China’s INE to launch VLSFO futures contract in June

: Oil products
20/05/29

China's International Energy Exchange (INE) will launch its very-low-sulphur fuel oil (VLSFO) futures contract on 22 June, after winning regulatory approval today.

The contract will be open to overseas investors and provide an effective risk management mechanism for domestic VLSFO producers, the China Securities Regulatory Commission (CSRC) said.

The regulatory approval comes just two days after the INE said simulated trading in the VLSFO contract would run from 1-12 June. The contract will be traded in 10t lots and denominated in yuan, with contracts listed 12 months ahead starting with January 2021. Deliveries under the contract must have viscosity of 100-380cst, maximum density of 0.991kg/m³ and maximum 0.5pc sulphur content.

Details of the delivery process have not been announced, but storage facilities in Zhoushan and Shanghai's Yangshan port in east China, which are the main delivery points for the SHFE's HSFO contract, are likely to be used for VLSFO as well.

The move towards launching the contract comes after China introduced export tax rebates on VLSFO earlier this year, prompting domestic refineries to increase production and exports of the fuel.

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26/06/03

Air France-KLM flags secure summer jet fuel supply

London, 3 June (Argus) — Air France-KLM said jet fuel supply is secure for the peak summer travel season, becoming the latest European airline to signal stable availability after earlier concerns over disruptions linked to the closure of the strait of Hormuz. "All indicators are positive for the July and August peak travel season" in terms of availability at its French and Dutch airport hubs, chief executive Benjamin Smith said. The company is "continuously monitoring" fuel supply at destination airports but has committed to maintaining its summer flight schedule. Other European airlines have delivered similar messages in recent weeks. Last week, Germany's Lufthansa said there were "no signs" of supply risks at its six European hubs — Frankfurt, Munich, Zurich, Vienna, Brussels and Rome. Ryanair chief executive Michael O'Leary has said supply appears secure until September, while Jet2 said it does not expect disruption to its summer schedule. The improved sentiment reflects a more balanced supply picture. Higher regional refinery output, stockdraws and imports from the US and Nigeria have helped offset the loss of Middle Eastern supply following the effective closure of the strait of Hormuz, easing earlier fears of jet fuel shortages in Europe. European jet fuel prices have fallen in response, staying below $1,200/t for almost two weeks — the lowest level since the start of the US-Iran conflict, although still around 50pc higher than pre-war levels. Supply remains tight, however. Unplanned refinery outages could quickly disrupt supply to individual airports, while the ongoing lack of flows through the strait of Hormuz means the global jet fuel market remains undersupplied. Europe must continue to compete with other regions for imports, and market participants expect prices to remain elevated for several months. By Amaar Khan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

HVO-B7-Differenz auf niedrigstem Stand seit zwei Jahren

26/06/03

HVO-B7-Differenz auf niedrigstem Stand seit zwei Jahren

Hamburg, 3 June (Argus) — Der Aufschlag von HVO100 gegenüber B7-Diesel hält sich weiterhin auf niedrigem Niveau und erreichte im Zuge des Iran-Kriegs seinen geringsten Stand seit mindestens März 2024. Dies liegt an dem gestiegenen Preisniveau von fossilem Diesel sowie an den anhaltend hohen THG-Erlösen aus dem Inverkehrbringen von HVO. Tankstellenbetreiber folgen dem Großhandelstrend und verringern die Differenz an der Zapfsäule. Seit Ausbruch des Iran-Krieges ist der bundesdurchschnittliche Dieselpreis deutlich gestiegen (siehe Grafik). Dieser Preisanstieg im fossilen Geschäft betrifft HVO als synthetisches Dieselprodukt allerdings nur indirekt, da in der Produktion andere Grundstoffe wie Tallöl oder tierische Fette eingesetzt werden, die nicht über die Straße von Hormus gehandelt werden. Somit folgt HVO nicht derselben Rohstoff- und Raffinerielogik wie fossiler Diesel. Dennoch orientieren sich viele Marktteilnehmer weiterhin an Dieselbenchmarks in der Preisgestaltung, wodurch steigende Dieselpreise teilweise auch auf HVO übertragen werden — allerdings in abgeschwächter Form. Parallel zum gestiegenen Dieselpreisniveau üben anhaltend hohe Erlöse aus dem Handel mit Treibhausgasminderungen Druck auf die HVO-Preise im deutschen Markt aus. Höhere Erträge aus der THG-Minderung ermöglichen es Inverkehrbringern, HVO zu niedrigeren Preisen anzubieten, wodurch sich die Differenz zu fossilem Diesel weiter verringert, beziehungsweise das Produkt überhaupt wettbewerbsfähig gemacht wird. Die generierten Erlöse aus dem Inverkehrbringen von 100 Litern HVO sind seit dem Beginn der Erhebung durch Argus Ende Juli 2025 um etwa 42 €/100l auf circa 114 €/100l am 02. Juni 2026 angestiegen (siehe Grafik). Der Grund hierfür ist die Implementierung der RED III in deutsches Recht, die deutlich ambitioniertere THG-Ziele diktiert, sowie der Wegfall der Doppelanrechnung für fortschrittliche Kraftstoffe. Im Einkauf im Handelszentrum Amsterdam-Rotterdam-Antwerpen (ARA) vor der Generierung liegt HVO auf UCO-Basis am am 02. Juni etwa 67 €/100l teurer als HVO in Deutschland. Die Großhandelsdifferenz zwischen HVO und B7-Diesel an Tanklagern in Deutschland ist daher seit Anfang April durchschnittlich unter 3 €/100l gesunken. Vereinzelt lag der Aufschlag in diesem Zeitraum sogar unter 1 €/100l — dem geringsten Wert seit der Erhebung durch Argus . In den Regionen Süd, West, Südwest und Nord wurde HVO seit dem Ausbruch des Krieges in Nahost deshalb vereinzelt sogar mit einem Abschlag gegenüber dem jeweiligen regionalen Dieselpreis gehandelt. Im Monat vor dem Ausbruch des Krieges lag der HVO-Aufschlag gegenüber dem B7-Bundesschnitt noch bei rund 5 €/100l. Stetiger Anstieg im Endverbrauchersegment Auch an der Zapfsäule zeigt sich der Trend niedriger Preisaufschläge. HVO100 wird an vielen deutschen Tankstellen inzwischen mit einem Aufpreis von unter 10 ct/l gegenüber B7-Diesel angeboten. Teilweise liegt dieser sogar bei unter 5 ct/l, da Anbieter die gesunkene Großhandelsdifferenz weitergeben oder gezielt versuchen, das Produkt im Markt zu etablieren. Hintergrund sind unter anderem weiterhin bestehende Vorbehalte einzelner Verbraucher hinsichtlich der Motorenverträglichkeit von HVO. Vor dem Ausbruch des Krieges Ende Februar lag der HVO-Aufschlag gegenüber B7 vielerorts noch über 12 ct/l . Das Angebot an HVO100 an der Zapfsäule hat sich in den zwei Jahren seit der Zulassung zum freien Vertrieb an Tankstellen weiter ausgeweitet und liegt laut dem Verein Mobil in Deutschland e.V. inzwischen bei rund 700 Standorten bundesweit. Der Gesamtverbrauch wächst indes weiter an — mehrere Tankstellenbetreiber berichten gegenüber Argus , dass die HVO-Nachfrage an Tankstellen für Industriekunden teilweise zwischen 60 m³ und 70 m³ pro Monat liegt. Tankstellen mit einem größeren Fokus auf Privatkunden setzen vielerorts zwischen 10 m³ und 15 m³ HVO pro Monat um. Absatzmengen an Tankstellen mit gemischter Kundschaft lägen zwischen 25 m³ und 35 m³ pro Monat, allerdings kommt es auch hier zu regionalen Unterschieden. Argus schätzt, dass sich der HVO-Verbrauch in Deutschland im laufenden Jahr mehr als verdoppeln könnte — auf rund 2,6 Mrd. l, nach etwa 1,2 Mrd. l im Jahr 2025. Der Großteil entfällt weiterhin auf die Beimischung zu konventionellem Diesel, während HVO100 bislang nur einen kleineren Anteil ausmacht. Von Marcel Pott Entwicklung des B7-Bundesschnitts THG-Erlös aus dem Inverkehrbringen von 100l HVO Entwicklung des HVO-Aufschlags zum B7-Bundesschnitt Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2026. Argus Media group . Alle Rechte vorbehalten.

Kuwait suspends air traffic after drone hits airport

26/06/03

Kuwait suspends air traffic after drone hits airport

Dubai, 3 June (Argus) — Kuwait has suspended air traffic after Iranian drones hit Kuwait International Airport late on Tuesday, the country's civil aviation body Paca said today. A number of Iranian drones targeted the airport's terminal one, the ministry of defense said. The attack caused casualties and significant damage to the airport facilities, said Paca spokesman Abdullah Al-Rajhi. "An additional wave of Iranian drones attempting to attack US forces in Kuwait failed to impact intended targets tonight", the US Central Command (Centcom) said, adding that "defenses successfully downed multiple drones". Kuwait International Airport is closed until 14:00 Kuwait time (11:00 GMT) on 4 June. Kuwait's low-cost carrier Jazeera Airways said all flights scheduled for today have been cancelled until 14:00 local time, or until further notice. The airline said all its aircraft are being repositioned to Saudi Arabia. Kuwait's airport has been repeatedly targeted by Iran since the war with the US and Israel began on 28 February. The attacks damaged infrastructure, with the most recent drone strike causing fires at the airport's fuel depots on 1 April . The new attacks come just two days after Kuwait resumed regional and foreign airline flights from its airport, in hopes to fully restart air traffic operations in the country. Kuwait was the last country in the region to reopen its airspace on 24 April , nearly two months after shutting it when the war began. The disruption to flights has sharply curtailed Kuwaiti jet fuel demand, which fell to 1,000 b/d in March, according to the country's latest submission to the Joint Organisations Data Initiative (Jodi). Kuwait's jet fuel demand averaged around 19,000 b/d in 2025. By Ieva Paldaviciute Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Ampol to acquire fuel retailer EG Australia

26/06/03

Ampol to acquire fuel retailer EG Australia

Sydney, 3 June (Argus) — Australia's refiner and retailer Ampol has received regulatory approval from the country's competition regulator to acquire UK-owned EG Australia in a cash-settled deal worth A$1.1bn ($780mn), it said today. The Australian Competition and Consumer Commission (ACCC) will allow the deal to proceed if Ampol divests 41 EG Australia fuel stations. The regulator has approved Dib Group, trading as Metro Petroleum, as the purchaser of these divestment sites. The acquisition is expected to be completed on 30 June, subject to final regulatory requirements. The regulator previously identified 115 EG fuel stations where the deal would raise competition concerns across Brisbane, Melbourne, Sydney and Canberra, where Ampol's post-acquisition market share would have reached 21pc, 19pc, 20pc and 31pc respectively. Ampol had earlier planned to divest 19 retail fuel stations , but this was deemed insufficient to offset competition concerns. Ampol expects the acquisition to generate targeted synergies of A$65mn-80mn per year and said the deal will strengthen its retail network and expand its higher-margin fuel and convenience business. Total fuel sales volumes reached around 428,000 b/d in January–March, broadly stable compared with 6.14bn litres in the same quarter a year earlier, with retail volumes broadly unchanged while wholesale demand softened. EFA support and MSO limitations The approval comes as Ampol has been drawn into Australia's broader fuel security response following the outbreak of the US-Iran war in late February. Government agency Export Finance Australia (EFA) first partnered with Ampol and Viva Energy in early April to underwrite spot-market fuel and crude oil purchases, enabling both refiners to secure cargoes that would otherwise be considered uncommercial due to volatile prices and high spot-market costs. Under the scheme, the government retains the ability to prioritise regions facing tighter supply. EFA has since expanded beyond Ampol and Viva Energy to include smaller, regionally focused operators IOR and Park Fuels. At the same time, Australia's minimum stockholding obligation (MSO) framework has not addressed access to fuel in regional areas. The MSO, which compels major importers to hold fuel stocks based on typical daily consumption, covers a limited group of large companies and does not extend to independent wholesalers that supply rural transport and farm businesses. These wholesalers have reported being unable to secure uncontracted supplies that are usually accessible, following the onset of the US-Iran conflict. By Lawrence Wen and Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Japan’s petchem supply to last beyond fiscal year: PM

26/06/03

Japan’s petchem supply to last beyond fiscal year: PM

Tokyo, 3 June (Argus) — Japan can maintain supply of its petroleum products, including naphtha-derived chemical products, beyond the current fiscal year that ends in March 2027, prime minister Sanae Takaichi said on 2 June. Takaichi had already declared that Japan can secure stable oil supply beyond March 2027 , but supply of naphtha-derived products had previously been secured only through to the end of this year. Her latest statement extends that outlook. The outlook reflects the ongoing recovery in Japan's naphtha procurement, which has currently risen to around 85pc of normal levels, supported by both domestic refining and alternative imports from regions outside the Middle East. Japan has also boosted imports of intermediates, which has helped limit drawdowns of intermediate stocks in April, Takaichi said. Manufacturers of midstream products such as polyethylene, as well as downstream products — including paints and thinners, polyvinyl chloride (PVC) pipes and insulation materials — have reported that their supply performance up until April has been at the same level as or higher than in the previous year, Takaichi said, adding that they also expect to continue supply going forward. But inventories in the supply chain for paints and thinners remain relatively low. In response, in addition to petrochemical firms' supply and trading firms' imports, refiners will directly supply feedstocks such as toluene and xylene to paint and thinner manufacturers, enabling supply of up to 1.8 times the usual level of demand, according to the government. This arrangement follows domestic distribution bottlenecks for paints and thinners. Because of disruptions to shipments from the Middle East stemming from the US-Iran war, Japan's naphtha imports fell to 710,000t in April , down by 46pc from a year earlier, based on preliminary finance ministry data. Imports in May and June are expected to exceed the April level, supported by efforts to increase alternative imports from the US and other regions outside the Middle East. 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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