Singapore regulators reassure on oil, bunker markets

: Oil products
20/04/22

Singapore's oil and bunker markets are facing no serious impact from the financial problems at trading company Hin Leong, although there may be some "short-term minor disruptions" in the bunker sector, regulators said.

Government business agency Enterprise Singapore (ESG), the Maritime and Port Authority of Singapore (MPAS) and the Monetary Authority of Singapore (MAS) said they are closely monitoring developments related to Hin Leong and the broader oil trading and bunkering sectors.

The unusual joint statement comes after Hin Leong and its shipping arm Ocean Tankers filed for bankruptcy protection last week following the collapse in oil prices. Hin Leong's bunker arm Ocean Bunkering Services (OBS), Singapore's third-largest bunker fuel supplier, has pulled back from the physical market, according to traders.

Singapore's oil trading market remains resilient despite the drop in global demand for energy, given the size and diversity of the sector with over 130 companies active in energy trading, ESG said. It also sought to reassure the market on storage availability, noting that Universal Terminals — a major oil storage provider that Hin Leong operates in a joint venture with China's state-controlled PetroChina — is run independently of Hin Leong.

Singapore's bunker market may be hit with some short-term and minor disruptions because of a lapse in contractual obligations by OBS, but the impact is unlikely to be serious, MPAS said. The two agencies said they will work to ensure the supply chain for oil products and bunkers continues to function smoothly.

Market participants have said Hin Leong is trying to cancel some of its gasoline and gasoil supply commitments, while some of its cargoes may be seized by its lenders. But the regional oil product market is oversupplied because of the slump in demand caused by the Covid-19 pandemic, which may limit the impact of Hin Leong's problems.

Court filings reveal that Hin Leong owes over $3bn to banks, raising concerns that financial institutions may cut lending to the commodity financing sector. MAS said it is watching developments related to Hin Leong and "has reminded banks not to de-risk indiscriminately from the bunkering and oil trading sectors".

The Singapore Police Force is also investigating Hin Leong, although it has not said why. Hin Leong made around $800mn in futures losses in recent years that were not reflected in its financial results, according to the court documents.

By Kevin Foster

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26/05/04

German fuel demand drops ahead of tax cut

Hamburg, 4 May (Argus) — Demand for diesel and gasoline in Germany fell sharply in the week ending 1 May as the temporary energy tax cut on fuels takes effect on 1 May, traded spot volumes reported to Argus show. The German government will reduce the energy tax on diesel, gasoline and similarly taxed products such as hydrotreated vegetable oil by €14.04/100 l for two months. Including VAT, this is equivalent to a tax relief of around 17¢/l for consumers at the pump. Consumers limited purchases to essential volumes in April on expectations of the tax change, while filling stations deliberately kept inventories low at the turn of the month. As a result, traded spot volumes for diesel and gasoline reported to Argus declined week-on-week over the course of April. The muted demand especially challenged suppliers with term contracts. The suppliers kept lowering April diesel prices to raise contracted volumes by the end of the month and avoid penalties. This led to unusually wide spreads between low and high price assessments in the week ending 1 May. Oversupply was strongest in Germany's southwest at the 310,000 b/d Miro, where April diesel prices for prompt loadings at times fully diverged from the developments in Ice gasoil futures. Diesel offers on 30 April for same-day collection at the regular tax rate were nearly on par with May-delivery product already priced with the reduced tax rate. Market participants expect diesel demand to rise sharply at the start of May, as consumers such as farmers and filling stations refill empty tanks. One major supplier urged customers to lift contract volumes below the contractual limits in the first week of May to prevent potential shortages. But traders doubt consumers will feel the full tax relief immediately. Persistent volatility in Ice gasoil futures, driven by developments in the Iran war, may offset the effect on prices. And the benefit will likely be smaller in regions where heavy supply pressure kept end-April prices already low. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

South Australia proposes expanding fuel rationing rules

26/05/04

South Australia proposes expanding fuel rationing rules

Sydney, 4 May (Argus) — The South Australian government has proposed legislation to expand its authority to impose fuel rationing, as concerns persist over global oil supply disruptions linked to the Middle East war, it said on 3 May. Rationing measures would only be activated if Australia's National Fuel Security plan , currently at level 2, escalates to level 4, the most severe classification. The proposed amendments to the state's Petroleum Products Regulation Act would allow fuel rationing to be imposed for up to 90 days at a time, replacing the current seven-day limit. The 90-day period could be renewed repeatedly if required, the South Australian premier Peter Malinauskas announced on 3 May. The proposed framework would also introduce stricter penalties for market misconduct during supply shortages, including fines of up to A$1mn ($650,000) for fuel retailers, wholesalers and suppliers found to be engaging in price exploitation. State opposition leader Ashton Hurn called for the establishment of a strategic gasoil reserve, proposing a 20mn litre buffer stock to support essential sectors during supply disruptions. Western Australia (WA) created a separate strategic fuel reserve to the national minimal stockpile obligation in mid-April. The state government purchased 4mn litres (25,157bl) of gasoil to be stored in the Kimberley region, north of WA, while an additional 8mn litres (50,314 bl) of gasoil will be stored between Esperance and Kwinana. By Lawrence Wen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

IMO net-zero proposal inches towards consensus

26/05/01

IMO net-zero proposal inches towards consensus

London, 1 May (Argus) — Consensus at the International Maritime Organization (IMO) meeting of its Marine Environment Protection Committee (MEPC 84) this week remained elusive, with the US leading countries opposed to the proposed Net-Zero Framework (NZF) for greenhouse gas (GHG) reductions. But by late Friday evening, the majority of member states eventually reached an agreement on the J7 document, which sets out future work for the Intersessional Working Group on Reduction of GHG Emissions from Ships to be held between now and November. The current proposed draft of the NZF , would require ships to reduce their fuel intensity by at least 4pc in 2028, rising to 30pc in 2035, creating a global carbon levy for shipping emissions. The creation of the NZF was approved at MEPC 83 in April 2025, but the planned approval of the regulation in October 2025 was postponed to this October because of a lack of consensus. Countries this week reviewed and debated plans for the proposed NZF, in hopes of finding consensus ahead of the October vote. Several countries this week sought to reshape the NZF proposal, with changes to the GHG pricing mechanism and global fuel intensity (GFI) guidelines. But the atmosphere at MEPC 84 was markedly more constructive than in the October meeting, some delegates told Argus . Formal adoptions at MEPC 84 focused on ballast water management, marine plastic litter and bio fouling, while discussions on the decarbonisation of the shipping industry were treated as preparatory ahead of the planned October vote. IMO officials repeatedly framed the talks as an effort to avoid a repeat of last year's breakdown and to prepare the ground for agreement later this year. Proposals by Liberia and Japan As part of the dialogue this week, member states proposed 57 amendments to the NZF. Several delegations reiterated their support for the revised NZF proposal submitted by Liberia, co-sponsored by Argentina and Panama, and a delegate told Argus this appears to be the main suggestion considered by IMO member states. The Liberian proposal calls for adjusting the Global Fuel Intensity (GFI) trajectory to reflect the demonstrated availability and uptake of low-carbon fuels, rather than fixed aspirational targets, and proposes to remove the creation of an IMO-managed fund financed by penalty payments. Under the proposal, fuels would qualify as compliant only if they meet defined viability criteria, including affordability, availability and scalability, with costs capped at no more than 15pc above conventional bunker fuels. But member states' views diverged mainly on the IMO-managed fund and the penalty payments determined in the draft on which members failed to reach consensus in October 2025. Japan's proposal also emerged strengthened from the meeting, a delegate said. The submission seeks the removal of mandatory payments to the IMO Net-Zero Fund. Instead, Japan proposes that compliance deficits should be balanced solely through market mechanisms, allowing ships to meet obligations by transferring surplus units generated by over compliant vessels. The proposal also calls for easing the Global Fuel Intensity (GFI) reduction trajectory from 2030 onwards. Continued lack of consensus The US, Russia, UAE, Saudi Arabia and others were opposed to the framework, while the EU, UK, China, Brazil and India were in favour. US delegate and Federal Maritime Commission chair Laura DiBella said the NZF is an unnecessary tax on US shippers and vessels operating in international waters. "The NZF would cost the maritime industry billions of dollars annually," DiBella said. "As the largest consumer of imported goods, these costs will be directly passed onto US consumers." Last year, the US threatened to retaliate against countries that backed the proposal. The deferral of the vote last October caused price declines in several alternative bunker fuel markets last year. Without at least a two-thirds majority consensus in favour of the framework, the IMO could potentially vote to adjourn or reject the NZF in October. Despite the conflict of views, IMO secretary general Arsenio Dominguez emphasised progress made in inter-sessional talks on the technical backbone of the framework, particularly GHG fuel intensity calculation guidelines, fuel certification and life cycle assessment methodologies. MEPC 84 discussions also covered how to treat technologies such as onboard carbon capture and storage (CCS), for which the IMO is drafting a future framework. The IMO on Wednesday agreed to designate the North-East Atlantic ocean as an emissions control area (ECA). This should boost demand for lower emission bunker fuels, such as very low sulphur fuel oil (VLSFO), particularly for European LNG bunker markets, where methane slippage has increased in importance. By Madeleine Jenkins and Gabriel Tassi Lara Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

European jet premiums slide as prompt supply fears ease

26/05/01

European jet premiums slide as prompt supply fears ease

London, 1 May (Argus) — European jet fuel premiums to Ice gasoil futures have fallen to their lowest since the early days of the US-Iran war as confidence builds that near-term supply is adequate. But the outlook for the summer peak remains uncertain. Argus assessed jet fuel delivered to northwest Europe at a $200/t premium to front-month Ice gasoil futures on 30 April, the lowest since 2 March — the first session after the war began on 28 February. Jet fuel traded at $67.80/bl above the North Sea Dated crude benchmark on 29 April, marking the narrowest crack spread in more than two weeks. Market participants said values held steady on 1 May. Premiums have eased steadily over the past week as fears of supply shortfalls in Europe have receded, at least in the short term. Several airlines and producers played down the risk of shortages. Ryanair and Air France-KLM executives dismissed concerns this week, while refiners including Spain's Repsol and Austria's OMV said they are meeting supply commitments. Some market participants now view supply as secure until at least the second half of May. Improved sentiment has been underpinned by rising imports from sources outside the Mideast Gulf. Europe sharply increased jet fuel inflows from the US and Nigeria in April, with arrivals from both countries hitting monthly record highs. Although these volumes are not large enough to fully replace supply lost as a result of the US-Iran war, their rapid arrival after Mideast Gulf cargoes dried up has helped stabilise prompt availability. European refiners have also responded by maximising jet fuel output and postponing maintenance to cash in on strong margins and safeguard supply. The UK has asked its refiners to prioritise jet fuel production, while Sweden and Germany said strong domestic refining capacity is supporting the market. At the same time, Europe has relied heavily on inventories to offset the loss of Middle East supply. Stocks are replacing more than half of the missing volumes, according to Argus Consulting. But this buffer is finite. Independent jet fuel inventories in the ARA hub have fallen to six-year lows of about 550,000t, while stock cover varies widely across European countries. The IEA expects Europe to hold an average of 23 days of jet fuel stocks by June — a level it classifies as a shortage. Market participants also point to higher Chinese jet fuel exports in May , which will support global balances even if most volumes do not flow directly to Europe. Beyond early summer, however, fundamentals become less clear. Near-term supply relief comes ahead of the seasonal peak in aviation demand, which the IEA does not believe current supply levels can meet, particularly given Europe's reliance on inventories. Some participants expect demand destruction later in the year if high prices persist. The jet fuel market remains structurally tight. Global balances are still undersupplied because the strait of Hormuz remains effectively closed to normal commercial flows. Outright jet fuel prices in Europe are close to double pre-war levels, reflecting ongoing geopolitical risk and fragile supply. Most market participants do not expect the market to stabilise until Hormuz flows resume and inventories can be rebuilt. In the meantime, high prices are needed to keep arbitrage flows from the US and Nigeria viable, participants said. By Amaar Khan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Japan’s petchem supplies to last into next year: PM

26/05/01

Japan’s petchem supplies to last into next year: PM

Tokyo, 1 May (Argus) — Japan's supply of naphtha-derived chemical products is sufficient to last beyond the end of this year, prime minister Sanae Takaichi said. Japanese refiners are continuing to produce domestically refined naphtha, while naphtha imports from countries outside the Middle East — including the US, Algeria and Peru — will treble in May compared with levels before the escalation of geopolitical tension in the Middle East, Takaichi said on 30 April. Naphtha imports from such countries were 900,000 kilolitres (190,000 b/d) in April and will surpass 1.35mn kl in May, according to the trade and industry ministry Meti. Japan has also secured stocks of intermediate chemical products, such as polyethylene and polypropylene, totalling around 1.8 months' worth of use. These procurement efforts and inventory utilisation mean Japan can maintain its supply of naphtha-derived chemical products beyond the end of the year, Takaichi said, up from the previous estimate of over six months made in early April. Japan has secured around 1.4mn b/d of crude oil for May, accounting for around 60pc of the country's requirement based on average 2025 imports of 2.36mn b/d, Takaichi said. The country secured more than 500,000 b/d in April, around 20pc of its needs, according to Meti. Japan has been drawing on its stockpiles to cover its remaining requirements. It began releasing a second batch of oil from its national reserves on 1 May, Meti said today. The ministry previously said on 30 April that the start of this release would be delayed by one day to 2 May. Takaichi also reiterated that Japan has sufficient oil supplies to last beyond the end of this year, taking into account its oil reserves and alternative purchases. Tokyo has been providing fuel subsidies to ease the impact of rising oil prices caused by supply disruptions through the strait of Hormuz, as it aims to cap retail gasoline prices at around ¥170/l ($1.08/l). Japan's nationwide average gasoline price has fallen to ¥170/l, which is half the level in European countries and similar to prices in oil-producer the US, Takaichi stressed. Japan's subsidised retail gasoline prices averaged ¥169.7/l as of 27 April, according to Meti. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Singapore regulators reassure on oil, bunker markets

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