Storms, Snow Disrupt Exports from Russian Baltic
Storms, snow and freezing temperatures in Russia's northwest to the south have delayed some oil product exports but the fall in volumes so far has not been exceptional for the time of year, industry sources said on Thursday.Products are mainly shipped from ports on the Baltic coast, Black Sea, Sea of Azov and the Far East. They are mostly transported by rail and pipelines, with small volumes travelling by truck.Fuel oil loadings from the Russian Baltic were delayed by snow that caused disruptions to rail shipments to the ports…
Valero Reports Oil Product Leak in Britain's Milford Haven Waterway
Valero Energy Corp said on Thursday that an unknown amount of oil product had spilled into the Milford Haven waterway in Pembroke in Wales."Valero is working in coordination with response agencies to contain the effects from the release of oil," it said in an emailed statement.Valero operates the 220,000 barrel per day Pembroke oil refinery.(Reporting by Ahmad Ghaddar Editing by Edmund Blair)
Nghi Son Refinery Begins Commercial Production
Vietnam's Nghi Son oil refinery has officially begun commercial production following months of tests, the owner of the refinery said on Monday.Commercial production had begun from Nov.
Crude Inventory Growth Reverses
U.S. crude inventory declined last week. The latest weekly survey results by the U.S. Energy Information Administration (EIA) indicate a fall of 7.3 million barrels in the week ended November 30. This follows a 10-week streak of crude inventory build that has been striking fears of a repeat of the 2014/16 oil glut.While EIA data include only U.S. inventory the survey results are considered more reliable than international figures and are often used a surrogate for global inventory status.Behind the decrease is a fall in U.S. crude imports – down 943,000/day during the week.
Oil Refiners Face Rollercoaster Ride as Fuel Margins Seesaw
Oil product margins have been tossed around on a wild rollercoaster ride in October, as factors like impending Iran sanctions, the China-U.S. trade war and upcoming shipping regulations yank fuel profits up, down and back again.Some profit margins, known as crack spreads in the industry, including for Asian fuel oil and gasoil have boomed, while others, such as Asian and European gasoline cracks, have plunged.Crack spreads are the difference between the price of crude oil and the price of the products such as diesel and gasoline refined from it.
STAR Oil Refinery to Reduce Turkey Dependence on Imports, says Erdogan
A new $6.3 billion refinery set up by the Azeri state oil company in Turkey will reduce Ankara's dependence on imports for processed oil products, President Tayyip Erdogan said on Friday.The new plant could also help to ease some of the pain from Turkey's currency crisis, given that the lira's 35 percent slump this year has driven up costs for the country's energy companies and forced them to increase electricity and natural gas prices for both households and industrial…
Vitol Invests in Coal-to-oil Venture as Shipping Fuel Rules Loom
Energy trader Vitol and coal miner Peabody Energy are partnering with start-up Arq to turn coal waste into a low-sulphur oil product that could be an alternative fuel for shippers as new U.N. pollution rules loom, the companies said in a statement.Global oil and shipping companies are looking at any and all options to avoid becoming a casualty of the major market dislocations that the new standards will create when they come into effect in 2020.The U.N. International Maritime Organization (IMO) will ban ships using fuel with a sulphur content higher than 0.5 percent…
Oil Breaks Above $72 as Supply Concerns Build
Supply risks in Middle East, Venezuela also buoy crude. Oil prices extended gains on Wednesday, lifted by a reported decline in U.S. crude inventories and the risk of supply disruptions. Brent crude oil futures rose 87 cents to $72.45 a barrel by 1143 GMT, while U.S. WTI crude futures rose 95 cents to $67.47. "Yesterday evening saw the API report a surprising decrease in U.S. crude oil stocks and a reduction in oil product stocks that was sharper than anticipated," Commerzbank oil analyst Carsten Fritsch said in a note. U.S.
Unipec, ENOC Place Lowest Offers in Bangladesh Oil Import Tender
Energy traders Unipec and ENOC placed the lowest offers in a tender by Bangladesh Petroleum Corp to buy up to 1.52 million tonnes of oil products for import in the second half of 2018, officials said on Tuesday. The state-owned company was seeking between 1.1 million tonnes and 1.28 million tonnes of 500ppm sulphur gasoil, 100,000 tonnes of jet fuel and 120,000 to 140,000 tonnes of 180-cst high-sulphur fuel oil. Unipec, the trading arm of China's state-owned Sinopec…
US Seaborne Oil Exports at All-time High
Following a seasonal surge in December 2017, the US seaborne export of oil products (materials derived from crude oil) reached the highest annual level ever, in terms of volume and tonne miles demand. An increase in volume, combined with a marginal increase in the average sailing distance, caused the total annual tonne miles demand to surpass the previous high set in 2013. BIMCO’s Chief Shipping Analyst Peter Sand comments: “The development in US seaborne exports…
Idemitsu Names Shunichi Kito as New CEO
Current CEO to continue to seek integration with Showa Shell; Idemitsu, Showa Shell to send execs to each other. TOKYO, Feb 14 (Reuters) - Japanese oil refiner Idemitsu Kosan Co says it has named Executive Vice President Shunichi Kito, 61, as its next president and CEO, effective as of April 1. Idemitsu President and CEO Takashi Tsukioka is to become chairman as of the same date. Tsukioka said the changes are to accelerate business collaboration with Showa Shell Sekiyu.
Asian Refiners Look to China as 'Harvey' Profit-Bump Wanes
The boost to Asian refiners' profits from the loss of refining capacity in the United States from August's Hurricane Harvey has proved temporary, but the outlook for the rest of the year is still positive. Asian refiners were among those that scrambled to take advantage of the closure of about a quarter of U.S. processing capacity after Harvey devastated the Gulf of Mexico coast, with profit margins jumping. A typical Singapore refinery processing Dubai crude saw its profit margin rise to $9.07 a barrel in September…
Big Monthly Loss for WTI Looms in Harvey's Wake
U.S. gasoline at two-year high above $2 a gallon, as almost a quarter of U.S. U.S. crude oil prices are on track to post the steepest monthly losses in more than a year on Thursday as concerns spread over falling demand in the world's top oil-consuming country after storm Harvey knocked out almost a quarter of its refineries. But prices rallied in the oil products markets, with U.S. gasoline futures hitting a two-year high above $2 a gallon, buoyed by fears of a fuel shortage just days ahead of the Labor Day weekend that typically sees a surge in driving.
Tanker Shipping: Is the Oil Market Rebalancing or Not?
The one key factor to watch is the one thing that’s impossible to measure accurately on a global scale, oil stocks. Global stocks for both crude oil and oil products rose significantly following the sharp fall in crude oil prices in the second half of 2014. But while this may seem to be in the past, it is still haunting the oil market and the oil tanker market. Demand in the tanker market is below normal levels and will only increase once the global oil stocks have been reduced.
S.Korean Rule Change to Allow Blending, Enhanced Regional Trading
S.Korea to allow traders to blend fuels at oil terminals; new regulation to be implemented from Oct 18. South Korea is in the process of easing blending restrictions at its oil storage terminals as the world's No. 5 crude importer bolsters an effort to become a North Asia trading hub. Asia's fourth-largest economy is pushing ahead with a 2014 plan to turn Ulsan and Yeosu ports into northeast Asia's oil shipping and storage cluster, a potential challenge to the long-established Asian oil trading centre in Singapore.
Brent Oil Climbs Above $50 for First Time Since Early June
Brent crude oil rose above $50 per barrel for the first time since early June on Thursday, adding to gains made the previous session when falling U.S. crude and oil product inventories lifted the market. Brent futures, the international benchmark for oil prices, stood at $50.10 at 1257 GMT, 40 cents up from their last settlement. U.S. West Texas Intermediate (WTI) crude futures were at $47.42 per barrel, 30 cents higher. Both benchmarks were trading at their highest since June 7 after rising more than 1.5 percent in the previous session on a report showing U.S.
Oil Steady as Fuel Stock Dip Fuels Demand Hopes
Big drop in gasoline, diesel stocks lifts refinery margins. Oil prices were steady on Thursday, holding gains made the previous session after falling U.S. crude and oil product inventories lifted the market. Brent crude futures, the international benchmark for oil prices, stood at $49.72 per barrel at 0939 GMT, 2 cents up from their last settlement. U.S. West Texas Intermediate (WTI) crude futures were at $47.10 per barrel, 2 cents below their last close. Prices for both rose more than 1.5 percent in the previous session on a report showing U.S.
S.Korea to Ease Local Blending Rules
S.Korea to allow traders to blend fuels at oil terminals; planning to nearly double storage to 60 mln barrels by 2026. South Korea is in the process of easing blending restrictions at its oil storage terminals as the world's No. 5 crude importer bolsters an effort to become a North Asia trading hub. Asia's fourth-largest economy is pushing ahead with a 2014 plan to turn Ulsan and Yeosu ports into northeast Asia's oil shipping and storage cluster, a potential challenge to the long-established Asian oil trading centre in Singapore.
Vietnam Plans Oil Reserves Equivalent of 90 Days of Imports by 2020
Vietnam's prime minister has approved a plan for the country's total crude oil and oil product stocks to be at least 90 days' worth of net imports by 2020. The southeast Asian country joins developing nations such as China and India in establishing an oil buffer that will enhance their energy security as imports have jumped while domestic production is on the decline. The 90-day net import level is a standard set by the International Energy Agency for its OECD members.
Unipec, Vitol Win Oil Supply Contract for Bangladesh
Unipec and Vitol have won a tender to supply oil products to Bangladesh, two government sources with direct knowledge of the matter said on Wednesday. Bangladesh Petroleum Corp was looking to buy up to 1.06 million tonnes of gasoil, jet fuel and fuel oil, for delivery in the second half of 2017, in a tender issued last month. "Unipec and Vitol won the deal as they came up with the most competitive offers as per weighted average out of 11 companies that competed for the tender," one official said.