Monday, May 25, 2020

Crude Oil Grades News

Woodside to Boost Vincent Crude Quality to Ride VLSFO Demand

The Ngujima-Yin FPSO is used for production from Greater Enfield Project - Image by Bruce Jacques - MarineTraffic

Woodside Petroleum will improve the quality of Vincent crude by increasing its flash point from July so that it can be blended into very low sulphur fuel oil (VLSFO) and capture higher premiums, two sources told Reuters.Among crude grades, heavy sweet oil, with higher density and less sulfur, is most suitable for blending into VLSFO that meets the new marine fuel sulfur regulations dubbed IMO 2020. However, crude with a low flash point could ignite easily and can cause engine issues.The increase in the flash point will be made possible by shutting in the Cimatti field off Western Australia…

Oil Price Crash, What Next?

Illustration; Oil price - Image by OSORIOartist/AdobeStock

A historic rout in oil markets sent U.S. crude prices plummeting to as much as minus $40 a barrel as traders rushed to get rid of unwanted stocks with storage capacity already overflowing amid a coronavirus-induced demand collapse.U.S. West Texas Intermediate (WTI) crude for May delivery recouped some losses on Tuesday to be just in positive territory, leaving market participants to assess the wider implications.Here is what analysts expect in terms of market response:Goldman Sachs"Such a price dynamic could play out again tomorrow (April 21), the last trading day of the May contract.

Saudi Aramco joins oil blockchain platform Vakt

© Siarhei / Adobe Stock

Saudi Aramco Energy Ventures has bought into blockchain-based trading platform Vakt with $5 million in new shares, Vakt said on Tuesday.Aramco Trading Co, a subsidiary of Saudi Aramco, will use the platform.The VAKT platform specializes in post-trade processing.

IOC Sells IMO2020-Compliant Marine Fuel in India

Pic: Indian Oil Corp

State-owned Indian Oil Corp (IOC) said it has commenced delivery of Low Sulfur Furnace Oil (LSFO) for ships that is compliant with International Maritime Organisation's (IMO) mandate.The largest commercial oil company in India said in a press release that it commenced deliveries of LSFO with 0.5 per cent sulfur as marine fuel at ports in the country.The first such supply was made on 26th October 2019 to the LPG tanker Berlian Ekuator at Kandla port.ICO has made available LSFO 0.5% S grade marine fuel for immediate deliveries at Kandla and Kochi ports.

U.S. Oil Makes it to Ukraine, a blow to Moscow

© RealPhotoItaly/Adobe Stock

U.S. crude exports are gaining traction in Europe as even Ukraine turns into a significant consumer of American barrels at the expense of Russian supplies amid heightened U.S. political pressure on Moscow and problems over contaminated Russian oil.Ukraine this month received its first ever barrels from the United States, according to Refinitiv Eikon flows data, as the tanker Wisdom Venture unloaded 80,000 tonnes of Bakken crude in Odessa on July 6 for the Kremenchug refinery, the port said.Russia often struggles to export oil from the Black Sea via the narrow Turkish Bosphorus and Dardanelles straits due to congestion, making the arrival of the U.S.

BP, Vitol Go Head to Head in West African Crude Trading

Oil major BP has clashed with rival Vitol in the once-languid West African crude market, buying up cargoes and taking a big derivative position that may have raised costs for European refiners.The West African crude market typically sees cargoes of Nigerian and Angolan change hands in back-to-back deals outside the Platts window, a system widely used by the industry to price crude. Pricing agency Platts sets key oil benchmarks for the market.New trading opportunities arose from August, when broker Sunrise started the first derivative for Nigeria's four largest crude oil grades - Bonny Light…

Centrica, Tokyo Gas Break Mold in Mozambique LNG Deal

Britain's Centrica and Japan's Tokyo Gas aim to buy liquefied natural gas (LNG) from Anadarko Petroleum's $20 billion project in Mozambique, the first joint procurement deal designed to defuse risks facing the buyers in their respective markets.The deal also brings Anadarko one step closer to constructing its East African LNG project just as it corrals $14 billion to $15 billion from banks and export credit agencies for the 17,000-acre liquefaction complex in Mozambique's remote north.Lenders require Anadarko to fix at least 8.1 million tonnes (mt) of the project's 12.88 mt total annual output in long-term sales deals to guarantee project revenues.The preli

Fuel Oil Margins Rise to Five-Year High

Fuel oil profit margins have surged to their highest in more than five years on lower supplies and rising demand from electric power generators, which may push some refiners to increase their runs. Fuel oil, the residue left over after initial crude refining, has become scarce in Asia as refiners make their plants more complex by upgrading their plants to change the fuel into gasoline and diesel. However, analysts caution that new supply should begin flowing to the region from Europe and South America, eventually driving margins back towards their typical levels.

Mercuria, PetroChina Selling Offshore Stored Fuel Oil

File Image: CREDIT BMT

Three to four tankers storing fuel oil, down from eight or nine. Independent trading house Mercuria and Chinese state oil giant PetroChina are selling fuel oil stored in vessels off Singapore and southern Malaysia on strong demand from the shipping and power sector, several trade sources said on Friday. The number of vessels storing fuel oil has halved from a month ago as Mercuria and PetroChina may have resold cargoes purchased over March to May, the sources said. Geneva-based Mercuria and PetroChina bought over 6 million tonnes of fuel oil over those months in oil pricing agency S&P Global Platts' trading period known as market-on-close (MOC).

Oil Steady in Slow Pre-Holiday Trading

Saudi Oct crude exports dropped, but refined fuel exports rose. Asian refining capacity to jump next year. Oil prices were steady on Tuesday in timid trading ahead of the year-end holidays, with investors beginning to unwind positions without expecting to take up new ones until the start of 2017. International Brent crude oil futures were trading at $54.88 per barrel at 0821 GMT, down 4 cents from their last close. U.S. West Texas Intermediate (WTI) crude oil futures were down 17 cents at $51.95 per barrel. Traders said they were starting to square their books ahead of the upcoming Christmas weekend and the week running up to New Year.

Shell Nigeria Lifts Force Majeure on Bonny Light Exports

Royal Dutch Shell's Nigerian division lifted a force majeure on exports of Bonny Light crude oil on Thursday, the latest sign that Nigeria's oil production is recovering after being hit by militant attacks in its oil-rich delta region. The force majeure was lifted from 09:00 a.m. Nigerian time (0800 GMT) on Thursday, the company said in a statement, following restoration of production into Bonny Terminal. Two other Nigerian crude oil grades - Forcados and Brass River - remain under force majeure. But the country's oil production has remained resilient despite some of the worst militant attacts in decades on delta region oil facilities.

Diesel Hangover Prompts Euro Gasoline Production

Refiners tweak crude oil feedstocks to favour gasoline; gasoline refining margins shine as diesel languishes. After years of building up diesel production, European oil refiners are using every trick in the book to maximize gasoline output to meet unabated global demand as the two fuels stage a sharp reversal of fortune. Many operators on the continent, including Total, BP, Royal Dutch Shell and ExxonMobil, have invested hundreds of millions of dollars over the past decade to increase production of diesel, the road fuel of choice in the region, while seeking to lower gasoline output, seen as a mere "by-product" of that process until recently.

Shell Lifts Force Majeure on Nigeria's Forcados Crude Oil Stream

Shell has lifted a force majeure on exports of Nigeria's Forcados crude oil stream that had been in place for more than two months, the company said on Tuesday. "The Shell Petroleum Development Company Joint Venture lifted the force majeure on exports from Forcados Terminal effective 18:00 Nigerian time yesterday, July 13, 2015," Shell said in a statement. The company declared force majeure on the evening on May 5 following "a series of leaks" in the Trans Forcados pipeline that brings the oil to the export terminal. The original plan of exports for Forcados crude in July included seven cargoes with a total of 6.3 million barrels of oil…

Shell Declares Force Majeure on Forcados Crude Exports

Shell has declared force majeure on exports of Nigeria's Forcados crude oil stream, a spokesman for the company said on Wednesday. It declared force majeure on the evening on May 5 following "a series of leaks" in the Trans Forcados pipeline that brings the oil to the export terminal. The pipeline itself is operated by the Nigerian Petroleum Development Company (NPDC). Several cargoes of Forcados for May loading were still on offer, with around 189,000 barrels per day (bpd) scheduled for export in six cargoes. The June export program, with a total of 158,000 bpd, had not yet started trading, sources said.

Nigeria to Lower Crude Prices as Angolan Trade Slows

Nigeria has lowered the official selling prices for its Bonny Light and Qua Iboe crude,reflecting lacklustre demand for cargoes from buyers in Europe and Asia. At least 10 cargoes of Nigerian crude for July loading are still available, traders said on Friday, just as the August loading schedules are set to be issued. "There is quite an overhang - a lot is still there for July," one trader said, referring to Nigerian crude. Angolan cargoes for August export have so far failed to attract buyers, with traders saying initial offers were too high.

Angolan June Crude Cargo Trade Steady to Higher

Angolan crude cargos for June loading have been finding buyers at steady to higher levels, traders said on Tuesday, while attention in the Nigerian market was focused on the June loading program. At least 15 of Angola's 52 cargos have been sold since last week, mostly through term deals as only a small number of spot trades have been made so far, traders said. Traders expected Nigerian cargoes to be offered at higher, levels for June after differentials perked up for the last few May-loading cargoes before Easter. Qua Iboe: 12 cargos will load in June, according to the loading schedule seen on Tuesday.