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China sets lower passenger forecast for peak holiday

  • : Oil products
  • 21/01/21

China's government is forecasting passenger volumes during this year's chunyun, the near-40 day period before and after the lunar new year, will be 1.7bn. This is 15pc higher than a year earlier but 43pc lower than 2019, which will continue to weigh on transport fuel demand during this typical peak holiday season.

The ministry of transport (MoT) did not provide a breakdown of its forecasts by different types of transportation. But passenger volumes by road, rail, air and water in chunyun 2021 are predicted to be 1.39bn, 242mn, 44mn and 19mn respectively, using a historical breakdown from the national bureau of statistics (NBS). Road transport accounts for 82pc, followed by rail at 14pc, air at 3pc and water at 1pc.

The passenger forecast is higher than the record low 1.48bn a year earlier when China imposed a nationwide lockdown after the Covid-19 outbreak. But the forecast remains far below the pre-pandemic 2.98bn during chunyun 2019, as the Chinese government has been issuing increasingly strict warnings against travel during the lunar new year holiday period to prevent the coronavirus from spreading across the country after new outbreaks in Hebei, Heilongjiang and Liaoning provinces.

Passenger transport usually peaks in the lunar new year period, as people return to home towns for holiday celebrations. Daily passengers during the period are about 50pc higher than the yearly average, NBS data indicate. Daily passenger volumes in chunyun 2021 will double from current levels, the MoT said yesterday, although this will still be lower than normal.

Late last month, prior to the new outbreaks, China Railway predicted passengers by rail in the lunar new year period to rebound to 2019 levels at 407mn, much more optimistic than the latest forecast by MoT.

Different regions in China also set lower forecasts for their chunyun passenger volumes. Beijing predicted its volumes by rail and air will be a combined 13.42mn, down by 43pc on a year earlier and 69pc below 2019. Beijing is surrounded by Hebei province that is a centre of the fresh Covid-19 outbreak. The capital itself has recorded increased cases with a community in its Daxing district marked as a high-risk area. South China's Guangdong province forecast its chunyun passengers will be 172mn, 14.9pc lower than 2019.

Migrant workers returning to home towns will be required to test negative for the coronavirus result, which should be done within seven days before arrival, the health ministry said. Workers will also be required to stay at home for 14 days on arrival and will have to have two further tests. The stricter requirements may further weigh on transportation in the lunar new year period. But the use of private cars will likely increase to reduce higher risks from crowded public transport and demand for short trips in cities.


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25/04/24

Water levels delay Tennessee River lock reopening

Water levels delay Tennessee River lock reopening

Houston, 24 April (Argus) — The US Army Corps of Engineers (Corps) will delay the reopening of the Tennessee River's Wilson Lock by three weeks after high floodwater disrupted repair plans. The Wilson Lock is now planned to reopen in mid-June or July, the Corps said this week. The lock's main chamber has been closed since September after severe cracks were found in the structure. The Corps initiated evacuation procedures so personnel and equipment could be removed before any water entered the dewatered lock and ruined repairs after high water appeared too close to the lock's edge. The water did not crest above the temporary barrier the Corps installed to keep water out. Delays at the lock averaged around 10 days as of 24 April, according to the Corps. Barge carriers fees have been in place for each barge that must pass through the auxiliary chamber of the lock since 25 September, when the lock first closed. Restricted barge movement placed upward pressure on fertilizer prices in surrounding areas as well. The lock still requires structural repairs to the main chamber gates, including the replacement of the pintle components, the Corps said. This is the fourth opening delay the Corps have issued for the Wilson Lock, with the prior opening dates being in November , then April and then in June . The Wilson Lock will enter its eighth month of repairs next month. By Meghan Yoyotte and Sneha Kumar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Valero's Mexico fuel import permit reinstated: Update


25/04/24
25/04/24

Valero's Mexico fuel import permit reinstated: Update

Include market comments, details of Valero operations in Mexico. Houston, 24 April (Argus) — Independent US refiner Valero said its permit to import fuel into Mexico has been reinstated after being suspended earlier this month. The temporary suspension was imposed by Mexico's tax authority SAT on 9 April as part of the country's efforts to fight fuel smuggling, Valero said. The suspension was lifted after the company reached out to stakeholders and customs officials in Mexico and was "quickly exonerated of any wrongdoing," Valero said Thursday morning during its first quarter earnings call. Valero on 23 April sent a notice to customers in Mexico saying its import operations had resumed, but the two-week stop disrupted supply in several regions. Some cities, like Irapuato in Guanajuato state northwest of Mexico City, remain without product, according to market sources. "Although this is all unfortunate and created significant supply disruption for our customers, it is part of an effort in Mexico to limit the import of illegal fuel," Valero chief financial officer Gary Simmons said in the earnings call. Fuel smuggling is rampant in Mexico, with illicit fuel sales accounting for up to 30pc of Mexico's 1.2mn b/d of gasoline and diesel demand, according to finance ministry estimates. Most of the illicit supply enters Mexico through mislabeling oil products at the US-Mexico border as petrochemicals, additives or biofuels, which are not subject to excise taxes on diesel and regular gasoline. Earlier this month Mexico stopped the movement of all fuel trucks as part of fight against fuel smuggling. Valero top importer to Mexico Valero is the largest private fuel importer in Mexico, operating an extensive distribution network supported by its refineries in the US Gulf coast and a system of terminals, pipelines, rail routes, truck routes and waterborne logistics. Its fuel sales accounted for 10pc of Mexico's gasoline and diesel demand on 9 April, according to the company. The company imports road fuels by pipeline from its Corpus Christi and Three Rivers refineries in Texas to the 195,000 bl NuStar storage terminal in Nuevo Laredo, Tamaulipas. Valero's waterborne fuel deliveries arrive at the 2.1mn bl Sempra terminal in Veracruz, from which it supplies other terminals near Puebla, Mexico City and Guadalajara. Valero stores fuel at four private-sector terminals in Mexico, with over 4mn bl of capacity. The company is also expected to start storing fuel at the new 1.1mn bl OTM maritine terminal in Altamira, Tamaulipas, in the near future. The company operates a network of over 290 retail fuel stations in Mexico and also supplies fuel to other retailers and fuel marketers. In Mexico Valero holds gasoline, diesel and jet fuel import permits valid through 2038. Valero is one of only a handful of private-sector companies with such permits, as Shell, Marathon and ExxonMobil hold permits to import only gasoline and diesel. Private-sector companies started importing fuel into Mexico in 2016 after the market opened to more competition, but under former president Andres Manuel Lopez Obrador's administration, the energy ministry (Sener) cancelled dozens of fuel import permits. By Eunice Bridges and Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Valero's Mexico fuel import permit reinstated


25/04/24
25/04/24

Valero's Mexico fuel import permit reinstated

Houston, 24 April (Argus) — Independent US refiner Valero said its permit to import fuel into Mexico has been reinstated after being suspended earlier this month. The temporary suspension was imposed by Mexico's tax authority SAT on 9 April as part of the country's efforts to fight fuel smuggling, Valero said. The suspension was lifted after the company reached out to stakeholders and customs officials in Mexico and was "quickly exonerated of any wrongdoing," Valero said Thursday morning during its first quarter earnings call. Fuel smuggling is a rampant problem in Mexico, with illicit fuel sales accounting for up to 30pc of Mexico's 1.2mn b/d of gasoline and diesel demand, according to finance ministry estimates. Most of the illicit supply enters Mexico through mislabeling oil products at the US-Mexico border as petrochemicals, additives or biofuels, which are not subject to to excise taxes on diesel and regular gasoline. Earlier this month Mexico stopped the movement of all fuel trucks as part of fight against fuel smuggling. In Mexico,Valero holds gasoline, diesel and jet fuel import permits valid through 2038. Valero is one of only a handful of private-sector companies with such permits. Shell, Marathon and ExxonMobil hold permits to import only gasoline and diesel. Valero is the largest private fuel importer in Mexico. On 9 April, its sales accounted for 10pc of Mexico's gasoline and diesel demand, according to the company. Private-sector companies started importing fuel into Mexico in 2016 after the market opened to more competition, but under former president Andres Manuel Lopez Obrador's administration, the energy ministry (Sener) cancelled dozens of fuel import permits. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Eni cuts capex on macro headwinds, tariff uncertainty


25/04/24
25/04/24

Eni cuts capex on macro headwinds, tariff uncertainty

London, 24 April (Argus) — Italy's Eni has cut its spending plans for this year in response to macroeconomic headwinds, uncertainty around trade tariffs and a lower oil price outlook. The company is planning a series of "mitigation measures" worth over €2bn [$2.28bn], a key element of which is a reduction in 2025 capex to below €8.5bn from previous guidance of €9bn. Eni now expects net capex — which takes into account acquisitions and asset sales — to come in below €6bn this year, compared with its initial plan of €6.5bn-7bn. Other savings will come from "mitigating actions" around its portfolio, operating costs and "other cash initiatives", the firm said. Eni's plan reflects a tariff-driven deterioration in the outlook for the global economy and, in turn, global oil demand and oil prices. The company has revised its Brent crude price assumption for 2025 down to $65/bl from $75/bl previously. It has also lowered its refining margin indicator assumption for the year to $3.5/bl from $4.7/bl. The lower oil price assumption has not changed the company's upstream production forecast — it still expects 2025 output to average 1.7mn b/d of oil equivalent (boe/d). But Eni's production in the first quarter was only 1.65mn boe/d, 5pc lower than the same period last year. The firm's gas production took the biggest hit, falling by 9pc on the year to 4.5bn ft³/d (861,000 boe/d) as a result of divestments and natural decline at mature fields. Liquids output fell by 1pc year on year to 786,000 boe/d. Eni reported a profit of €1.17bn for January-March, 3pc lower than the same period last year. Underlying profit— which strips out inventory valuation effects and other one off-items — fell by 11pc on the year to €1.41bn. Eni said the fall in profits was mainly due to lower oil prices. The company also had to contend with weaker refining margins and throughputs, as well as a continuing downturn in the European chemicals sector. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Taiwan’s CPC buys Vincent crude ahead of CDU turnaround


25/04/24
25/04/24

Taiwan’s CPC buys Vincent crude ahead of CDU turnaround

Singapore, 24 April (Argus) — Taiwanese state-controlled refiner CPC has purchased a rare cargo of Australian heavy sweet Vincent crude, ahead of a June crude distillation unit (CDU) turnaround that is expected to tighten blendstock component availability at its refinery. CPC recently bought the end-May loading Vincent from Japanese trading firm Mitsui at around a $5-5.50/bl premium to North Sea Dated, traders said. Vincent is usually sold in volumes of 550,000 bl. An upcoming CDU maintenance at a CPC refinery in June, expected to last 1-2 months, will limit production of other blendstock components needed for fuel oil production, market sources told Argus . It is unclear which refinery — the 200,000 b/d Taoyuan or 400,000 b/d Dalin — is having the maintenance. Production constraints, arising from the upcoming turnaround, may have prompted CPC to seek alternative blendstocks like Vincent to help meet its fuel oil supply obligations during this period. CPC is responsible for supplying the majority of Taiwan's bunker fuel at domestic ports. The Vincent deal marks CPC's first crude purchase from Australia since November 2023, when it received heavy sweet Van Gogh crude, data from oil analytics firm Vortexa show. Van Gogh is similar in quality to Vincent. The last time CPC took Vincent was in March 2023. CPC has mainly relied on US light sweet WTI in the past year, supplemented by medium sour Saudi Arab Light and Abu Dhabi Upper Zakum. Vincent and Van Gogh, as well as Australian heavy sweet Pyrenees, are valued as blendstocks for very low-sulphur fuel oil production in the Singapore strait region. These grades' heavier density relative to other sweet crude grades make them less economical for refining, and better suited for direct use in fuel oil blending. By Asill Bardh and Reena Nathan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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