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Off-spec bio-blends widen pricing spread

  • Spanish Market: Biofuels, Oil products
  • 15/02/24

The range of prices for marine biodiesel blends in Europe has widened as cheaper product that does not meet the region's road diesel engine specifications — as defined by the European EN14214 standard — gains market share.

Indicated values and fixed deals in Rotterdam for delivered bunker fuel made of pure biodiesel (B100) from advanced feedstocks — defined by Annex IX Part A of the EU's recast Renewable Energy Directive — were broadly reported at $897-1,000/t between 26 January and 7 February. But some suppliers quoted prices as high as $300/t higher for B100 blends meeting the EN14214 standard.

Argus assessed the calculated B100 advanced Fame 0°C CFPP dob ARA range price at an average of $1,127.95/t over the same period, with the price standing at $1143.36/t on 13 February. The calculated dob ARA range price incorporates a deduction for HBE-Gs, which are used by companies that bring liquid or gaseous fossil fuels into general circulation and are obligated to pay excise duty or energy tax on fuels, but it is also based on assessments for EN14214 standard biodiesel.

Shipowners may be tempted to burn cheaper fuels, but doing so could prove to be risky. Original equipment manufacturers of ship engines such as MAN and Wartsilla currently licence their engines to utilise and combust fuels that are in line with current ISO specification list, ISO8217:2017.

According to MAN service letters, biodiesel properties should meet either EN14214 or ASTM D6751 standards in order to be used for their engines. This means that shipowners using fuels that do not meet these standards are at risk of potentially voiding their warranty or insurance cover in the case of any damage to engines caused by off-spec fuels.

However, some market participants said shipowners can obtain a green light from their insurance provider by providing a specification sheet ahead of bunkering.

ISO is currently developing a new specification standard, ISO 8217:2024, which many market participants expect to broaden the coverage of alternative marine fuels and potentially establish a standard that is more flexible and applicable to the maritime sector. MAN said if a biodiesel standard is established in a new ISO 8217 edition, it will recommend following this version.


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31/01/25

Trump tariffs on Canada, Mexico to include oil: Update

Trump tariffs on Canada, Mexico to include oil: Update

Updates with comments from Trump, plan for 10pc crude tariff. Washington, 31 January (Argus) — President Donald Trump said late Friday he will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico on 1 February, with crude imports likely to be taxed at a lower 10pc rate. Trump separately plans to impose tariffs on imports from China on 1 February. Asked if his Canada tariffs would include crude imports, Trump said, "I'm probably going to reduce the tariff a little bit on that," he told reporters at the White House. "We think we're going to bring it down to 10pc." Trump, who previously tied tariffs on imports from Canada, Mexico and China to their alleged inability to stem the flow of drugs and migrants into the US, today insisted that the tariffs he plans to impose on Saturday in fact have a strictly economic rationale and are non-negotiable. The tariffs expected on Saturday "are not a negotiating tool", Trump said. "No, it's pure economic … we have big deficits with all three of them." Trump, in a wide ranging gaggle with reporters, separately mentioned that he would impose tariffs on imported chips and oil and natural gas. "That'll happen fairly soon, I think around 18 February," he said. It was not clear from his remarks if he meant that all oil and gas imports into the US would be taxed, or if he referred to supply only from Canada and Mexico. Trump said he would also raise tariffs on imported steel, aluminium and eventually copper as well. Trump brushed away criticism of potential negative impacts from his tariffs. "You will see the power of the tariff," Trump said. "The tariff is good, and nobody can compete with us, because we have by far the biggest piggy bank." The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Mexican president Claudia Sheinbaum also said her country has prepared responses to US tariffs . Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. Gas, petchems, steel and ags threatened The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. North American steel trading costs could rise by as much at $5.3bn across the three nations, since Mexico and Canada are expected to issue reciprocal tariffs against the US, as it did when Trump issued tariffs in his first term. The tariffs could also disrupt US corn and soybean sales , since China and Mexico account for 48pc of US corn exports and 61pc of US soybean exports since 2019, according to US Department of Agriculture (USDA) data. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canadian crude will be priced for tariffs: Phillips 66


31/01/25
31/01/25

Canadian crude will be priced for tariffs: Phillips 66

Houston, 31 January (Argus) — Western Canadian crude will continue to flow to US refiners, but at a greater discount if President Donald Trump enacts tariffs on imports from that country, Phillips 66 said today. In the event of tariffs, the Western Canadian Select (WCS) discount to US light sweet crude WTI will eventually widen to incentivize crude to move into the US, Phillips 66 executive vice president of commercial Brian Mandell said during an earnings call. WCS' discount to WTI was around $15.25/bl on Friday afternoon. In the Rocky Mountain and midcontinent regions, where refiners have fewer alternative supplies, the "crack margins will also have to do some work," he said. Mandell said that the first effect of Canadian tariffs would be the filling of the 590,000 b/d Trans Mountain Expansion (TMX) pipeline, which sends crude to Canada's west coast, followed by a replenishing of storage in western Canada. TMX has run well below its full capacity since startup in May 2024 but it is not clear how much spare capacity is left. About 374,300 b/d of crude from the combined Trans Mountain was exported via tanker in January, according to data from Vortexa. About 80pc of Canada's 5mn b/d of crude production flows downstream to US refiners, with US imports of Canadian crude reaching a record high of 4.42mn b/d in the week ending 3 January, according to the Energy Information Administration (EIA). The single largest conduit is Enbridge's 3mn b/d Mainline system, which reaches into Chicago to serve midcontinent refiners and hands off crude to other lines that go to the US Gulf coast for refining or export. The White House said today that president Donald Trump will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico and 10pc on imports from China on 1 February. The White House pushed back on reports that the tariffs would be delayed and declined to say whether Trump made a decision on whether to exclude Canadian and Mexican crude from the tariffs. Mexico sends far less crude to the US. Mexican crude imports to the US averaged 450,000 b/d in November 2024, according to the most recent EIA monthly data. Mexican imports of crude into the US would likely be displaced if the tariffs are enacted, Mandell said. Mexican crude will move to Europe and maybe Asia and other crudes will come in, he said. Heavy crude prices would rise a bit on the inefficiency of logistics but those differentials should dissipate as OPEC puts more oil onto the market as the year goes on, Mandell said. US refiner Valero said yesterday that the tariffs could cause a 10pc cut in refinery runs depending on how long the tariffs go and how fast they are implemented. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexican GDP growth in 4Q lowest since 2021


31/01/25
31/01/25

Mexican GDP growth in 4Q lowest since 2021

Mexico City, 31 January (Argus) — Mexico's economy slowed in the fourth quarter to its lowest pace since early 2021, as the agriculture and industrial sectors dragged on growth. Mexico's gross domestic product (GDP) growth slowed to annualized rate of 0.6pc, statistics agency Inegi reported. This is down from an annual 1.6pc in the third quarter and 2.1pc growth in the second quarter, which was the strongest quarter last year. The result marks the slowest growth in 15 quarters for Mexico, coming in below estimates. This was largely due to annualized 4.6pc decline in the agriculture sector, swinging from 4.1pc growth in the third quarter as drought conditions return. Inegi reported the industrial component of GDP also contracted, down 1.7pc in the fourth quarter, compared with a 0.5pc expansion in the previous quarter, on slowing construction and persistent declines in the oil component. Services, meanwhile, expanded an annualized 2.1pc in the fourth quarter, compared with a 2.2pc expansion in the previous quarter. Inegi reported full-year GDP growth at 1.5pc in 2024, slowing from 3.3pc in 2023 and the lowest level since the pandemic-stricken downturn in 2020. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump tariffs to hit Canada, Mexico, China on 1 Feb


31/01/25
31/01/25

Trump tariffs to hit Canada, Mexico, China on 1 Feb

Washington, 31 January (Argus) — President Donald Trump will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico and 10pc on imports from China on 1 February, the White House said today. The White House pushed back on reports that the tariffs would be delayed and declined to confirm whether Trump made a decision on whether to exclude Canadian and Mexican crude from the tariffs. "Those tariffs will be for public consumption in about 24 hours tomorrow, so you can read them then," the White House said. The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Trump on Thursday acknowledged a debate over the application of tariffs to oil but said he had yet to make a decision on exemptions. The White House dismissed concerns about potential inflationary effects of Trump's tariffs. "Americans who are concerned about increased prices should look at what President Trump did in his first term," it said. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico braces for Trump tariffs, readies responses


31/01/25
31/01/25

Mexico braces for Trump tariffs, readies responses

Mexico City, 31 January (Argus) — Mexico awaits Saturday's deadline for US president Donald Trump's tariff implementation with a "cool head" and has prepared alternative options to react, President Claudia Sheinbaum said after Trump confirmed Thursday he plans to proceed with his threats to impose 25pc tariffs on all imports from Mexico and Canada. Earlier this week, Sheinbaum said she still believed Trump would call off the plans for punitive tariffs over demands that Mexico, along with Canada, take stronger measures to halt flows of immigrants and the opioid fentanyl from the bordering countries into the US. Regardless, Mexico has prepared a "Plan A, B and C" to address any of the scenarios that could take place, Sheinbaum said. "We will always defend respect for our sovereignty and a dialogue as equals, but without subordination," she said, emphasizing that Mexico will always keep a cool head when taking decisions and rely on its preparation. When pressed on potential retaliatory tariffs coming from Mexico, Sheinbaum has so far been evasive. US tariffs would harm Mexico's energy sector, as nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners, although these cargoes could be diverted to Europe or Asia. When Trump was asked Thursday if his tariffs might exempt crude imports, he said he was not inclined to exclude them but has yet to make a decision. "We may or may not" exclude oil, Trump said. "It depends on what the price is, if the oil is properly priced, if they treat us properly." On Friday the White House repeated that it plans to implement the tariffs on 1 February . Mexico also imports the majority of its road fuels and LPG from the US, according to energy ministry data. By Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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