USDA: Biofuel demand will absorb more than half the US soyoil crop in 2019.
The U.S. Department of Agriculture announced on Friday that U.S. biofuel producers will consume more than 50% of the soybean oil produced here in the United States by next year. A recent flurry of federal policies has transformed the industry, including increased blending mandates as well as curbs on imports of foreign biofuels and feedstocks. In its monthly report on supply and demand, the USDA has raised its expectations for the use of soybean oil by biofuel producers during the 2025/26 year marketing period, which starts October 1, up to a record 15.5 billion pounds.
Divided US appellate court upholds Biden's biofuel rule
The U.S. Environmental Protection Agency’s 2023-2025 renewable fuel standards were not thrown out by a federal appeals court on Friday. However, the court concluded that regulators had failed to assess the impact the rule could have on climate changes and endangered species. The U.S. Court of Appeals, District of Columbia Circuit, ruled 2-1 in favor of environmental groups and refiners. It also ruled that a renewable fuel manufacturer was not allowed to challenge the fuel volume requirements set by the EPA for corn ethanol.
US Supreme Court tests which courts can hear EPA Cases
Wednesday, the U.S. Supreme Court set rules for determining when cases challenging the actions of the U.S. Environmental Protection Agency relating to air pollution or greenhouse gas emissions are heard by regional appellate courts or a Washington appeals court that hears many regulatory cases. The ruling of 7-2 held that the U.S. Court of Appeals District of Columbia Circuit and not the 5th U.S. based in New Orleans, should hear the lawsuits challenging actions by the U.S. Environmental Protection Agency related to air pollution and greenhouse gas emissions.
Palm oil gains more than Chicago soyoil
Malaysian palm oil futures rose for the third consecutive session on Monday. They followed gains in Chicago soybean oil after the U.S. proposed increased biofuels blend volumes and elevated crude oil price. The benchmark palm-oil contract for September delivery at Bursa Malaysia's Derivatives exchange gained 171 Ringgit or 4.36% to $4,093 Ringgit ($965.79) per metric ton. The U.S. administration of President Donald Trump proposed on Friday that oil refiners increase the amount biofuels they must mix into the nation's gasoline over the next two-years…
Palm gains on Chicago's crude oil and soyoil rally
Malaysian palm futures rose on Monday for the third consecutive session, following gains in Chicago soyoil, after the U.S. proposed increased biofuels blend, and supported by crude oil rally, following tensions in Middle East. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for September delivery had gained 156 Ringgit or 3.98% to 4,078 Ringgit ($961.79) per metric ton. The U.S. administration of President Donald Trump proposed on Friday…
US EPA proposes increased biofuel blend volumes through 2027
NEW YORK - On Friday, the Trump administration proposed that oil refiners increase the amount biofuels they must mix into the nation's gasoline over the next two-years, due to a rise in biomass-based fuel mandates. Biofuels industry welcomed the move which included measures to discourage imports of biofuels. They had been lobbying for this issue for several months. The U.S. Environmental Protection Agency announced on Friday that the total volume of biofuels to be blended in 2026 will be 24.02 billion gallon and 24.46 in 2027.
EIA: US crude stocks fall as refiners increase output
The Energy Information Administration reported on Wednesday that U.S. crude stockpiles dropped last week, as oil refiners increased production to coincide with the start the summer driving season. Fuel inventories, however, rose due to a weaker demand. The EIA reported that crude inventories dropped by 4.3 millions barrels, to 436.1 million in the week ending May 30. This was in contrast with the analysts' polled expectations of a draw of 1 million barrels. The EIA reported that refinery crude runs increased by 670,000 barrels a day.
Japan's oil refiners reduce decarbonisation and refocus on fossils fuels
Japanese oil companies have scaled back their decarbonisation projects, including ammonia and hydrogen, as the world shifts towards fossil fuels that are more cost-effective and stable. This move is a reflection of the growing concerns about energy security and U.S. policies risks. It also reflects rising costs for materials due to inflation. All these factors undermine project profitability. Companies that had reoriented portfolios in order to combat climate change, are now refocusing their attention on oil and natural gas.
US refiners are unlikely to spend large amounts to process more domestic crude oil
It can be expensive and time-consuming to change refinery configuration. The margins and yields of refineries can be affected by using different types of crude. By Arathy S. Analysts and industry sources said that U.S. refiners do not plan to invest heavily to process more crude oil domestically and less oil imported from Canada and Mexico. This is a major obstacle to President Trump’s plan to increase oil production. Trump's pledge of unleashing U.S. production and lowering prices for consumers focused on increasing domestic drilling.
Oil trade group calls for national ethanol policy in the US after EPA approves Midwest expansion
The American Petroleum Institute, a trade group, pushed for a national policy on gasoline blends with higher ethanol levels on Monday after President Donald Trump’s administration announced on Friday that it would expand sales of this product in certain Midwestern States. The U.S. Environmental Protection Agency announced on February 21 that it would support an April 28th implementation date in response to a request by eight Midwest Governors for year-round sale of gasoline containing 15 percent ethanol (also known as E15).
Executives say oil refiners are adding renewable feedstocks to produce cleaner fuels.
To meet the global demand for cleaner fuels, oil refiners are increasing efforts to blend in renewable feedstocks like used cooking oils into their crude refining streams. Maurits Van Tol, Chief Executive of Johnson Matthey, a provider of catalyst technologies, stated that the demand for additives and catalysts to remove impurities from feedstocks has increased. He said that in recent years, refineries have been blending some components into biomass feedstocks. Van Tol added that the demand for additives and catalysts has also been boosted by the use of heavy crude oil…
US Bill Would Allow Year-Round E15 Sales
An upcoming U.S. government funding bill is expected to include a plan that would allow year-round sales of gasoline with a higher ethanol blend, a major win for the corn and ethanol lobbies, according to two sources familiar with the matter.This would be a victory for the Ethanol industry who has been fighting for year-round E15 to increase demand for their products.Sources said that the plan also provides credits to refiners who can prove that they are in compliance with the U.S. Renewable Fuel Standard.
New refineries bring down profits for global refiners
Oil refiners across Asia, Europe, and the United States have seen their profitability drop to multi-year-lows. This is a significant downturn in an industry which had previously enjoyed booming returns following the pandemic. It also highlights the global slowdown. This weakness is another sign of a softening consumer and industrial demand in China due to the slowing of economic growth and increasing penetration of electric cars. The pressure on prices has been exacerbated by the addition of new refineries in Africa, Asia and the Middle East.
Saudi Arabia Remains China's Top Crude Supplier
Russia remained China's second-largest source of crude oil in 2022, following repeat top supplier Saudi Arabia, as Chinese refiners snapped up low-cost Russian barrels while Western countries shunned them after the Ukraine crisis.China's crude oil imports from Russia jumped 8% in 2022 from a year earlier to 86.25 million tonnes, equivalent to 1.72 million barrels per day (bpd), data from the General Administration of Customs showed on Friday.Russian crude has been trading in widening discounts to global oil benchmarks following Western sanctions over its invasion of Ukraine…
India Asks Refiners to Cut Reliance on Middle East Oil after OPEC+ Decision
India has asked state refiners to speed up the diversification of oil imports to gradually cut their dependence on the Middle East after OPEC+ decided last week to largely continue production cuts in April, two sources said.India, the world's third biggest oil importer and consumer, imports about 84% of its overall crude needs with over 60% of that coming from Middle Eastern countries, which are typically cheaper than those from the West.Most of the OPEC+ producers, led by world's top exporter Saudi Arabia…
Global Crude Market Finds Support From China Demand
China, the global oil market's lifeline this year, has stepped up purchases from exporters like Russia, the United States and Angola in recent weeks, while buyers elsewhere pare orders as coronavirus infections surge and fresh lockdowns are put in place.China, the world's largest importer of crude, is the only major buyer expected to see increased oil demand this year as the pandemic destroyed consumption globally.With China's imports expected to reach 12 million barrels per day (bpd) next year…
Oil Rises from 18-Year Lows after U.S., Russia Agree to Talks
Oil recovered ground on Tuesday after U.S. President Donald Trump and Russian President Vladimir Putin agreed to talks to stabilize energy markets, with benchmarks climbing off 18-year lows hit as the coronavirus outbreak cut fuel demand worldwide. Brent crude was up by 30 cents, or 1.3%, at $23.06 a barrel by 0635 G5MT, after closing on Monday at $22.76, its lowest finish since November 2002. U.S. crude was up by $1.21, or 6.0%, at $21.30 a barrel, after settling in the earlier session at $20.09, lowest since February 2002.
Japan's Oil Refiners Keep Running Even as Coronavirus Curbs Fuel Sales
Sales of petroleum products are slumping in Japan as the coronavirus outbreak worsens in the world's fourth-biggest importer of crude, but the country's biggest refiners say they are not planning to cut production.Oil product sales, including gasoline and jet fuel, slumped more than a quarter last week, the most recent period for which figures are available. Jet fuel sales sunk nearly 80% as Japanese and global airlines cancelled flights to China and other destinations.The coronavirus outbreak that started in China late last year is spreading across the world at an increasing rate…
Shutdown Risks Delays to US Energy Initiatives
The partial government shutdown is increasing the chances of delays in U.S. energy initiatives from the release of President Donald Trump's proposed offshore drilling plan to allowing higher levels of ethanol in gasoline during summer months, energy industry groups said on Friday.The U.S. Department of Interior had been expected to release its highly anticipated 2019 to 2024 offshore oil and gas drilling plan in early January.The Trump administration has made opening up greater areas to offshore drilling…
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.
