"We believe the market is mispricing both residual fuel oil (high sulfur fuel oil) and & gasoil (low sulfur fuel oil)," oil analyst Torbjoern Kjus trading told a presentation in Oslo.
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"We could see pressure on fuel oil cracks emerge as surging fuel-oil rich crude production in Saudi Arabia, UAE, and Russia is likely to boost fuel oil supplies," said Eugene Lindell, an analyst at JBC Energy.
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Pakistan's lower fuel oil demand may have contributed to weakness in Asia's fuel oil market this week, the four trade sources said.
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Trafigura will load up to 1.2 million tonnes of visbreaking fuel oil and up to 2.5 million tonnes of straight-run fuel oil.
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Most freight is moved by high-horsepower engines using residual fuel oil (ocean shipping) or distillate fuel oil (roads, railways, coastal and inland shipping).
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The International Maritime Organization's new regulations on bunker fuels are likely to accelerate the transition to distillate fuel oil and away from heavy fuel oil.
|
|
MOSCOW (Reuters) - Russia exported less fuel oil in January as domestic utilities snapped up fuel oil cargoes, which were cheaper than natural gas, industry sources told Reuters.
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The contracts are U.S. dollar-denominated and represent 10 tonnes of fuel oil each that is physically deliverable against quality-assured physical fuel oil if held until expiry.
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Some U.S. refiners have also been importing high-sulphur fuel oil to turn into cleaner refined products for sale worldwide, as fuel oil hit a three-year seasonal low.
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"The latest leg of weakness (in China fuel oil demand) comes from a continued shift away from fuel oil to crude as a feedstock," said Barclays Research analysts in January.
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Ships will be banned from using high-sulfur fuel oil and will have to switch to either very low sulfur fuel oil, marine gasoil, or perhaps even liquefied natural gas.
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Fuel oil supplies this year have declined after the members of the Organization of the Petroleum Exporting Countries focused their crude cuts on grades that yield the most fuel oil.
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|
Responding to an analyst question on the impact of the new rules on the fuel oil market, Kang Dong-soo, head of the corporate planning office at SK Energy, said that spreads between low-sulphur fuel oil and high-sulphur fuel oil should narrow after 2020 from their current level of about $26.
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While strength in fuel oil markets subsides with the passing of peak utility demand, though, some analysts and traders see limited downside for fuel oil in the second half of the year.
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The fire is not expected to have any material impact on fuel oil trading and supply in Singapore, a global trading hub of the fuel, two Singapore-based fuel oil traders said.
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Korea Western Power Co, which also runs a fuel oil power plant, has no plans so far to lower the specifications for their fuel oil purchases or to issue a new fuel oil tender, said a source at the utility who asked not to be named since they are not authorised to talk to the media.
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Prices for gas oil and low-sulfur fuel oil have held at higher-than-normal levels, while gasoline, naphtha and high-sulfur fuel oil prices have been hovering at lower levels, he said.
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Fuel oil, the residue left over after initial crude refining, has become scarce in Asia as refiners make their plants more complex, upgrading them to change the fuel oil into gasoline and diesel.
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Singapore typically draws fuel oil cargoes from around the world.
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The newest units produce virtually no fuel oil at all.
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Products will include fuel oil, gasoil and kerosene, he said.
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"Both units are producing gasoil and fuel oil," it added.
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So does replacing fuel oil furnaces with natural gas ones.
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Typically, running light sweet North Sea crude through a refinery will make 12 percent fuel oil, while a heavy crude such as Iraq's Basra Heavy, can make as much as 50 percent fuel oil.
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Capacity increases in crude distillation as well as sulfur-removing hydrocracking and hydroprocessing would be enough to meet increased demand for low-sulfur distillates and fuel oil ("Assessment of fuel oil availability", CE Delft, 2016).
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It has moved some energy facilities to fuel oil from gas and a source at SOCAR said it might import more than last year's 150,000 tonnes of fuel oil this year and already had contracts.
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He pointed specifically to rising U.S. exports of liquefied petroleum gas (LPG) and diesel to Europe, U.S. fuel oil exports globally and the physical European light end and fuel oil markets as areas for expansion.
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Fuel traders and shipowners have warned for several years that the switch from high-sulphur fuel oil (HSFO) to low-sulphur fuel oil (LSFO) or marine gasoil (MGO) could lead to shortages and rising prices.
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From the start of 2020, the regulations will require ship owners to start using lower-sulphur distillate fuel oil unless they start buying lower-sulphur heavy fuel oil or install exhaust gas cleaning systems ("scrubbers").
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For example, processing Iraq's Basra Heavy grade with high sulfur content produces as much as 50 percent fuel oil, while using light, sweet North Sea crude with less sulfur produces about 12 percent fuel oil.
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Fuel oil should also lose value relative to crude through 215.4.
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The ship also loaded 2,000 tonnes of high-sulphur fuel oil.
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The ship also loaded 2,000 tonnes of high-sulfur fuel oil.
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For graphic on fuel oil 380-cst cash premium click reut.
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Venezuela's fuel oil is burned in some countries to generate electricity.
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That has prompted the renewed interest in lower-priced fuel oil.
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The contract is 100 tonnes in size and is for 380-cst centistoke high-sulphur fuel oil (HSFO) and will settle on the monthly average of Argus high-sulphur fuel oil (HSFO) 3.5% delivered bunker assessments.
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In addition to tightening supplies, looming U.S. sanctions on oil exports from Iran - a major fuel oil producer with exports of about 17 million tonnes in 2017 - could further limit fuel oil outflows, mainly to Asia.
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"Heavy sour strength is bolstered through the first-half of 2019 by continued complex refinery capacity growth and tight fuel oil markets, before IMO 2020 presents a cliff for (high-sulphur fuel oil) demand," Citi analysts said.
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"At some point, fuel oil will have to strengthen in this equation because people will need fuel oil to fill the cokers," he said, referring to units that deal with heavier residual crudes in the refining process.
|
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The same amount of energy costs 303 percent less when gas is replaced with fuel oil, provided that the prices are the same, but in fact fuel oil is sometimes much cheaper than 5,000 rubles per tonne.
|
|
Shell said it has developed fuel product offers including very low-sulphur fuel oil (VLSFO) supply in selected bunkering ports, high-sulphur fuel oil (HSFO) supply for ships with on-board scrubbers and liquefied natural gas (LNG).
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The increased demand pushed fuel oil premiums higher since it occurred at the same time supplies typically become tighter during the Northern Hemisphere summer when fuel oil consumption for power generation rises, particularly in the Middle East.
|
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Shell said it has developed fuel product offers including very low-sulfur fuel oil (VLSFO) supply in selected bunkering ports, high-sulfur fuel oil (HSFO) supply for ships with on-board scrubbers and liquefied natural gas (LNG).
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"These are a threat to humanity because they use heavy fuel oil."
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|
For a graphic on Asia gasoline vs fuel oil margins, see: tmsnrt.
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The company has recently applied for a quota to export fuel oil.
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|
Recognizing these risks, heavy fuel oil has been banned in Antarctic waters.
|
|
However, in 2014, the Chinese government raised taxes on fuel oil imports.
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|
"When you close down the refineries you close down the less efficient ones, which produce more fuel oil," he said, adding that fuel oil filled the early gaps in electricity production after the Fukushima nuclear disaster shut reactors.
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|
Distillate supplies were expected to become especially tight this time with the introduction of new regulations that will force many ship owners to switch from heavy fuel oil to cleaner distillate fuel oil from the start of 2020.
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|
CNPC Fuel Oil Co, Zhenhua Oil and a third firm will each deliver 100,000 barrels of Basra Light into a storage farm in the southern port of Zhanjiang, which is operated by CNPC Fuel Oil, the sources said.
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|
Each U.S. dollar denominated 380-centistoke high-sulphur fuel oil (380-cst HSFO) contract will be for 10 tonnes of fuel oil that is physically deliverable against quality-assured 380-cst HSFO if held until expiry, the spokeswoman said.
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|
In addition to the 0.5%-sulfur fuel, called Very Low Sulfur Fuel Oil (VLSFO), shippers can use marine gas oil with a sulfur content of 0.1% to replace marine fuel containing 3.5% sulfur, called High Sulfur Fuel Oil (HSFO).
|
|
But he said fuel oil gains were unlikely to hold for long due to new marine fuel regulations requiring the use of fuel with a lower sulfur content than fuel oil and encouraging usage of middle distillates from 2020.
|
|
In addition to the 0.5%-sulfur fuel, called Very Low Sulfur Fuel Oil (VLSFO), shippers can use marine gas oil with a sulfur content of 0.1% to replace marine fuel containing 22.7% sulfur, called High Sulfur Fuel Oil (HSFO).
|
|
This typically means using more expensive fossil fuels like diesel and fuel oil.
|
|
One option will be to buy heavy fuel oil with reduced sulfur content.
|
|
Related columns: "Distillate fuel oil market set to tighten in 2018", Reuters, Nov.
|
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These usually suffer more than their complex counterparts when fuel oil profits drop.
|
|
Running these lighter crude grades through refineries means less fuel oil is produced.
|
|
Even fuel oil margins should drop as more supply comes onto the market.
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|
The unit, which processes fuel oil into middle distillates, was shut on Aug.
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There will be no benefit until we begin burning the new fuel oil.
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|
They plunged into water covered in fuel oil, and many soon began vomiting.
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|
The new domestic Japanese waterborne assessments will cover 89-octane gasoline, kerosene, gasoil with a sulphur content of 10 parts per million, high-sulphur fuel oil and low-sulphur fuel oil, according to note sent to subscribers on the Platts website.
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Another Iranian industry official estimated Iran usually exports 700,000-800,000 tonnes of fuel oil a month during the spring months starting from late March, when warmer weather begins to curtail the fuel oil used for generating power during winter months.
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|
For example, U.S. stocks of jet fuel, distillate fuel oil and residual fuel oil are 15 percent, 20 percent and 33 percent higher than at the same time last year, while gasoline stocks have risen by less than 2 percent.
|
|
Traders said the loading date for TPAO's cargo was too prompt while demand for the crude, which has a high sulfur content and produces mostly fuel oil when processed by a refinery, was tepid due to recent poor fuel oil cracks.
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|
Prior to that, he worked in BP's fuel oil group from 2005 to 2010.
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|
And the expected sharp drop in fuel oil prices could make the investment worthwhile.
|
|
Fuel oil production is seen declining to 2.4 million tonnes, from 3.3 million tonnes.
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"We know heavy fuel oil has harmful constituents in it," said Ulrich of Stand.earth.
|
|
The last cargo containing fuel oil for Rosneft left Venezuela for Asia on Jan.
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|
The International Maritime Organization's (IMO) new regulations favoring low-sulfur fuel oil effective Jan.
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The International Maritime Organization's (IMO) new regulations favouring low-sulphur fuel oil effective Jan.
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A natural gas and "fuel oil-fired peaking unit" was added eight years ago.
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The International Maritime Organization's (IMO) new regulations favoring low-sulphur fuel oil effective Jan.
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While fuel oil margins will remain elevated, they should ease in the coming months.
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|
Fuel oil is primarily used to power large ships and for electric power generation.
|
|
Refinery outages in Venezuela, a key fuel oil producer, have also helped constrain supplies.
|
|
The economic slowdown will add to an expected plunge in fuel oil demand as the majority of China's independent refiners, known as teapots, turn to crude oil instead of fuel oil as their primary feedstock for making fuels such as gasoline and diesel.
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|
That ability to cut its high-sulfur fuel oil output to nearly nothing while maximizing its diesel fuel output gives Reliance an advantage as the International Maritime Organization (IMO) will require new low-sulfur fuel oil used in ships starting in 2020.
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"We are seeking to buy low sulphur fuel oil preemptively to meet the government's emission standards and would keep buying low-sulphur fuel oil," said an EWP source who declined to be identified as he was not authorised to speak to the media.
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|
"Angolan grades can replace some fuel-oil-rich crudes from the Middle East," said Ehsan Ul-Haq, director of crude and refined products with consultancy Resource Economist, adding that buyers are keen in part due to strong profits for sulphur-rich fuel oil.
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Lloyd's Raitt said shippers should also consider alternative measures to prepare for IMO 2020, considering that when the new rules come into force refueling infrastructure will be mostly geared toward compliant low sulfur fuel oil (LSFO) rather than high sulfur fuel oil (HSFO).
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|
The independents can deduct the tax of about $31 per barrel paid on their fuel oil imports from the consumption tax they are required to collect on their gasoline and diesel sales, said an official with an independent plant seeking fuel oil.
|
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The surge also underscores the radical shift that is coming for global fuel oil markets.
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The industry expects demand for fuel oil to plummet as few ships have such equipment.
|
|
There were no shipments of crude oil, jet fuel, fuel oil and naphtha last month.
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The Asian gasoil and fuel oil markets have been backwardated for most of this year.
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|
The rules also cover other products such as aviation fuel, naphtha, lubricants and fuel oil.
|
|
A European fuel oil trader said that this week's sell-off was "definitely IMO-related".
|
|
For now, a rise in global trade has spurred demand from shippers for fuel oil.
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|
Keep your hands away from contact with fuel, oil, or chemicals with reliable disposable gloves.
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Cuba's domestic market consumes about 160,000 bpd of fuels, mostly fuel oil for power generation.
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It was carrying more than 2,500 metric tons of fuel oil and marine gas oil.
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|
But at least one of NIOC's fuel oil cargoes to Asia has now been deferred.
|
|
China typically imports about 1 million tonnes of marine fuel oil per month from Singapore.
|
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In comparison, Brent Blend gives some 19% of fuel oil with 0.7-1% sulphur content.
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|
Since 2004, Singapore fuel oil margins have been positive for only 3 days, between Jan.
|
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China remained a large buyer of so-called cracked fuel oil as fuel for ships.
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|
In the early 20th century, the U.S. Navy largely converted from coal to fuel oil.
|
|
In 2007, North Korea promises to shut its nuclear reactor in exchange for fuel oil.
|
|
While declining Chinese demand will weigh on the high-sulphur fuel oil market, the consumption of low-sulphur fuel oil should decline more as well since Japanese demand JP-FO-MDMD for the grade will drop as it depends on less oil-fired electric power.
|
|
Refineries have cut their fuel oil output after upgrades ahead of stricter emissions regulations for ship fuel in 2020 and as exports of Iranian fuel oil, a major producer and exporter of the residual fuel, have dropped before the U.S. sanctions start on Nov. 4.
|
|
High-sulfur fuel oil has generally been a component of Mexico's export mix, but brokers and traders have asked the country to replace the type of heavy fuel oil it has been using for calculating the formula for the hedge, sources have told Reuters.
|
|
As a result, demand for high sulphur fuel oil, the main fuel on ships, is expected to drop sharply in favour of diesel and very low sulphur fuel oil, a new type of fuel that is starting to be produced in various different blends.
|
|
While fuel oil markets typically strengthen during the northern hemisphere summer months, four trade sources said fuel oil margins have demonstrated additional strength this year by shrugging off sharp gains in crude oil prices, which in mid-May climbed to their highest since November 2014.
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Brokers and traders have requested Mexico, a producer of high-sulfur fuel oil, to adjust its oil basket price formula which include that fuel oil variable to reflect new rules by the International Maritime Organization starting next year to reduce maritime fuel's sulfur content.
|
|
Over the first week of June, onshore fuel oil stocks STKRS-SIN in Singapore, the world's biggest fuel oil trading hub, sank to their lowest in more than 2-1/2 years while inventories in northwest Europe STK-FO-ARA fell their lowest since October.
|
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APEX launched the 380-cst HSFO futures contracts - its first for residual fuel oil - in April.
|
|
He formerly spent $2,621 on fuel oil annually (832 gallons over the year at $3.15/gallon).
|
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Fuel oil, used in Asia for power generation as well, has also seen a recent boom.
|
|
Gulf Coast distillate fuel oil inventories have fallen for four consecutive weeks, according to EIA data.
|
|
Asia's fuel oil crack in January is at the widest discount to Dubai in three months.
|
|
The shipments in question were loaded onto tankers with documents showing the fuel oil was Iraqi.
|
|
Demand for fuel oil, which is widely used by ships, is likely to fall in future.
|
|
Heating accounts for only a small proportion of distillate fuel oil consumption in the United States.
|
|
EWP typically imports high-sulphur fuel oil (HSFO) with a maximum sulphur content of 2.5 percent.
|
|
Fuel oil margins in July were also supported as less supply arrived in Asia from Europe.
|
|
Most of the electricity it produces is generated by burning fuel oil — a dirty, outmoded source.
|
|
The company last imported fuel oil for delivery from June 11 to 20, the sources said.
|
|
The sulphur content in the fuel oil is up to 2.5 percent for all the volumes.
|
|
Gasoline is up 8.5 percent over the past year while fuel oil has surged 22.5 percent.
|
|
That comes despite some refiners' recent efforts to increase fuel oil yields to meet summer demand.
|
|
Christmas was right around the corner, there was fuel oil — it's an expensive time of year.
|
|
Editorial Corrupt companies in New York's fuel oil industry mastered the art of fraud long ago.
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"The second-hand effect of the IMO is the oversupply of high-sulphur fuel oil (HSFO) which in our case is a positive because we are net short on fuel oil and that will help us in meeting our requirements (for HSFO) in power generation," Buainain said.
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|
"For the fourth quarter, given a drop in high sulphur fuel oil prices and a rise in gasoil cracks, it seems shipping companies are disposing high sulphur fuel oil and stockpiling IMO-compliant fuels," Cho Yong-kuk, S-Oil's treasurer, said on a call with analysts.
|
|
With the fuel oil surplus in the Middle East shrinking this year and next due to increased oil-fired power plant expansions, the region is projected to become a net fuel oil importer by mid-2019, though only for a short period of time, Nasseri said.
|
|
The Houston refinery has been able to run high-sulfur fuel oil as a feedstock in its crude distillation units (CDUs), Patel said, after HFSO dropped in price in the fourth quarter due to the switch to very low-sulfur fuel oil for ships on Jan.
|
|
"The country has enough stock and they have local (fuel oil) production ... and monsoon has already started with some places getting a lot of rain so temperature has cooled down," said one of the sources, a trader at a company that typically supplies PSO with fuel oil.
|
|
The companies include state-owned Chinaoil, Unipec, CNPC Fuel Oil, Zhenhua Oil and an unidentified private firm.
|
|
Fuel oil typically trades at a discount to crude oil because it is a residual by-product.
|
|
Another 26.8,215.8 cubic metres is dedicated to store gasoline and the remaining for bitumen and fuel oil.
|
|
It's all the fault of the United States, of our sanctions, of the blockades of fuel oil.
|
|
Asphalt currently sells for about $100 per tonne, while fuel oil sells for about $400 per tonne.
|
|
Those products included middle distillates like jet fuel and heating kerosene, fuel oil and particularly U.S. propane.
|
|
But many ships still run on cheaper heavy fuel oil, made from the residues of petroleum refining.
|
|
Thermal power plants switching to fuel oil could save around 15 million mcm a day, he said.
|
|
The unit, which started as a gas oil and fuel oil trader, is branching into crude oil.
|
|
Asphalt currently sells for about $100 per ton, while fuel oil sells for about $400 per ton.
|
|
"The price structure hasn't changed much and fuel oil crack has worsened a bit," said one respondent.
|
|
Refiners are shifting to low-sulfur crudes to produce IMO-compliant fuel oil for shippers, another said.
|
|
Emirates National Oil Co (ENOC) made the lowest offer for fuel oil cargoes, against five other companies.
|
|
Fuel oil prices in Russia are already slowly going up, making it again less attractive for utilities.
|
|
Graphic: Iranian fuel oil exports, here Oil refineries and other processing plants need water mainly for cooling.
|
|
Since May, PSO has sought to import as much as 695,000 tonnes of fuel oil per month.
|
|
Shell hosts several receptions, and so far, only its fuel oil event has been cancelled, traders specified.
|
|
Shell hosts several receptions, and so far only its fuel oil event has been cancelled, traders specified.
|
|
Shell hosts several receptions, and so far, only its fuel oil event has been cancelled, traders specified.
|
|
The price of fuel oil for industrial use was held steady at 4,250 Egyptian pounds a tonne.
|
|
BPC will pay the same premium as that offered by Vitol for its fuel oil through term arrangements.
|
|
Refinery disruptions from key producers such as Venezuela and Mexico have also tightened the availability of fuel oil.
|
|
The last time the front-month fuel oil crack was at a wider premium was in March 2003.
|
|
"We are maximising bitumen production and cutting fuel oil so for that we need heavy oil," he said.
|
|
Strong fuel oil margins could also underpin prices for heavier grades that produce more of the residue fuel.
|
|
Isla produces fuel oil for export, mainly for delivery to Chinese firms as payment for loans to Venezuela.
|
|
The list includes the Aframax Hero, loaded in September with 520,000 barrels of fuel oil bound for China.
|
|
The ship didn't burn standard heavy fuel oil, but a type of high-grade, ultra-low-sulfur fuel.
|
|
BPCL regularly exports naphtha and fuel oil due to excess volumes, but only ships diesel on rare ocassions.
|
|
"If the shipping industry invests quickly, by 2025 the demand for fuel oil could be back," Gelder said.
|
|
State-owned Chinaoil, Unipec, CNPC Fuel Oil, Zhenhua and a private firm will participate in deliveries from Sept.
|
|
High sulphur fuel oil is one of the dirtiest and cheapest products to come out of a refinery.
|
|
"We're starting to see de-stocking of HSFO ahead of IMO," an fuel oil-focused industry source said.
|
|
In the first four months of 2017, Russian fuel oil output fell by almost 100,000 bpd, JBC said.
|
|
"The outlook for fuel oil is more uncertain," Energy Aspects said of the impending rules restricting its use.
|
|
Refiners' losses in producing a barrel of fuel oil more than doubled in October from the previous month.
|
|
He also expects a bigger price cut for Arab Heavy because of widening losses in producing fuel oil.
|
|
Petronas will continue to produce high-sulphur fuel oil at its Engen refinery in South Africa, he said.
|
|
Fuel oil margins plunged 300% from end-July to mid-August, dragging down overall refining margins in Asia.
|
|
With rail transport costs factored in, utilities pay 5,000 ruble or less for a tonne of fuel oil.
|
|
China is a net importer of fuel oil used as a refining feedstock or in refueling marine vessels.
|
|
PSO in December halted fuel oil imports as Pakistan ramped up its LNG consumption for its power sector.
|
|
Heavy fuel oil is far more toxic than lighter fuels, breaking down slowly, particularly in the cold Arctic.
|
|
Bangladesh typically ships in around 3.2 million tonnes of diesel and 2.5 million tonnes of fuel oil annually.
|
|
Fuel oil margins have gained 70 percent this quarter, making it the top performer in Singapore's refining sector.
|
|
Small refineries, unable to afford the upgrade, may find they are churning out fuel oil without finding buyers.
|
|
A French cargo ship called the S.S. Grandcamp caught fire carrying fuel oil, ammunition and ammonium nitrate fertilizer.
|
|
Fuhaichuang is seeking to buy condensate, fuel oil and mixed xylenes for the plant's restart, the sources said.
|
|
Supplies of fuel oil, the residue oil left after initial crude processing in a refinery, have constricted this year.
|
|
"Owning HSFO going into tail end of Q3 2019 will be painful," said a Singapore-based fuel oil trader.
|
|
It doesn&apost plan to try pumping out the 1,800 tons of fuel oil and 140 tons of diesel.
|
|
Burning heavy fuel oil, the industry produces 250% of the world's sulphur emissions and 22050% of its nitrogen oxides.
|
|
Partial blackouts occur regularly in Tanzania, which relies on hydro, natural gas and heavy fuel oil to generate electricity.
|
|
The IMO also forwarded a measure to ban heavy fuel oil in the Arctic where it accelerates climate change.
|
|
Stocks of residual fuel oil are down compared with 2015 but still above normal for the time of year.
|
|
A laden VLCC will typically burn about 55 tonnes of fuel oil per day at a normal cruising speed.
|
|
The cost of shelter rose 1.4 percent, mainly due to smaller declines for natural gas and fuel oil prices.
|
|
It posted a smaller annual loss in 2015, mainly due to decline in operating expenses and fuel oil costs.
|
|
Shihua Nanjing Tanker Co is headquartered in Zhoushan, where Sinopec has moved its global fuel oil center last year.
|
|
This will require more light products like gasoline and petrochemicals than it will gas oil and heavy fuel oil.
|
|
Strong fundamentals have already boosted margins on the 180-cst grade of fuel oil, often used in power generation.
|
|
"There is no extra fuel oil available in the short term, because they are all committed," the official said.
|
|
EWP plans to buy a total of 80,000 tonnes of low-sulphur fuel oil in August, the source added.
|
|
"I never received a thing," said Mr. Clark, who for 18 years led the authority's fuel oil purchasing office.
|
|
In contrast, higher fuel oil margins last month and falling Venezuelan production are supporting higher OSPs for heavier grades.
|
|
Refineries have also found support from fuel oil, a "bottom of the barrel" product usually sold at a loss.
|
|
Less complex, older plants that have a greater output of gasoline or fuel oil are likely to fall behind.
|
|
"Refineries have already been boosting fuel oil yields since June including the Japanese and even the Indians," said Nah.
|
|
As Mexico liberalizes its energy markets, pipeline gas figures to push out fuel oil for power generation and LNG.
|
|
Executives do anticipate more ups and downs in the fuel oil market, a less active market than crude trading.
|
|
Forward bunker fuel, or high sulfur residual fuel oil(HSFO) refining margins for 2020 have collapsed in recent months.
|
|
In exchange, North Korea has the possibility of normalized relations, fuel oil and help building light-water nuclear reactors.
|
|
On the products side, gasoline volume rebounded by 30 percent to 44 million tonnes while fuel oil and naphtha declined.
|
|
However, a backwardated market means shipping fuel oil long distances will cause the cargo to lose value during the voyage.
|
|
Still, a strong rebound in high-sulfur fuel oil (HSFO) margins could underpin prices for heavier grades, the survey showed.
|
|
The average fuel oil margin in Singapore so far this month is nearly on par with the Dubai crude price.
|
|
Once the complex becomes operational, the refinery will cease the production of high-sulphur fuel oil, which is heavily pollutant.
|
|
The dominance of cheap diesel and fuel oil in the region's domestic power markets also hindered the exploitation of reserves.
|
|
At Mercuria he traded U.S. Gulf Coast fuel oil and managed exports to Latin American and Asia for six years.
|
|
Tighter heavy oil supplies and strong fuel oil margins pushed sour crude benchmarks Dubai and Oman above Brent this month.
|
|
A slowdown in global trading activity hits demand for fuel oil because it is primarily used in the shipping industry.
|
|
The terminal is Buckeye's largest and can store about 26.2 million barrels of oil, fuel oil, gasoline and other products.
|
|
Glencore was heard offering Iranian 280-centistoke (cst) fuel oil to China for April arrivals, two China-based traders said.
|
|
The exports were mostly crude and fuel oil for Asian customers including ChinaOil, China's Zhenhua Oil, and India's Reliance Industries.
|
|
Glencore started to receive fuel oil volumes from Rosneft under the new deal in January, a market source told Reuters.
|
|
Marubeni, which bought Iranian crude, condensate, naphtha and fuel oil until 2012, confirmed it had been working to restart purchases.
|
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Zambia, Africa's second-largest copper producer, has since introduced solar, coal power and heavy fuel oil to its energy mix.
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Fuel oil is a refined product mostly used as bunker fuel for ships and is also burned in power stations.
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Leon Hess founded Hess Corporation in 220, when he bought a used truck and began hauling fuel oil to customers.
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The exports were mostly crude and fuel oil for Asian customers including ChinaOil, China's Zhenhua Oil and India's Reliance Industries.
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But conservative South Korean news media outlets said that taking fuel oil to Mount Kumgang might violate United Nations sanctions.
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But the increased use of palm oil in food production was largely a byproduct of the increased fuel-oil production.
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Tatneft alone sold about 260,211 tonnes in Russia last month, almost all the fuel oil it produced, another trader said.
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Fuel oil, or residue fuel, is the remaining product from crude oil processed through crude distillation units at a refinery.
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Since then, the clear waters have been tainted by fuel oil leaking from the ship, known as the Solomon Trader.
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The ship had a partial load of fuel oil, according to the Greek owner of the tanker, Stealth Maritime Corp.
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Saudi Aramco will likely buy significant quantities of gasoline, diesel and possibly fuel oil while cutting liquefied petroleum gas exports.
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He added that he did not believe the vessel was carrying crude oil but instead fuel oil from Iran's Abadan Refinery.
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"The barge crack yesterday shot up pretty sharply to about minus $5.75 a barrel," said a Singapore-based fuel oil broker.
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Nearly all freight transport is powered by diesel so the freight recession caused a corresponding drop in distillate fuel oil consumption.
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Three tonnes of the stuff can produce as much electricity as a tonne of fuel oil, a commodity in short supply.
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Experts say this will cut fuel oil demand by anywhere from 1.7 million barrels per day (bpd) to 3.5 million bpd.
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Demand for low-sulphur fuel oil and marine diesel is expected to double overnight in 2020, sending prices soaring (see chart).
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Meanwhile, refiners globally are also processing more medium and heavy crude to reap higher profits from fuel oil and middle distillates.
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Generators provide backup, but these rely on fuel oil brought in from Egypt, and the PA is blocking payments for that.
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The global shipping industry accounted for 46 percent of heavy fuel oil and 5 percent of gasoil used worldwide in 2012.
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Another defendant had produced half a kilo of explosives at his house from ammonium nitrate and fuel oil (ANFO), it said.
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Nasdaq Commodities also offers trade in carbon emission allowances, tanker and dry cargo freight, fuel oil, iron ore and seafood derivatives.
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A by-product of the crude oil refining process, fuel oil is used as a shipping fuel and in power generation.
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Fuel oil prices in Europe have also fallen to record lows, which has helped make exports to the United States economical.
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Previously, Surgutneftegaz sold Total and Vitol up to 7.8 million tonnes of fuel oil produced at Kirishi for delivery between Jan.
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The emails also discussed potential delays to a fuel oil cargo for Rosneft, also because of dirty tankers and unpaid bills.
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Starting from January, it hiked the export duty for fuel oil, a low-grade product, under a so-called "tax manoeuvre".
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Ahmadzadeh said the company had decided to reduce the share of fuel oil - recently at 30 percent - in its trading portfolio.
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Chinese natural gas prices are set according to the price of competing fuels such as liquefied petroleum gas and fuel oil.
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The data shows Beijing, North Korea's main source of fuel, suspended all exports of gasoline, diesel, fuel oil and jet fuel.
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There will also be a program, prioritizing low-income and underserved customers, that helps transition residents off propane or fuel oil.
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Saudi Aramco is likely to buy significant quantities of gasoline, diesel and possibly fuel oil while cutting liquefied petroleum gas exports.
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In return, it was to receive two light-water nuclear reactors, for electricity generation, and fuel oil from the United States.
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They also questioned whether fuel oil and electricity, which the South plans to supply the office, would violate United Nations sanctions.
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It bans heavy fuel oil in the Antarctic, for instance, but merely encourages ships not to use it in the Arctic.
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WA) said it will produce fuel oil with 1 percent sulfur content from 2020 while a spokeswoman from Italy's SARAS (SRS.
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Most ships, especially the big ones that do the heavy hauling, burn what's called high-sulfur fuel oil, or bunker fuel.
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HSFO was trading at a discount of around $250 per tonne to low-sulphur fuel oil (LSFO, 0.5%) as of Friday.
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The tender offered up to 7.3 million tonnes of fuel oil under three supply options: for six, nine or 12 months.
|
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Sinopec plans to have a company-wide low-sulphur fuel oil production capacity of 10 million tonnes per year by 2020.
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Shipowners can install kit called a "scrubber" that strips out sulfur emissions and allowing them to use the dirtier fuel oil.
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Declining margins on high sulphur fuel oil as demand falls off for the polluting fuel have weighed on overall refining profitability.
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Light cycle oil is the residue produced after running fuel oil through a catalytic cracking unit to produce gasoline and diesel.
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"As the fuel oil cools, it will become more viscous which will help to slow or even prevent leaks," Greenpeace said.
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They also cited an attempt to illicitly export 11,500 metric tons of heavy fuel oil from eastern Libya to Malta in February.
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Liccardo urged residents in the mandatory evacuation area to stay away because the water is contaminated with fuel, oil and, possibly, sewage.
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To comply, most ships are widely expected to switch to burning low-sulphur fuel oil (LSFO) or to more expensive marine gasoil.
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For one thing, they want a ban on heavy fuel-oil (as there is in the Antarctic, which has various special protections).
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Saudi Arabia's power generators rely heavily on burning unrefined crude as well as residual fuel oil and diesel to meet electricity demand.
|
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The positions involved at Koch Supply & Trading were primarily in refined products and fuel oil trading and operations, according to the sources.
|
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When spilled, heavy fuel oil emulsifies on the water's surface or sinks to the seafloor, unlike lighter fuels which disperse and evaporate.
|
|
By stripping out sulfur emissions, scrubbers allow shippers to use dirtier fuel oil but still meet new global requirements for lower emissions.
|
|
Vessels will have to stop using high sulphur fuel oil (HSFO) unless they install filters, or use far more expensive compliant fuels.
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|
"If you are making fuel oil today ... you better have a plan to figure out how to deal with that," Nimbey said.
|
|
Vessels will have to stop using high sulfur fuel oil (HSFO) unless they install filters, or use far more expensive compliant fuels.
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|
By March 22, the Marshal Z took the fuel oil back from the Libya and anchored off the Malaysian and Singaporean coasts.
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LNG is currently about 15 to 20 percent cheaper than fuel oil, said Kazi Mohammad Anwarul Azim, manager of Petrobangla's LNG unit.
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His grandfather, Myers Anderson, was uneducated but built a small business delivering fuel oil, coal, firewood and ice in the Savannah community.
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Even before the recent burst of cold weather, U.S. stocks of distillate fuel oil had fallen below the 10-year seasonal average.
|
|
Coal's only advantage as a fuel has been its relative cheapness compared with alternatives such as natural gas or distillate fuel oil.
|
|
The exchange is also planning to launch a new fuel oil contract as "as soon as possible", its chairman said last month.
|
|
In the 1950s and 1960s, U.S. coal producers lobbied to restrict the increase in fuel oil burning for heating and power production.
|
|
Vessel operators can either switch to cleaner, but more expensive, marine gasoil or install scrubbers to filter sulphur from dirtier fuel oil.
|
|
Official data from the General Administration of Customs showed a sixth straight month of no shipments of diesel, gasoline and fuel oil.
|
|
The respondents expect bigger price hikes for heavier grades in February, pushed up by the strongest fuel oil cracks in five years.
|
|
LONDON (Reuters) - U.S. freight movements have started increasing again, which should help boost consumption of distillate fuel oil in 2017 and 2018.
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The International Energy Agency estimates that high-sulphur fuel oil demand will fall by 60% to around 1.4 million bpd in 2020.
|
|
Exports were supported by a $1.3 billion increase in deliveries of industrial supplies and materials such as fuel oil and petroleum products.
|
|
Energy prices have taken a big jump in the last 12 months, with gasoline and fuel oil up more than 10 percent.
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|
Most freight moves using fuels derived from the middle and bottom of the distillation column: jet fuel, diesel and heavy fuel oil.
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It appears to be insolvent and is embroiled in a scandal over improprieties in its purchases of fuel oil, its biggest expense.
|
|
Separately, NIOC increased fuel oil exports this year to meet robust demand, especially for the straight-run 280-centistoke grade, he said.
|
|
Still, volatile high-sulfur fuel oil (HSFO) margins made it difficult for buyers to forecast prices for Arab Medium and Arab Heavy.
|
|
The tanker, the Sanchi, was carrying 136,000 tons of highly flammable fuel oil when it crashed into a freighter on Jan. 6.
|
|
Firms interested in selling the put options had requested Mexico revise or remove a component pegged to high-sulfur fuel oil prices.
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|
It's the same price as a 1,000 cubic meters of gas, but its calorific value is 18 percent lower than fuel oil.
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|
"We will not reduce fuel oil output to zero completely as we need our refineries to be flexible," a BPCL official said.
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|
Shippers, the biggest user of fuel oil, will likely drop it after 22020 to meet requirements set by the International Maritime Organization.
|
|
Conversely, the smallest percentage hike, saw margins for its fuel oil 380 cst swap rise by four percent to $25,000 per contract.
|
|
The 200,000-barrels-per-day Nghi Son refinery, which began commercial production in late 2018, offered a fuel oil cargo last month.
|
|
They are likely being used for blending into fuel oil instead of being re-sold as diesel, one of the sources said.
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|
"Instead, we believe that the fuel oil was intended for ship-to-ship transfers to other vessels within Syria's maritime borders," Madani said.
|
|
Biomass – which comes primarily from wood and sawmill waste, has helped a school in Tok displace 65,000 gallons of fuel oil per year.
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|
Since the beginning of the oil boom, U.S. refineries have increasingly turned to exports to dispose of excess production of distillate fuel oil.
|
|
To ensure quality standards are met, sellers can deliver the fuel oil to APEX approved storage facilities for inspection to warrant product specifications.
|
|
Eng Hian Ong joined on biofuels, having previously traded a variety of petroleum products from fuel oil to LPG with Trafigura and others.
|
|
While the pipeline is meant to transport crude oil to use as fuel, oil spills are fairly common and companies rarely catch them.
|
|
In May, Brazil imported about 250,000 barrels of distillate fuel oil, which includes diesel, from the United States, more than any other country.
|
|
The discount for high-sulfur fuel oil delivered in January 2020 has widened from $16 in August 2017 to around $33 (tmsnrt.rs/2OMUNht).
|
|
There has been a clear tilt towards maximizing the production of distillate fuel oil to take advantage of higher margins than on gasoline.
|
|
But this will come mostly at the expense of fuel oil profits, which will slide dramatically as the barrels seek a new outlet.
|
|
The export-corrected time series show consumption of both gasoline and distillate fuel oil has been running at a high level since March.
|
|
Venezuela can also deliver fuel oil, asphalt and other refined products to meet the monthly supply quota, according to one of the contracts.
|
|
Also, U.S. sanctions on Iran and Venezuela coupled with OPEC cuts has tightened availabilities of sour crudes that have high fuel oil yields.
|
|
Oil companies expect a jump in demand for cleaner distillates, mainly diesel, at the expense of fuel oil that would become largely redundant.
|
|
One trader said the only time he expected to see a drop in fuel oil demand was once new IMO rules were implemented.
|
|
By the end of February, U.S. stockpiles of distillate fuel oil stood almost 22016 million barrels higher than a year earlier (tmsnrt.rs/22017TtIb4T).
|
|
Strong fuel oil margins, however, are likely to support prices for heavier grades that produce more of the residual fuel, survey respondents said.
|
|
Yabucoa can store up to 4.6 million barrels of crude oil, gasoline or products like fuel oil and diesel needed for power generation.
|
|
The teapots had mainly consumed fuel oil as a feedstock and only largely began processing crude oil after winning import licences last year.
|
|
The abundance of light, sweet crude has pushed up demand for fuel oil, which is blended with lighter crude to increase diesel output.
|
|
The refineries with the highest diesel production and lowest fuel oil output are generally likely to benefit the most from the IMO changes.
|
|
That made fuel oil more attractive for utilities than natural gas, which they receive predominantly under long-term contracts at a fixed price.
|
|
The fuel oil contract on the Shanghai exchange's International Energy Exchange slid 4.9% early on before paring some losses to trade 4% down.
|
|
Crude oil on the Shanghai Futures Exchange fell 4.7% and the fuel oil contract on the Shanghai exchange's International Energy Exchange slid 4.2%.
|
|
It will also help it start producing petroleum coke, a first in Serbia, and cease production of heavily polluting high-sulphur fuel oil.
|
|
The IMO says it will ban ships that do not have scrubbers from carrying any fuel oil, making it easier to catch cheaters.
|
|
European plants, which tend to be less complex than those in other regions, produce more fuel oil and may face the biggest challenge.
|
|
Large shipping vessels have traditionally run on high-sulfur fuel oil, produced after refiners have made higher-quality fuels like diesel or gasoline.
|
|
China's central government must waive a 1,218 yuan ($13) per tonne consumption tax and offer rebates of the 13% value-added tax currently levied on fuel oil to allow the country's refiners to economically produce the very low-sulphur fuel oil (VLSFO) needed to meet the rules, officials at China Chemical and Petroleum Corp, PetroChina and China National Offshore Oil Co said.
|
|
Chinese fuel oil imports in 2015 fell 12.9 percent from the previous year to 15.4 million tonnes, according to customs data released this week.
|
|
"In the current low oil price environment, Russian fuel oil exports are now bringing in almost no net revenue to refineries," said Energy Aspects.
|
|
In most cases, the new rules will force shipowners to switch from burning high-sulfur residual fuel oil to low-sulfur distillate-type fuels.
|
|
The United Arab Emirates imports large amounts of Iranian fuel oil to power ships and Egypt imports oil from Iran for the Sumed pipeline.
|
|
Singapore fuel oil stocks plummeted 14% to a more than three-month low of 19.557 million barrels, data from Enterprise Singapore showed on Thursday.
|
|
The new rules will force shippers to switch to cleaner but more expensive fuels like low-sulphur fuel oil (LSFO) or marine gasoil (MGO).
|
|
In 2017, the City of Galena started operating their own biomass facility, displacing 85033,000 gallons of fuel oil since their biomass operation went online.
|
|
The world's second-largest economy also did not export any gasoline, jet fuel, diesel or fuel oil to its isolated neighbor, customs data showed.
|
|
By 2000, oil producers accounted for 22015 percent of all distillate fuel oil sales in the United States, up from 22015 percent in 20143.
|
|
Refineries globally have also started to scale down high-sulphur fuel oil production six months ahead of a switch to lower sulphur marine fuel.
|
|
Prepa's leaders, after all, had already been accused of taking kickbacks and making bad deals for their customers, as with the fuel oil scandal.
|
|
The total diesel output, including non-ULSD, could reach 22 million tonnes if all 27 fuel oil residue conversion units are put into operation.
|
|
It will also ban vessels carrying fuel oil with a sulphur content of more than 0.5% from entering Chinese water from March 1, 2020.
|
|
Vitol, the world's largest oil trading house, offered to supply the fuel oil for nearly $250,000 less than its closest competitor, the document showed.
|
|
Coal, diesel and fuel-oil, which are far more polluting than natural gas, are kept in reserve for emergencies to generate electricity in Israel.
|
|
Since last year it has also marketed crude oil to independent refineries, which have been allowed import rights, while maintaining its fuel oil business.
|
|
They were in April supported by a $1.3 billion increase in deliveries of industrial supplies and materials such as fuel oil and petroleum products.
|
|
Reuters on Thursday reported that a tanker carrying Iranian fuel oil had unloaded the cargo into storage tanks near the Chinese city of Zhoushan.
|
|
Refineries that do not have high-tech kits like cokers that can convert fuel oil into higher value products are known as simple refineries.
|
|
Shihua Nanjing Tanker Co, a joint venture between Sinopec Fuel Oil Company and state-run shipping firm Nanjing Tanker Co, would operate the fleet.
|
|
"There are ... a number of refinery upgrading projects in Russia, Europe and Asia resulting in lower fuel oil production," said Willis at Wood McKenzie.
|
|
Venezuela's most important political ally, Cuba, received almost 114,000 bpd of mostly crude and fuel oil in October, below the 143,000 bpd of September.
|
|
The Borco terminal is Buckeye's largest and has the capacity to store about 26.2 million barrels of oil, fuel oil, gasoline and other products.
|
|
Coal is the single most important commodity hauled by the railroads, which are in turn one of the largest consumers of distillate fuel oil.
|
|
South Korea mainly generates electricity with coal and nuclear power and fuel oil supplies only a small fraction of the country's total electricity needs.
|
|
Refineries globally have also started to scale down high-sulfur fuel oil production six months ahead of a switch to lower sulfur marine fuel.
|
|
SINGAPORE, July 50 (Reuters) - Pakistan State Oil is seeking 905,000 tonnes of gasoline and fuel oil for September, three tender documents showed on Wednesday.
|
|
While most cruise ships run on highly polluting heavy fuel oil, many have begun using "scrubbers" to remove toxic sulfur oxides from their exhaust.
|
|
And about one-quarter of New York's emissions come from homes and commercial buildings, which typically burn natural gas or fuel oil for heating.
|
|
But a spill of hundreds of tons of heavy fuel oil from a cargo ship has now fouled the water off its southern coast.
|
|
Cheaper than fuel oil and cleaner-burning than coal, LNG suits emerging economies racing to bridge electricity shortfalls and support growth on tight budgets.
|
|
Gas-powered generators do not depend on the delivery of fuel oil, which is transported by trucks and therefore easily interrupted in big storms.
|
|
Some refiners prefer to stay flexible by being able to switch their output between low- and high-sulfur fuel oil according to market demand.
|
|
Fuel oil demand in China is being supported by increased run rates at independent refineries, said Nevyn Nah, oil products analyst at Energy Aspects.
|
|
Similar shortages in September prompted PDVSA to send a flotilla of tankers with emergency cargoes of fuel oil and other refined products to Cuba.
|
|
According to Refinitiv Eikon data, Urals crude gives some 28% of fuel oil with a sulphur content of 2.8-3.5% in "complex" Mediterranean refineries.
|
|
Like other shipping firms, the group will also use low-sulphur fuel oil and engine filters to comply with the new international emissions standards.
|
|
And just this week, the Solomon Islands was hit with an oil spill caused by a ship carrying hundreds of tons of fuel oil.
|
|
Consumer electricity prices have not risen since 1996 and most power is produced using old, inefficient turbines that run on very expensive fuel oil.
|
|
"Processing fuel oil gives better margins than (refining) crude oil as plants can get tax deducted (when selling refined fuel) later," the official said.
|
|
In most cases, the new rules will force shipowners to switch from burning high-sulphur residual fuel oil to low-sulphur distillate-type fuels.
|
|
Some fuel-oil plants weren't able to operate because liquid feedstocks would gel and clog valves or trucks couldn't reach facilities to deliver fuel.
|
|
Like other shipping firms, the group will also use low-sulfur fuel oil and engine filters to comply with the new international emissions standards.
|
|
Kjus expects the price of low sulfur fuel oil to rise because of higher demand to comply with new rules and constraints at refineries.
|
|
China National Petroleum Corporation (CNPC) has planned a low-sulfur fuel oil supply of 4 million tonnes a year, a senior company executive said.
|
|
Facilities in Curacao are crucial for loading big vessels bound for China and India, while most of its fuel oil exports are sent from Bonaire.
|
|
The introduction of new low-sulfur standards for distillate fuel oil in the United States led to concerns about the availability of enough sweet crude.
|
|
"We can confirm that the Astro Saturn is on TC (time charter) to Trafigura and is carrying fuel oil," a Trafigura spokeswoman said, without elaborating.
|
|
"Recent flows of Doba have seen it head to suppliers already providing very low-sulphur fuel oil (VLSFO) to the market," analytics firm Vortexa said.
|
|
The premium for 1.53-centistoke (cst) high-sulfur fuel oil rose to $21.5 a ton above Singapore benchmark prices on Thursday, according to Reuters data.
|
|
"Recent flows of Doba have seen it head to suppliers already providing very low-sulfur fuel oil (VLSFO) to the market," analytics firm Vortexa said.
|
|
Strong air-conditioning demand is likely to have contributed to high combustion of crude oil and refined products such as diesel and residual fuel oil.
|
|
Fuel oil was the last major Angolan contract Trafigura had, with volumes of 1.1 million tonnes in 18 cargoes over 2017 worth some $450 million.
|
|
The system hauls about 660,000 barrels a day of gasoline, diesel, fuel oil or jet fuel from the Gulf Coast region to the Chicago area.
|
|
The premium for 22019-centistoke (cst) high-sulfur fuel oil rose to $22.8 a tonne above Singapore benchmark prices on Thursday, according to Reuters data.
|
|
The fire has contributed to PDVSA's low fuel oil shipments, which this year average 60,000 bpd versus 165,000 bpd in 2016, according to the data.
|
|
Tornqvist said the future price difference of around $40 a barrel between gasoil and heavy fuel oil gave "an extreme incentive to install a scrubber".
|
|
The companies could also comply by burning costlier low-sulphur fuels such as marine gasoil, ultra-low-sulphur fuel oil or liquefied natural gas (LNG).
|
|
This is expected to boost demand for both marine gasoil and very low-sulphur fuel oil, although there is still uncertainty as to how much.
|
|
Prepa administrators were alleged to have participated in a fraudulent scheme to accept kickbacks in exchange for buying low-quality fuel oil at inflated prices.
|
|
The International Energy Agency has forecast high-sulfur fuel oil demand to fall 60 percent next year, while marine gasoil demand to more than double.
|
|
Refineries like PBF's produce very little fuel oil, and brand new complexes such as Saudi Aramco's Jubail or Reliance's Jamnagar in India produce virtually none.
|
|
The company is currently advertising for trading positions on gasoline, fuel oil and derivatives in London, an email from a recruiter seen by Reuters showed.
|
|
The firm has leased 120,000 cubic meters of space for fuel oil for six months, said three trade sources with direct knowledge of the matter.
|
|
It transferred the fuel oil to a second tanker, the Libya, off the Malaysian port of Malacca later that month, the ship-tracking data showed.
|
|
The stricter rules will require the shipping industry to switch to cleaner fuels based on gasoil or diesel fuel from high sulfur fuel oil (HSFO).
|
|
Pemex has said that the new coking plant will increase the refinery's gasoline output by 40 percent by allowing for the processing of fuel oil.
|
|
The agreement asked Pyongyang to freeze its nuclear weapons program in exchange for two light-water reactors (which are resistant to proliferation) and fuel oil.
|
|
The International Energy Agency has forecast high-sulphur fuel oil demand will fall 60 percent next year, while marine gasoil demand will more than double.
|
|
There are more than 30 oil tankers off Malaysia that are used as floating storage for crude and fuel oil blending and distribution across Asia.
|
|
The premium for 22019-centistoke (cst) high-sulphur fuel oil rose to $22.8 a tonne above Singapore benchmark prices on Thursday, according to Reuters data.
|
|
The fuel oil used by cruise ships contains about 2,000 times more sulphur oxide than ordinary diesel, according to The Guardian, causing pollution at ports.
|
|
Major trading firms have looked at ways to cash in by adding scrubber-fitted vessels to their fleets or by expanding their fuel oil desks.
|
|
Trafigura's trading desk merger mirrors a similar move by oil-giant BP, which combined its fuel oil and middle distillates desks about four months ago.
|
|
"The energy mix to produce electricity will change, today the kingdom uses large quantities of oil liquids, including crude, fuel oil and diesel," Falih said.
|
|
"For an average fuel oil homeowner in New York, switching to geothermal would save 110 tons of CO2 and $35,000 over 20 years," Hannun said.
|
|
Conservatives in the South have also suggested that the South's provision of fuel oil and electricity to the liaison office could violate United Nations sanctions.
|
|
Most important, Cuba added over 1,800 decentralized diesel and fuel-oil-fired electrical plants across the island and upgraded the infrastructure of the grid itself.
|
|
There are 2000 power plants in Russia that use gas as their primary fuel but can also burn fuel oil, the Energy Ministry told Reuters.
|
|
Gas-fired power plants use fuel oil as reserve fuel in case they stop receiving gas or they have to raise output in cold weather.
|
|
A head-on cost comparison of fuel oil and gas doesn't always work because numbers vary from one power plant to another, industry sources said.
|
|
The project is part of a growing trend among global refiners to produce more high-quality oil products instead of the heavy polluting fuel oil.
|
|
PSO has not awarded tenders seeking fuel oil for late-June, early-, and mid-July delivery after receiving offers from suppliers, said four trade sources.
|
|
Increased monsoon rainfall in the country has also helped boost hydroelectric power generation, lowering the demand for fuel oil for electricity, the trade sources said.
|
|
Prices for lighter Saudi grades could fall more than medium and heavy grades as high-sulphur fuel oil (HSFO) margins have rebounded, the survey showed.
|
|
In 2011, the use of heavy fuel oil in the Antarctic was banned under the International Convention for the Prevention of Pollution from Ships (MARPOL).
|
|
Stockpiles of low sulphur fuel oil (LSFO) are being built up but mainly in major bunkering centres such as Singapore, the world's biggest bunkering hub.
|
|
Global marine fuel oil consumption could reach 5 million barrels a day (bpd) by 2020 and rise to 8 million bpd by 2040, she added.
|
|
It took North Korea off the State Department's listing of terrorist states and restarted the flow of heavy fuel oil for the generation of electricity.
|
|
"We could potentially see some correction in fuel oil crack values once peak summer demand eases," said Nevyn Nah, oil products analyst at Energy Aspects.
|
|
"Fuel oil consumption is expected to fall in Japan... as nuclear power plants are restarted, denting the country's demand for fossil fuels," said Banchero Costa's Leszczynski.
|
|
An increase in Russian fuel oil export duties expected in 2016 that will make them as expensive as crude may cause refiners to cut back processing.
|
|
There will also be another 15.9 gigawatts of natural gas capacity added through 2029, as Mexico replaces coal and fuel oil fired capacity with natural gas.
|
|
Transpetrochart says on its website that it was founded in 2002 and specialises in shipping crude oil, fuel oil, diesel oil, gasoline and other oil products.
|
|
Since the start of November, gasoil margins have climbed 32 percent while gasoline margins have slumped 17 percent and fuel oil discounts have more than doubled.
|
|
Fuel oil is a refining byproduct used primarily as a shipping fuel, with 22019-cst the most common standard used on ships, and for power generation.
|
|
CCI used to have traders across the barrel, including fuel oil and middle distillates, but industry sources said these traders left between 2016 and early 2018.
|
|
Fuel oil is a refining byproduct used primarily as a shipping fuel, with 380-cst the most common standard used on ships, and for power generation.
|
|
Shipowners could meet the new regulations by installing sulphur-stripping exhaust cleaning systems, known as scrubbers, and continue to burn cheaper high-sulphur fuel oil (HSFO).
|
|
Refiners have also undertaken extensive expansions and upgrades to reduce their production of high-sulfur residuals and increase output of IMO-compliant fuel oil and gasoil.
|
|
"Tankers provide more flexibility as they can meet bunker demand quickly without having to load and unload in tanks," said a Singapore-based fuel oil trader.
|
|
Wartsila is the market leader in so-called sulphur scrubbers that strip sulphur as fuels are burned, allowing ships to continue using high-sulphur fuel oil.
|
|
At older, less complex units, mostly in the Mediterranean, Asia and the developing world, fuel oil can account for as much as 40 percent of output.
|
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"LNG is considered to be an environmentally friendly source of energy and its cost is cheaper than fuel oil," said Nasrul Hamid, Bangladesh junior energy minister.
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North Korea is free to buy fuel oil and sell iron ore and coal as long as the revenues are not used to fund military activities.
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Freight is therefore the main driver for consumption of fuels refined from the middle of the crude oil barrel, including distillate fuel oil and jet fuel.
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Using LNG to power ships instead of fuel oil or marine gasoil can reduce emissions of nitrogen oxide and sulfur oxide pollutants by 90% to 95%.
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FGE's Paravaikkarasu believes the market is overestimating the amount that very-low sulphur fuel oil (VLSFO) will displace (MGO) in meeting the new clean bunker demand.
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"Lower volumes from Venezuela and Iran are certainly contributing toward a tighter fuel oil balance," said Joe Willis, Senior Research Analyst at consulting firm Wood Mackenzie.
|
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Global consumption of distillate fuel oil increased by almost 22019 million barrels per day (bpd) over the same period ("Statistical Review of World Energy", BP, 22020).
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Middle distillate fuels, such as marine gasoil, generally contain less sulfur than fuel oil, which has traditionally been the fuel used in large ocean-going vessels.
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The global shipping industry burned a total of 3.3 million barrels per day (bpd) of high-sulfur fuel oil (HSFO) in 2017, according to Goldman Sachs.
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"Since late 2017, the fuel oil forward curve has blown out, making it much easier now to see the economics in favor of scrubbing," Olney said.
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In 1950, the National Bituminous Coal Advisory Council complained to the Secretary of Interior about the "dumping" of cheap Venezuelan fuel oil on the U.S. market.
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The International Maritime Organisation has lowered the cap on sulphur content in shipping fuel to 0.5% from the 3.5% High Sulphur Fuel Oil in use now.
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Zhenhai currently has low sulphur fuel oil production capacity of 200,000 tonnes per annum, and will continue to expand capacity based on market demand, it said.
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Russia's fuel oil exports dropped more than 20 percent on the month in January due in part to a higher export duty and lower global prices.
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While they see the benefits of higher use of fuel oil, utilities warn about the technical and environmental consequences of a switch to the dirtier fuel.
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By March, NIOC had committed all of its short-term fuel oil capacity through cash deals or in barter agreements in return for much-needed gasoline.
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A total of nine international oil and trading companies have been competing to win the tender for 160,000 tonnes of 180-centistoke high sulphur fuel oil.
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Refiners may also cut their overall CDU runs to reduce their residue output if low fuel oil margins drag down overall profits, according to the survey.
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"It is expected that there will be an increase in global demand for diesel fuel as ship operators switch from high-sulfur fuel oil," he said.
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In ships, for example, LNG can be used as a cleaner alternative to heavy fuel oil as the maritime industry faces regulatory pressure to reduce emissions.
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The country plans to waive consumption taxes and give rebates on value-added taxes on fuel oil sales to encourage domestic production its bonded bunker market.
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Robinson predicted that global vessels could soon switch away from the 3.5 million barrels per day of high sulfur fuel oil to distillates — which includes diesel.
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Australian officials said there is a "high risk" the remaining heavy fuel oil on the ship -- about 600 metric tons -- could contaminate the area even further.
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And they produced a seasonal record 2000 million bpd of distillate fuel oil, which was 240,22016 bpd above 22018 and 20143,22014 bpd above the decade average.
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Most individual measures with the CPI showed gains, with a spike in fuel oil of 9.5 percent and a gain of 5.7 percent in gasoline leading.
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Fuel oil, which is a residual product of the refining process, tends to trade at a discount to crude oil because overall supplies usually outstrip demand.
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So markets think, if Iran continues to cut its supply, then reserve capacity will under the pressure of oil supply, and that may fuel oil price.
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They ran a fuel oil business in Illinois, and when some customers could not pay their bills during the winter, his grandparents would extend them credit.
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It expects scrubbed high-sulfur fuel oil (HSFO) consumption at a total of 1 million barrels per day (mbpd) by 2020 and 1.4 mpbd by 2025.
|
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OPIC's financing last year, for example, included $50 million for a power plant in the West African nation of Guinea that will run on fuel oil.
|
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Vitol sees 3,303-4,000 scrubbers installed around the 2020 implementation date, a number that means high sulfur, or heavy, fuel oil is expected to remain in demand.
|
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Earlier this year, Reuters revealed that the Grace 1 was one of four tankers involved in shipping Iranian fuel oil to Singapore and China, violating U.S. sanctions.
|
|
There were no shipments of crude oil, gasoline, jet fuel, fuel oil and naphtha in January, the official, who did not want to be identified, told Reuters.
|
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Roughly half the supertankers still have space to store oil, according to live shipping data on Eikon, though more than half of them were for fuel oil.
|
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Trade liquidity for fuel oil futures in China has grown steadily since the launch of similar yuan-denominated futures contracts on the Shanghai exchange in July 2018.
|
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Free-falling fuel oil margins hammer Asian refiner profitability - here The new regulations limit the sulfur content of fuels burned in ships to 0.5%, from 3.5% currently.
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Middle distillates are heavily geared towards the economic cycle because most distillate fuel oil is used in freight transportation (shipping, railroads, aviation, trucks), manufacturing, mining and farming.
|
|
Iraq's direct crude burn hit 225,000 bpd in July and August 2015 with additional fuel oil and diesel combustion, according to figures provided to the JODI database.
|
|
The intrigue: One stark example of how environmental concerns overlap with natural gas is the shipping industry's anticipated shift to liquefied natural gas (LNG) over fuel oil.
|
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Ships that install "scrubbers" can continue to burn cheaper high sulfur fuel oil, but the bulk will not install these in time for the shift in 2020.
|
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Phillips does expect gasoline supply will be affected as vacuum gas oil, a gasoline feedstock, may be blended with fuel oil to meet the new sulfur limit.
|
|
But the volume of low-sulfur distillate fuel oil, which includes the diesel used by trucks and trains, supplied to domestic customers was flat compared with 2014.
|
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LPG and fuel oil used for electricity generation and bakeries are not included in the commitment to reaching full cost recovery through subsidy cuts, the letter said.
|
|
Asia's naphtha crack on Wednesday hit a six-month low at a discount of about $9 a barrel to Brent crude, lower than that for fuel oil.
|
|
The IEA estimates that about 4,000 scrubbers will be installed by 2020, consuming around 680,2.33 bpd of fuel oil on average, up from 340,000 bpd in 2019.
|
|
Diesel demand is expected to grow ahead of next year's implementation of the International Marine Organization's (IMO) lower-sulphur fuel oil regulations, the South Korean company said.
|
|
However, selling its oil and gas business has made it more reliant than ever on the shipping industry and swings in freight rates and fuel oil prices.
|
|
In November 2014, when Dubai crude was last at similar levels, the same fuel oil crack or margin was at a discount wider than $6 a barrel.
|
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Conestoga Volunteer Fire Company Chief Larry Frankford said "you can just use your imagination" about the smell from the combination of diesel fuel, oil and human sewage.
|
|
U.S. gasoline prices fell into negative territory and heating oil futures pared gains as EIA reported less-than-expected decreases in gas and distillate fuel oil inventories.
|
|
U.S. refiners and traders exported 22016,000 bpd of gasoline in the week ending on May 26, and a near-record 1.25 million bpd of distillate fuel oil.
|
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The paper's backers were told they could submit more concrete proposals at the next MEPC in May 2019 - especially focused on data collection and fuel oil quality.
|
|
Riyadh often lifts output in the hot summer months to fuel oil-fired power plants and meet rising electricity demand, which means exports do not necessarily rise.
|
|
The International Maritime Organization (IMO) is slashing the amount of sulfur allowed in shipping fuel, effectively banning high sulfur fuel oil unless vessels install sulfur-catching scrubbers.
|
|
KIEV (Reuters) - Ukraine has switched power plants to fuel oil from gas in an effort to make up for an emergency shortage after Russian company Gazprom (GAZP.
|
|
OPEC's third-largest oil producer, Iran, exports more than 500,000 bpd of refined products, mainly fuel oil, petroleum gas and naphtha to Asian markets, according to OPEC.
|
|
LONDON (Reuters) - U.S. stocks of distillate fuel oil, which have been trending downwards all year, now look tight following disruption to major refineries caused by Hurricane Harvey.
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Water and sludge, fuel oil and debris, carcasses and cars were carried along by the floodwaters running up to 45 miles an hour through Florence's historic center.
|
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The first phase of 400,000 cubic meters of storage across 14 tanks for middle distillates and fuel oil was completed in October and began operations in January.
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|
Oil Brokerage was founded in 1988 as a broker of physical gasoline in Europe, and later expanded to include physical and paper biofuels, naphtha and fuel oil.
|
|
U.S. refiners and traders exported 22016,227 bpd of gasoline in the week ending on May 28, and a near-record 1.25 million bpd of distillate fuel oil.
|
|
Nasdaq Commodities' offerings include power, natural gas and carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore, electricity certificates and clearing services.
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"We still have some spare capacity at our residue desulfurizer so we can produce more low-sulfur fuel oil to supply to the bunker market," Tanaka said.
|
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Higher domestic shipments in January were probably due mainly to power plants that use fuel oil as their primary fuel, a source in the energy industry said.
|
|
This led the Bush administration to cut off fuel oil shipments, prompting Pyongyang to withdraw from the NPT, kick out international inspectors, and restart its Yongbyon reactor.
|
|
Sinopec, which is Asia's biggest oil refiner, said the Shanghai refinery was the first in China to produce low sulfur fuel oil to meet new IMO rules.
|
|
Traders and analysts were expecting that refiners, particularly simple ones that don't have equipment to upgrade fuel oil into more valuable products, would have to cut runs.
|
|
The discovery came a day after President Trump accused China of letting fuel oil flow into North Korea through illicit ship-to-ship transfers on international waters.
|
|
The sinking will likely expel the remaining condensate and the tanker's bunker fuel, or the heavy fuel oil that powers a ship's engines, contaminating the surrounding waters.
|
|
As a result, Asia's benchmark Singapore 180cst fuel oil FO180-SIN in 22016 will average $215 per tonne, about 22015 percent less than in 212.9, BMI Research forecasts.
|
|
PDVSA also planned to deliver this month over 2.3 million barrels of crude and fuel oil to Citgo and Russia's Rosneft from Curacao and Bonaire, the documents showed.
|
|
Tankers Eagle San Juan, NS Corona and Dali last week discharged cargoes of crude oil at SemGroup Corp's Houston Fuel Oil Terminal and have not left, data showed.
|
|
The company's ability and appetite for deals with elevated political risks has often brought challenges — in 2012 Vitol admitted it was trading Iranian fuel oil despite international sanctions.
|
|
"We already have Asian clients booking our supply of low-sulfur fuel oil," which will start arriving in the fourth quarter, Ouyang said in an interview last week.
|
|
MRPL had been annually supplying about 1.1 million tonnes of refined oil products including gasoil, jet fuel, gasoline and fuel oil to State Trading Corp Mauritius since 2006.
|
|
By burning heavy fuel oil, just 15 of the biggest ships emit more of the noxious oxides of nitrogen and sulphur than all the world's cars put together.
|
|
BPGIC completed the first phase of 400,000 cubic metres of storage across 14 tanks for middle distillates and fuel oil in October and began operations in January 2018.
|
|
Trafigura, which declined to comment, lost the rights to sell Angolan fuel oil this year, with the contract going to French oil major Total, two trading sources said.
|
|
The big picture: The company is marketing geothermal heating and cooling to displace electric and fossil fuel-based systems, including propane and fuel oil common in the Northeast.
|
|
Direct crude combustion averaged 850,000 to 900,210.5 bpd between June and August 229 with diesel and fuel oil burning on top of that (Joint Oil Data Initiative, 2225).
|
|
The low-sulfur fuel oil contract would be China's second bonded oil futures followed by crude oil futures on the Shanghai International Energy Exchange (INE), a ShFE subsidiary.
|
|
As such, Gunvor, which has also invested in some scrubbers, believes there will still be demand for heavy fuel oil, as scrubber uptake increases through 2020 and 2022.
|
|
Coupled with the slowdown in freight movements, lower heating demand has sent U.S. consumption of distillate fuel oil tumbling to its lowest level in more than a decade.
|
|
Few international rules are in place to protect the Arctic's environment from these ships, though a proposal to ban heavy fuel oil from the region is gaining support.
|
|
LSFO is being produced by blending with high sulfur fuel oil (HSFO), while refineries in Taiwan, South Korea some regions outside of Asia have also started producing LSFO.
|
|
Each year, roughly 10 billion liters of blended car fuel and 10 million tonnes of heavy shipping fuel oil, are mixed and transported out of the Dutch ports.
|
|
That would equal about 6% of the high-sulphur marine fuel oil consumed globally in 2018 and exceeds the current Chinese bunker market of 12 million tonnes annually.
|
|
Most shipowners are expected to switch to lower-sulphur gasoil derivatives from higher-sulphur residual fuel oil because it is the simplest and least-costly route to compliance.
|
|
BPGIC completed the first phase of 400,000 cubic meters of storage across 14 tanks for middle distillates and fuel oil in October and began operations in January 2018.
|
|
It completed the first phase of 400,000 cubic meters of storage across 14 tanks for middle distillates and fuel oil in October and began operations in January 2018.
|
|
The companies also signed a second deal to supply fuel oil storage capacity of 165,000 cubic metres in the Red Sea port of Ain Sokhna, the statement said.
|
|
Exports of distillate fuel oil rose to a record 1.63 million barrels per day (bpd) in the week ending April 14, according to the U.S. Energy Information Administration.
|
|
In markets such as the Caribbean, some sellers also are customizing their gas supplies by linking contracts to fuel oil prices, which is also used for power generation.
|
|
This is both good economic news and a plus for the environment, as Mexican power generation capacity moves toward eco-friendly natural gas and away from fuel oil.
|
|
One level deeper: The company is marketing geothermal heating and cooling to displace electric and fossil fuel-based systems, including propane and fuel oil common in the northeast.
|
|
The compliance level has significant implications for demand for high-sulfur fuel oil; BP's estimates fall well short of other analyst estimates of about 30 percent non-compliance.
|
|
PDVSA's Caribbean operations represent a quarter of its global refining capacity and serve as a loading hub for a third of its exports of crude and fuel oil.
|
|
Consumption of gasoline, distillates, fuel oil and other petroleum products across the region grew at a compound average rate of 3.9 percent per year between 2004 and 2014.
|
|
Vitol, the world's largest oil trading house, offered to supply fuel oil by submitting the lowest offer of a premium of $15.80 a tonne to Singapore spot quotes.
|
|
Traders buying Iran's fuel oil said that NIOC might have over-committed in sales and was now struggling to keep up, although this could not be independently verified.
|
|
"The drawing power from Singapore into the north seems less (after the secondary-unit closures at the two South Korean refineries)," said a Singapore-based fuel oil trader.
|
|
Secondary units such as residue fluid catalytic crackers (RFCCs) use fuel oil as a feedstock to make gasoline but refiners could divert the former into bunker fuel instead.
|
|
In addition to sulfur oxide, the combustion of heavy fuel oil also generates greenhouse gas emissions (GHG), with shipping accounting for 22020 to 22% of the world total.
|
|
The region's cold winters and hot, humid summers, will make its transition away from natural gas and fuel oil more challenging than the comparatively temperate climes of California.
|
|
Over the same period, production of residual fuel oil and asphalt declined from nine barrels to fewer than five barrels per 100 ("Petroleum Supply Annual", EIA, August 2018).
|
|
Bangladesh typically imports around 3.2 million tonnes of diesel and 2.5 million tonnes of fuel oil annually, making it one of the top 10 importers in the region.
|
|
Reuters on Thursday reported that a tanker carrying nearly 130,000 tonnes of Iranian fuel oil had unloaded its cargo into storage tanks near the Chinese city of Zhoushan.
|
|
Barclays analysts expect this quota to increase to 87.6 million tonnes for 2016 and, in effect, reduce this year's fuel oil demand for China by an estimated 15 percent.
|
|
As for fuel oil, Vitol gave the lowest offer at $29.73 a tonne to Singapore spot quotes for June-December delivery versus other offers ranging from $41.22 to $67.80.
|
|
Bangladesh typically imports around 3.2 million tonnes of diesel and 2.5 million tonnes of fuel oil annually, making it one of the top 10 such importers in the region.
|
|
Hardy, who started his career at BP and traded fuel oil, was long seen as one of two front-runners to succeed Taylor alongside another Vitol veteran Chris Bake.
|
|
Estimating errors are potentially much more serious for distillate fuel oil, where exports averaged almost 1.2 million bpd in 2015, compared with domestic consumption of almost 4.0 million bpd.
|
|
Egbin could run at least partly on fuel oil or liquefied natural gas brought in by ship, but all these problems mean the option is unfeasible at the moment.
|
|
Despite the reduction in processing, there has been no shortage of either gasoline or distillate fuel oil, with gasoline stocks level with last year and distillates comfortably above it.
|
|
Trafigura has long been the main player in Angolan oil, helping Sonangol sell large volumes of crude and fuel oil and also importing gasoline, gasoil and other refined products.
|
|
The commission, which regulates fuel, oil, gas, public utilities and transportation industries, is investigating to determine the epicenter of the quake that hit Pawnee, said commission spokesman Matt Skinner.
|
|
Fuel oil is relatively easy to contain because volumes are lower and its viscosity means it's easier to extract from water, but even small volumes can harm marine life.
|
|
They packed the devices with an explosive mixture called ammonium nitrate fuel oil, used in what are popularly known as "fertilizer bombs", or with military-grade C4 plastic explosive.
|
|
Nearly all ships run on fossil fuels, and many use heavy fuel oil, which spews black soot when burned and turns seas into a toxic goopy mess when spilled.
|
|
"People are buying LSFO now on a fuel oil related basis, and they can sell it in 4Q 2019 or 1Q 2020 on a gasoil basis," the trader said.
|
|
Several units process residual fuel oil, the leftovers after crude oil is initially refined, into higher-value gasoline and distillate products as well as remove pollutants such as sulfur.
|
|
Gross refining margins for producing distillate fuel oil from U.S. crude rose from $22018 per barrel in June to more than $26.8 per barrel in the middle of November.
|
|
Traders are also opting to store fuel oil in tankers as freight rates for very large crude carriers have halved from 1-1/2 years ago, the sources said.
|
|
On May 12, the ship finished unloading the fuel oil as indicated by a change in its draught to 9 meters, and left the terminal, the tracking data showed.
|
|
That translates to consumption of 12,000 to 14,000 barrels-per-day (bpd) of high sulfur fuel oil for power generation and 10,000 to 12,000 bpd of diesel, he added.
|
|
For heavier crude such as Arab Medium and Arab Heavy, the respondents expect prices to remain unchanged or edge up as weaker fuel oil cracks weigh on these grades.
|
|
The 180-centistoke high-sulphur fuel oil discount to Dubai crude on Monday settled at $3.21 a barrel, with Dubai crude DUB-1M-A holding above $74 a barrel.
|
|
Iran, OPEC's third-largest oil producer, exports more than 500,000 barrels per day of refined products, mainly fuel oil, petroleum gas and naphtha to Asian markets, according to OPEC.
|
|
The Asian cash premium for the 22017-centistoke (cst) grade of fuel oil, typically used to power ships, hit $2380 a ton on Friday, its highest since mid-1803.
|
|
Fuel oil margins in Europe have approached five-year highs, as shippers and other users have been snapping up the product while it is being produced in lower quantities.
|
|
Other segments of Vopak's business remained solid, it said, adding most fuel oil capacity conversions for IMO 403 have been delivered and will support revenue from the fourth quarter.
|
|
Another 2 million-barrel cargo of fuel oil bound for China in November was postponed because of stained crude tankers, which cannot navigate international waters due to environmental regulations.
|
|
BPC plans to buy 1.6 million tonnes of gasoil, 200,000 tonnes jet fuel and 200,000 tonnes fuel oil through term arrangements in the next year, the company sources said.
|
|
Electricity generation is expected to shift fully to unsubsidised natural gas from fuel oil in the 2019-2020 financial year, according to the IMF's latest staff report on Egypt.
|
|
Platts, a unit of S&P Global Inc, will begin publishing independent prices for Middle East gasoline, middle distillates including diesel and jet fuel, and fuel oil from Oct.
|
|
Households burning fuel oil can expect to pay an average of $22021,23.6 this winter, or $213 more than last year, up 15.5 percent, according to the U.S. Energy Department.
|
|
Ships without scrubbers would have to burn costlier low-sulfur fuels such as marine gasoil (MGO) or ultra-low-sulfur fuel oil to comply with the clean air rules.
|
|
The breakdown in supply had forced IEC to revert to using more expensive diesel and fuel oil to drive its generators, which also raised pollution levels in the country.
|
|
The state-owned company is seeking 10 cargoes of 65,000 tonnes each of 180-cst high sulphur fuel oil for September loading on a free-on-board (FOB) basis.
|
|
The terminal, located in Freeport, on Grand Bahama Island, is Buckeye's largest and has the capacity to store 26.2 million barrels of oil, fuel oil, gasoline and other products.
|
|
"We are seeing very healthy demand for diesel and fuel oil and the only weak spot really is gasoline," Dario Scaffardi, chief executive of Italian refiner Saras, told Reuters.
|
|
Rather than burning VLSFO or MGO that contain 0.5% sulfur, ships can instead add sulfur-removing units, or scrubbers, onboard to continue using cheap high-sulfur fuel oil (HSFO).
|
|
Bangladesh typically imports about 3.2 million tonnes of diesel and 2.5 million tonnes of fuel oil annually, making it one of the top 10 such importers in the region.
|
|
The use of fuel oil for power generation has been steadily declining over the past decades in favor of the cleaner, more cost-efficient and technologically friendly natural gas.
|
|
BPC is seeking 965,000 tonnes of 500 ppm sulphur gasoil, 120,000 tonnes of 180-centistoke high sulphur fuel oil and 6003,000 tonnes of jet fuel, a tender document showed.
|
|
Fuel oil is relatively easy to contain because volumes are lower and its viscosity means it's easier to extract from water, but even small volumes can hurt marine life.
|
|
"What made the release even more bearish was the fact that we also saw large stock builds for gasoline and distillate fuel oil," ING Economics said in a note.
|
|
But strong seasonal demand for electricity in the summer months and technical issues at some of its newest gas-fired power plants renewed the country's appetite for fuel oil.
|
|
In January, an International Maritime Organisation regulation came into force, imposing a new cap on the sulphur content in fuel oil and pushing ship owners to less damaging alternatives.
|
|
Last month, they rose 12 percent from the year before, with prices of energy commodities, gasoline and fuel oil soaring at annual rates between 25 percent and 35 percent.
|
|
GS Caltex has a combined 274,000 barrels-per-day of heavy oil upgrading capacity to convert fuel oil into more expensive and cleaner fuel such as gasoline and diesel.
|
|
But ship owners also have the option of using devices called scrubbers, which remove sulfur from the exhaust emissions, thereby allowing the continued use of high-sulfur fuel oil.
|
|
Many in the market expected demand to rise for marine gasoil, but it also seems refiners are being encouraged to produce very low sulfur fuel oil as an alternative.
|
|
Fuel oil is set to lead the energy market higher as a current supply shortage coincides with the big freeze hitting the U.S. east coast, according to an analyst.
|
|
Refiners have responded by squeezing more diesel and jet fuel from every barrel, mostly at the expense of lower-value products such as heavy fuel oil, bitumen and asphalt.
|
|
PDV Marina's tankers lining up to load crude, diesel, gasoline and fuel oil bound for Cuba include the Icaro, Yare, Paramaconi, Terepaima, Manuela Saenz and Luis Caceres de Arismendi.
|
|
Currently, there is demand of about 3.5 million bpd for 380-centistoke high sulphur fuel oil (HSFO), which will drop to only about 600,000 bpd in 2020, he said.
|
|
In May, an Iranian oil tanker carrying more than 1 million barrels of fuel oil suffered a reported malfunction in the same area as the Sabiti came under attack.
|
|
Gasoil now trades at a premium of about $250 a ton to fuel oil, but the forward curve forecasts this will balloon to $903 per ton by early 2020.
|
|
BEIJING (Reuters) - China's independent oil refiners are once again using fuel oil to feed their plants as stricter tax enforcement and rising crude oil prices have squeezed their margins.
|
|
The 130,000-tonne cargo has been sold to Saudi Arabia's Aramco Trading Corp (ATC), said five fuel oil trade sources who declined to be identified due to company policies.
|
|
Refined products like fuel oil, mainly used to power ship engines and generate electricity, were not covered by the temporary waivers, granted on the sanctions reintroduced in November 2018.
|
|
Launched in Singapore last year, it offers new commodities futures contracts in fuel oil and palm olein — or the liquid component of palm oil — that can be physically settled.
|
|
Currently, there is demand of about 3.5 million bpd for 380-centistoke high sulfur fuel oil (HSFO), which will drop to only about 600,000 bpd in 2020, he said.
|
|
The stranding caused concern because the ship was carrying 1,800 tons of fuel oil and 140 tons of diesel, but authorities said it appeared that no hazardous substances had leaked.
|
|
PDVSA also launched tenders to import vacuum gasoil (VGO) cargoes to feed its deep conversion units, while buying cutter stock to produce fuel oil for exports, traders said on Wednesday.
|
|
Earlier this month, Reuters reported that a tanker carrying Iranian fuel oil in violation of U.S. sanctions had unloaded the cargo into storage tanks near the Chinese city of Zhoushan.
|
|
New rules will oblige ship owners to install exhaust gas cleaning systems ( "scrubbers") or switch from burning high-sulfur residual fuel oil to lower-sulfur fuels such as marine gasoil.
|
|
Meanwhile the introduction of new bunker fuel regulations at the start of 2020 is expected to boost consumption of diesel and marine gasoil as the expense of heavy fuel oil.
|
|
State-owned Israel Electric Corp, the country's main utility, said power production had remained stable, though it had been forced to use imported liquefied natural gas, diesel and fuel oil.
|
|
Increased exports included an extra 221,2146 bpd of crude, 225,211 bpd of natural gas liquids, 25,225 bpd of gasoline, 22018,210 bpd of distillate fuel oil and 47,000 bpd of lubricants.
|
|
Earlier this year, Reuters revealed that the Grace 1 supertanker was one of four tankers involved in shipping Iranian fuel oil to Singapore and China, in violation of U.S. sanctions.
|
|
The firm closed its back office in Estonia's capital Talinn last month and plans to exit fuel oil trading by the end of the year, one of the sources said.
|
|
Exxon's forecast comes as its refining business is struggling to find enough heavy crude to make fuel oil and other distillates, in the face of U.S. sanctions on Venezuelan crude.
|
|
The regulation will mean about 3 million bpd of high-sulfur fuel oil will be displaced by low sulfur products, estimates Rob Thummel, a portfolio manager at investment group Tortoise.
|
|
Fuel oil stocks in the main hubs of ARA, Singapore and Fujairah fell by 3.9 million barrels week-on-week according to the most recent data, according to consultancy FGE.
|
|
He said Venezuela was this year expected to export 2180,21.57 barrels per day (bpd) of fuel oil, down from 228,000 bpd in 2017, with the nation engulfed in economic crisis.
|
|
It claims a reduction in the limit for sulfur fuel oil used by ships will have "tangible health benefits," especially for coastal communities or those living near major shipping routes.
|
|
A decrease in fuel oil, due to a Russian export tax and a modernisation of Russian refineries, caused mineral oil products to fall during the first six months of 2017.
|
|
More than $12bn (£9.7bn) has been spent on the devices, known as open-loop scrubbers, which extract sulphur from the exhaust fumes of ships that run on heavy fuel oil.
|
|
"Fuel oil cracks rallied the most," one of the respondents said, adding that this could lead to smaller price adjustments for Arab Medium and Arab Heavy crude versus light grades.
|
|
The remaining gap in global shipping fuel demand from 2020 is expected to be filled by costlier low-sulfur fuels such as marine gasoil or ultra-low-sulfur fuel oil.
|
|
In the 1950s and 1960s, the coal industry lost market share to cheap fuel oil, and expended enormous effort lobbying the federal government to protect it from cheap oil imports.
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Sengyick Tee, a Beijing-based consultant at SIA Energy, said Chinese independents have increased imports of other heavy crude grades such as Castilla from Colombia and fuel oil as replacement.
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It is also looking for 55,000 tonnes of low sulphur fuel oil for September delivery into Kaemari or Port Qasim in Karachi on a cost and freight (C&F) basis.
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Singapore was the first port to mandate the use of mass flow meters (MFMs) in 2017 for marine, or bunker, fuel oil sales from barges to the end-user vessels.
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Starting in 1994, during Bill Clinton's presidency, North Korea froze its plutonium program for eight years in return for heavy fuel oil, but that was before it had nuclear weapons.
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The group, which exports more than half of its output, said it was on track with its plans to deliver very low sulfur fuel oil by the beginning of 2020.
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SINGAPORE, June 1 (Reuters) - Iran has deferred at least one of its fuel oil loadings for June to Asia, according to a trade source with direct knowledge of the matter.
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Pyongyang has often promised to get rid of its nuclear weapons — in 2007, the communist state agreed to disable all nuclear facilities in return for fuel oil or economic aid.
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This misbegotten deal provided Pyongyang 500,000 tons of heavy fuel oil annually and two light-water nuclear reactors in exchange for the North's promise to abandon its nuclear-weapons efforts.
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The sources estimate GS Caltex, the nation's No.2 refiner, has exported between 100,000 and 200,000 tonnes of residual fuel oil as a result of the fire, mostly to China.
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In theory, the lighter and sweeter crude should be more valuable as it's easier and cheaper for refiners to process into fuels and yields less high-sulphur residual fuel oil.
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S-Oil will boost output over 13 of very low-sulphur fuel oil (VLSFO) to capitalise on strong VLSFO margins, said Ko Gwang-cheol, S-Oil's head of investment relations.
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LONDON, Feb 18 (Reuters) - * Portuguese refiner Galp is producing 200,000-220,000 tonnes per month of very low sulphur fuel oil (VLSFO), executive board member Carlos Silva told reporters on Tuesday.
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Bangladesh typically imports about 3.5 million tonnes of diesel and 2.5 million tonnes of fuel oil annually, making it one of the top 10 importers for those fuels in Asia.
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LONDON (Reuters) - U.S. refineries are struggling to meet booming demand for distillate fuel oil at home and in export markets which will leave the distillate market very tight in 2018.
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China's National Development and Reform Commission (NDRC) currently sets wholesale or city-gate gas prices by linking them to alternative fuels such as liquefied petroleum gas (LPG) and fuel oil.
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Bangladesh typically imports about 3.2 million tonnes of diesel and 2.5 million tonnes of fuel oil annually, making it one of the top 10 importers for those fuels in Asia.
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Because the power plants use expensive fuel oil and consumer tariffs are low, the state spends $1 billion-1.5 billion a year subsidising the sector, the government said last year.
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A rise in fuel oil fees will hit companies that have lagged behind a massive modernisation of refineries that was launched in 2011 to improve the quality of oil products.
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New rules will oblige ship owners to install exhaust gas cleaning systems ("scrubbers") or switch from burning high-sulphur residual fuel oil to lower-sulphur fuels such as marine gasoil.
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The low-sulfur fuel oil contract would be China's second bonded oil futures followed by crude oil futures <0#ISC:> on the Shanghai International Energy Exchange (INE), a ShFE subsidiary.
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Fuel oil is relatively easy to contain because volumes are lower and its viscosity means it is easier to extract from water, but even small volumes can harm marine life.
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Refiners have to decide whether to invest in new capacity to convert the old-style bunker shipping fuel - known as high-sulphur fuel oil - into higher quality products such as diesel.
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Robeco is selecting so-called complex refineries, plants with lots of units that can turn low-value fuel oil into higher-value products such as distillates, octane and low-sulphur fuel.
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Despite weak demand, the supply of distillate fuel oil is increasing because U.S. refineries are processing crude oil at a seasonal record high to meet strong demand from motorists for gasoline.
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Germany's Uniper upgraded its plant in Fujairah earlier this year to produce fuel oil with a content of 0.1% to 0.5% sulphur, while Vitol's Fujairah refinery is already producing compliant fuels.
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Germany's Uniper upgraded its plant in Fujairah earlier this year to produce fuel oil with a content of 0.1% to 0.5% sulfur, while Vitol's Fujairah refinery is already producing compliant fuels.
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Burning dead fish The biggest challenge for the shipping industry is moving away from heavy fuel oil, a type of diesel used by most of the world's tankers and cargo ships.
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By using the fuel mix — 20% biofuels and 80% fuel oil — Maersk reduced the vessel's CO2 emissions by 85% or 1,500 tons, the equivalent of what 200 households produce each year.
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The area in the front of the building where they had been placed took the full force of the gigantic blast caused by 4,800 pounds of fuel-oil-and-fertilizer explosive.
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But as the North's only ally and economic lifeline for food and fuel oil, China has more leverage than any other country to steer Mr. Kim toward a less hostile course.
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Combustion of crude, heavy fuel oil and diesel accounted for 68 percent of the fuels used to generate electricity in 2014, according to the Saudi Electricity and Co-Generation Regulatory Authority.
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The tanker was documented as loading fuel oil in Iraq in December, though the Iraqi port did not list it as being in port and its tracking system was switched off.
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Installing scrubbers involves a large upfront cost of several million dollars per ship but will allow them to continue burning cheaper high-sulfur fuel oil (capital investment to lower operating costs).
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But the main concern focuses on how many ship owners will switch to using marine gasoil, which is essentially the same product as road diesel, distillate fuel oil, and jet fuel.
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In April, the International Maritime Organization, the U.N. body that regulates the shipping industry, began laying the groundwork to ban ships from using or carrying heavy fuel oil in the Arctic.
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The IMO says that when the new rules come into force it will ban ships that do not have scrubbers from carrying any fuel oil, making it easier to catch cheaters.
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I stood only a few dozen feet above her deck, watched little rivulets of fuel oil leaking out of her like blood from a wound that still hadn't closed decades later.
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In 1950, the National Bituminous Coal Advisory Council complained Venezuelan residual fuel oil was being "dumped" in the U.S. market, harming national security ("Energy policy in America since 1945", Vietor, 1984).
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The future prices of high sulphur fuel oil (HSFO) dropped sharply over the past year ahead of the anticipated drop in demand from 2020 while gasoil prices are expected to rise.
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According to the U.S. Energy Information Administration, between 2202 and 2628, household energy expenditures decreased by 28500 percent for gasoline, 6900 percent for natural gas, and 2628 percent for fuel oil.
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SINGAPORE, Nov 7 (Reuters) - The Singapore Refining Company (SRC) supplied its first cargo of very low sulphur fuel oil (VLSFO) in October 2019, the company said in a statement on Thursday.
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U.S. RBOB gasoline futures fell 0.3 percent to $1.711 a gallon, while heating oil futures, a proxy for distillates like diesel and fuel oil, dropped 0.8 percent to $1.81 a gallon.
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Sluggish freight and industrial output are weighing on demand for distillate fuel oil, where consumption growth has been weakening since the start of 2015 and became negative in October (tmsnrt.rs/1Pg1jky).
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The barter deals, which Iranian industry sources said also included some done by Russian companies, have helped to wipe out the short-term fuel oil available for export, said the official.
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LONDON (Reuters) - The warmest winter for more than 30 years reduced fuel oil demand drastically in the United States in 2015/16 and left the country heavily oversupplied with heating oil.
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Once in Fujairah, the fuel oil will be fed into the local bunker market or blended with other grades to be redistributed to markets across Africa or Asia, the traders said.
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Mexico's finance ministry, in tandem with Pemex, reworked the coming year's sales formula, because of volatility in high-sulfur fuel oil prices that have generally been a component of Mexico's exports.
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In April 2019, an explosion and fire occurred at the plant's atmospheric residue desulphurisation unit (ARDS), a unit that removes sulphur from fuel oil, which is then used to produce gasoline.
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A scrubber is a product that strips out sulfur emissions and, in doing so, can allow shippers to use dirtier fuel oil but still meet new global requirements for lower emissions.
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The low-sulfur fuel oil poised to get more expensive is used to make something called needle coke, a key ingredient for both steelmaking and the anodes in lithium-ion batteries.
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Chinese marine fuel suppliers have signed up short-term deals to buy very low-sulphur fuel oil (VLSFO) from companies like oil major Shell, Germany's Uniper and U.S. commodities trader Freepoint.
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"It's not so much a matter of whether they can physically produce it, they need to invest in the infrastructure to do so," said a senior Singapore-based fuel oil trader.
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The November fuel oil refining margins futures swap to Dubai crude has risen by $3.53 a barrel since the start of the fourth quarter to minus $1.41 a barrel on Nov.
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SINGAPORE, Sept 19 (Reuters) - Royal Dutch Shell said on Thursday that it has loaded its first cargo of low-sulphur fuel oil (LSFO) from its Pulau Bukom refining site in Singapore.
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State-owned BPC is seeking 965,000 tonnes of 500 ppm sulphur gasoil, 120,000 tonnes of 180-centistoke high sulphur fuel oil and 90,000 tonnes of jet fuel, a tender document showed.
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SINGAPORE, Sept 19 (Reuters) - Royal Dutch Shell said on Thursday that it has loaded its first cargo of low-sulfur fuel oil (LSFO) from its Pulau Bukom refining site in Singapore.
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"Fuel oil, for years the junkyard dog of the barrel, is now at the forefront of everyone's minds," said Matt Stanley, a fuel broker at Freight Investor Services (FIS) in Dubai.
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Fuel oil sales to power ships in Singapore, the world's biggest ship fuel port, rose to an all-time high in January, while sales from February to March set monthly records.
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Ships without sulfur-stripping technologies, or scrubbers, would have to burn costlier low-sulfur fuels such as marine gasoil or low-sulfur fuel oil to comply with the clean air rules.
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"The contract will help expand China's pricing influence in global bunker fuel oil market and help China to improve its maritime transportation capacity," ShFe Chairman Jiang Yan said in a statement.
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Though 2016 should add to the misery of 2015, some supply tightness may support the fuel oil market as Russian exports could decline, reducing the flow of cargoes from Europe to Asia.
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It was documented as loading fuel oil in the Iraqi port of Basra in December, though Basra did not list it as being in port and its tracking system was switched off.
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In Lebanon, for instance, an IRC report found that 87,700 Syrian refugee families each given $575 via ATM cards spent the money on food, clothes, fuel oil and getting out of debt.
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China, the main source of North Korea's fuel, did not export any gasoline, jet fuel, diesel or fuel oil to its neighbor last month, data from the General Administration of Customs showed.
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The Singapore 180-centistoke (cst) fuel oil refining margin, or crack, for November was at $1.43 a barrel above Dubai crude oil during afternoon trade on Friday, data on Refinitiv Eikon showed.
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Schmack pointed to the account of a fuel oil deliveryman, Tom Braddy, and others who placed Maria and her friend, Kathy Sigman, on the street corner between 21957:30 and 7 p.m.
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SINGAPORE, April 11 (Reuters) - Singapore-based Asia Pacific Exchange (APEX) plans to launch its first fuel oil futures contract on Thursday evening, targeting regional and international industry participants, a company spokeswoman said.
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Feid traded the financial fuel oil market and feedstocks for BP, while Vasti, a 34-year veteran, worked at BP's former Texas City refinery for eight years before joining the trade group.
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Under the project, the company will build a residual fuel oil upgrading system and an olefin production system that will churn out 405,000 tonnes of polypropylene a year, along with other products.
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The United States exported record quantities of natural gas, propane, gasoline, distillate fuel oil and light crude last year while continuing to import the heavy oils needed by its refineries (tmsnrt.rs/2moUMBU).
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The Grace 1 was documented as loading fuel oil in Iraq in December, although the Iraqi port did not list it as being in port and its tracking system was switched off.
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A Chimbusco executive told Reuters on Thursday that under the deal the marine fuel company will supply 500,000 tonnes of low-sulphur fuel oil to COSCO Shipping Lines Co Ltd next year.
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The heavy fuel oil is also flammable, and could burn if exposed to the condensate fire—surface slicks at the Deepwater Horizon spill were treated with burning agents to reduce their size.
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Experts worry the sinking of the Sanchi will likely expel the remaining condensate and the tanker's bunker fuel, or the heavy fuel oil that powers a ship's engines, contaminating the surrounding waters.
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Fuel oil inventories have registered five straight weeks of declines and are 6% below their year-ago levels, the data showed, raising concerns that tightening supplies could struggle to meet current demand.
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Fuel oil inventories have posted five straight weeks of declines and are 6% below their year-ago levels, the data showed, fuelling concerns that tightening supplies will struggle to meet current demand.
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Refiners have reconfigured their equipment to maximise output of middle distillates and minimise production of residual fuel oil ahead of the introduction of new marine fuel regulations at the start of 2020.
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LONDON (Reuters) - The Arctic is thawing even faster than lawmakers can formulate new rules to prevent the environmental threat of heavy fuel oil pollution from ships plying an increasingly popular trade route.
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These include a petrochemical known as mixed aromatics, used to raise the octane level of gasoline, and light cycle oil, a residue product from fuel oil upgrading that is similar to diesel.
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Southwest's unit costs, excluding fuel, oil expense and some items, increased 6.9 percent in the quarter and the company expects the metric to increase by about six percent in the current quarter.
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Vitol Asia gave the lowest offers, however, at premiums to Middle East quotes for gasoline slightly under $4.25 a barrel and fuel oil at about $22.30 a tonne, the BPC official said.
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The fire-struck storage tank was said to have contained fuel oil, according to a Tankstore employee who declined to be identified as he is not authorized to speak to the media.
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Regulations adopted by the International Maritime Organization will require shipping firms to switch from using heavy fuel oil to middle distillates unless they install expensive scrubbers to clean up their sulfur emissions.
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In the United States, the sharp rise in the price of fuel oil and natural gas during the 22018s and again in the early 20173s provided a temporary boost to mine employment.
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Miners use heavy fuel oil to generate electricity at remote sites; they also use it for transport, with large trucks and other equipment guzzling down millions of gallons each day across industry.
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And on North Korea, the last time there was an attempted deal, Pyongyang was promised 500,000 tons of fuel oil and two nuclear power reactors in exchange for halting their nuclear development.
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The new rules will increase gasoil consumption by close to 1 million barrel per day at the expense of the high-sulphur fuel oil that is typically used to power ship engines.
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The ICCT has estimated that cruise ships with scrubbers will consume around 4 million tons of heavy fuel oil in 2020 and will discharge 180 million tons of contaminated scrubber washwater overboard.
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Refiners are also seeking more of the heavy sweet crude Iran and Venezuela once provided in abundance to produce low-sulfur fuel oil ahead of new shipping emissions rules due next year.
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The project is expected to be completed in May 2020 and will augment Vitol's refinery in Fujairah in the United Arab Emirates in providing low-sulphur fuel oil for ships, Kho said.
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The International Maritime Organization is moving toward a ban on Arctic ships' use of heavy fuel oil, which emits soot and other pollution that darkens sea ice, thereby accelerating sea ice melt.
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Crude will account for more than 90 percent of feedstock at the independents in 2018, as they shift away from fuel oil, said Zhang, vice president for trading and marketing at Dongming.
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DHAKA, July 31 (Reuters) - Bangladesh Petroleum Corp (BPC) has received offers in its first tender to buy fuel oil at premiums lower that its term deals, two company sources said on Sunday.
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GS Caltex is exporting most of its excess fuel oil cargoes since the unit shutdown to China at the expense of Singaporean exports to China, said a trade source in South Korea.
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SINGAPORE/BANGKOK (Reuters) - Thailand's largest refiner Thai Oil PCL will stop producing fuel oil from 225 once it completes a $22018-billion upgrade that will boost output of clean fuels, officials said.
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But only around 1 percent of the world's crude oil exports are heavy and sweet varieties, ideal for refining into Low-Sulfur Fuel Oil (LSFO), with West Africa providing the lion's share.
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Generated by the fuel used in ships, which is primarily heavy fuel oil derived from crude oil distillation, these SOx emissions are responsible for a wide range of health and environmental issues.
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The supply lag will mean China will not be able to help relieve a regional shortage of very low sulphur fuel oil (VLSFO), a marine fuel with a maximum of 0.5% sulphur.
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"Dragon was out in the market seeking condensate and fuel oil, but it's not clear if the new management has got that much expertise running the plant," said one of the sources.
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A sharp fall in gasoline and fuel oil margins in recent days precipitated the fall, with a relative strength in middle distillates failing to keep overall margins in positive territory, traders said.
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Once the rules take effect, the shipping industry will need to switch to either marine gasoil, low sulfur residual fuel oil or a blend of high sulfur and ultra low sulfur fuel.
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China aims to launch a bonded low-sulfur bunker fuel oil contract that will allow foreign investors to participate in trading by the end of 2019, the Shanghai Futures Exchange (ShFE) said.
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Bangladesh Petroleum Corp was looking to buy up to 41.29.73 million tonnes of gasoil, jet fuel and fuel oil, for delivery in the second half of 2017, in a tender issued last month.
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In another sign of the impact of IMO 2020, China said on July 4 that it planned to launch a futures contract for low-sulphur fuel oil by the end of the year.
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In another sign of the impact of IMO 2020, China said on July 23 that it planned to launch a futures contract for low-sulphur fuel oil by the end of the year.
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The South Asian nation typically ships in around 2.5 million tonnes of fuel oil and 3.2 million tonnes of diesel annually, making it one of the top 10 such importers in the region.
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"Robust power generation demand in the Middle East (notably Saudi Arabia) should result in lower fuel oil outflows from the region," said Iman Nasseri, managing director of energy consultancy FGE's Middle East office.
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"The more positive outlook for scrubbers could reinforce the trend seen over recent months of a narrowing discount of fuel oil relative to gasoil," Vienna-based consultancy JBC Energy said in a note.
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The change in regulations in 2020 forces a portion of the world's fleet to switch to lower sulfur, but higher cost, fuels such as marine gasoil (MGO) and ultra low sulfur fuel oil.
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"Given the complexity of our refineries we are well positioned," said Erginbilgic, adding that 47 percent of output from BP's plants was distillates while less than 3 percent was high sulfur fuel oil.
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The U.S. Energy Information Administration is forecasting distillate fuel oil consumption will rise by 130,000 barrels per day in 2017, after declining by 180,000 in 2016 ("Short-Term Energy Outlook", EIA, Oct 2016).
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The Venezuelan company has used a terminal at the port of Matanzas as a conduit mostly for exporting fuel oil, according to two people familiar with the operations and Thomson Reuters shipping data.
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The shrinking profits posted by China's state oil and gas producers for last year have highlighted their growing challenges from falling output at aging wells and excess supply in domestic fuel oil markets.
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Property Market Group also owns, or is buying, the ghostly remains of the Bayside Fuel Oil Co. and a food-truck parking lot between the ancient bridges on Union Street and Carroll Street.
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In those talks, the North offered to take incremental steps toward giving up its nuclear program, beginning with a freeze, and demanded that the United States reciprocate with incentives like fuel oil shipments.
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"I would like to see global standard ISO certificated low sulfur fuel oil," Ivar Myklebust, chief executive of Norwegian shipping firm Hoegh Autoliners, told a panel discussion during a shipping conference in Oslo.
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Since the lifting of sanctions, fuel oil exports directly from Iran to Singapore, a major trading and ship fuelling hub for Asia, have totalled 688,000 tonnes, according to official data compiled by Reuters.
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Kim added that the company's vacuum residue desulfurisation unit (VRDS), which can produce 40,000 barrels per day (bpd) of low-sulphur fuel oil, would start commercial operations in March or April next year.
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The lower fuel oil imports are occurring as Pakistan LNG, cancelled a tender seeking six cargoes of liquefied natural gas (LNG) for delivery in July and August, two industry sources said on Wednesday.
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ANTWERP, Jan 30 (Reuters) - Since Saras launched its very low-sulphur fuel oil (VLSFO) blend in early September its sales have topped 120,000 tonnes, an executive at the Italian refiner said on Thursday.
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In the event of a shipwreck, a heavy fuel oil spill has been identified as the top threat to Arctic marine life and to Arctic residents who depend on this sea for food.
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Due to the shortage, the island seems to be prioritizing power generation over motor fuel supply and fuel oil to industrial customers, said analyst Jorge Piñon from the University of Texas at Austin.
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Trade is in turn a key driver of demand for middle distillates (including jet fuel, road diesel and marine gasoil) as well as the heavy fuel oil used in ocean shipping (tmsnrt.rs/2hnFlYM).
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We know they can result in blandishments (as per North Korea's custom of requiring "money for meetings") and in resource transfers (as with the Clinton Administration's Agreed Framework shipments of heavy fuel oil).
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A massive 90% of world trade is carried out by sea, via 20083,000 ships that consumed nearly 2 billion barrels1 of heavy fuel oil in 210 as they transported all kinds of goods.
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"We do have residue hydrodesulphurization equipment at our refinery, but we don't have enough supporting facilities such as pipelines and oil tanks," he said, referring to units that remove sulphur from fuel oil.
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Another example of more sustainable shipping is Finnish firm Viking Line's M/S Viking Grace, a hybrid ship which has the capacity to use diesel, "traditional heavy fuel oil", or liquefied natural gas.
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The IMO rules ban ships from using fuel oil with a sulphur content above 0.5% next year, compared with 3.5% now, unless they are equipped with exhaust "scrubbers" to clean up sulphur emissions.
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The heavy fuel oil shipments and light-water reactors were delivered only partially or not at all, Leonid Petrov, a Korean studies researcher at the Australian National University, told CNBC earlier this week.
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Position-building in gasoil is accelerating as funds anticipate new bunker fuel regulations likely to boost consumption of clean-burning gasoil at the expense of dirty fuel oil from the start of 2020.
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"Debates are still raging about whether to hike the export fee for fuel oil or not," the industry source said, requesting anonymity as he is not authorised to speak publicly on the issue.
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The higher margins are bolstering the values for regional crude oil grades that yield a large volume of fuel oil when refined, particularly at less complex plants, said three traders in that market.
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The state-owned company is seeking 210 million tonnes to 215 million tonnes of 2700ppm sulphur gasoil, 6003,2600 tonnes of jet fuel and 2000,2160 to 140,000 tonnes of 180-cst high sulphur fuel oil.
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"Secondary units upgrades in Europe and South Korea, loss of low-viscosity Iranian supplies which is vital for blending West of Suez material," have all contributed to the stronger fuel oil margins, said Nah.
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APEX also plans to launch a low-sulphur fuel oil contract (LSFO) to meet the expected surge in demand for cleaner fuel as new global rules on marine fuels come into effect in 2020.
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TANESCO has to resort to costly fuel oil or diesel plants to fill the shortfall during dry spells and many of its arrears are due to the costs of private power and fuel suppliers.
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Mexico has faced challenges in executing the hedge this year as oil prices have been volatile and new International Maritime Organization standards set to come into effect in 2020 have roiled fuel oil markets.
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That is because large volumes of fuel oil are blended with so-called cutter stocks by suppliers and sold on through an extensive network of middlemen before finding their way into ships' fuel tanks.
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The ARDS unit removes sulphur from fuel oil which is then passed through a residue fluid catalytic cracker (RFCC) - a secondary refining unit that upgrades residual fuels into higher quality products such as gasoline.
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Shipping data in Thomson Reuters Eikon shows that between 26 and 30 million barrels of crude or fuel oil are sitting on around 20 supertankers just off of Singapore and southern Malaysia's Johor state.
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SINGAPORE (Reuters) - Asian refining margins have tumbled more than 50% since mid-July on anticipation of plummeting demand for high sulfur fuel oil (HSFO) ahead of a shift to cleaner marine fuels next year.
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The ARDS unit removes sulfur from fuel oil which is then passed through a residue fluid catalytic cracker (RFCC) - a secondary refining unit that upgrades residual fuels into higher quality products such as gasoline.
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Crude combustion accounted for 44 percent of fuel burned in power plants with heavy fuel oil accounting for another 13 percent and diesel for 11 percent ("Activities and achievements of the authority", ECRA, 2015).
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The Explorer Pipeline, which hauls about 660,000 barrels a day of gasoline, diesel, fuel oil and jet fuel from the Gulf Coast to the Midwest, was due to shut its main lines on Wednesday.
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Mexico had faced challenges in executing the hedge this year as oil prices have been volatile and new International Maritime Organization standards set to come into effect in 2020 have roiled fuel oil markets.
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They predicted most ship owners would leave installations until 2018/19 to delay capital costs as late as possible and avoid incurring costs until they could take advantage of discounted high-sulfur fuel oil.
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Now that they can buy crude, instead of relying on fuel oil as a feedstock, these refineries are increasing their runs, but also adding to a surplus of refined products in the Chinese market.
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This will mean increasing the price to consumers of gasoline, diesel, kerosene and fuel oil, which are now at 230-803 percent of their international cost, said the letter, which is dated Jan. 280.
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"BP has developed a marine fuel offer that includes this new VLSFO along with marine gas oil and also high sulfur fuel oil for vessels that are equipped with scrubbers (sulfur filters)," it said.
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The Singapore storage lease comes at a time of a steeply backwardated market structure, which has led several suppliers not to renew their fuel oil storage contracts in Singapore this year, the sources said.
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One refining official based in Seoul said their plant primarily runs high-sulphur crude oil so they take the fuel oil produced after initial refining and remove the sulphur through a residue desulphurization process.
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So far production of distillate fuel oil has increased by 115,000 bpd compared with 2018, while gasoline output is also up by 85,000 bpd, as refiners squeeze extra valuable fuels from their raw inputs.
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"BP has developed a marine fuel offer that includes this new VLSFO along with marine gas oil and also high sulphur fuel oil for vessels that are equipped with scrubbers (sulphur filters)," it said.
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After many more checks and clearance by our legal advisers, the article uncovering Iranian fuel oil shipments despite U.S. sanctions was published on March 20, two months after the first chatter of such trades.
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The last major oil tanker disaster was the sinking of the Prestige off Spain in November 2002, which was carrying 77,000 tonnes of heavy fuel oil and caused one of Europe's worst environmental catastrophes.
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It will continue to import North Korean coal and iron ore (and send back fuel oil, food and consumer goods) as long as the money is not spent on military activities—an unenforceable condition.
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Global inventories of refined products - made up from light and middle distillates like gasoline and diesel, as well as residual fuel such as fuel oil - have all fallen since the beginning of the month.
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LONDON (Reuters) - Margins for European high sulphur fuel oil (HSFO), used to power ships, sank this week as preparations for a global shift to cleaner maritime fuel next year start to weigh on prices.
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Fuel oil prices to cement factories will rise by 40 percent to 3,500 Egyptian pounds per tonne from 2,500 pounds a tonne, but gas prices to the industrial sector will remain stable, Molla said.
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Vitol and Glencore both have operations at Fujairah, allowing them to use less expensive smaller vessels to deliver gasoline to Iran or to load fuel oil from there, according to the Iranian oil officials.
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One of the sources said the plan is to process heavy, low-sulfur crudes like Brazilian grades to produce a range of products, including maximum 0.5 percent sulfur fuel oil or distillate marine fuels.
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After two years in which gasoline was the main driver of global oil demand in 2015/16, demand growth is rotating to distillate fuel oil, and that looks set to continue through 2018/19.
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EWP issued a tender on Tuesday seeking to import 30,000 tonnes of low-sulphur fuel oil (LSFO) with a maximum sulphur content of 0.3 percent for late July arrival, according to the utility's website.
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The investment decisions will also depend on new norms for global marine fuel quality to be adopted in 2020 and which are expected to reduce prices of high sulfur fuel oil, the blogpost said.
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The International Maritime Organization's (IMO) new rules on marine fuels are set to take effect from January 2000, reducing the sulfur content of fuel oil to 01403% from the current 20140% to combat pollution.
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Traders are prepared to pay near-record premiums for sweeter barrels as new marine fuel regulations from 2020 encourage refiners to switch to crude grades that produce smaller quantities of high-sulphur fuel oil.
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The state-run company "cannot comply with all the committed volume for exports" and the Conoco action imperils its ability to ship fuel oil to China or access inventories to be exported from Bonaire.
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Consumption of distillate fuel oil was up by 3% in the three months from February to April compared with the same period a year earlier, according to data from the U.S. Energy Information Administration.
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For one thing, it leaves out the annual $14.5 billion in consumption subsidies — things like the Low Income Home Energy Assistance Program (LIHEAP), which helps lower-income residents pay their (fuel oil) heating bills.
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So those if you consider those replace, not renewable, but this is what they say that's replicable energy comes out will push oil, fossil fuel, oil and energy price will continue to go down.
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In a bid to recapture lost market share and bolster revenue, state-owned National Iranian Oil Co (NIOC) quickly ramped up exports of fuel oil once U.S. imposed economic sanctions were lifted in January.
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"If fuel oil demand falls, we will switch our configuration to produce bitumen which is in high demand in India due to its road-building program," said an official from Indian Oil Corp (IOC.NS).
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Bunker fuel is also known as high-sulfur fuel oil because it contains up to 250,22050 times as much sulfur as the diesel you put in your Volkswagen, according to researchers at Columbia University.
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S-Oil, the country's third-biggest refiner, is estimated to have exported 120,000 tonnes of 380-cantistoke fuel oil into China in September for use as a marine fuel through three 40,000 tonne cargoes.
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The exchange, which lists multiple commodity contracts ranging from iron ore to coal and refined products such as fuel oil, hiked the maintenance margins of some of these contracts with effect from Nov. 33.
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LONDON, Feb 24 (Reuters) - * Danish shipping group A.P. Moller-Maersk plans to raise the proportion of high sulphur fuel oil it consumes from 10% to 25% by the year-end, CEO Soren Skou says.
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Aramco cut the January OSPs for Arab Medium and Arab Heavy crude after high-sulphur fuel oil (HSFO) margins plunged to record lows ahead of cleaner ship fuel rules set to start in January.
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Based in western Japan, Japan's second-biggest utility had said in March 2015 it would convert its Ako power station, which has two 600 megawatt units, to coal from fuel oil and crude oil.
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High-sulfur fuel oil premiums in Asia surged to a record on Thursday, one of the first signs of the impact of a shift in global ship fuel rules set to occur in 2020.
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Exxon's expansion project, which is expected to come online in 2023, would convert fuel oil and other residual crude products into higher-value lube base stocks and distillates to help meet stricter emissions rules.
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"Unfortunately things are not looking so bright for the fuel oil market in 22016 due to a number of factors on both the supply and demand side," said Ralph Leszczynski of shipping brokerage Banchero Costa.
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Depending on the performance of the 380-cst HSFO futures contract, APEX may subsequently launch similar low-sulphur fuel oil (LSFO) and marine gasoil (MGO) futures contracts that meet changing industry demands, the spokeswoman said.
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But they will be subject to a ceiling price set according to the landed price of alternatives such as fuel oil, naphtha, coal and liquefied natural gas, Oil Minister Dharmendra Pradhan told a news conference.
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In July, Sudiono said that one of the reasons for Indonesia not enforcing the low-sulfur rule was because state oil company PT Pertamina still produces large amounts high-sulfur fuel oil from its refineries.
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The high premiums reflect the blending value of the low-sulphur crudes for mixing with higher sulphur residue fuel onboard ships or in storage tanks to create low-sulphur fuel oil (LSFO), the sources said.
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COSTS AND BENEFITS The United States consumed 3.4 billion barrels of gasoline and 1.5 billion barrels of distillate fuel oil in 2018, according to the U.S. Energy Information Administration ( "Petroleum Supply Monthly," EIA, March 2019).
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COSTS AND BENEFITS The United States consumed 3.4 billion barrels of gasoline and 1.5 billion barrels of distillate fuel oil in 2018, according to the U.S. Energy Information Administration ( "Petroleum Supply Monthly", EIA, March 2019).
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Vermont and the three men were also charged with one count of conspiracy to commit criminal breach of trust by misappropriating about 250 tonnes of marine fuel oil entrusted to Vermont Bunkering, the CPIB said.
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Most of the rest of the production is distillate (30 percent), jet fuel (10 percent), petroleum coke (5 percent), heavy fuel oil (2.5 percent) and a host of more minor products like lubricants (1 percent).
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In the longer term, with developed and emerging markets on track for expansion next year, strong demand for distillate fuel oil should keep margins firm and impart an upward bias to crude prices in 2018.
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SINGAPORE/BEIJING (Reuters) - A tanker carrying Iranian fuel oil in violation of U.S. sanctions has unloaded the cargo into storage tanks near the Chinese city of Zhoushan, according to ship tracking data on Refinitiv Eikon.
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"Fuel oil cracks should weaken as we move through (second-half 2018) as seasonal demand support wanes and destocking pressures from a highly backwardated market ... compensate for growing tightness in the fundamental balance," JBC said.
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That deal may include re-exporting and supplying fuel oil to power plants in Saudi Arabia, meeting the needs of the Egyptian market and providing fuel to ships in the region, according to the statement.
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The refinery is seeking 62,000 tonnes of diesel and 30,000 metric tonnes of heavy fuel oil mazut for power plants in Aden as fuel supplies run low because of Yemen's three-year-old civil war.
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In what would be one of the top Asian refiner's biggest shipping investments, Sinopec hopes the fleet would serve its stated ambition to become a top regional supplier of very low sulfur fuel oil (VLSFO).
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Margins for fuel oil, a product heavy in sulfur that is increasingly restricted worldwide due to the pollutants it contains, have outperformed cleaner fuels such as diesel and gasoline for most of the past month.
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U.S. residual fuel oil production in the past four weeks fell by 55,000 bpd, according to the U.S. Energy Information Administration, which JBC said could be due to refineries using light shale oil or condensates.
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Consumption of low-sulphur distillate fuel oil in the United States is rising at the fastest rate in two years and record exports point to strong demand in Latin America as well as other markets.
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Distillate fuel oil is used mostly for high-horsepower diesel engines used in trucks, trains, barges and pipelines as well as some industrial engines, so demand is closely linked to manufacturing activity and freight movements.
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Ecuador's state-run Petroecuador is offering to buy up to 1.89 million barrels of cutter stock to produce fuel oil, with deliveries starting in early October at its Esmeraldas terminal, according to a separate tender.
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The Central Asian country's oil refineries could reduce fuel oil exports by around 35 percent this year, from 2.1 million tonnes in 2017, while vacuum gasoil (VGO) overseas shipments could be halved to 800,000 tonnes.
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The council warned that imported fuel oil was displacing coal as a source of power generation and heating fuel and warned of the threat to national security if imports were cut off for any reason.
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In this process, tires are heated in the absence of oxygen and the gases released are condensed into a low-quality oil that can be used in asphalt or fuel oil, depending on its purity.
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Tighter heavy crude supplies have reduced fuel oil output and helped push profits on making that product in Asia to an all-time high of a 59 cents premium against Dubai crude on June 22.
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In 1994, the US and North Korea signed the Agreed Framework, in which the North agreed to freeze its nuclear reactors in exchange for two nuclear power reactors and fuel oil from the United States.
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The new IMO regulations will reduce the allowed content of sulfur in shipping fuel, known as bunker fuel, from 3.5 percent to 0.5 percent, increasing demand for diesel at the expense of dirtier fuel oil.
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The sharp drop in high-sulfur fuel oil prices also coincided with Mexican state-owned Pemex's decision to raise September prices for its Maya sour crude by lifting its K factor to $3.75 a barrel.
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NEW DELHI, Feb 1 (Reuters) - India has abolished import tax on very low sulphur fuel oil (VLSFO) used by ships, according to federal budget documents for 2020/21, to reduce costs for local shipping companies.
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The state-owned company was seeking between 22.5 million tonnes and 210 million tonnes of 210ppm sulphur gasoil, 2700,6003 tonnes of jet fuel and 2600,2000 to 2160,000 tonnes of 180-cst high-sulphur fuel oil.
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"Unipec is likely to win the tender for both gasoil and jet fuel, and ENOC will get the tender for fuel oil as they came up with the best prices," one of the officials said.
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"One of our June fuel oil cargoes had to be deferred for a later date," said the Singapore-based trader who declined to be identified as he is not allowed to speak to the media.
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Starting that year, ships will have to use marine fuel, which primarily consists of residual fuel oil, with a maximum sulfur content of 0.5 percent under International Maritime Organization (IMO) rules to reduce air pollution.
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Refiners have already increased production of low-sulphur fuel oil (LSFO) and marine gasoil (MGO) to meet demand for the cleaner shipping fuels after the International Maritime Organization (IMO) introduced the new rules this year.
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The companies are now working on transferring the remaining 600 metric tons of fuel oil on the ship to different tanks, they said, which will be pumped onto a separate barge that is en route.
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In Japan, the country's second-biggest refiner Idemitsu Kosan Co is taking a more cautious stance, increasing capacity for low sulphur fuel oil (LSFO), but also relying on blending to produce IMO223 compliant bunker fuel.
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FGE's Paravaikkarasu pointed to rising exports from Latin America and the former Soviet Union in the fourth quarter as refiners there increase run rates and utilities switch away from burning fuel oil to natural gas.
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Until fairly recently, the conventional wisdom was that highly efficient natural gas furnaces were the environmentally preferable option, given that electrical appliances often draw on coal-heavy grid power (and fuel oil is just filthy).
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ZHOUSHAN, China Oct 18 (Reuters) - * China Marine Bunker Co, a unit of PetroChina , says it has started to supply bonded low-sulphur fuel oil (LSFO) to all major Chinese ports before tighter fuel standards come into force in 2020 * General Manager Sun Hougang said at an industry conference in Zhoushan that more than 0003,000 tonnes of LSFO had already entered the company's bonded warehouses in China * International Maritime Organisation (IMO) rules ban ships from using fuel oil with a sulphur content above 0.5% from Jan.
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BEIJING, March 16 (Reuters) - * Asia's top oil refinery Sinopec said on Monday that its Guangzhou refinery is able to produce very low-sulphur fuel oil (VLSFO) for the marine bunker fuel market * The 1,600-tonne cargo was Guangzhou's first batch of VLSFO production and was delivered to the storage tank at Sinopec Fuel Oil Sales Co via pipeline * The marine fuel at Guangzhou refinery was mixed with residual oil and diesel, said Sinopec (Reporting by Muyu Xu and Tom Daly; editing by Christian Schmollinger)
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