South Germany product oversupply dampens price rise
Oil product oversupply in southern Germany lessened the effects of price rises last week, and sales surged.
Concerns about storm damage in the Caribbean and declining US stocks led to a rise in prices for crude and gasoil, which were reflected in German prices for heating oil, diesel and gasoline. But Miro's 310,000 b/d Karlsruhe and Bayernoil's 215,000 b/d Neustadt-Vohburg refineries have been oversupplied since the start of the month because flooding prevented buyers from collecting.
The rise in gasoil futures as prices in the south and southwest remained comparatively low, which prompted many market participants to stock up on middle distillates. Volumes for heating oil and diesel submitted to Argus reached their highest since mid-June on 2 July. Demand has been declining since then, and the oversupply is decreasing.
Unfavourable weather conditions have delayed a continued, nationwide increase in diesel demand from agriculture, which is weighing on the need for additional imports into northern Germany. Domestic refineries are running at high capacity and an increasing supply of imported diesel in northwest Europe is keeping the cif Hamburg cargo premium at a consistently low level.
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Beryl aims between Corpus Christi, Houston
Beryl aims between Corpus Christi, Houston
Houston, 7 July (Argus) — Tropical storm Beryl was expected to regain hurricane strength today before coming ashore between Corpus Christi and Houston, Texas, early Monday. As of 11am ET today the center of the storm was about 195 miles southeast of the refining and oil export hub of Corpus Christi with maximum sustained winds of 65mph. Moving northwest at 10mph, its landfall was expected at about 2am ET Monday, according to the National Hurricane Center (NHC). The track of the storm's landfall has moved toward the east for the past two days, moving Corpus Christi out of the area likely to see the highest winds and storm surge. The most powerful winds and storm surge should be centered on areas near Matagorda Bay, according to the forecast, with 4-6ft of storm surge expected. Galveston Bay, which include numerous refineries and petroleum export terminals along the Houston Ship Channel and Texas City, was expected to see 3-5ft of storm surge. The port of Corpus Christi was closed to all traffic as of Saturday afternoon while the ports of Houston, Galveston, Freeport and Texas City were set to "Yankee" status at 8am ET today, suspending all inbound traffic, bunkering and lightering operations. The Houston-area ports were expected to close to all traffic later today as the storm nears landfall, according to the US Coast Guard. Disruptions to US Gulf oil and gas operations so far appear to be limited given Beryl's approach to the west of most US offshore and gas operations. Mexican offshore operations were halted late last week when the storm first entered the Gulf after passing over the Yucatan peninsula. Early last week Beryl was a Category 5 storm, which made it the strongest on record for the month of July, as it left a trail of destruction in the Caribbean. The second named storm of the 2024 Atlantic hurricane season, Beryl followed tropical storm Alberto, which came ashore in northeastern Mexico late last month. This year's Atlantic hurricane season is expected to be more active than normal, according to the US National Oceanic and Atmospheric Administration, with 4-7 major hurricanes that pack sustained winds of 111mph or higher possible. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Lithuanian refinery to halt bitumen output for a month
Lithuanian refinery to halt bitumen output for a month
London, 5 July (Argus) — Bitumen production at Polish firm Orlen's 190,000 b/d Mazeikiai refinery in Lithuania will be halted for around a month from 7 October because of maintenance, according to a source with knowledge of the refinery's operations. It is not clear what impact the work will have on other products. The maintenance had initially been expected to last for just two weeks and cut output of all oil products, including bitumen, by around 50pc. As a key supplier of bitumen to the Baltic and Nordic markets, Orlen is looking to transport around 20,000t of bitumen from its refinery at Plock in Poland via trucks to the Baltics to help make up for the lost supply during the maintenance, the source said, adding that the company is also looking into the possibility of importing bitumen to Klaipeda in Lithuania. Klaipeda is usually used to export bitumen produced at Mazeikiai. The loss of supply will be particularly felt in the Baltic markets as bitumen consumption there typically peaks in October. The Mazeikiai refinery has been an important supplier of bitumen in the region after sanctions against Russia stopped cross-border truck flows into the Baltics last year. Swedish specialty products producer Nynas is set to benefit from the maintenance as it operates a bitumen terminal at Muuga in Estonia. Bitumen production at Mazeikiai reached a 10-year high of 468,400t in 2023 . The maintenance work could prevent the refinery from hitting a new record this year. By Tom Woodlock and Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Hengyuan's Malaysian refinery completes LRCCU repairs
Hengyuan's Malaysian refinery completes LRCCU repairs
Singapore, 4 July (Argus) — China-based independent Hengyuan Refining (HRC) has completed repairs at the long residue catalytic cracking unit (LRCCU) at its Malaysian 156,000 b/d Port Dickson refinery on 30 June. The LRCCU was shut after a leakage at a carbon monoxide boiler on 19 June. It is a gasoline production unit and typically uses residual fuel as a feedstock to produce full-range catalytic cracked gasoline (CCG). Inspection activities for HRC's hydrogen manufacturing unit and Euro4Mogas facilities were also complete. The refinery has restarted the units and is "recovering to its normal operational level", said HRC. The LRCCU issue had prompted HRC to offer rare and prompt straight-run fuel oil cargoes, and buy gasoline cargoes for June and July loading. The Port Dickson refinery houses two crude distillation units, a LRCCU, two naphtha treaters, a merox plan, two reformers and a gasoil treatment plant. Approximately 85pc of its oil products are sold domestically in Malaysia. By Aldric Chew Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Upper Mississippi locks closed by high water
Upper Mississippi locks closed by high water
Houston, 3 July (Argus) — High water levels on the upper Mississippi River have caused several lock closures and spurred delays for barge carriers. Lock and Dams (L&D) 12, 16 and 17 on the upper Mississippi River closed 2 July and are expected to remain closed through the rest of this week and possibly into the next, according to the US Army Corps of Engineers. Locks 11, 13, 18 and 20 are expected to close on 4 July. The Corps will likely close locks 14 and 22 on 5 July, while lock 15 is expected to close 6 July. The Corps said the duration of the July 4-5 closures is unclear. Another 2-5 inches of rain fell along the western Corn Belt in the past week, according to the National Oceanic and Atmospheric Administration. High river conditions led to major flood status at Dubuque, Iowa, while other locations along the river are at moderate flooding levels. Water levels are 4-5ft below record highs on the upper Mississippi River. The outdraft at lock and dam 16 was at 211,444 cubic feet per second (cfs) on Tuesday, compared with typical flow of 41,100cfs. Major barge carrier American Commercial Barge Line anticipates 7-10 days of disruption followed by a 2-3 week catch-up. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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