German Rhine oil product barge demand rises sharply

: Oil products
25/03/24

The closure of Shell's 147,000 b/d Wesseling refinery and a power unit failure at the Miro refinery have led to increased demand for oil products barges on the Rhine this week, although low water levels significantly drove freight costs up.

Heating oil prices in the Cologne area have risen since mid-March, with Shell looking to supply the area through barge imports since it has shut down crude processing at Wesseling. Meanwhile, buyers are increasingly switching to alternative loading points in neighboring regions, which has raised product sales in a few tank farms along the Rhine and Main rivers. Suppliers now need more barges for resupply, shipping operators said.

Demand for barges has also increased from the 310,000 b/d Miro refinery in Karlsruhe after one of the power plants failed on 18 March, which affected production temporarily. Market participants shipped more Naphtha by barge toward Amsterdam-Rotterdam-Antwerp (ARA) or other inland locations. Demand for oil product deliveries to the refinery has also increased.

The combination of low water levels on the Rhine and increased demand for barges towards the end of week ending 23 March have pushed freight rates up, particularly on the Main and upper Rhine.

The water level at Kaub over the weekend fell to 1.10 m, forcing loading capacity to be reduced by more than half. More barges are needed to transport the same amount of product, and shippers expect freight rates to rise further this week.

By Johannes Guhlke

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.

25/03/26

Trump to impose new tariffs on auto imports

Washington, 26 March (Argus) — President Donald Trump will announce new tariffs on the automobile industry later today, the White House said, at a time of significant uncertainty about his trade policies. Trump plans to offer further details on the automobile tariffs this afternoon, less than a week before he plans to announce tariffs against major foreign trade partners on 2 April, which Trump has dubbed "Liberation Day". Trump has already imposed a 25pc tariff on steel and aluminum, and earlier this week said he would announce tariffs on imported lumber, semiconductor chips and pharmaceuticals. Trump last month threatened to impose 25pc tariffs on most imports from Canada and Mexico, starting on 4 March — including imported automobiles and vehicle parts — but he eventually offered a one-month reprieve for US automakers before delaying those tariffs entirely until 2 April. The scope and timing of the upcoming automobile tariffs remains unclear, and the White House has yet to provide further details. But Ontario premier Doug Ford previously warned that steep tariffs on Canada could cause auto manufacturing in the US and Canada to grind to a halt within as few as 10 days. Earlier this week, Trump said that South Korean automaker Hyundai's recent decision to invest $5.8bn to build a steel mill in Louisiana offered a blueprint for how companies could avoid tariffs. "This is the beginning of a lot of things happening," Trump said. Even as a lack of details about the upcoming tariffs has fueled uncertainty for businesses and sharp declines on US stock markets, Trump has continued to announce additional tariffs. On Tuesday, Trump said any country taking delivery of Venezuelan oil or gas would be "forced" to pay an incremental 25pc tariff on any goods imported in the US. US oil executives appear to be growing tired of Trump's chaotic trade policy, particularly his imposition of a 25pc tariff on imported steel that is used in drill pipes, executives said in a survey the US Federal Reserve of Dallas released Wednesday. The uncertainty over tariffs and trade policy is causing "chaos", they said in the survey, and increasing their cost of capital. "Tariff policy is impossible for us to predict and doesn't have a clear goal," an unnamed oil executive said in the survey. "We want more stability." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Vitol bidding for Citgo, seeks 'stalking horse' info

25/03/26

Vitol bidding for Citgo, seeks 'stalking horse' info

Houston, 26 March (Argus) — Trading firm Vitol is a bidder in the auction to buy US refiner Citgo and has asked a federal court for more information about the stalking horse bidder, according to a court document. Vitol is a "competing bidder" in the process, the company said in a 24 March filing to the US District Court for the District of Delaware. A court-appointed official overseeing the Citgo auction picked Contrarian Capital Management's $3.7bn proposal as the stalking horse bid in the sale, setting a price floor. The official cited the likelihood of regulatory approval, the bidder's "financial wherewithal" and certainty of financing, according to court filings. Another bidder, Gold Reserve, is protesting the choice after its own $7.08bn bid was not recommended. Gold Reserve asked the court to publicly release more information about the Contrarian Capital bid, including a "transaction support agreement" with a group of 2020 bondholders of Citgo's parent firm, Venezuelan state-owned PdV. Vitol joined Gold Reserve's request for the information saying that it shares concerns about sealed and heavily redacted documents, according to the court filing. Vitol said that it joined the request to "ensure it receives access to the information necessary to improve its bid during the topping period". The court received a total of four bids this month in the auction. Contrarian Capital was the second-highest bid, according to court filings. Citgo's three refineries, as well as its lubricant plants, midstream and retail assets are being auctioned to satisfy debts owed by Venezuelan state-owned PdV. Last year, Amber Energy was the top bidder in the auction for Citgo with a bid of $7.3bn. But the recommendation did not receive public support from the "sale process parties" or "additional judgment creditors", and the court officer pivoted to another round of bidding, according to court filings. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Dangote to hit full operating capacity in Apr: Source

25/03/25

Dangote to hit full operating capacity in Apr: Source

London, 25 March (Argus) — Nigeria's independently-owned 650,000 b/d Dangote refinery is commissioning its alkylation unit, which will enable it to run its crude distillation unit (CDU) at operating capacity "some time next month", according to a source with knowledge of the matter. The source said CDU capacity is 550,000 b/d currently, although vessel tracking data suggest it is running some way below that. Crude arrivals at the refinery to date in March have fallen to between 175,000-235,000 b/d, according to preliminary data from vessel trackers Kpler and Vortexa, from 405,000 b/d in February . Throughput hit a high of 433,000 b/d in December, according to Kpler. The alkylation line, which produces high octane alkylate for gasoline blending, is the last of Dangote's secondary units to come online. Argus Consulting puts it at a nameplate capacity of 27,000 b/d. Other secondary units could be utilised at their maximum capacity once the alkylation unit is up and running, which would give a boost to gasoline blending component production. Recent lower runs at Dangote could suggest decreased output of gasoline — a key product in the local refined product market. Nigerian gasoline and blending component imports are around 345,000t to date this month, up from 245,000t in all of February. Gasoline imports in the wider west African market will be around 450,000t in April, a European gasoline trader told Argus this week. Nigeria accounts for around three quarters of the region's imports. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Carnival raises 2025 outlook despite volatility

25/03/24

Carnival raises 2025 outlook despite volatility

New York, 24 March (Argus) — Carnival Cruise line raised its net income guidance for the rest of 2025 despite geopolitical and economic volatility affecting some of its booking activity. Carnival increased its 2025 projected earnings by $185mn to about $2.4bn. This would be around 30pc higher than its 2024 net income total at $1.9bn, the company said. While it recognized increased geopolitical tensions since US president Donald Trump took office in January, it remained vague on which events could affect its business. The company has had ebbs and flows in booking demand since the end of last year, but it was nothing out of the ordinary, chief executive Josh Weinstein said during the company's first quarter earnings call. "It all came out to the bookings we were able to make at the pricing that we wanted to make and sets us up, as we talked about, in a really good position. And at the end of the day, people just need to be getting used to the new normal, which is exactly what's happening," Weinstein said. Carnival has not noticed a change in customer spending onboard its vessels during the first quarter of this year and into the first weeks of March, according to Weinstein. The company's business in Europe has outperformed North America for about the last six quarters, Weinstein said, but said that does not indicate under-performance in North America. Carnival's marine fuel consumption was steady at 700,000 metric tonnes (t) to begin 2025. Its marine fuel expenses dropped from $505mn in the first quarter of 2024 to $465mn, an 8pc decline. The company reported a $78mn loss in this year's first quarter, down 63pc from the same quarter in 2024 at a $214mn loss. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US venue case crucial for future clean air fights

25/03/24

US venue case crucial for future clean air fights

New York, 24 March (Argus) — The US Supreme Court on Tuesday will hear arguments about the proper court venue for Clean Air Act lawsuits, which could be pivotal for future enforcement of federal air pollution rules. The court is considering both a case involving the Environmental Protection Agency's (EPA) rejections of small refiners' requests for hardship exemptions from a biofuel blend mandate and the agency's separate denials of state plans for addressing ozone-forming NOx emissions. Judges are not expected to decide the legality of EPA's decisions, just the proper courts for settling the disputes. But the cases are still significant: legal uncertainty to date has affected both EPA programs implicated by the Supreme Court's review and could upend enforcement of future rules if the court does not provide sufficient clarity. Federal ozone season NOx allowance prices essentially flatlined last year as participants were hesitant to trade due to risks from so many court cases. And small refinery exemptions are crucial for biofuel demand, so biofuel producers are wary of empowering more lower courts to reconsider denied exemption requests. The Clean Air Act says that EPA actions that are "nationally applicable" or otherwise based on "nationwide scope or effect" should proceed before the US Court of Appeals for the District of Columbia Circuit, while "locally or regionally applicable" actions head to regional circuit courts instead. But judges have disagreed about how to apply those criteria, since many EPA rules have far-reaching effects but on their face target individual states or facilities. Regulated industry fears that EPA could say a broad set of regulations have nationwide scope, centralizing review in the DC Circuit, which is seen as friendlier to federal regulators and where a majority of judges are Democratic appointees. Local conditions — such as a small refinery in Indiana serving local farmers that cannot handle higher biodiesel blends — get short-changed when various companies' concerns are assembled together, they argue. But EPA under the prior administration and Democratic-led states argue that sending these cases to the DC Circuit, which is more experienced with the complexities of federal rulemaking, makes more sense than letting industry seek out favorable jurisdictions. And they highlight the possibility of courts leaving emitters in one part of the country with laxer rules. "The fundamental risk is that you'll end up with decisions on the same point of law coming out differently in different places — and not an expedient way to resolve that," said Brian Bunger, a Holland & Knight partner and the former chief counsel at the Bay Area Air Quality Management District. For instance, both the DC Circuit and the conservative-leaning 5th Circuit agreed that EPA erred when it denied some refiners exemptions from biofuel blend mandates — but they said so for slightly distinct reasons. The 5th Circuit, for instance, went further by saying refiners reasonably relied on past EPA practice and thus the agency incorporating new analysis into its review of waiver requests was unfair. As a result, EPA recently used different criteria when weighing a waiver request from one refiner in the 5th Circuit's jurisdiction than it used for another refiner, according to partially redacted decisions obtained by Argus through a Freedom of Information Act request. The agency said it could not consider at all whether CVR Energy's 75,000 b/d refinery in Wynnewood, Oklahoma, is able to pass on the costs of program compliance to consumers because of the 5th Circuit decision but could weigh such information when deciding a similar petition from Calumet's 15,000 b/d refinery in Great Falls, Montana. The agency issued those decisions in the waning days of former-president Joe Biden's term. While President Donald Trump has pledged a vastly different approach to environmental regulation, his administration for now has not signaled a different stance than the Biden administration on whether these types of disputes should proceed before the DC Circuit. Schrodinger's case It is still unclear whether the judges view the cases as a tricky technical dispute or part of a broader trend of federal agencies overstepping their authority. Tuesday's hearing could provide clues. Of the court's nine justices, four previously served on the DC Circuit and could see value in sending more complex regulatory cases to the expert court, Bunger said. But the court's conservative majority could also be wary of giving EPA too much authority to set venue. Refiners argue that the agency repackaged dozens of individual exemption denials into two larger regulatory actions as a strategy to get the cases before a friendlier court. The Supreme Court has looked skeptically at other EPA rulings and last year overturned a decades-old legal principle that gave agencies leeway when interpreting ambiguous laws. Final Supreme Court decisions usually arrive by late June. However the court rules, businesses say that it should provide a clear enough explanation to prevent similar venue disputes from reemerging. The US Chamber of Commerce told the court it takes no position beyond urging the court to "adopt an interpretation that provides clarity and predictability to all stakeholders." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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