Tupras agrees more than 500kt 2025 bitumen tender sales

Market: Oil products
20/11/24

Turkish refiner Tupras has agreed 2025 annual tender sales totalling well over 500,000t of bitumen from its Izmit and Izmir refineries to leading international trading and supply firms.

Market participants involved in the process said Rubis Asphalt and Continental Bitumen — the bitumen trading and supply unit of French construction firm Colas — had each won undisclosed volumes, with Colas taking fob and delivered (CFR) supplies.

Vitol was also understood but not confirmed to have won fob volumes, with the firm a regular lifter of large cargoes at Izmit and/or Izmir for supply mainly into its Antwerp bitumen terminal in Belgium, including a cargo moved on Vitol's 36,962dwt tanker Asphalt Splendor last month.

While in excess of 500,000t of fob volumes are understood to have been agreed for Tupras supply to lifters next year, tender process participants said a further seven to eight cargoes — each around 12,000t — had also been agreed for supply to Continental Bitumen on a CFR basis. The 14,786dwt Tupras bitumen tanker T Adalyn is to move those cargoes, as it has done in a similar arrangement with Continental Bitumen under the Turkish firm's 2024 tender arrangements, with the tanker delivering Tupras cargoes this year into Colas import terminals in France, Ireland and the UK, and on some occasions into other northwest European locations.

Tupras tender participants said that at least some of the 2025 fob volumes had been awarded at double-digit fob discounts to fob Mediterranean high-sulphur fuel oil (HSFO) cargoes following similar indications from some tender buyers late last year regarding the 2024 Tupras tender. Such values had rarely been seen under Turkish term supply deals before this year, with the persistently weak outlook for European bitumen supply-demand fundamentals lasting into 2025 under current projections.

Tupras could benefit next year from any shortfall in bitumen availability from its nearest competitor Motor Oil Hellas (MOH), which said last month that repair work on one of two crude distillation units (CDU) at its 180,000 b/d Agioi Theodoroi refinery in Corinth, Greece, will take until the third quarter of 2025 to complete after damage caused by a fire on 17 September.

While the bitumen market impact of the CDU halt has been limited thus far, there could be a greater effect on Mediterranean availability next year, especially during the peak road paving and bitumen consuming season from spring to autumn. That could in turn help push up Mediterranean fob spot cargo values well above those agreed under Tupras' 2025 tender.

By Keyvan Hedvat

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13/06/25

Freight market on alert after Israeli strikes on Iran

Singapore, 13 June (Argus) — Israeli air and missile strikes on Iran in the early hours of Friday have raised the risk of disruption to shipping in the Mideast Gulf, prompting concerns over rising freight rates, insurance costs and vessel safety. The escalation has heightened tensions in one of the world's most critical oil and shipping corridors, centred on the Strait of Hormuz — a chokepoint for about a fifth of global oil supply. Market participants warn that freight rates could surge if the conflict drags on or if Iran launches a retaliatory strike. The Israeli operation targeted military facilities and infrastructure linked to Iran's nuclear programme, according to Israeli officials, who described the strikes as an act of self-defence. Israel has warned that Iran is closer than ever to acquiring a nuclear weapon. Oil prices surged following the strikes, reflecting concern about possible supply disruptions. At 08:30 GMT, the Ice front-month August Brent contract was at $73.51/bl, up by $4.15/bl from its 12 June settlement. Nymex July WTI was at $72.24/bl, up by $4.20/bl. Earlier in Asian trading, Brent had climbed as high as $78.50/bl and WTI reached $77.62/bl. Freight Market Reacts Ships operating in or transiting the Mideast Gulf and the Strait of Hormuz could face higher costs and delays. "Insurance companies could raise the cost of additional war risk premiums (AWRP) if the conflict continues for a long time," a shipbroker said. Other freight market participants echoed this view. "Mideast Gulf freight rates could spike because owners will avoid going there," another source said, adding that shipowners are likely to err on the side of caution. The extent of the impact will depend on how long the hostilities last and of and how Iran retaliates. "The main thing to watch... is how Iran will retaliate. Shipping's stance would highly hinge on the degree of retaliation," a tanker broker said. The situation could also trigger operational disruptions, particularly for cargoes yet to load. "There is a possibility that the latest spat could fall under the force majeure clause, which could allow the cancellation of charters," a broker said. Force majeure clauses in charter parties release both parties from liability when extraordinary events — such as war — prevent contract fulfilment. But it remains unclear whether this incident meets that threshold. Higher oil prices could also push up bunker fuel costs, adding further upward pressure on freight rates, a shipowner said. Freight and energy markets are closely watching for signs of Iranian retaliation, which could worsen supply risks and increase volatility. "That [Zionist] regime should anticipate a severe punishment. By God's grace, the powerful arm of the Islamic Republic's Armed Forces won't let them go unpunished," Iran's Supreme Leader Ayatollah Ali Khamenei said on 13 June on social media platform X. While spot rates and war risk premiums are expected to rise in the short term, most market participants are adopting a wait-and-see approach. "The freight market has not yet reacted and rates in the Mideast Gulf did not jump on Friday, but nobody can predict how the conflict will develop further or how many more black swans there will be," a broker said. By Sureka Elangovan and Sean Lui Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EPA draft biofuel blend mandate expected Friday: Update

12/06/25

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12/06/25

EPA draft biofuel blend mandate expected Friday: Update

Updates with changes throughout New York, 12 June (Argus) — President Donald Trump's administration plans to release draft biofuel blend mandates for 2026 and 2027 on Friday, according to three people familiar with the matter. The draft quotas, in addition to a separate final rule cutting cellulosic biofuel mandates for last year, exited White House interagency review on Wednesday, the last step before major regulations can be released. The Trump administration has meetings with legislative stakeholders on Friday morning ahead of the public release, three people said. Previously scheduled meetings through the end of the month as part of the interagency review process appear to have been cancelled, another signal that the rules' release is imminent. The Environmental Protection Agency (EPA) has said it wants to get the frequently delayed Renewable Fuel Standard program back on its statutory timeline, which would require volumes for 2027 to be finalized before November this year. Any proposal will have to go through the typical public comment process and could be changed. EPA said the rules will be posted on its website once they are signed by Lee Zeldin, the agency's administrator. A coalition of biofuel-producing groups and feedstock suppliers, including the American Petroleum Institute, has pushed EPA to set a biomass-based diesel mandate of 5.25bn USG for 2026, hoping that a record-high target will support biorefineries that have struggled this year. Many plants have idled or run less recently, as uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and tariffs that up feedstock costs all hurt margins. US senator Chuck Grassley (R-Iowa) said Thursday that closed biodiesel plants in his state needed a 5.25bn mandate to reopen. Meanwhile, a coalition of independent and small refiners that have long lamented the costs of the program wrote to EPA this week asking for less-aspirational future mandates, including for the conventional category mostly met by corn ethanol. RIN markets were volatile today, trading higher in the morning before slipping lower on fears the mandates would not meet industry expectations. Current year ethanol D6 RINs traded as high as 99¢/RIN before falling as low as 90¢/RIN. Current year biomass-based diesel D4 RINs ended Thursday at 102.5¢/RIN, equal to their close the prior day. Small refinery exemptions loom Zeldin told a House subcommittee last month the agency wanted "to get caught up as quickly as we can" on a backlog of small refiner requests for program exemptions. Courts took issue with EPA's exemption policy during Trump's first term and again during President Joe Biden's tenure, leaving officials now with dozens of waiver requests covering 10 compliance years still pending. 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The version that passed the House last month would extend the "45Z" clean fuel production credit through 2031, bar regulators from considering indirect land use emissions, and restrict eligibility to fuels from North American feedstocks. While various ideas have circulated this year, lobbyists expect the Senate to preserve the general structure of the credit, which throttles benefits based on carbon intensity, rather than reinvent a new subsidy. Still, some Republicans have expressed concern with the House's phaseout of tax credit "transferability", which benefits smaller companies without much tax liability. And major oil refiners with renewable diesel plants reliant on Asian used cooking oil and South American tallow have lobbied for more flexibility around foreign feedstocks. Any changes that up the credit's costs could be controversial too among conservatives worried about the bill's impacts on a mounting federal budget deficit. And the complex tax credit will ultimately need final regulations from the US Department of Treasury clarifying eligibility. At a Senate hearing Thursday, Treasury secretary Scott Bessent said that the Trump administration planned to implement the credit in a way to "not allow for foreign actors to have a back door into the program." By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Borealis not reviewing assets in Europe: CEO

12/06/25

News

12/06/25

Borealis not reviewing assets in Europe: CEO

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EPA readies new biofuel blend mandate proposal

12/06/25

News

12/06/25

EPA readies new biofuel blend mandate proposal

New York, 12 June (Argus) — President Donald Trump's administration is close to releasing two regulations informing oil refiners how much biofuel they must blend into the conventional fuel supply. The two rules — proposed biofuel blend mandates for at least 2026 and most likely for 2027 as well as a separate final rule cutting cellulosic fuel mandates for last year — exited White House review on Wednesday, the last step before major regulations can be released. Previously scheduled meetings as part of the process appear to have been cancelled, another signal that the rules' release is imminent. The Environmental Protection Agency (EPA) has said it wants to get the frequently delayed Renewable Fuel Standard program back on its statutory timeline, which would require volumes for 2027 to be finalized before November this year. Any proposal will have to go through the typical public comment process and could be changed. A coalition of biofuel-producing groups and feedstock suppliers, including the American Petroleum Institute, has pushed EPA to set a biomass-based diesel mandate of 5.25bn USG for 2026, hoping that a record-high target will support biorefineries that have struggled this year. Many plants have idled or run less recently, as uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and tariffs that up feedstock costs all hurt margins. EPA administrator Lee Zeldin also told a House subcommittee last month the agency wanted "to get caught up as quickly as we can" on a backlog of small refiner requests for program exemptions. Courts took issue with EPA's exemption policy during Trump's first term and again during President Joe Biden's tenure, leaving officials now with dozens of waiver requests covering multiple compliance years still pending. It is unclear whether the rule will provide clarity on EPA's plans for program waivers — including whether the agency will up obligations on other parties to make up for exempt small refiners — but biofuel groups have worried that widespread exemptions would curb demand for their products. The price of Renewable Identification Number (RIN) credits used for program compliance have been volatile this year on rumors about these exemptions, which EPA has called market manipulation. RIN trading picked up and prices rose on the news as Thursday's session began. Bids and offers for 2025 ethanol D6 RINs, the most prevalent type currently trading, began the day at 96¢/RIN and 98¢/RIN, respectively. Deals were struck shortly after at 98¢/RIN and 99¢/RIN, with seller interest at one point reaching 100¢/RIN — well above a 95.5¢/RIN settle on Wednesday. Biomass-based diesel D4 RINs with concurrent vintage followed the same path with sellers holding ground as high as 107¢/RIN. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Ice gasoil backwardation widens as supply tightens

12/06/25

News

12/06/25

Ice gasoil backwardation widens as supply tightens

London, 12 June (Argus) — The premium of front-month Ice gasoil futures against the second-month futures has widened over the past two weeks, reflecting tighter supply. The premium of Ice June futures against the July contract settled at $9.50/t on Wednesday, 11 June. The backwardation — where prompt prices are greater than forward prices — has steepened in the past two weeks, peaking at a premium of $16/t on Tuesday, 10 June, the joint-widest in 14 months along with 11 March. Two weeks ago, on 23 May, the premium settled at $6.50/t. The June contract expires today, which could have contributed to the steepening backwardation as traders close their open positions, according to market participants. But the size of the premium suggests a tightening market. A closed arbitrage from the Mideast Gulf and India since April has reduced supply to Europe, European traders have said. Only 2.97mn t of diesel and other gasoil has arrived in Europe from the Mideast Gulf and India in April and May, according to ship-tracking service Vortexa, compared with about 5.72mn t in the same period last year. The arbitrage has been closed because of relative weakness in European prices compared with those in Singapore. The premium of front-month Ice gasoil futures against Singaporean equivalents averaged $18.65/t in May, compared with $23.81/t in May 2024. Singaporean middle distillate stocks fell to a nine-month low in the week ending 23 April, increasing demand for imports. European diesel values fell sharply at the start of April in response to the implementation of US tariffs, largely because of dampened expectations of industrial performance, and have not recovered. The start of the Mediterranean emissions control area (ECA) at the start of May has also placed strain on European supply of diesel and other gasoil. The ECA requires ships in the Mediterranean to use fuel with a sulphur content of 0.1pc, rather than the previous requirement of 0.5pc. Marine gasoil (MGO) fits the new requirement, as does ultra-low sulphur fuel oil (ULSFO). With supply of the latter limited in Europe, the majority of shipowners have switched to MGO. Refineries have probably increased MGO production to meet this new demand, but MGO supply is still "very tight" , a Mediterranean-based marine fuels trader said. Most of the gasoil used for blending in MGO is suitable for desulphurisation and use as road fuel, and so it diversion into marine fuels restricts supply of diesel. Independently-held inventories of diesel and other gasoil at the Amsterdam-Rotterdam-Antwerp (ARA) hub have dropped since the start of April. The four-week average came to about 2.1mn t on 5 June, lower on the year by 8.5pc, according to consultancy Insights Global. On 3 April the four-week average was 5.1pc higher than a year earlier. A recovery in Rhine river water levels in recent weeks , after lows that restricted barge movement inland from ARA, contributed to the stockdraw. By Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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