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Adv Fame marine blend premiums to fossil hit year lows

  • : Biofuels, Oil products
  • 24/11/15

The premiums of advanced fatty acid methyl ester (Fame) 0 ARA marine biodiesel blends to fossil fuel counterparts were marked at 2024 lows on 14 November, according to Argus assessments.

Calculated B30 Advanced Fame 0 dob ARA prices fell by $31.54/t to $623.25/t, the lowest since March 2023. Calculated B100 Advanced Fame 0 dob ARA values tumbled by $102.77/t to just over $820/t, their lowest since 22 November last year.

Consequently, the outright premium held by the B30 blend against very-low sulphur fuel oil (VLSFO) dob ARA narrowed by $30.54/t on the day to $123.25/t on 14 November — its narrowest since 29 December 2023. B100 held a $158.52/t premium to marine gasoil (MGO) dob ARA, down by $106.77/t on the day and its lowest premium this year.

EU emissions trading system (ETS) prices were assessed at $71.79/t on 14 November. Accounting for EU ETS costs on the same day, ETS-inclusive premiums held by Advanced Fame blends against their fossil counterparts hit their lowest since the introduction of EU ETS into maritime at the turn of the year. B30 Advanced Fame 0's ETS-incorporated premium against VLSFO narrowed by $31.27/t to $96.11/t on the day to 14 November. B100 Advanced Fame 0's premium against MGO dropped by $109.28/t to $66.45/t when ETS costs were accounted for.

Advanced Fame marine biodiesel blend values declined with thin spot demand owing to a shift in voluntary demand east of Suez. As a result, 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.

Lacklustre demand for the blends was complimented by soaring values for Dutch renewable tickets. The calculated Advanced Fame dob ARA range prices incorporate a deduction for HBE-Gs. These are a class of Dutch renewable fuels units, or HBEs, used by companies that bring liquid or gaseous fossil fuels into general circulation and are obligated to pay excise duty/energy tax on fuels.

Dutch renewable HBE-G tickets were marked at €22/GJ on 14 November, their highest since Argus assessments began. Soaring HBE-G values were attributed](https://direct.argusmedia.com/newsandanalysis/article/2628738) to gains in European hydrotreated vegetable oil (HVO) prices, tight supply because of a decline in tickets from biofuels used in shipping and less overall biofuel blending in the fourth quarter.


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25/01/31

Trump tariffs most likely to bite US east coast market

Trump tariffs most likely to bite US east coast market

Houston, 30 January (Argus) — The prospect of the US imposing 25pc tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. President Donald Trump repeated plans to impose the tariffs this weekend , although he said crude may be exempted from the plan. But a crude exemption would not matter in the case of Irving Oil's 320,000 b/d Saint John, New Brunswick, refinery, which is a regular source of gasoline and diesel to the US' upper Atlantic coast markets. The US imported roughly 595,000 b/d of oil products from Canada in October, according to the latest Energy Information Administration data, most of it bound for the Atlantic coast. New York Harbor spot market gasoline prices are currently around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other East coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. In the US midcontinent, as much as 4.25mn b/d of US midcontinent refining capacity relies on heavy sour Canadian crudes for up to 70pc of their supplies. In theory, US midcontinent refiners could run lighter, US-produced grades. But there are relatively few pipelines serving the midcontinent with such grades and they would be much less profitable to refine compared to a pre-tariff WCS barrel. Chicago gasoline spot prices were just under $2/USG today, so a 25pc tariffs would also add 50¢/USG to prices. Chicago Buckeye Complex ultra low sulphur diesel (ULSD) prices were at $2.18/USG today while West Shore/Badger ULSD prices below that at $2.15/USG. Imports of Mexican refined products should be less of an issue as Mexico sent only 180,000 b/d of products to the US in October, according to the latest data. Counter tariffs on crude and oil products by Mexico or Canada would also be an issue for US refiners and blenders. US refiner Valero said today that the tariffs could cause a 10pc cut in refinery runs depending on how long the tariffs go and how fast they are implemented. By Dave Ruisard and Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Study calls for e-fuels bunker subsidies, GHG tax


25/01/30
25/01/30

Study calls for e-fuels bunker subsidies, GHG tax

New York, 30 January (Argus) — E-fuel subsidies and a greenhouse gas (GHG) emissions tax is needed for e-fuels to compete as a bunkering fuel before 2044, said a study by maritime consultancy University Maritime Advisory Services (Umas) and the UCL Energy Institute. The study found that adding a multiplier of the GHG intensity credit given to e-fuels could help to make e-fuel use financially competitive, but it would have to be set at high levels at the start. Using a multiplier of two, where one ship running on zero emissions e-fuel could generate credits to offset three other similar ships operating on conventional fossil fuels, was not able to make e-fuels more competitive before 2041. The multiplier would have to be set initially at 15 in 2030, falling to 10 by 2035, to enable the competitiveness of e-fuels, concludes the study. Additionally, levying a GHG tax or fee of $150-$300/t of CO2-equivalent would also make e-fuels more competitive. A tax of $30-$120/t CO2e is close to the aggregate level of subsidies, and would not create a sustained promotion of e-fuels. Under the current marine fuel standards, a combination of fossil fuels, including LNG, biofuels and carbon capture and storage systems would be most competitive up until 2036. After, blue ammonia dual fuel ships would be the lowest-cost solution until 2044. Ships that were more competitive from 2027-2035 would have at least 25pc higher operating cost from 2040 onwards. Thus, if ship owners order newbuild vessels to maximize short-term competitiveness, the sector is at a "major risk of technology lock-in" and will not be as cost-effective for reaching net zero by 2050. The study models a 2027-build, 14,000 twenty-foot equivalent unit container ship. The vessel sails between Asia and Latin America using different marine fuels such as bio-methanol, e-methanol, LNG, bio-LNG, e-LNG, bio-marine gasoil (MGO), e-MGO and very low-sulphur fuel oil. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Jamaica discusses proposals for Kingston refinery


25/01/30
25/01/30

Jamaica discusses proposals for Kingston refinery

Kingston, 30 January (Argus) — Jamaica is discussing "significant" unsolicited proposals from prospective operators of the state-owned 35,000 b/d Kingston refinery, energy minister Daryl Vaz said. The discussions will determine the government's position on the refinery's future, he said, without naming the entities involved in the discussions. State oil company Petrojam manages the unit. A government-appointed committee recommended in 2020 that the 55-year-old facility be privatized. The government has not yet taken a decision on the future of the refinery, "so those recommendations are still under review," Vaz told the island's parliament. The committee that studied the operations of the refinery had rejected a government plan to upgrade the facility. It said instead private management was "the only credible opportunity" to improve its operations. It also said the plant should be mothballed if the government cannot find investors willing to acquire or lease it. Venezuelan outreach Jamaica's parliament approved the government's 2019 takeover of PdV's stake in Petrojam, saying the Venezuelan firm had reneged for years on a plan to upgrade the facility and expand it to 50,000 b/d. The PdV shares are still being held in escrow. The escrow account was created "as Venezuela was the target of US sanctions which prohibit Jamaica from making any direct payment to Caracas," Jamaica's government said at the time. It was intended to "insulate" Jamaica from also being subject to US sanctions. Venezuela has indicated it wants to discuss the shareholding and "we responded to that but we have not heard back," Vaz said. Kingston is the island's only refinery and supplies about 32,500 b/d of products to the domestic market, according to official figures. Jamaica produces no crude and the refinery processes imports from the US and Mexico to produce diesel, heavy fuel oil, kerosene, jet fuel, LPG, asphalt and gasoline. The island's demand is 70,000 b/d. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tariffs could cut refinery throughput by 10pc: Valero


25/01/30
25/01/30

Tariffs could cut refinery throughput by 10pc: Valero

Houston, 30 January (Argus) — US refiner Valero is in a strong position to find alternative sources of crude if the US imposes a 25pc tariff on Canadian imports, but the switch could still cut throughputs by 10pc, the company said today. Valero's refining footprint in the US Gulf coast allows it to source feedstocks from around the world, but there is a point where a limit on heavy feedstocks like those from Canada could affect production of refined products, said chief operating officer Gary Simmons during a fourth quarter earnings call. "You might see a 10pc change in throughputs" depending on how long the tariffs go and how fast they are implemented, he said. Valero operates 1.6mn b/d of refining capacity in the US. President Donald Trump has threatened to impose 25pc tariffs on all imports from Canada and Mexico as soon as 1 February. But commerce secretary nominee Howard Lutnick said earlier this week that the tariffs may not be imposed if the countries cooperate on border security. Trump frequently makes the case that foreign suppliers are solely responsible for paying tariffs, while it is actually US importers that pay the tariffs. In the case of Canadian and Mexican crude, the US refiners that buy from those countries would pay a tax on the value of crude imports. Whether the price of Canadian crude falls by a sufficient amount to offset the 25pc tariff would depend on the market power of individual US refiners and Canadian producers, as well as actions by the Alberta government, according to a recent report by the Congressional Research Service. Valero does not have any details on how the tariffs would be applied and will just "have to deal with it when it comes up," Simmons said. The company reported record high throughputs of heavy sour crude in the fourth quarter of 2024. Heavy sour crude runs averaged 608,000 b/d, compared with 485,00 b/d in the same period in 2023. The increase showed the refining system's flexibility and the company's ability to secure and process the most economic crude oils, Valero said. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Marine biodiesel sales drop in Rotterdam port 4Q 2024


25/01/30
25/01/30

Marine biodiesel sales drop in Rotterdam port 4Q 2024

London, 30 January (Argus) — Marine biodiesel demand fell in the final quarter of last year in the port of Rotterdam, while LNG sales picked up ahead of the introduction of FuelEU Maritime regulations at the turn of the new year. Sales of marine biodiesel blends in Rotterdam fell by 13.8pc on the quarter and just under 50pc on the year in October-December. This contrasts with an increase of about 62pc on the quarter for marine biodiesel blend sales in Singapore, pointing to a continued trend of voluntary demand shifting east of Suez. Participants reported this trend throughout last year, with more competitive prices for the blends in Singapore. Argus assessed B24 dob Singapore, a blend comprising very-low sulphur fuel oil (VLSFO) and used cooking oil methyl ester (Ucome), at an average discount of $10.58/t against B30 Advanced Fatty acid methyl ester (Fame) 0 dob ARA in the final quarter of 2024. B24 dob Singapore was marked at an average discount of $119.34/t against B30 Ucome dob ARA. Consequently, shipowners seeking to deliver proof of sustainability documentation to their customers, to offset the latter's scope 3 emissions, shifted their marine biodiesel demand to Singapore when feasible. FuelEU Maritime regulations, which came into effect in January and require a reduction in greenhouse gas (GHG) emissions from vessels every year, will probably incentivise regulatory-driven demand for marine biodiesel blends. But the regional price dynamics between ARA and Singapore will probably remain relevant to regulatory-driven demand as well, as energy consumed from blends bunkered in Singapore can be mass balanced to be fully accounted for under the scope of FuelEU Maritime. The pooling mechanism within FuelEU Maritime would also allow for vessels operating on the east-west route to potentially utilise compliance generated from marine biodiesel blends bunkered in Singapore across other vessels that operate solely in Europe. LNG sales picked up by 19.5pc on the quarter and soared by 76.6pc on the year ahead of the introduction of FuelEU Maritime regulations at the start of 2025. Fossil LNG, depending on the type of engine used on board, can help shipowners with LNG-capable vessels meet their FuelEU compliance targets for 2025. The Gate LNG import terminal is planning to start operations at a second jetty for LNG bunker vessels in 2028, pointing to expectations of greater demand. Bio-LNG sales were reported for the first time in 2024 since small volumes in 2021, ahead of FuelEU Maritime regulations. Conventional bunker fuel sales comprising VLSFO, ultra-low sulphur fuel oil (ULSFO), marine gasoil (MGO), marine diesel oil (MDO), and high-sulphur fuel oil (HSFO) dipped by 4.7pc on the quarter but rose by 17.7pc on the year in October-December. VLSFO sales alone were marked higher than HSFO's for the first time at the port since the last three months of 2023. Total VLSFO volumes traded in the fourth quarter came to nearly 811,000t, down by 3pc from the previous quarter, while HSFO sales totalled 780,500t, down by 14pc. Market participants attribute this retail drop-off to considerable local HSFO supply-side constraints at the end of 2024. Thin volumes produced by CDUs at refineries in the Amsterdam-Rotterdam-Antwerp (ARA) hub meant imported volumes were needed to cover shortfalls. Refineries cut throughput runs, reducing residual byproduct output. Biomethanol sales dropped by over half on the quarter, under pressure from thin trading activity, but were 86pc higher on the year in the final quarter of 2024. Shipping giant Maersk has signed several letters of intent for the procurement of biomethanol and e-methanol from producers such as Equinor , Proman and OCI Global . But the European Commission's proposal to exclude automatic certification of biomethane and biomethane-based fuels for the Union Database for Biofuels if relying on gas that has been transported through grids outside the EU, could slow some negotiations for 2025 imports of biomethanol of US origin into the EU. By Hussein Al-Khalisy, Bob Wigin and Evelina Lungu Rotterdam bunker sales t Fuel 4Q24 3Q24 4Q23 q-o-q% y-o-y% VLSFO & ULSFO 1,004,398 1,045,774 847,862 -4 18.5 HSFO 780,437 906,737 643,218 -13.9 21.3 MGO/MDO 395,903 334,752 361,585 18.3 9.5 Conventional total 2,180,738 2,287,263 1,852,665 -4.7 17.7 Biofuel blends 118,201 137,175 233,108 -13.8 -49.3 LNG (m³) 263,068 220,120 148,933 19.5 76.6 bio-LNG (m³) 575 0 0 na na biomethanol 930 2,066 500 -55 86 Port of Rotterdam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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