Singapore’s Feb B24 demand lowest in more than a year

: Biofuels, Oil products
24/03/14

Singapore's consumption of biofuels blended bunkers fell to its lowest for more than a year in February with a slowdown in demand from shipowners and charterers, according to statistics from the Maritime and Port Authority of Singapore (MPA).

Consumption of B24 — made of 24pc used cooking oil methyl ester (UCOME) and 76pc very low sulphur fuel oil (VLSFO) — was seen at 15,600t in February, down by 65.5pc on a month on month basis and the lowest compared with monthly volumes consumed throughout 2023.

"Many SMEs are still testing biofuels, but the larger players aren't increasing their demand because they are meeting their CO2 reductions through other energy saving devices in the short term," a London-based broker said.

A key buyer in Singapore confirmed that its purchases have been limited for Singapore and a key Malaysian port in February, corroborating the sharp reduction in demand for bio-bunkers in February.

Singapore's consumption of B24 stood at 60,800t for January and February this year, up slightly compared with the same period in 2023. The steady and dramatic rise in demand throughout 2023, that ended with the record-high 518,000t of consumption, has stagnated, with spot sales dipping.

"No one is prepared to pay the premiums," a key international trader said, referring to the average of $189/t spread on B24 over VLSFO in the past year, calculated based on Argus' data.

"Owners were doing trials on different volumes, but charterers are not paying premium and so owners are not lifting much," the trader added.

It remains to be seen when demand will pick up, a key Singapore-based trader said, despite the pressure on shipowners to meet CII ratings by reduction in greenhouse gas (GHG) emissions from this year.

Among other emerging alternative marine fuels, demand for liquefied natural gas (LNG) touched the record highest at 26,900t as key players have explored the option of bunkering LNG in Singapore in the past couple of months.

Singapore's VLSFO consumption dipped to 2.55mn t for February, down from 2.86mn t seen in January.

Demand for marine gasoil (MGO) also dipped, from 317,000t in January to 296,800t in February.

But consumption of high sulphur fuel oil (HSFO) was maintained at 1.6mn t for January and again February.

Total bunker consumption in Singapore year to date stood at 9.4mn t, up from 8.1mn t in the same period last year. Overall consumption of bunkers in 2023 rose sharply through the year and hit a record high of 51mn t.

By Mahua Chakravarty

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25/04/07

Flooding on US rivers mires barge transit

Houston, 7 April (Argus) — Barge transit slowed across the Arkansas, Ohio and lower Mississippi rivers over the weekend because of flooding, which prompted the US Army Corps of Engineers (Corps) to close locks and issue transit restrictions along the waterways. The Corps advised all small craft to limit or halt transit on the McClellan-Kerr Arkansas River Navigation System (MCKARNS) in Arkansas because flows reached above 200,000 cubic feet per second (cfs), nearly three times the high-water flow. The heavy flow is expected to persist throughout the week, posing risks to those transiting the river system, said the Corps. Some barges have halted movement on the river, temporarily miring fertilizer resupply efforts in Arkansas and Oklahoma in the middle of the urea application season. The Corps forecasts high flows to continue into Friday, and the National Weather Service predicts several locations along the MCKARNS will maintain a moderate to minor flood stage into Friday as well. Both the Arthur V Ormond Lock and the Toad Suck Ferry Lock, upriver from Little Rock, Arkansas, shut on 6 April because of the high flows. Flows along the Little Rock Corps district reached 271,600cfs on 7 April. The Corps forecasts high flows to continue into Friday. Ohio and lower Mississippi rivers The Corps restricted barge transit between Cincinnati, Ohio, and Cairo, Illinois, on the Ohio River to mitigate barge transportation risks, with the Corps closing two locks on the Ohio River on 6 April and potentially four more in the coming days. Major barge carrier American Commercial Barge Line (ACBL) anticipates dock and fleeting operations will be suspended at certain locations along the Mississippi and Ohio rivers as a result of the flooding. NWS forecasters anticipate major flooding levels to persist through the following week. Barge carriers also expect a backlog of up to two weeks in the region. To alleviate flooding at Cairo, Illinois, where the Ohio and Mississippi Rivers meet, the Corps increased water releases at the Barkley Dam on the Cumberland River and the Kentucky Dam on the Tennessee River. The Markland Lock, downriver from Cincinnati, Ohio, and the Newburgh lock near Owensboro, Kentucky, closed on 6 April. The Corps expects the full closure to remain until each location reaches its crest of nearly 57ft, which could occur on 8 or 9 April, according to the National Weather Service (NWS). Around 50 vessels or more are waiting to transit each lock, according to the Lock Status Report published by the Corps on 7 April. The Corps also shut a chamber at both Cannelton and McAlpine locks. The John T Myers and Smithland locks may close on 7 April as well, the Corps said. The Olmsted Lock, the final lock before the Ohio and Mississippi rivers, will require a 3mph limit for any traffic passing through. The NWS expects roughly 10-15 inches of precipitation fell along the Ohio and Mississippi River valleys earlier this month, inducing severe flooding across the Ohio and Mississippi River valleys. A preliminary estimate from AccuWeather stated an estimated loss of $80-90bn in damages from the extreme flooding. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tariffs and their impact larger than expected: Powell

25/04/04

Tariffs and their impact larger than expected: Powell

New York, 4 April (Argus) — Federal Reserve chairman Jerome Powell said today tariff increases unveiled by US president Donald Trump will be "significantly larger" than expected, as will the expected economic fallout. "The same is likely to be true of the economic effects, which will include higher inflation and slower growth," Powell said today at the Society for Advancing Business Editing and Writing's annual conference in Arlington, Virginia. The central bank will continue to carefully monitor incoming data to assess the outlook and the balance of risks, he said. "We're well positioned to wait for greater clarity before considering any adjustments to our policy stance," Powell added. "It is too soon to say what will be the appropriate path for monetary policy." As of 1pm ET today, Fed funds futures markets are pricing in 29pc odds of a quarter point cut by the Federal Reserve at its next meeting in May and 99pc odds of at least a quarter point rate cut in June. Earlier in the day the June odds were at 100pc. The Fed chairman spoke after trillions of dollars in value were wiped off stock markets around the world and crude prices plummeted following Trump's rollout of across-the-board tariffs earlier in the week. Just before his appearance, Trump pressed Powell in a post on his social media platform to "STOP PLAYING POLITICS!" and cut interest rates without delay. A closely-watched government report showed the US added a greater-than-expected 228,000 jobs in March , showing hiring was picking up last month. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK considers import tariffs on US oil products

25/04/04

UK considers import tariffs on US oil products

London, 4 April (Argus) — The UK government has included refined oil products from the US in a list of goods that could be subject to retaliatory tariffs. The government said it was considering "potential tariff measures on US goods, should this be deemed necessary" in response to a 10pc US import tariff on UK goods and services — excluding energy — due to take effect on 5 April. The consultation will last until 1 May. Light oils, gasoils, jet fuel, fuel oils, lubricants and bitumen all feature in the list of products possibly subject to retaliatory tariffs. The UK could be particularly exposed to any tariff impact on US middle distillate imports in the event of retaliation. The UK sourced over a quarter of its 14.37mn t of 10ppm diesel and gasoil from the US last year, according to Vortexa, while 3pc of its 10.15mn t of jet and kerosine imports were sourced from the US. It is not clear what tariff rate the UK is targeting in its potential retaliation. For other oil products, any potential import tariff impact would become more muted as US refined product imports become less significant. The UK received just 6pc of its 1.92mn t total fuel oil imports from the US last year, while the UK was the fourth largest gasoline supplier to the US and received none of the product from its trade partner. European refined product values have collapsed as a result of the escalating trade war which saw China retaliate today against the US' latest tariff action. Eurobob non-oxy gasoline barge prices dropped by 4pc to $700.75/t on 3 April at a time when trading activity typically picks up ahead of the US summer driving season. Indicated non-oxy barge values were set to drop further in the trading session today. The EU is similarly preparing countermeasures against US import tariffs, which Washington set at 20pc from 9 April in addition to existing rates. Ice gasoil futures had dropped by 10pc since President Trump announced the new tariff regime on 2 April to $615.75/t by the close today. Ice gasoil futures are used as the pricing basis against which diesel, gasoil and jet fuel grades are assessed in the European middle distillates markets. European refined products market participants have pointed to a darker global economic outlook triggered by the US import tariffs as the driving force behind the drop-off in European product values. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indústria de SAF no Brasil deve decolar em 2027

25/04/04

Indústria de SAF no Brasil deve decolar em 2027

Sao Paulo, 4 April (Argus) — A indústria de aviação brasileira está atenta às regulações para o combustível sustentável de aviação (SAF, na sigla em inglês), enquanto o mercado doméstico aguarda o início da produção local para cumprir com o plano de mandato de mescla e com o potencial de exportação. A Lei do Combustível do Futuro visa aumentar as mesclas obrigatórias de biocombustíveis para reduzir as emissões de gases de efeito estufa (GEEs) em voos domésticos no período de dez anos, a começar por 2027. O Brasil se comprometeu a aplicar um mandato de 10pc de SAF até 2037. Os esforços do país para implementar o mandato de SAF estão alinhados às diretrizes do Esquema para Compensação e Redução de Carbono para a Aviação Internacional (Corsia, na sigla em inglês), da Organização da Aviação Civil Internacional (ICAO, na sigla em inglês), que prevê a redução de emissões de GEEs em voos internacionais. O programa determina duas fases até a implementação integral das metas de redução, pensando em uma adaptação mais eficiente das companhias aéreas e dos produtores. As companhias aéreas podem aderir voluntariamente ao programa entre 2024-26. As metas compulsórias globais são implementadas entre 2027-2035, o que incentiva o uso de SAF e a compensação de créditos de carbono. A fase obrigatória abrange todos os voos internacionais, incluindo aqueles com embarque e desembarque em países não-voluntários, exceto os considerados menos desenvolvidos e os de baixa participação no tráfego aéreo global. O SAF brasileiro é uma indústria recém-nascida com potencial para oferta de insumos , principalmente as rotas de produção envolvendo óleo de soja, etanol de milho e de cana-de-açúcar, bem como largas terras agrícolas destinadas à produção de biomassa sem a prática de mudança do uso da terra (MUT). Essa variabilidade também abre espaço para novos projetos que reutilizam terras degradadas e áreas agrícolas existentes em conformidade com os critérios de sustentabilidade da ICAO relacionados ao uso de terra e ao aprimoramento do solo. A inserção do SAF no Brasil enfrenta obstáculos econômicos à medida que a alta volatilidade do mercado pesa sobre os investimentos de longo prazo, disse o consultor da A&M Infra, Filipe Bonaldo. Segundo o consultor, a agenda política não afetará a transição energética no país como aconteceu nos Estados Unidos sob o governo do presidente Donald Trump, uma vez que a economia do Brasil depende fortemente da agricultura e as regulações do mercado são otimistas. Como uma potência agrícola, o Brasil oferece produção de baixo custo e múltiplas fontes para suprir as demandas internas e externas. O Brasil é o terceiro maior exportador global nos mercados agrícola e pecuário, liderando os segmentos da soja, suco de laranja e de carne, de acordo com a Confederação da Agricultura e Pecuária do Brasil (CAN). Estreia no Rio A Vibra foi a primeira distribuidora a oferecer SAF no Brasil, antes da mescla obrigatória entrar em vigor. A empresa importou 550m³ de SAF produzido a partir de óleo de cozinha usado (UCO, na sigla em inglês), a partir da Bélgica, em janeiro. O biocombustível está disponível para venda nas instalações da Vibra no aeroporto internacional do Rio de Janeiro após dez meses de operações logísticas. A Certificação Internacional de Sustentabilidade e Carbono (ISCC, na sigla em inglês) assegurou a validade de todas as etapas, desde a cadeia de suprimento do produto até a distribuição. A Vibra opera em mais de 90 aeroportos no território brasileiro e representa 60pc da participação de mercado da aviação nacional através da subsidiária BR Aviation, disse o vice-presidente executivo de operações, Marcelo Bragança. Por que tanta demora? Por muito tempo, o setor teve dúvidas quanto à viabilidade técnica do uso de biocombustíveis na aviação, especialmente quanto à segurança, disse a gerente de meio-ambiente e transição energética da Agência Nacional de Aviação Civil (Anac), Marcela Anselmi. A Anac e a Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) seguem as regulações internacionais para o SAF ao exigirem que o biocombustível apresente semelhanças físico-químicas com o combustível fóssil de aviação para garantir a segurança das operações aéreas. Ainda não é possível usar 100pc de SAF nos motores de aeronaves, disse Anselmi. Há um limite de 50pc de mescla que inibe a adesão ao redor do mundo, considerando as restrições técnicas que ainda precisam ser superadas. O compromisso recente com as pautas de transição energética está incentivando a oferta de biomassa para a aviação, bem como aos modais rodoviário e marítimo, o que exige novas rotas de produção. Por exemplo, a rota alcohol-to-jet (ATJ) converte etanol em SAF, o que pode ser caro para instalar e implica alto investimento em bens de capitais. No contexto global, o Brasil está na vanguarda da pauta SAF, considerando que a Europa e os EUA publicaram legislações relacionadas à produção e ao consumo somente nos últimos dois anos, apontou Anselmi. Enquanto isso, a capacidade projetada de produção de SAF na América do Sul pode chegar a 1.100 m³/ano em 2030, de acordo com a Empresa de Pesquisa Energética (EPE). Por João Curi Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2025. Argus Media group . Todos os direitos reservados.

South Africa Natref to end bitumen production from Sep

25/04/04

South Africa Natref to end bitumen production from Sep

London, 4 April (Argus) — Bitumen production at Natref's 107,000 b/d Sasolburg refinery in South Africa will cease from September, ending all the country's output of the heavy oil product. Several South African bitumen market participants, including buyers from the refinery and suppliers of imported bitumen into the domestic and regional southern African markets, said officials from majority Natref shareholder Sasol had been informing customers of the planned move over the past week. Customers were told that final bitumen supply from stocks held at the refinery would be supplied to them into October, with all supplies ending thereafter. Market participants said the Natref plan is linked to a wider move of switching to sweeter crudes aimed at maximising output of light and middle distillates, which would also hit output of heavy products other than bitumen, notably high-sulphur fuel oil (HSFO). Officials at Sasol, which owns 63.3pc of Natref alongside UK energy firm Prax with 36.4pc, have so far not responded to Argus' requests for comment. South African market participant said the move had been under consideration for some time, even before Prax agreed to buy TotalEnergies' Natref stake in December 2023. South Africa turned from a major net exporter of bitumen, mainly to its southern African neighbours, to becoming increasingly dependent on imports after several of the country's refineries were either shut down or ended their bitumen production since 2020. South African cargo imports in bitumen tankers surged to nearly 200,000t in 2024, according to Vortexa data, mostly into Durban and some into Cape Town. Mediterranean supplies, mainly from Greece and Turkey, made up just over half of these, with Rubis and Continental supplying most. Mideast Gulf storage points, along with Bahraini state-owned Bapco's refinery and export terminal at Sitra, supplied around a third, while emerging exporter Pakistan shipped 8pc. According to a South African bitumen supplier, the Natref refinery's bitumen production fell last year to 45,000-50,000t — from an Argus estimate of 140,000t in 2023 — because of numerous plant halts and interruptions. The market effect of Natref ending its bitumen output will therefore be limited, with another leading South African participant saying truck flows from the inland refinery had become increasingly unreliable. The halt will nevertheless trigger more South African import requirements that are anyway likely to rise sharply in the coming years because of much-enhanced government infrastructure budgets. The Natref refinery was forced to stop all production for about two months following a fire in early January this year. French construction and bitumen supply firm Colas recently became the latest company to take a South African import asset position, agreeing a long-term deal with local firm FFS Refiners to operate four of five new bitumen tanks at an existing Durban facility once an FFS expansion there is completed, likely in the second half of this year. By Keyvan Hedvat and Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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