Road fuels
Overview
Fuels for road transportation continue to drive the refining industry. But gasoline and diesel are coming under increasing pressure from low-carbon targets being implemented around the world.
Global oversupply, new regulatory measures and rapidly increasing competition for export markets are affecting refining margins. The need for accurate insight and data is more critical than ever.
Argus road fuels coverage includes price assessments and key insights into both conventional fuels - gasoline, distillates and blending components – as well as biofuels, in each key region. Our trusted prices are delivered alongside the latest market-moving news, in-depth analysis, supply and demand dynamics, price forecasts and forward curves data.
Latest road fuels news
Browse the latest market moving news on the global road fuels industry.
Mideast Gulf gasoline premiums at four-year low
Mideast Gulf gasoline premiums at four-year low
Dubai, 28 May (Argus) — Gasoline premiums in the Middle East fell to levels last recorded during the Covid-19 pandemic as the region became oversupplied as a result of high refinery runs. The 92R Mideast Gulf gasoline premium declined to a four-year low of $1.80/bl on 27 May, while the backwardation in the product's market structure, where prompt-month gasoline cargoes are sold at a premium to forward months, has been narrowing in recent trading sessions. The premium was last lower in July 2020 with the steep fall in demand during pandemic lockdowns. Refinery runs have been high with the regional refinery maintenance season drawing to an end. "Many refineries are now producing at full throttle as expectations are still high for seasonal demand," a Dubai-based gasoline trader said. A 45-day turnaround at Saudi Aramco and Total's joint-venture 460,000 b/d Satorp refinery in Jubail, Saudi Arabia, will end in mid-June, adding to regional gasoline supplies. Gasoline exports from the Middle East typically head to Pakistan and east Africa, but there have been unusual flows from Saudi Arabia to west of Suez markets. Around 189,000t of Saudi gasoline arrived in the Netherlands, Latvia and Belgium in April, the highest since at least May 2019, according to Kpler data. The rare flows could have also emerged because of a relatively heavy maintenance season in Europe, but escalating freight rates and subdued domestic gasoline demand in Europe are likely to discourage arbitrage economics. Singapore was another unusual destination for gasoline cargoes from the UAE, Saudi Arabia and Oman this month, with imports touching 190,000t, only around 50,000t lower from the record volume in February. Slimmer demand from Iraq, a traditional importer, has been impacting the persistent supply glut as have higher exports from Kuwait, a significant importer in the past. Iraqi state-owned Somo has trimmed down its requirements following the start-up of the 140,000 b/d Karbala refinery, built to reduce the country's dependence on product imports. Somo's new term import requirements for May-December fell to 13.55mn bl, from the 15.82mn bl imported during October 2023-March 2024. Kuwait's exports rose to 259,000t in 2023 from zero in 2022, following the completion of the Clean Fuels Project (CFP). The resolution of a series of issues at the Mina Abdullah and Mina al-Ahmadi refineries, which curtailed exports in the first quarter, will enable state-owned KPC to make more cargoes available, adding to the regional glut, traders said. KPC recently offered non-oxygenated gasoline blendstock for loading in June. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Oversupply drops Germany's E5 gasoline prices
Oversupply drops Germany's E5 gasoline prices
Hamburg, 27 May (Argus) — The end of this year's maintenance season and a general oversupply are pushing down E5 gasoline prices in Germany. Meanwhile, dumping prices for diesel in the south and east are causing disruptions. Traders are offering E5 gasoline at significantly lower prices at the end of May than in April. The prices in the past week, which were €4.60/100l lower than last month, have dropped because the maintenance season in Europe is largely over and refineries have resumed production. At the same time, imports are increasing. Gasoline cargo imports from trading hub Amsterdam-Rotterdam-Antwerp to Germany steadily increased in recent weeks. German seaports received 8,500 b/d in May, according to data from Vortexa. German gasoline exports by cargo were down to 3,700 b/d. At the same time, market participants in the south and east are struggling to understand the unusually large price differences in the respective regions. According to traders, some sellers have been offering diesel with free delivery since at least the end of 2023, with prices €4-6/100l below domestic price quotations and thus far below usual purchase prices. As a result, other traders cannot compete. Furthermore, various customs offices have been made aware of this price discrepancy and asked to investigate, but a result is still pending, market participants said. The General Customs Directorate cannot not provide information on any ongoing investigations, it told Argus . The companies that offer diesel so cheaply have only been active for a short time or were not previously active in the oil market. Two of them confirmed to Argus that they sell diesel below domestic price levels, but did not provide information on who exactly imports the goods to Germany and puts them on the market, meaning who is responsible for the energy tax, EBV contribution, CO2 levy and THG costs. It was just typical trading business, they said. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Dangote refinery to export 10ppm diesel in June
Dangote refinery to export 10ppm diesel in June
London, 24 May (Argus) — Nigeria's 650,000 b/d Dangote refinery will start exporting diesel conforming to European specifications along with gasoline sales in June, its vice president for oil and gas Devakumar Edwin has said. "We expect before the end of next month we'll also have gasoline in the market, and we'll also have Euro V diesel for export, that is below 10ppm", Edwin said this week at a Society of Petroleum Engineers event in Lagos. Dangote chief executive Aliko Dangote reiterated the planned June start for gasoline on 17 May. Dangote started its crude distillation unit in January, and received approval to start up a mild hydrocracker with its desulphurisation units in March. A source at Nigeria's downstream regulator NMDPRA said the refinery has now received approval to start its residual fluid catalytic cracker. Dangote started naphtha exports in March, low-sulphur straight run fuel oil (LSSR) exports in May and began selling diesel and jet fuel domestically in April. It has a waiver from NMDPRA to sell diesel with sulphur levels above 600ppm into the local market. At full capacity Dangote will be able to more than meet Nigerian domestic gasoline demand. But a trader in the region said gasoline production is unlikely to start next month, citing the amount of cargoes to be delivered to the country. Exports of naphtha, a key blending component in finished-grade gasoline, are continuing from the refinery, with 80,000t due to load on 31 May according to Kpler. And Edwin hinted at a slowing of spot sales. "We had a meeting to see, probably, how we can slow down our sales because we've already made quite a few forward bookings," he said this week. "Export, for example, aviation/jet, the last vessel went to the Caribbean islands. The next vessel, we are booking for US market." Dangote recently added TotalEnergies as a buyer in a deal that could see the French company take refined products for its African network of 4,800 retail fuel stations, including more than 540 in Nigeria. The deal could also see the oil major supply crude to the refinery. A source told Argus there is a deal for TotalEnergies to supply two crude cargoes each month, or around 2mn bl. Indications based on the refinery's slate to date and TotalEnergies' Nigerian crude equity suggest one cargo of the very light Amenam blend one of Bonny Light. By Adebiyi Olusolape and George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Somo issues first gasoil export tender: Correction
Somo issues first gasoil export tender: Correction
Corrects sulphur content in paragraph 2 Dubai, 23 May (Argus) — Iraq's state-owned Somo issued its first gasoil export tender, likely because additional volumes are coming from its new 140,000 b/d Karbala refinery. Somo is offering 82,000t (612,000 bl) of gasoil with a maximum sulphur content of 0.9pc over a three-month period from the date of signing the deal, with an option to extend the agreement upon Somo's approval. Somo indicates gasoil is to load from North Company refineries. The bids are to be submitted by 26 May. This is the very first gasoil export tender issued by Somo as Iraq has historically been heavily dependent on gasoil imports to satisfy its domestic demand. Market participants suggest Iraq can now afford to export gasoil because it has ramped up its new 140,000 b/d Karbala refinery south of Baghdad. Karbala refinery began commercial operations in April last year and primarily supplies oil products to domestic market, but in doing so it creates gasoil surplus in the northern part of the country. Iraq has also recently reopened its 150,000 b/d North refinery — part of Iraq's largest downstream facility the 290,000 b/d Baiji complex. The refinery was running at around 70,000 b/d in March, according to market sources. Additional production potentially caused Iraq to stop importing gasoil this year. Iraq's gasoil imports dropped to zero in February and March, show the latest data from Joint Organisations Data Initiative (Jodi). This is compared with around 24,500 b/d gasoil imports in 2023. By Ieva Paldaviciute Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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