European Bitumen Market Update July 2024
Related news
Mexico jet fuel changes to raise costs unevenly
Mexico jet fuel changes to raise costs unevenly
Mexico City, 9 February (Argus) — Mexican state-owned Airports and Auxiliary Services (ASA) will overhaul its jet fuel discount structure from mid-February, a move market participants say will raise fuel logistics costs unevenly across the aviation market. ASA notified fuel buyers in mid-January that it will revise the volume thresholds required to access discounts on its jet fuel administrative service charge (CSAC), which applies to storage and into-plane services, beginning 15 February, with a more aggressive second phase taking effect on 1 July, according to documents seen by Argus . While the changes do not involve a headline increase in jet fuel prices, they will materially alter effective operating costs by limiting access to discounts for all but the highest-volume buyers. The changes disproportionately affect airlines and jet fuel buyers outside Mexico's three largest carriers. Under the revised structure, participants outside of the top-volume tiers would see their CSAC discounts cut sharply, while a narrow group of top-tier buyers would retain access to materially higher discounts, market participants said. Mexico's jet fuel market remains dominated by the government through state-owned Pemex and ASA, which together control fuel supply, storage and into-plane services at most airports nationwide. The CSAC, introduced in July 2024 , applies to all companies using ASA's fuel storage and into-plane infrastructure, making it a mandatory cost for all jet fuel suppliers and buyers operating at Mexican airports. This structure amplifies the impact of the revised CSAC scheme, as companies have no practical alternatives for jet fuel logistics. The changes could reinforce concentration further down the value chain by favoring a limited group of high-volume buyers, effectively creating a new commercial bottleneck beneath the state-controlled infrastructure layer, according to market sources. The issue has been raised with the International Air Transport Association (IATA), which confirmed it is engaging with ASA over the revised CSAC structure. "IATA is in contact with ASA on this subject and is advocating on behalf of the industry to ensure that the impact on costs is kept as competitive as possible," the association said in a statement to Argus . ASA did not respond to a request for comment. Discount curve shifts sharply from Feb Under the current CSAC discount structure, differences across market participants are relatively narrow, but the gap will widen sharply under the first phase of changes in mid-February. Most jet fuel buyers — including large foreign airlines and private-sector jet fuel suppliers — currently receive discounts ranging from 85-98pc, while the largest buyers qualify for discounts of 99pc, resulting in broadly comparable costs across much of the market. But from 15 February, discount tiers will tighten, with participants outside the highest volume threshold seeing their discounts fall to around 40pc, while top-tier buyers will retain discounts of 90pc, according to market sources and documents seen by Argus . The gap widens further under the second phase, effective 1 July. From July, participants that do not meet the highest volume threshold will receive discounts as low as 20pc, while top-tier buyers will continue to qualify for discounts of 80pc. This would translate into effective CSAC costs up to four times higher for all participants outside the largest buyers. The companies falling into the lower discount tiers include large foreign airlines, private-sector jet fuel suppliers, regional airlines and private aviation. Market sources said the revised structure marks a clear difference from the previous model, in which discount gaps existed but remained manageable. Under the new framework, the discount disparity is big enough to create a structural cost disadvantage for some participants. Regional aviation under pressure The revised CSAC structure could threaten the viability of regional aviation, as higher fuel logistics costs would further strain an already fragile segment of Mexico's aviation market, according to market sources. Regional airlines operate short-haul routes with limited ability to pass higher costs through to fares, making them particularly sensitive to increases in fuel logistics charges. The revised discount thresholds would sharply erode route economics, a source familiar with regional airline operations said. The impact could even extend to state-owned airline Mexicana de Aviacion , which does not meet the volume thresholds required to access the highest CSAC discounts. By Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US imports of European gasoline at 9-year low in Jan
US imports of European gasoline at 9-year low in Jan
London, 9 February (Argus) — European gasoline deliveries to the US in January were the lowest since at least 2017, and were outpaced by deliveries from a Bahamas blending hub for a second consecutive month. The US imported 53,000 b/d of gasoline from the EU, UK and Norway in January, according to Kpler, down from 58,000 b/d in December and lower by almost two thirds on the year from 173,000 b/d. Total US imports ticked up on the year in January, to 347,000 b/d from 335,000 b/d. US gasoline imports tend to hit annual lows in January, as consumption declines following the Christmas period and inventories rise as US refineries boost rates to stockbuild ahead of spring maintenance. But conditions for Europe-US gasoline trade flows appear to be deteriorating structurally. Alternative sources are supplanting European cargoes, particularly in the net-importing US Atlantic coast (USAC) region. Canadian deliveries inched up fractionally on the year, and an increasingly important Bahamas-USAC flow has strengthened over the past few years and is becoming entrenched. The US imported 85,000 b/d of gasoline from the Bahamas in January, all at USAC ports and all from Buckeye Partners' 26.2mn bl Borco crude and products terminal in Freeport, Grand Bahama. There, gasoline from different regions, including the US, is blended to different markets' specifications. The Buckeye terminal was supplied 72,000 b/d of gasoline exclusively from the US Gulf coast (USGC) in January, according to Kpler, and 34,000 b/d in 2025, which was 80pc of the total. Blending finished-grade gasoline in the Bahamas for onward delivery to the USAC allows traders in the USGC to bypass US Jones Act requirements for intra-US marine cargo deliveries to be made on tankers constructed in the US, owned by US citizens, and crewed by US citizens or permanent residents. Jones Act compliance is costly, because it limits the choice of tanker available for charterers. The US is sourcing a greater amount of its gasoline imports from beyond Europe at a time when US gasoline consumption is coming under pressure. Greater efficiencies in US engine design and manufacturing, along with growth in electric vehicle (EV) market share in the US road passenger fleet will contribute to a 0.5pc fall in forecast US gasoline consumption this year, according to Argus consulting.US gasoline demand fell by 3pc on the year in January, according to EIA data, probably because of the extreme cold weather. Further developments in the Atlantic basin could further weaken the US pull on European gasoline cargoes. Mexican imports of US gasoline are trending downward as state-run Pemex boosts its refining output, easing import demand. Pemex's December gasoline output soared by 45pc on the year to 444,000 b/d, prompting imports to fall by 31pc to 303,000 b/d. A ramp-up at Pemex's 340,000 b/d Olmeca refinery is helping raise Mexican gasoline supply, and may eventually allow for exports to the US. Mexican gasoline imports from the US were 308,000 b/d in 2025, according to Kpler, down from 350,000 b/d in 2022. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Vitol pushes back peak oil demand forecast
Vitol pushes back peak oil demand forecast
London, 9 February (Argus) — Commodity trading firm Vitol has pushed back its peak oil demand projection to the mid-2030s and now expects consumption in 2040 to be around 7mn b/d higher than it previously forecast. In its latest long-term outlook to 2040, Vitol said global oil demand could rise to 112mn b/d by the mid-2030s and remain close to that level with only minimal decline by the end of the forecast period. This would put 2040 demand around 5mn b/d above today's level. Last year , Vitol forecast that oil demand would peak at 110mn b/d in 2030, hold at that level until 2035 and then fall to 105mn b/d by 2040. Vitol's revised projections assume policymakers place more weight on economic growth than environmental goals. The main reason for the later peak in oil demand is higher expected gasoline consumption because of slower electric vehicle uptake in the US and parts of Asia, the firm said. Vitol expects gasoline demand to peak in the early 2030s before gradually falling to around 1.8mn b/d below current levels by 2040. Vitol's previous forecast was for consumption to decline by around 4.5mn b/d by 2040. Diesel demand is seen rising marginally before peaking in the early 2030s, then falling by 900,000 b/d to 19.6mn b/d by 2040, driven by the electrification of light and heavy commercial vehicles. But if EV adoption stalls and policy targets continue to be deferred, "road transport fuel demand in 2040 could exceed current projections", Vitol said. The firm sees jet fuel demand increasing by 2.6mn b/d by 2040 as passenger traffic doubles. It expects oil demand for petrochemicals to rise by 6mn b/d over the same period. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Domestic heating oil, diesel demand diverges in Germany
Domestic heating oil, diesel demand diverges in Germany
Hamburg, 9 February (Argus) — Spot sale volumes for heating oil and diesel reported to Argus continued to rise and were up by 23pc in the week ending 6 February in Germany, but demand diverged regionally as a result of weather conditions in the country. Persistently low temperatures well below freezing in many regions were the main driver of the increase, traders said. But heating oil demand fell in the south and west of the country are temperatures are milder than in the north or east. And a forthcoming maintenance shutdown at the 87,000 b/d Neustadt section of the Bayernoil refinery is limiting supply and heating oil sales in the south. Diesel demand also rose — by 19pc on the week — supported by the agricultural sector as fertilizer spreading started in Germany's warmer regions, market participants said. Demand from the construction sector also appears to be rising in some areas. But lower temperatures in the north and east of the country have dampened demand for the fuel. German diesel demand had been relatively weaker since the start of the year, compared with the same period last year, while stocks were unusually high at the turn of the year. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.