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Biomethanol, fuel oil demand up in Rotterdam port 3Q

  • : Biofuels, Oil products
  • 24/10/23

Bunker fuel oil and biomethanol sales at the port of Rotterdam rose in the third quarter of this year, but those of gasoil and marine biodiesel fell, according to official port data.

Very-low sulphur fuel oil (VLSFO), ultra-low sulphur fuel oil (ULSFO), and high-sulphur fuel oil (HSFO) sales all picked up on the quarter and on the year (see table). Participants attributed the increase in HSFO demand to the seasonal arrival of containerships at the port. HSFO demand rose in the previous quarter owing to re-routing of vessels because of chronic traffic disruption in the Red Sea.

Ahead of the Mediterranean Sea becoming an emission control area (ECA) in May 2025, participants had pointed to expectations of firmer ULSFO demand in Europe for scrubber-less vessels operating between ECA zones. Vessels operating in ECA zones are be required to burn marine fuels with a sulphur content no higher than 0.1pc, rather than the global cap of 0.5pc.

Combined sales for marine gasoil (MGO) and marine diesel oil (MDO) fell on the quarter and on the year in July-September. Market participants reported mostly lacklustre bunker fuel demand in the Amsterdam-Rotterdam-Antwerp (ARA) hub in that time, combined with tight prompt availability that weighed further on sales.

Marine biodiesel blend sales declined sharply owing to a shift in voluntary demand east of Suez. B24 dob Singapore, a blend comprising VLSFO and used cooking oil methyl ester (Ucome), was an average of $715.56/t in July–September. This is lower than comparable assessed European blends, such as B30 Ucome dob ARA that averaged $804.71/t, B30 advanced fatty acid methyl ester (Fame) 0 dob ARA — which includes a deduction of the value of Dutch HBE-G renewable fuel tickets — at $738.12/t, and B24 Ucome dob Algeciras-Gibraltar at $784.12/t.

Consequently containerships seeking to deliver proof of sustainability (PoS) documentation to their customers, to offset the latter's scope 3 emissions, shifted their marine biodiesel demand to Singapore when feasible. PoS can be obtained on a mass-balance system, allowing shipowners flexibility with regards to the port at which a blend can be bunkered.

Biomethanol sales at the port of Rotterdam more than doubled on the quarter and soared by more than eight times on the year.

Several shipping companies are leaning towards methanol and renewable methanol as alternative marine fuels to reduce their emissions. Danish shipping giant Maersk has ordered 24 methanol-powered container ships for delivery and commissioning during 2024-25, and Japanese classification society ClassNK said recently it expects 77 methanol-ready ships to be ordered by 2026, up from 27 newbuilds expected to be ordered this year. ESL Shipping said earlier this month it will build four new vessels that can run on biomethanol and green hydrogen-based e-methanol.

Offtake agreements for renewable methanol are on the rise. Maersk has signed several letters of intent for procurement of biomethanol and e-methanol from producers such as Norway's state-controlled Equinor, Proman and OCI Global. Maersk has agreed to buy 500,000 t/yr from Danish shipping and logistics company Goldwind from 2024.

Singaporean container shipping group X-Press Feeders said in 2023 it will buy biomethanol from OCI's Texas plant starting this year.

Rotterdam bunker salest
Fuel3Q242Q243Q23q-o-q%y-o-y%
VLSFO & ULSFO1,045,774917,253997,35614.04.9
HSFO906,737825,125790,1959.914.7
MGO & MDO334,752369,267379,142-9.3-11.7
Marine biodiesel blends137,177235,043183,249-41.6-25.1
Total2,424,4402,346,6882,349,9423.33.2
LNG (m³)220,120242,931204,418-9.47.7
Biomethanol2,066950250117.5726.4

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US road fuel stocks highest since September


24/12/11
24/12/11

US road fuel stocks highest since September

Houston, 11 December (Argus) — US road fuel stocks last week rose to the highest since September, even as demand climbed, according to US Energy Information Administration (EIA) data. US gasoline stocks in the week ended 6 December rose to 219.7mn bl, up by 2.4pc from a week earlier and the highest inventory level since the week ended 27 September. Compared with a year earlier, gasoline stocks were down by 1.9pc.. US gasoline product supplied, a proxy for demand, rose for a third consecutive week to 8.81mn b/d, notching a 0.8pc increase on the week, but falling by 0.6pc on the year. Average US retail gasoline prices slipped by 2.6¢/USG to $3.008/USG in the week ended 9 December, the eighth-consecutive weekly drop , according to an earlier EIA report. Weekly EIA demand data is prone to sharp swings, while EIA monthly data, released with a lag, provides a more accurate picture of US demand. The four-week average of combined product supplied and exports was 9.6mn b/d, a 1.8pc decrease from the previous four-week average but up by 0.6pc from the average a year earlier. US gasoline exports last week averaged 1.04mn b/d, growing by 4.5pc from a week earlier but dipping by 8.1pc on the year. Imports fell by 9.2pc on the week to 464,000 b/d and lagged behind year earlier levels by 35pc. Diesel stocks up US ultra-low sulphur diesel (ULSD) stocks increased to 112.9mn bl, up by 3.2mn bl on the week and the highest inventory level since 20 September. ULSD stocks were up by 8.5mn bl from the same week in 2023. Distillate fuel oil product supplied, which includes ULSD and high sulphur fuel oil, rose on the week by 1.5pc to 3.45mn b/d, rebounding from the prior week's decline. Still, this was down by 8.5pc from a year earlier. The implied demand for distillate fuel oil, calculated using the four-week average of combined product supply and exports, stood at 5mn b/d last week. This was down by 1.8pc from the previous week but up by 2.9pc from a year earlier. Exports of US distillate fuel oil dropped on the week by 5.1pc to 1.47mn b/d but rose by 22pc from the same week last year. ULSD imports rose by 33pc to 154,000 b/d, the highest imports since 1 November, but decreased by 25pc from a year earlier. US jet fuel stockpiles increased to 41.9mn bl, up by 0.6pc from the previous week and up by 14pc from the same week in 2023. Increased jet fuel stocks come as US airline passenger traffic declined last week from a three-month high , falling by 0.2pc to 17.3mn passengers, according to Transportation Security Administration data. Refinery runs fall US gross refinery crude inputs dropped last week by 0.9pc to 16.9mn b/d, easing from a three-month high, but inputs were up by 2.8pc from the same week in 2023. Refinery utilization rates declined on the week by 0.9 percentage points to 92.4pc. Still, this refinery rates were up by 2.2 points compared to a year earlier. By Zach Appel and Hunter Fite EIA weekly refined products data Stocks mn bl 6-Dec 29-Nov ±% Year ago ±% Gasoline 219.7 214.6 2.4% 224.0 -1.9% Jet 41.9 41.7 0.6% 36.8 13.7% Distillate fuel 121.3 118.1 2.7% 113.5 6.9% -- ultra low-sulphur (<= 15ppm sulphur) 112.9 109.7 2.9% 104.4 8.1% Imports '000 b/d Total products 1,546 1,479 4.5% 1,976 -21.8% Gasoline 464 511 -9.2% 715 -35.1% Jet 160 75 113.3% 84 90.5% Distillate fuel 154 116 32.8% 205 -24.9% Exports '000 b/d Total products 6,906 7,542 -8.4% 6,553 5.4% Gasoline 1,039 994 4.5% 1,131 -8.1% Jet 219 381 -42.5% 183 19.7% Distillate fuel 1,471 1,550 -5.1% 1,208 21.8% Refinery usage Refinery inputs '000 b/d 16,933 17,094 -0.9% 16,476 2.8% Refinery utilisation % 92.4 93.3 -1.0% 90.2 2.4% Products supplied '000 b/d Total products 20,158 19,968 1.0% 21,079 -4.4% Gasoline 8,810 8,738 0.8% 8,859 -0.6% Jet 1,841 1,610 14.3% 1,871 -1.6% Distillate fuel 3,450 3,398 1.5% 3,770 -8.5% — US Energy Information Administration Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazil's inflation accelerates to near 5pc in November


24/12/10
24/12/10

Brazil's inflation accelerates to near 5pc in November

Sao Paulo, 10 December (Argus) — Brazil's headline inflation accelerated to a 14-month high in November, led by gains in food and transportation, according to government statistics agency IBGE. The consumer price index (CPI) rose to an annual 4.87pc in November from 4.76pc in the previous month, IBGE said. Food and beverage costs rose by an annual 7.63pc in November, accounting for much of the monthly increase, following a 6.65pc annual gain in October. Beef costs increased by an annual 15.43pc in November following an 8.33pc annual gain for the prior month. Higher beef costs in the domestic market are related to the Brazilian real's depreciation to the US dollar, with the exchange rate falling to a record-low R6.11/$1 at the end of November. The stronger dollar leads producers to prefer exports over domestic sales. Beef prices rose by 8pc for the month alone. Soybean oil prices rose by 27.75pc over the year. Transportation costs, another major contributor to the monthly acceleration, rose by an annual 3.11pc in November after a 2.48pc gain in October. On a monthly basis, transportation costs rose by 0.89pc in November, reversing a contraction of 0.38pc in October. Housing costs rose by 4pc over the 12-month period. Brazil's central bank last month hiked its target rate to 11.25pc, its second increase off a low of 10.5pc between May and September, to try to head off a resurgence in inflation. It was at a cyclical peak of 13.75pc from August 2022 through July 2023 as it sought to tamp down the post-Covid-19 surge in inflation. Fuel prices rose by an annual 8.78pc in November after a 7.22pc gain in October. Motor fuel costs fell by 0.15pc in November compared with a 0.17pc drop in October — thanks to lower ethanol and gasoline prices. Diesel prices contracted by 2.25pc in the 12-month period. Power costs slowed to an annual 3.46pc in November following a 11.58pc gain in October. Electricity prices contracted by a monthly 6.27pc after a decrease in power tariffs on 1 November. Monthly inflation slowed to 0.39pc in November from 0.56pc in October. The central bank's inflation goal for 2024 is 3pc, with a margin of 1.5pc above or below. By Maria Frazatto and Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexico’s CRE lays off officials after reform


24/12/10
24/12/10

Mexico’s CRE lays off officials after reform

Mexico City, 10 December (Argus) — Mexico's energy regulatory commission (CRE) has dismissed high-ranking officials and other staff shortly after congress approved constitutional amendments to eliminate independent regulators, market sources said. At least two unit chiefs — the heads of the legal and hydrocarbons units — were let go in recent days, sources with close knowledge of the matter told Argus . These positions are now marked as vacant in the CRE's online directory. In addition, seven subunits within the hydrocarbons division — overseeing natural gas, fuel and LPG markets, including storage and transportation — also appear vacant. The CRE did not respond to requests for comment. The CRE's commissioner president Leopoldo Melchi has designated Guadalupe Hernandez, a legal official in the hydrocarbons undersecretary at the energy ministry (Sener), to oversee certain functions, a source said. The layoffs are also expected to extend to the electricity unit, including its chief, Francisco Varela, according to market sources. Yet, these positions are still listed as filled in the online directory. These dismissals follow congress' approval of constitutional amendments to dismantle seven independent regulators, including the CRE and hydrocarbons regulator CNH. While the regulators will continue operating until laws implementing these changes are enacted — expected by early 2025 — the finance ministry has proposed a 33pc budget cut for the CRE and CNH in 2025. Some recent departures are linked to commissioner Luis Linares, who announced in November that he will step down on 1 January 2025. But the recent layoffs may signal a broader restructuring of the energy regulator. Under the amendments, the CRE's functions will be absorbed by a new office within Sener. The specifics of this transition will depend on the upcoming legal framework. Industry experts and companies are calling for the new regulatory bodies to retain technical independence and sufficient funding to oversee energy markets effectively, even after the constitutional changes. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Assad’s ouster removes key outlet for Iran’s crude


24/12/10
24/12/10

Assad’s ouster removes key outlet for Iran’s crude

Dubai, 10 December (Argus) — The removal of Syrian president Bashar al-Assad from power over the weekend has not only dealt a major blow to Iran and its designs for the Levant region, but it has also eliminated a critically important outlet for Tehran's sanctions-hit oil. Long considered Iran's top Arab ally, Assad enjoyed significant military and economic support from Tehran over the past decade, as Iran saw him as the focal point for its regional influence. Syria also provided the main supply routes to Lebanon's Hezbollah militia, the crown jewel in Iran's so-called ‘Axis of Resistance'. Part of Iran's assistance was in the form of shipments of crude and refined oil products to help Assad's regime meet fuel demand in the areas under its control. Once a 600,000 b/d-plus producer, Syria's crude output has been on the decline over the past three decades. Just before the start of the civil war in 2011, production had already slipped below 400,000 b/d. Today, it is less than 100,000 b/d, and only around 16,000 b/d of that comes from fields in areas under the former government's control. This left Assad's regime — itself restricted by western sanctions — critically short of crude to feed its two refineries in Banias and Homs, even though both have been operating below capacity because of damage sustained during the civil war. Iran helped plug the gap by sending crude and products to the 140,000 b/d Banias refinery on Syria's Mediterranean coast on an ad hoc basis. Iranian crude exports to Syria averaged around 55,000 b/d in January-November this year, down from 80,000 b/d in 2023 and 72,000 b/d in 2022, according to data from trade analytics firm Kpler. Vortexa puts shipments higher at 60,000-70,000 b/d so far this year and 90,000 b/d in 2023. Iran has also been sending around 10,000-20,000 b/d of refined products to Syria in recent years, according to consultancy FGE. Wait and see Iran's oil exports to Syria have mostly been in the form of grants to support the Assad regime. The government's collapse could put an end to these flows for the time being, while Tehran takes a wait-and-see approach to what comes next in Syria. The first sign of that came over the weekend when the Iran-flagged Lotus , which left Kharg Island on 11 November destined for Banias, reversed course just as it was about to enter the Suez Canal. The tanker is now headed back through the Red Sea without specifying a destination. Although supplies to Syria make up a very small share of Iran's overall 1.6mn-1.8mn b/d of crude exports, Tehran may not want to lose it as an outlet for good, given the difficulties of finding a replacement while sanctions remain in place. "The flow will stop, at least for the time being," said Iman Nasseri, managing director for the Middle East at FGE. "But Iran will want to continue supplying this oil to Syria, or else it may be forced to cut production by anywhere between 50,000-100,000 b/d if it is unable to ultimately place those barrels in China." Argus estimates Iran produced around 3.33mn b/d in September-November. Alternatively, Iran could opt to build the volumes it holds offshore in floating storage. "We usually see the same tankers shuttling between Iran and Syria," according to Vortexa's senior oil analyst Armen Azizian. "If that trade subsides, we could see some of these tankers unemployed or put into floating storage, which would rise, at least in the short-term," he said. Lotus is one of these tankers, having made the trip to Syria and back five times in 2023, and twice so far in 2024. The crude cargo it is carrying now "could be returned to Iran and put into onshore tanks or go into floating storage off Iran," Azizian said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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