Marine fuels
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The introduction of new regulations has caused fundamental change across the marine fuel markets. Reliable insight and data reflecting the market direction are more pressing than ever.
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Our global coverage of marine fuels delivers market-driven price assessments, supply and demand data, price forecasts, and forward curve prices. Along with the latest news, market commentary, and in-depth analysis led by our market experts, our comprehensive insight helps your business decide on the best suited alternative marine fuel for your needs.
Latest marine fuels news
Browse the latest market moving news on the marine fuels industry.
Idemitsu completes biofuel trial for bunkering vessels
Idemitsu completes biofuel trial for bunkering vessels
Tokyo, 5 September (Argus) — Japanese refiner Idemitsu has completed a test of mixed biofuel using fatty acid methyl ester (Fame) for bunkering vessels in the Hokkaido area ahead of commercial use. Idemitsu carried out a trial for 10 months starting in September 2023, using a 24pc Fame mixture of used cooking oil collected from convenience stores in Hokkaido with existing marine fuel oil. The mixed biofuel can be used in the same applications as existing marine fuel oil without any changes to equipment specifications or operating conditions in cold climates, Idemitsu said. Mixed biofuel is able to cut 20pc of carbon dioxide compared with existing marine fuel oil. But there has been difficulty in using it in sub-zero temperatures, which results in solidification and oxidation. Idemitsu will increase use of the bio-mixed marine fuel to areas other than Hokkaido, in its effort to achieve the country's 2050 decarbonisation goal. By Reina Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Tight Singapore VLSFO supplies lift bunker prices
Tight Singapore VLSFO supplies lift bunker prices
Singapore, 28 August (Argus) — Bunker prices for very-low sulphur fuel oil (VLSFO) at the port of Singapore rallied in end-August, bolstered by tight supplies and steady gains in Ice Brent Singapore crude futures. The VLSFO prices rose by 4.7pc on the day and 3.5pc on the year to $656/t on a delivered on board (dob) basis on 27 August, as tight spot availability for the first half of September lifted fuel premiums. Singapore's VLSFO bunker prices were last assessed higher at $668.50/t dob on 30 January. Prices for prompt seven days' laycan versus mid-September delivery for VLSFO saw a backwardation of $25/t as limited barges and tight VLSFO supplies pushed prices higher. Prices for the next seven days' laycan were assessed at about $670-680/t on a dob basis in Singapore, while deliveries for mid-September were indicated at around $645-655/t dob basis. Limited blendstock components and stronger Chinese import demand have led to a near-term VLSFO supply crunch and supported increases in Singapore cargo prices from late August. Furthermore, domestic Chinese refineries reduced run rates because of limited VLSFO export quotas , resulting in higher VLSFO bunker prices in China and increased demand for imported fuel to meet domestic bunkering requirements. Meanwhile, limited VLSFO cargo availability, coupled with delays in loading at the port of Singapore, have raised VLSFO premiums on an ex-wharf and delivered basis over the past week. Delays in VLSFO cargo deliveries and delayed loadings at port terminals forced buyers to pay a premium for VLSFO bunker fuel delivered before 10-15 September, one trader said. "Zhoushan is much cheaper than Singapore so demand is moving there," another trader said, adding that some Singapore-based suppliers expect tight spot availability until October, overturning earlier expectations of limited availability until mid-September. Singapore's scrubber-spread — the price difference between VLSFO and high-sulphur fuel oil (HSFO) for bunkering — has widened to almost a six-month high of $174/t on 27 August because of the current rally in VLSFO prices. The scrubber spread is a key indicator of margins for bunker buyers with exhaust scrubber systems installed on their ships. A wider scrubber-spread would reflect higher cost savings while maintaining low carbon emissions when using HSFO instead of VLSFO for refuelling vessels. The tight supply of VLSFO also impacted the marine biodiesel market, with B24 prices in Singapore rising to $732.5/t on a dob basis at the close of 27 August, an increase of $35/t compared with the level on 20 August. By Cassia Teo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
IMO 2040 CO2 goals unmet under base case: ABS
IMO 2040 CO2 goals unmet under base case: ABS
New York, 27 August (Argus) — The shipping industry will not meet the International Maritime Organization (IMO) goal for reducing CO2 emissions by 2040 without hastening the expected pace of vessel replacements, a study by vessel classification organization American Bureau of Shipping (ABS) concluded. IMO calls for the reduction of greenhouse gas emissions by at least 20pc by 2030, by at least 70pc by 2040, and to net zero by 2050, compared with 2008 base levels. Under a base case scenario, a 20pc reduction in CO2-equivalent emissions by 2030 is achievable on a full lifecycle basis, but a 70pc percent reduction by 2040 is not, ABS said. Under the best case scenario examined by ABS, achieving IMO's 70pc target would require a significantly faster renewal of the vessel fleet to replace oil-fueled vessels or a higher degree of vessel retrofitting. The three biggest categories of bunker consuming vessels — tankers, dry bulk carriers and container ships — are expected to follow a similar trajectory for marine fuel demand under the base case scenario, with conventional marine fuel accounting for more than 60pc of demand through 2035, ABS said. Conventional fuel demand would decline to 38-44pc of marine fuel demand in the first half of the 2040s in the base case, ABS predicted. Methanol in that period would grow to about 35pc of marine fuel demand for tankers and container ships and about 22pc for dry bulk carriers. Ammonia and hydrogen demand would grow to about 13pc of tankers' marine fuel demand, 18pc of dry bulk carriers' demand and about 14pc of container ships' demand. LNG across the three vessel categories is expected at 4-6pc of bunkering demand in the early 2040s, with biodiesel at 5-9pc of demand. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Singapore's SRC partially shuts refinery for turnaround
Singapore's SRC partially shuts refinery for turnaround
Singapore, 22 August (Argus) — Singapore Refining Company (SRC) has partially shut its refinery for a scheduled maintenance in August, market participants said. SRC, a joint venture between Singapore Petroleum Company (SPC) and Chevron, has shut a crude distillation unit for a scheduled turnaround at its 290,000 b/d Jurong Island refinery. The shutdown will last about one to two months market participants said. SRC produces oil products ranging from naphtha, reformate, alkylate, gasoline, jet fuel, diesel and low-sulphur fuel oil. The cargoes are typically distributed domestically and exported to markets in Asia-Pacific, according to SRC. Some of SRC's naphtha is also sent via pipeline to Petrochemical Singapore (PCS), according to a 2023 PCS document. By Aldric Chew Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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