control districts. The working group will advise the commission. The US territorial waters, including California's, are designated as emission control areas (ECAs). In the ECAs, the sulphur content of marine fuel burned by ocean-going vessels is capped at 0.1pc. Thus ocean-going vessels within 24 nautical miles of California burn 0.1pc sulphur maximum marine gasoil (MGO). Ocean-going vessels could achieve the equivalent of 0.1pc sulphur marine fuel emissions by installing marine exhaust scrubbers. But California has banned their use. California is the only US state that has banned the outright use of marine scrubbers. California also requires that ocean-going vessels while at berth in California ports must either use shore power or use alternative technology such as batteries. The regulation came into force for container ships, reefers and cruise ships in 2023. It came into force this January for tankers visiting Los Angeles and Long beach and for roll on roll off vessels. Starting on 1 January 2027, it will apply to all tankers at berth in all California's ports. US harbor craft vessels (such as barges, commercial fishing vessels, excursion vessels, dredgers, pilot vessels, tugboats and workboats) in California's waters are required to burn renewable diesel (R99 or R100). By comparison, elsewhere in the US, harbor craft vessels are required to burn ultra-low sulphur diesel (ULSD). In January, Los Angeles ULSD averaged at $773/t and R99 at $962/t. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

Brazil’s January inflation lowest since 1994


11/02/25
News
11/02/25

Brazil’s January inflation lowest since 1994

Sao Paulo, 11 February (Argus) — Brazil's monthly inflation stood at 0.16pc in January, the lowest increase for the month since 1994 when the government enacted multiple measures to contain soaring inflation, according to government statistics agency IBGE. The consumer price index (CPI) slowed annually to 4.56pc from 4.83pc in December, heavily influenced by a 14.2pc tumble in power costs in January, compared with a 3.19pc drop in December. Power costs decelerated January's inflation by 0.55 percentage points — the major individual contributor to the annual drop, according to IBGE — thanks to a R1.3bn ($224mn) federal discount in power tariffs that month, CPI's manager Fernando Goncalves said. Food and beverage costs rose by an annual 7.25pc, decelerating from 7.69pc in December. Beef costs increased annually by almost 21.2pc following a 20.8pc gain in the month prior, while soybean oil costs decelerated to 24.55pc over the last 12 months from 29.2pc in December. Motor fuels prices rose by 11.35pc in January. Ethanol was responsible for the group's largest annual increase of 21.59pc, up from 17.58pc in the month prior. Gasoline and diesel prices also registered annual rises of 10.71pc and 2.66pc from 9.71pc and 0.66pc, respectively. Still, diesel prices remained at a 0.97pc monthly increase from December, while ethanol costs contracted by 1.82pc from 1.92pc and gasoline prices increased by 0.61pc from 0.54pc. Fuel prices are likely to keep increasing in February, as states increased the VAT-like ICMS tax on fuels and state-controlled Petrobras increased wholesale diesel prices by 6.3pc , both effective as of 1 February. Transportation costs rose by 1.3pc in January over the year, following a 0.67pc gain in December. Flight tickets were the most responsible for the increase, with a 10.42pc monthly gain from a 22.2pc contraction in December. Brazil's central bank is targeting CPI of 3pc with a margin of 1.5 percentage point above or below. The bank raised its target rate to 13.25pc in January after it failed to maintain Brazil's headline inflation under the ceiling of 4.5pc for 2024. Further increases are expected in the coming months, the bank said. The central bank has recently changed the way it tracks the inflation goal. Instead of tracking inflation on a calendar year basis, it will now monitor the goal on a 12-month basis. In 1994, Brazil enacted its Plano Real, a series of measures to stabilize the economy and detain soaring inflation, which had hit an annual 916pc by the end of that year. One of the measures was to change its currency to the real from the cruzeiro real. By Maria Frazatto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Trump bans federal use of paper drinking straws


11/02/25
News
11/02/25

Trump bans federal use of paper drinking straws

Houston, 11 February (Argus) — President Donald Trump has signed an executive order to ban the procurement of paper drinking straws by the US government and to take steps toward enacting a similar ban nationwide. An "irrational" campaign against plastic straws had forced Americans to use "nonfunctional" paper straws that are more expensive and may pose a risk to human health, Trump said in the order signed Monday. Health risks include the leaching of polyfluoroalkyl substances (PFAS) from paper straws into drinks, the White House said. The order signed on Monday bans the purchase of paper straws for use in federal buildings and requires within 45 days the development of a " National Strategy to End the Use of Paper Straws". Former president Joe Biden had directed the federal government to end the use of single-use plastic in food applications by 2027. The Plastics Industry Association praised the executive order. "Plastic is the best material for nearly everything it is used for, while being sustainable," Plastics Industry Association chief executive Matt Seaholm said. "Straws are just the beginning — 'Back to Plastic' is a movement we should all get behind." Plastic straws are typically made from polypropylene. Environmental group Greenpeace USA accused Trump of signing the order as a distraction from his administration's moves to prevent federal institutions from protecting Americans from microplastics and "dangerous chemicals". By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Feyzin bitumen output halted as part of wider stoppage


11/02/25
News
11/02/25

Feyzin bitumen output halted as part of wider stoppage

London, 11 February (Argus) — Bitumen production at TotalEnergies' 109,300 b/d Feyzin refinery near Lyon, central France, is halted from 10-20 February as part of a wider shutdown affecting the refinery's crude distillation unit (CDU) and reformer. Workers at the plant said last week there had been unexpectedly extended CDU works caused by a blockage by unspecified debris . TotalEnergies said at the time it would not comment on operations. Officials at the company confirmed today the CDU and reformer were among units shut at Feyzin, but said the halt was planned. They said the CDU had suffered no unexpected blockage or damage. Workers reiterated today that debris had been detected in the CDU and that this could result in a shutdown lasting weeks. Sources familiar with the refinery's operations said today that the bitumen halt would cause no supply disruptions in terms of the usual truck movements, with sufficient stocks held at the plant to meet current low-level requirements during the winter slow activity period in the road paving and other construction sectors. By Fenella Rhodes and Adam Porter Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

LyondellBasell mulls Dutch PO/SM plant reorganisation


11/02/25
News
11/02/25

LyondellBasell mulls Dutch PO/SM plant reorganisation

London, 11 February (Argus) — Chemicals firm LyondellBasell is in negotiations with workers at its Maasvlakte propylene oxide (PO) and styrene monomer (SM) production facility in the Netherlands about "a reorganisation at the plant", Dutch workers' union FNV told Argus . The union is negotiating with the company on compensation for workers whose jobs may be affected and assistance with transitioning to new roles. Members will vote on the proposed plan by the end of February. "At this stage, no definitive decisions have been made," LyondellBassell said today. The firm "continuously evaluates business conditions, our portfolio and a wide range of options for managing our assets," it said. The Maasvlakte PO/SM plant is a 50-50 joint venture between LyondellBasell and Germany's Covestro. "Covestro regularly reviews its portfolio in the light of business conditions. This includes discussions with our joint venture partner regarding the Maasvlakte site," Covestro said. LyondellBasell and Covestro both declined to comment on whether they are discussing a possible sale of the Maasvlakte facility. LyondellBasell launched a strategic review of its European assets last May. The review is ongoing, the firm said last month. The Maasvlakte plant is one of six ‘non-core' European assets, the company said in August last year. The facility has 315,000 t/yr of PO capacity and 640,000 t/yr of SM capacity. It began operations in 2003 and employs approximately 160 people. The plant has been idled since December last year 2024. It has been intermittently idled several times in recent years, reflecting a structural surplus in Europe's PO and SM production capacity. The negotiations with workers indicate LyondellBasell is considering longer-term changes to operations at the site. Europe's petrochemicals sector remains squeezed by high energy costs, a higher overall cost base compared to other production regions and stagnant regional downstream demand. LyondellBassell also has 220,000 t/yr of PO and tertiary butyl alcohol (TBA) production capacity in France and 260,000 t/yr of PO and TBA capacity in the Netherlands. It also has a total of 649,000 t/yr of PO and SM capacity in the US that it operates jointly with Covestro, as well as over 1mn t/yr of its own PO and TBA capacity in the US including a 470,000 t/yr plant in Channelview, Texas, which started up in early 2023 . Production margins for PO/TBA facilities, which supply TBA for MTBE production, are generally much more favourable than for PO/SM plants. And lower US energy costs help to make US PO output more cost-efficient than in European production. US exports of PO to Europe have increased sharply since 2023, reaching 7,800 t/month in 2024, according to US customs data, up from just 760 t/month in 2020 (see graph). By Laura Tovey-Fall US PO exports '000 t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more