Generic Hero BannerGeneric Hero Banner
Latest market news

Prio to supply marine fuel with 15pc biodiesel content

  • Market: Biofuels, Oil products
  • 16/11/20

Portuguese fuel retailer Prio said it plans to supply a green marine fuel with 15pc biodiesel content produced from residual raw materials at its biodiesel plant in Aveiro in Portugal.

The fuel, branded as Eco Bunkers, will be available in all Portuguese ports, especially in the northern and central part of the country, the firm said. But it has not disclosed when the new fuel will be available.

Eco Bunkers will reduce emissions by 18pc and cut fuel consumption by 5pc, according to Prio. It will not require any additional investment to adapt ship engines, the firm said.

Prio estimates that the maritime sector is responsible for around 3pc of the global CO2 emissions, making it more polluting than the aviation and the road transport sectors. And with more than 80pc of all goods transported by sea, "the environmental footprint could triple by 2050, if viable alternatives do not arise", the company said.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
03/03/25

US oil sector’s biofuel investments face uncertainty

US oil sector’s biofuel investments face uncertainty

New York, 3 March (Argus) — US renewable diesel production has surged in recent years, driven by climate policy and substantial investment from oil companies. But as the Republican administration of President Donald Trump settles into Washington, doubts about future policy are stalling investment in future growth. Renewable diesel seemed like a safe bet on green energy, allowing US refiners to avoid steep compliance costs from government mandates and produce a versatile, drop-in replacement for petroleum diesel. Companies including Valero, Phillips 66, and Marathon Petroleum — the country's largest producers — could also source the lowest-carbon feedstocks from around the world for US Gulf and west coast biorefineries, an advantage over landlocked competitors. Profitable renewables have offered some respite against lower US refining margins. The Inflation Reduction Act, which scrapped a tax credit that benefited biofuel imports and created a new one starting this year solely for domestic producers, provided another tailwind. Government agency the EIA early last year forecast that US renewable diesel production would hit an all-time high of 294,000 b/d in 2025, five times greater than domestic output four years ago. But the agency's forecast has since dropped by 21pc. Government data show fewer credits tied to biomass-based diesel were generated in January than in any month in more than two years despite recent capacity additions. US policy, which spurred refiners to produce renewable diesel, is now giving them pause. Former president Joe Biden's administration first missed a deadline for setting new biofuel blend mandates, a crucial demand signal, and then was late issuing guidance around the new tax credit. The climate law provided general rules around the clean fuel incentive, known as 45Z — saying, for instance, that lower-carbon fuels earn more subsidy but letting agencies hash out how to track emissions from various feedstocks, farm practices and production processes. More critically, Biden issued only preliminary instructions around 45Z, leaving it to Trump's administration to finalise regulations codifying credit rules. Tax lawyerssay the new administration could shift course, as Biden's guidance is not binding, and that the mere threat of changes has stifled confidence in the sector. But refiners need answers to questions such as how to claim credit for fuels not included in current emissions modelling. "It's really impacting the ability for projects to get financing or for sales to occur," law firm Vinson and Elkins partner Lauren Collins says. "We're seeing that in real time, and I expect that's going to last." Live by the subsidy, die by the subsidy An ironic challenge for refiners dissatisfied with the halting roll-out of 45Z — many lawmakers agree that changes are needed. Republicans are developing legislation they can pass without Democratic support, and some House tax-writers express interest in using that process to modify 45Z. So Trump has little incentive to quickly finalise 45Z rules as Congress might reshape the credit anyway. Some farm-state Republicans have floated keeping 45Z but more aggressively limiting foreign feedstocks, while other lawmakers support scrapping the incentive altogether. Neither option would benefit refiners. And even if 45Z survives unaltered, Republicans' desire to curb spending makes the top priority of the biofuel lobby — extending the temporary incentive for longer — more challenging. Diversified refiners could be more able to weather the storm than pure-play biofuel producers. But new investments in expanded capacity are largely out of the question. CVR Energy has been weighing sustainable aviation fuel production at two refineries, but chief executive David Lamp says the company could not move forward without more policy certainty. "These subsidies are just scary," he says. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

German diesel demand rises with farming activity


03/03/25
News
03/03/25

German diesel demand rises with farming activity

Hamburg, 3 March (Argus) — Consumer diesel demand increased in the week ending 28 February, with higher consumption from the agricultural sector and stable filling station demand. Rising temperatures dampened heating oil sales. Sellers in agricultural regions reported rising diesel demand. Farmers have been able to spread manure since early February and are now tilling their fields again. Traded diesel spot volumes reported to Argus rose by almost 25pc week on week. Volumes increased by 74pc in Emsland, an especially farming-heavy area in northwest Germany. Stable demand at filling stations has also been supporting overall demand, traders said. Current school holidays in two German states, and holidays starting in Bavaria today, are further supporting demand from filling station operators. Spot gasoline sales remained little changed from the previous week, with an increase of 3pc. The situation is different for heating oil, with many traders reporting that rising temperatures across Germany are noticeably dampening demand for the product. The nationwide average price reductions for heating oil compared with the week ending 21 February have not stimulated buying interest. Traded heating oil spot volumes fell by 16pc. Maintenance work that began on 2 March at the 125,000 b/d Vohburg plant of the Bayernoil refinery, and the closure of the 147,000 b/d Wesseling plant at Shell's Rheinland refinery from mid-March, could reduce supply in the coming weeks. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Looming tariff war adds to US refiner headwinds


03/03/25
News
03/03/25

Looming tariff war adds to US refiner headwinds

Houston, 3 March (Argus) — US independent refiners, already facing weaker margins, falling demand and regulatory uncertainty in their burgeoning renewables businesses, are braced for another imminent headwind from US tariffs. The US may impose a 10pc tariff on energy from Canada and a 25pc tariff on all imports from Mexico starting on 4 March. Refiners are scrambling to find alternative supplies, including switching to lighter crude slates, but this will come at a cost. Although short-term margins are due to improve with refinery closures and maintenance, a sustained tariff war could add another long-term problem. The potential tariffs come as US independent refiners including Marathon Petroleum, Valero and Phillips 66 are coming out of a rough fourth-quarter earnings season, with lower margins cutting into profits year on year. The tariffs have already caused problems in North American oil markets as trading desks struggle to understand how they would work in practice and some buyers hold off from committing to taking March cargoes until details are clarified. But one thing is becoming clear — tariffs will lead to higher feedstock costs and will cause some refiners to reduce runs, cutting further into profits. US independent refiner PBF Energy chief executive Matthew Lucey says tariffs on Canadian crude would cause US midcontinent refineries to cut throughputs, even if they find alternative crudes. Marathon Petroleum, the largest US refiner by volume, says it could pivot some of its midcontinent refineries to run domestic crude slates such as Bakken from North Dakota and Montana, crude from the Rockies, or crude from the Utica and Marcellus shale regions in the northeast US. Tariffs would lead to price increases, but most of it "will ultimately be borne by the producer" and to a lesser extent the consumer, Marathon chief executive Maryann Mannen predicts. Smaller refiner HF Sinclair also says it could switch to alternative, lighter crudes at its refineries if tariffs are implemented. Several refiners agree with Marathon that producers would bear the brunt of the tariff costs, but the impact on oil prices will have repercussions throughout the industry. US bank TD Cowen expects US refiners that run Canadian crude on the margin to switch to light sweet crude, increasing WTI and Brent prices. Meanwhile, inland refiners that run Canadian crude as a core part of their slate are likely to continue to do so, the bank says. Phillips 66's executive vice-president of commercial Brian Mandell agrees with that assessment, saying that Western Canadian crude will continue to flow to US refiners, but at a greater discount. Sour taste Meanwhile, US Gulf coast refiners will be likely to replace Mexican and Canadian heavy crude with crude from other heavy sour producers such as Iraq, TD Cowen says. The switching will be likely to tighten medium and heavy sour differentials already tight from Opec+ curtailments and US sanctions against Russia. If it becomes too expensive to switch to heavy sour crudes, refiners could run less-efficient crude slates, reducing product supplied. Despite the headwinds, US refiners have expressed optimism that margins will improve in 2025 as a result of a heavy spring maintenance season and expected capacity closures. Two large US refineries are shutting down this year — LyondellBasell's 264,000 b/d Houston, Texas, refinery is in the process of closing, and Phillips 66's 139,000 b/d Los Angeles refinery is planned to be shut by the end of the year. Marathon says it expects the US refining industry to remain structurally advantaged over the rest of the world in the long term "mainly due to the availability of low-cost energy". But US tariffs — and the increase in prices that is likely to follow — could challenge that notion. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Brazil’s new Atlanta FPSO exports first crude cargo


03/03/25
News
03/03/25

Brazil’s new Atlanta FPSO exports first crude cargo

Singapore, 3 March (Argus) — Brazil's newly commissioned Atlanta floating, production, storage and offloading (FPSO) unit has loaded its first cargo of Atlanta crude aboard the Sonangol Namibe in end-February, data from global trade analytics platform Kpler show. This marks the unit's first shipment since achieving first oil in late 2024. Trading firm Trafigura is likely the charterer of the vessel, according to Kpler data. Brava Energia previously announced in February that it sold 6mn bl of oil from its Atlanta field to Singapore-based commodity trader Trafigura. The contract's price is linked to Singapore VLSFO benchmark prices. But the specific price could not be confirmed. Atlanta crude is classified as a heavy sweet crude and is primarily exported to the Singapore straits region, where it is highly valued for very-low-sulphur fuel oil (VLSFO) blending because of its low sulphur content and relatively heavy API content of about 14-16. The FPSO Atlanta unit is operated by independent producer Brava Energia, a Brazilian oil and gas firm created from the merger of oil companies 3R Petroleum and Enauta, with the FPSO chartered from Malaysia's Yinson Production. The unit operates in the Atlanta field in the Santos Basin offshore Brazil, and achieved first oil on 31 December 2024, according to Yinson. Heavy sweet Atlanta crude oil was previously produced from the Petrojarl I FPSO, which was decommissioned in late 2024. This is in line with the last observed export of Atlanta crude in early November, with no shipments recorded until the latest loading in February, according to data from Kpler. The newer Atlanta FPSO can process up to 50,000 b/d of oil, 70pc higher compared to the Petrojarl I, and has a storage capacity of 1.2mn bl, more than a sixfold increase, according to a document from Yinson. This latest development is likely to further pressure the Asian VLSFO market, which is already grappling with ample supplies in Singapore that have weighed on prices. Increased supplies from Brazil, Kuwait's KPC and Nigeria's Dangote are expected to discharge in the region this month, with March arrivals forecast to be over 1mn t higher than in February. But the latest shipment will likely spill over into April's supply and demand balance, given the typical 45–60 day voyage from Brazil to Singapore. By Asill Bardh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Low flood risk expected for upper Mississippi River


28/02/25
News
28/02/25

Low flood risk expected for upper Mississippi River

Houston, 28 February (Argus) — The spring flood risk is low along the upper Mississippi River, as area soils and streams have amble capacity to accommodate seasonal precipitation, according to the National Weather Service (NWS). Precipitation in the Corn Belt has been below normal this winter, keeping the region abnormally dry, the NWS said Thursday in its second Spring Flood Outlook . Minimal snow pack has formed in the Northern Plains following lackluster winter precipitation. Both these factors have reduced the risk for March-April flooding along the upper Mississippi River. Around 0-2in of water equivalent are in the snowpack along the northern stretches of Minnesota, Wisconsin and Michigan. In addition, stream flows are below normal, giving them more capacity to handle spring rains and snow melt. In other areas of the Corn Belt and the Northern Plains, unfrozen soil is expected to soak up precipitation, asmoisture levels remain below normal. Southern Illinois and Missouri have no frozen soil, completely thawing since the previous outlook . Iowa has 16-24in of frozen soil, slightly higher over the past two weeks. Northern states such as Minnesota and Wisconsin still have an average of 24-36in of frost depth. These states have the entire month of March to defrost and gain moisture levels, since the majority of spring planting for the Corn Belt begin in April. Normal precipitation is projected for the upper Mississippi River basin through the first half of March, according to the NWS' Climate Prediction Center. The seasonal temperatures outlook for March-April are near normal, while precipitation is anticipated to be above average. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more