Argus Marine Fuels
Issue 15-167 | Tuesday 25 August 2015
Latest News
Market summary
Scorpio amends tanker newbuild program
New York-listed shipowner Scorpio has opted for mediumrange (MR) tankers over Handymax tankers orders as the
company announced amendments to its newbuilding program
yesterday.
Strong demand in Panama propped up local high-sulphur
380cst prices. On the US Gulf coast markets opened strong,
but softened in the afternoon.
Houston - HS 380cst bunkers less bulk cargoes
$/t
20
US Gulf fuel oil losses outpace crude declines
Declines in fuel oil prices in the US Gulf in August have accelerated more swiftly than the decline in underlying crude oil
pricing.
10
0
Engen completes Durban refinery maintenance
South African refiner Engen has completed a maintenance
shutdown at its 105,000 b/d capacity Enref refinery in Durban,
South Africa.
hhh
-10
-20
1 Jun
15 Jun
29 Jun
14 Jul
28 Jul
11 Aug
25 Aug
HS 380cst bunkers and bulk fuel oil arbitrage
$/t
Rotterdam
delivered
Houston
ex-wharf
Los Angeles
ex-wharf
New York
ex-wharf
194.75 u
212.50 u
208.00 u
+1 (HSFO)
Panama
ex-wharf
+21 (HSFO)
201.00 t
+25 (HSFO)
Bulk fuel oil arbitrage
Santos
delivered
swaps: month 1 less month 1
swaps: month 3 less month 1
Buenos Aires
delivered
300.00 t
Copyright © 2015 Argus Media Ltd
277.50 u
Fujairah
delivered
+4 (LSFO)
swaps: month 2 less month 1
Tokyo
delivered
238.50 u
187.50 u
237.50 u
Istanbul
ex-wharf
210.50 u
Hong Kong
delivered
232.50 u
Singapore
delivered
202.50 u
Argus Marine Fuels
Issue 15-167 | Tuesday 25 August 2015
Asia-Pacific
Assessed bunker prices
$/t
HS 380cst
Location
Basis
China
Hong Kong
Delivered
Qingdao
Delivered
Shanghai
Delivered
Asia-Pacific (other)
Russian far east
Delivered
South Korea
Delivered
Singapore
Delivered
Sydney
Delivered
Tokyo
Delivered
Mideast Gulf and Indian Ocean
Fujairah
Delivered
Khor Fakkan
Delivered
Mumbai
Delivered
HS 180cst
MGO
Low
High
Mid
±
Low
High
Mid
230.00
250.00
250.00
235.00
255.00
255.00
232.50
252.50
252.50
u
-
-
-
175.00
217.50
200.00
275.00
190.00
222.50
205.00
280.00
182.50
220.00
202.50
277.50
u
179.00
240.00
205.00
400.00
285.00
195.00
245.00
210.00
405.00
290.00
205.50
205.50
222.50
210.50
210.50
227.50
208.00
208.00
225.00
u
257.50
257.50
-
262.50
262.50
-
u
u
u
u
u
u
u
±
Low
High
Mid
-
-
-
187.00 u
242.50 u
207.50 u
402.50 34
287.50 u
430.00
430.00
385.00
615.00
-
440.00
435.00
390.00
620.00
-
435.00 u
432.50 u
387.50 u
617.50 34
-
260.00
260.00
-
597.50
597.50
652.50
602.50
602.50
657.50
600.00
600.00
655.00
u
u
Posted bunker prices
±
u
u
u
$/t
HS 380cst
Location
Basis
Saudi Aramco
Dammam Ras Tanura
Jeddah Yanbu Rabigh
Delivered
Delivered
Low
High
-
-
HS 180cst
Mid
255.00 34
285.00 34
Asia-Pacific bunker prices continued to soften following further drops in crude values.
Singapore fuel oil cargo values for high-sulphur 380cst fell
by $7.80/t to $198.55/t in the afternoon, tracking a drop in
swap values. Cargo values were down by $45.80/t from last
Tuesday and lower by $68.15/t since the beginning of the
month. September Dubai crude swap values ended the session
down by $0.78/bl from Monday’s value at $41.53/bl. Ex-wharf
supplies of high-sulphur 380cst were offered from $205/t amid
strong demand.
Traders offered high-sulphur 380cst on a delivered basis
as low as $199/t, but most deals were done in the $200-205/t
range. A late rally in crude values helped keep prices in the
$200-205/t range, but also prompted buyers to take a waitand-see approach. Second-parcel indications were at $215/t.
A trader lost a 650t stem of high-sulphur 380cst at $199/t.
A shipowner bought 100t of high-sulphur 380cst for delivery
29-30 August at $205/t. Offers to sell maximum 1.5pc sulphur
grade MGO on a delivered basis were at $390/t, but no deals
were done.
Bonded bunker 380cst prices fell by $5/t at all three
Chinese ports assessed, but were supported by a decline in
Copyright © 2015 Argus Media Ltd
±
Low
High
-
-
MGO
Mid
±
260.00 34
295.00 34
Low
High
-
-
Mid
±
690.00 34
695.00 34
stocks. A state-controlled bunker supplier in east China offered 380cst HSFO at $255/t, with prices at Qingdao port at
the same level. A major bunker supplier in Hong Kong offered
similar products at a premium of $19/t to Singapore benchmark
380cst HSFO.
In Russia’s far eastern region of Primorsky Krai, fuel oil
prices sank by $15/t and MGO fell by $10/t with low demand
from non-Russian shipowners and following declines at other
ports in Asia-Pacific. Prices at Busan in South Korea have
dropped more steeply than those in Primorsky Krai, and the
discount to Busan’s prices for high-sulphur 380cst has narrowed by almost $17/t this month, making the Russian ports
less competitive. Traders reported just a few bids for small
volumes so far this week. The operators of the bulk vessel An
Yuan, expected at Vostochny on 28 August, picked up 180t of
high-sulphur 380cst or 180cst at less than $176/t. The operators of the container ship Lina, calling at Vladivostok on 27
August, bought 200t of high-sulphur 180cst at less than $180/t.
And American shipping company APL bought 7,200t of fuel oil
at $175/t and 300-400t of 0.1pc sulphur MGO at no more than
$460/t for the container ship APL Paris, which arrived in the
region on Tuesday.
Page 2 of 10
Argus Marine Fuels
Issue 15-167 | Tuesday 25 August 2015
Europe and Africa
Assessed bunker prices
Location
$/t
Basis
Africa
Canary islands
Delivered
Cape Town
Delivered
Durban
Ex-wharf
Russia
Arkhangelsk
Delivered
Murmansk
Delivered
Novorossiysk
Delivered
St Petersburg
Delivered
ECA 0.1%
Delivered
Ust-Luga
Delivered
ECA 0.1%
Delivered
Europe (other)
Algeciras
Delivered
Antwerp
Delivered
Barcelona
Ex-wharf
Genoa
Ex-wharf
Gibraltar
Delivered
Hamburg
Delivered
Kali Limenes
Delivered
Istanbul
Ex-wharf
Malta
Delivered
Piraeus
Delivered
Rotterdam
Delivered
Differential to Ice gasoil
Trieste
Ex-wharf
Low
HS 380cst
High
Mid
±
228.75
-
233.75
-
231.25
-
u
190.00
180.00
150.00
120.00
125.00
-
210.00
200.00
165.00
140.00
145.00
-
200.00
190.00
157.50
130.00
135.00
-
34
212.00
192.25
218.00
222.50
213.50
203.50
280.00
236.00
204.50
214.50
192.25
241.00
217.00
197.25
223.00
227.50
218.50
208.50
285.00
241.00
209.50
219.50
197.25
246.00
214.50
194.75
220.50
225.00
216.00
206.00
282.50
238.50
207.00
217.00
194.75
243.50
u
34
u
34
34
u
u
u
u
u
u
u
u
u
u
u
Low
HS 180cst
High
Mid
±
Low
456.75
505.00
587.00
±
Low
461.75
510.00
592.00
459.25
507.50
589.50
u
-
-
-
390.00
390.00
445.00
u
34 365.00
34 365.00
-
410.00
410.00
475.00
390.00
390.00
-
400.00
400.00
460.00
377.50
377.50
-
34
315.00
320.00
345.00
350.00
330.00
335.00
460.00
390.00
466.00
482.50
452.25
429.50
535.00
470.00
431.50
443.75
394.50
496.00
465.00
395.00
471.00
487.50
457.25
434.50
540.00
475.00
436.50
448.75
399.50
501.00
462.50 34
392.50 34
468.50 u
485.00 u
454.75 u
432.00 u
537.50 u
472.50 u
434.00 u
446.25 u
397.00 u
-31.50 u
498.50 u
-
-
-
244.25
357.50
258.25
u
205.00 225.00
195.00 215.00
185.00 200.00
135.00 155.00
140.00 160.00
-
215.00
205.00
192.50
145.00
150.00
-
34
255.00 260.00
225.00 230.00
245.00 250.00
253.00 258.00
246.50 251.50
218.50 223.50
330.00 335.00
258.00 263.00
230.75 235.75
235.25 240.25
230.25 235.25
269.00 274.00
257.50
227.50
247.50
255.50
249.00
221.00
332.50
260.50
233.25
237.75
232.75
271.50
u
$/t
ECA 0.1%
High
Mid
241.75 246.75
355.00 360.00
255.75 260.75
Bulk fuel oil prices
MGO
High
u
u
34
u
u
u
u
u
u
u
u
u
u
u
u
u
34
u
34
34
Mid
±
LNG vs MGO
Low
High
Mid
±
Rotterdam 1pc fuel oil fob barge
186.25
190.25
188.25
t
Northwest Europe LNG delivered
6.03-7.30
243.36-294.61
Rotterdam 3.5pc RMG fob barge
186.25
190.25
188.25
t
TTF natural gas
6.25-6.26
252.04-252.72
Rotterdam 3.5pc RMK fob barge
-
-
179.25
t
Rotterdam MGO delivered
9.77-9.90
394.50-399.50
Fuel oil prices in the European and African bunker markets
continued to sink on Tuesday despite a small rally in barge
prices and crude futures. Marine gasoil (MGO) prices declined
and lost ground against bulk gasoil futures.
But demand was little changed at most ports, with many
buyers waiting for a clearer marker direction before committing to new stems. Prices sank more steeply in the Mediterranean than in northwest Europe, and the premium for highsulphur 380cst delivered at Gibraltar over Rotterdam's price
levels narrowed by $9.50/t to $21.25/t.
Vitol provisionally booked the VLCC New Horizon to load a
270,000t fuel oil cargo at Rotterdam on 3 September to take to
Singapore, according to shipping sources. Fuel oil traders expect more of these shipments to come over the next month as
Copyright © 2015 Argus Media Ltd
$/mn Btu
$/t MGOe
stocks in Singapore start to decline and the arbitrage reopens.
Bunker operations are often disrupted while VLCC cargoes load
at Rotterdam as fuel oil supplies tighten and fewer barges are
available for loading.
0.1pc sulphur ECA fuels were available at Rotterdam at a
discount of about $31/t to MGO prices, or $363.50-368.50/t
outright.
At Novorossiysk high-sulphur 380cst slipped by $3/t and
MGO sank by $10/t with weakening demand from non-Russian
shipowners. The port authorities announced a new storm
warning on Monday after clearer weather over the weekend,
and bunker operations have been suspended at the harbour
wall and on the outskirts of the port. Bunkering is expected
to resume on Wednesday as conditions improve. Recent steep
Page 3 of 10
Argus Marine Fuels
Issue 15-167 | Tuesday 25 August 2015
Europe and Africa
price declines at the competing ports of Piraeus and Istanbul
have also contributed to the lower demand at Novorossiysk,
and only a few requests were reported on Tuesday. Denmark’s
Maersk bought 1,550t of high-sulphur 380cst at no more than
$162/t for the container ship Maersk Euphrates, due to arrive
on 28 August. And the operators of the dry bulk vessel Denak
Voyager, expected at the port on 31 August, requested 700850/t of high-sulphur 380cst. A supplier offered the fuel at
$167/t but has received no response yet.
HSFO refining margin - northwest Europe
$/t
-9
-10
-11
hhh
-12
-13
2 Jun
Bulk LSFO - northwest Europe less New York
$/t
15
18 Jun
6 Jul
22 Jul
7 Aug
25 Aug
Bulk LSFO - Mediterranean less New York
$/t
10
10
5
5
hhh
0
hhh
-5
-5
-10
1 Jun
0
-10
17 Jun
6 Jul
22 Jul
7 Aug
25 Aug
Northwest Europe gasoil - month 1 less month 2
1 Jun
$/t
1.5
-1
1
-2
0.5
hhh
-0.5
-5
-1
2 Jun
22 Jul
7 Aug
0
-4
-6
6 Jul
25 Aug
Northwest Europe - LSFO swaps less HSFO swaps
0
-3
17 Jun
$/t
hhh
-1.5
18 Jun
6 Jul
Copyright © 2015 Argus Media Ltd
22 Jul
7 Aug
25 Aug
1 Jun
Page 4 of 10
17 Jun
6 Jul
22 Jul
7 Aug
25 Aug
Argus Marine Fuels
Issue 15-167 | Tuesday 25 August 2015
North America
Assessed bunker prices
$/t
HS 380cst
Location
Basis
Low
High
HS 180cst
Mid
±
Low
MGO
High
Mid
±
Low
High
Mid
±
Atlantic coast
Halifax
Ex-wharf
-
-
-
-
-
-
562.00
567.00
564.50
u
Montreal
Delivered
216.00
221.00
218.50
u
261.00
266.00
263.50
u
583.00
588.00
585.50
u
New York
Ex-wharf
210.00
215.00
212.50
u
255.00
260.00
257.50
u
442.00
447.00
444.50
u
Philadelphia
Ex-wharf
216.50
221.50
219.00
u
261.50
266.50
264.00
u
421.00
451.00
436.00
u
Houston
Ex-wharf
180.00
195.00
187.50
u
225.00
240.00
232.50
u
427.50
432.50
430.00
u
New Orleans
Ex-wharf
197.00
201.00
199.00
u
231.00
235.00
233.00
u
418.00
490.00
454.00
u
Los Angeles
Ex-wharf
235.00
240.00
237.50
u
280.00
285.00
282.50
u
450.00
460.00
455.00
u
Portland
Ex-wharf
317.00
321.00
319.00
u
362.00
366.00
364.00
u
606.50
611.50
609.00
u
San Francisco
Ex-wharf
272.50
277.50
275.00
u
317.50
322.50
320.00
u
485.00
490.00
487.50
u
Seattle
Ex-wharf
255.00
260.00
257.50
t
289.00
294.00
291.50
t
538.00
542.00
540.00
u
Ex-wharf
240.50
244.50
242.50
t
-
-
-
-
-
-
Ex-wharf
255.00
260.00
257.50
u
300.00
305.00
302.50
555.00
560.00
557.50
Gulf coast
West coast
HS 500cst
Vancouver
Bulk fuel oil prices
USG No. 6 oil 3pc
NYH No. 6 oil 1pc
$/bl
Mid
±
29.35
29.75
29.55
t
Gulf coast LNG fob, 24 Aug
t
Houston MGO ex-wharf
31.88
31.78
New Orleans MGO ex-wharf
Prices moved lower on all coasts as rising crude markets and
narrowing bunker margins muted demand.
Bunker fuel margins narrowed in Houston as prices fell
on weak demand while bulk fuel oil rates increased tracing a
rebound in crude futures. High-sulphur 380cst was indicated
at $195/t ex-wharf but was rumored selling as low as $180/t
ex-wharf. After hours on Monday high-sulphur 380cst was indicated as low as $165-178/t ex-wharf but those numbers were
out of the market by Tuesday. At least one supplier was out of
product and unable to quote inquiries. Markets opened strong
but softened by the afternoon. MGO demand was steady but
deals were scares as buyers and sellers could not come to
terms on prices. One supplier offered MGO at $455-465/t delivered but was above the market and made no sales. MGO was
rumored selling at around $440/t delivered.
Light demand left prices lower in New Orleans. Two lots of
high-sulphur 380cst fixed at $199/t ex-wharf – one for 300t and
the other for 750t. Three lots of MGO were heard sold: 250t
at $418/t ex-wharf, 100t at $423/t ex-wharf and 55t at $525/t
delivered. Demand was also light in Mobile, Alabama. A supplier there saw one inquiry but was unable to offer due to low
Copyright © 2015 Argus Media Ltd
$/mn Btu
High
31.68
u
LNG vs MGO
Low
Marine fuels
u
$/t MGOe
6.04
262.48
9.84-9.95
427.50-432.50
9.62-11.28
418.00-490.00
product availabilities. High-sulphur 380cst was heard indicated
at around $250/t ex-wharf.
West coast markets moved mostly lower on the back of
weak demand.
A 185t lot of MGO fixed at $560/t delivered in Tacoma,
Washington for 30 August-1 September. An inquiry for 500t of
high-sulphur 380cst was quoted at $260/t ex-wharf in nearby
Seattle, Washington. Demand was muted across the Canadian
border in Vancouver, British Columbia. Ex-wharf indications
were heard there for high-sulphur 380cst at $260/t and for
MGO at $560/t but no deals were reported.
Price moved sharply lower in Los Angeles. A supplier offered high-sulphur 380cst at $240/t but made no sales at this
level as the market was rumored to be selling around $235/t
ex-wharf. A trader indicated MGO at around $450/t delivered
but a supplier offered it higher at $460/t ex-wharf. Los Angeles
was assessed the cheapest west coast port for heavy bunkers.
Page 5 of 10
Argus Marine Fuels
Issue 15-167 | Tuesday 25 August 2015
Latin America
Assessed bunker prices
$/t
HS 380cst
Location
Basis
Low
High
LS 380cst
Mid
±
Low
High
HS 180cst
Mid
±
298.00 302.00 300.00
t
Low
High
MGO
Mid
±
Low
High
Mid
±
u
Atlantic coast
Buenos Aires
Delivered
-
-
-
-
-
835.00
840.00
837.50
Montevideo
Delivered
481.00
485.00
483.00 34
-
-
-
-
516.00
521.00
518.50 34
745.00
750.00
747.50 34
Cartagena
Delivered
268.00
272.00
270.00
u
-
-
-
293.00
297.00
295.00
u
675.00
680.00
677.50
t
Panama canal
Ex-wharf
197.00
205.00
201.00
t
-
-
-
237.00
245.00
241.00
u
463.50
468.50
466.00
u
0.1% sulphur MGO Ex-wharf
-
-
-
-
-
-
-
-
-
473.00
480.00
476.50
u
Caribbean
Pacific coast
El Callao*
Delivered
330.00
335.00
332.50
u
-
-
-
384.00
389.00
386.50
u
860.00
865.00
862.50
t
Guayaquil
Delivered
265.00
270.00
267.50
u
-
-
-
305.00
310.00
307.50
u
870.00
875.00
872.50
u
Libertad
Delivered
272.00
276.00
274.00
u
-
-
-
311.50
316.50
314.00
u
869.00
874.00
871.50
u
Quintero/
Valparaiso*
Delivered
335.00
345.00
340.00 34
-
-
-
373.00
383.00
378.00 34
806.00
816.00
811.00 34
San Antonio*
Delivered
338.00
348.00
343.00 34
-
-
-
376.00
386.00
381.00 34
806.00
816.00
811.00 34
*0.1% sulphur MGO
Posted bunker prices
$/t
HS 380
Location
Basis
Low
High
LS 380
Mid
±
Low
High
HS 180
Mid
±
Low
High
MGO
Mid
±
Low
High
Mid
±
Petrobras - valid from 22:00, 24 August 2015
Bahia Blanca
Delivered
-
-
-
310.00
320.00
-
-
-
930.00
940.00
935.00 34
Paranagua
Delivered
220.00
221.00
220.50
u
-
-
315.00 34
-
238.50
239.50
239.00
u
-
-
730.50 34
Rio de Janeiro
Delivered
205.00
206.00
205.50
u
-
-
-
228.50
229.50
229.00
u
-
-
692.50 34
Santos
Delivered
210.00
211.00
210.50
u
-
-
-
231.50
232.50
232.00
u
-
-
720.50 34
Salvador
Delivered
243.00
244.00
243.50
u
-
-
-
264.50
265.50
265.00
u
-
-
745.50 34
Suape
Delivered
390.00
391.00
390.50 34
-
-
-
410.50
411.50
411.00 34
-
-
745.50 34
Tubarao
Delivered
225.00
226.00
225.50
u
-
-
-
247.50
248.50
248.00
u
-
-
725.50 34
Vitoria
Delivered
225.00
226.00
225.50
u
-
-
-
247.50
248.50
248.00
u
-
-
725.50 34
-
248.50
t
-
-
314.00
-
-
290.00
u
-
-
536.50
PdV - valid until 9:00, 26 August 2015
Venezuelan ports
Ex-wharf
/ex-pipe
-
Weak demand weighed down prices across most Latin American ports despite rebounding crude markets.
Strong demand for heavy bunkers pushed up the assessment for high-sulphur 380cst in Panama, but distillate fuel
prices moved lower on the day. One supplier saw 46 inquiries
for nearly 27,000t in total demand. There were six deals heard
sold ex-wharf. The first was for 300t of high-sulphur 380cst at
$203/t with 100t of low-sulphur MGO at $480/t for 2 September in Balboa. Two lots of high-sulphur 380cst fixed at $205/t
in Balboa, the first for 720t on 29 August and the second for
1,000t on 1 September. A shipowner fixed 700t of high-sulphur
380cst with 50t of low-sulphur MGO at $205/t and $480/t
respectively in Balboa. A fifth stem for 550t of high-sulphur
Copyright © 2015 Argus Media Ltd
u
t
380cst sold at $202/t for 31 August in Cristobal, and a trader
fixed a sixth stem for 350t of high-sulphur 380cst at $197/t.
High-sulphur 180cst was heard indicated at $245-275/t exwharf and low-sulphur MGO was seen offered as low as $473/t
ex-wharf, but no deals were reported at these levels.
A stem for 300t of high-sulphur 380cst was rumored sold at
$270/t delivered in Cartagena, Colombia. High-sulphur 180cst
was offered at $310/t delivered and MGO was seen at $680/t
delivered, but neither product was heard sold. Elsewhere in
the Caribbean, a trader fixed 250t of high-sulphur 380cst at
$279/t with 50t of low-sulphur MGO at $685/t delivered offshore Trinidad.
Firming demand supported prices for heavy bunkers in
Page 6 of 10
Argus Marine Fuels
Issue 15-167 | Tuesday 25 August 2015
Latin America
Buenos Aires, but distillate assessments fell on lack of buying interest. A supplier fixed two vessels for a total of 890t of
low-sulphur 380cst at $300/t delivered. MGO was indicated at
$840/t delivered.
Prices moved lower in el Callao, Peru. A supplier there
quoted an inquiry for 100t of high-sulphur 380cst at $335/t
delivered but the shipowner received a lower quote in Colombia and the stem was rumored fixed at $310/t delivered in
Buenaventura. A second inquiry for 400t of high-sulphur 380cst
was heard for overnight Tuesday into Wednesday in el Callao.
Heavy bunker availabilities remained tight for at least one
supplier, who expected resupply on 29 August. MGO was indicated at $865/t delivered but demand was limited and nothing
was heard sold.
Weak demand pulled down prices in Ecuador. A supplier
in Guayaquil offered high-sulphur 380cst at $270/t delivered
and MGO at $875/t delivered but saw no inquiries for the day.
In nearby La Libertad, Ecuador a trader fixed 600t of highsulphur 380cst at $274/t delivered.
Guayaquil HS 380cst less Cartagena
$/t
40
30
20
hhh
10
0
-10
1 Jun
22 Jun
14 Jul
4 Aug
25 Aug
Panama HS 380cst less Houston
$/t
40
30
20
hhh
10
0
1 Jun
Quintero HS 380cst less Callao
$/t
40
22 Jun
14 Jul
4 Aug
25 Aug
Venezuela del HS 380cst less Panama ex-wharf
$/t
50
40
20
30
0
hhh
-20
10
-40
1 Jun
hhh
20
0
22 Jun
14 Jul
Copyright © 2015 Argus Media Ltd
4 Aug
25 Aug
1 Jun
Page 7 of 10
22 Jun
14 Jul
4 Aug
25 Aug
Argus Marine Fuels
Issue 15-167 | Tuesday 25 August 2015
nEWS
Scorpio amends tanker newbuild program
Engen completes Durban refinery maintenance
New York-listed shipowner Scorpio has opted for medium-range
(MR) tankers over Handymax tankers orders as the company
announced amendments to its newbuilding program yesterday.
Scorpio “has contracted for four MR product tankers to be
built at Hyundai Mipo Dockyard for approximately $34.5mn and
has options to construct up to 10 more MR product tankers,"
the company said. The four MRs will be delivered in the first
half of 2017 and the optioned newbuilds include fixed delivery
dates and prices.
Previously, Scorpio had ordered two MR tankers and two
Handymax tankers and had options to construct up to six more
MRs and six more Handymaxes.
Scorpio owns 78 tankers (17 LR2 tankers, 15 Handymax
tankers, and 46 MR tankers), time charters-in 17 product tankers (four LR2, four LR1, four MR and five Handymax tankers)
and has contracted for ten newbuilding product tankers (five
MR and five LR2).
South African refiner Engen has completed a maintenance
shutdown at its 105,000 b/d capacity Enref refinery in Durban,
South Africa.
Maintenance work at the refinery started on 9 July and was
expected to last 35 days.
"The fuels section of the [refinery] is up and running,"
Engen said today.
The refinery operates on Mideast Gulf and west African
crude oil imports, including from Angola. The refinery is also
an important regional source of bitumen.
US Gulf fuel oil losses outpace crude declines
Declines in fuel oil prices in the US Gulf in August have accelerated more swiftly than the decline in underlying crude oil
pricing.
On 24 August, US Gulf 3pc sulphur residual fuel oil barge
assessments declined to 69pc of the price of Brent for the
first time since December 2008. During the first half of 2015,
the US Gulf 3pc sulphur fuel oil price averaged 83pc of Brent’s
price. Fuel oil’s sharper drop compared with crud reflects high
Gulf coast refinery utilization and record weekly stockpiling of
cracked residual fuel oil in the Gulf.
US Gulf refineries’ crude throughput peaked at above
8.80mn b/d for two consecutive weeks in June and August.
Total residual fuel oil stocks on the US Gulf remain within 7pc
of their all-time high at 25.30mn bl hit earlier this summer in
May 2015.
Bunker demand, the biggest outlet for local fuel oil production, was muted as shipowners have waited for high-sulphur
380cst bunker prices to bottom. Gulf coast bunker supplier
competition has grown and high-sulphur 380cst, which typically sells at a premium to 3pc sulphur fuel oil barges, was
assessed at an average discount of 69c/bl to fuel oil barges
during the first three week of August.
Copyright © 2015 Argus Media Ltd
Bosporus Strait to close for maintenance
The Bosporus strait at the northern end of the Turkish straits
will close from 04:00-12:00 local time tomorrow while work
continues to build a third suspension bridge.
All shipping traffic will be suspended. Ships of more than
200m in length are typically restricted to daylight passage for
safety reasons, including all Aframax and Suezmax crude tankers.
Work on the Yavuz Sultan Selim Bridge began in May 2013,
and non-consecutive closures of 57 days for construction work
between March and October this year were announced in
March. Tomorrow's closure will be the 28th so far.
The Turkish straits comprise the Dardanelles at the south-
Announcement
Argus is proposing a change to the period of trade that its
Asia-Pacific marine fuel assessments reflect. Under this proposal, all Asia-Pacific marine fuel assessments would reflect
trade up until 6pm Singapore time, rather than the current
5.30pm Singapore time.
Argus will be accepting comments on this change up to
28 August. To discuss this proposal, please contact Stefka
Ilieva at [email protected] or + 1 646 376 6139.
Formal comments should be marked as such and may be
submitted via email to [email protected] or by post
to Stefka Ilieva, Argus Media Inc, 500 Fifth Avenue, Suite
2410, New York, NY 10110 and received by 28 August. Please
note, formal comments will be published after the consultation period unless confidentiality is specifically requested.
Page 8 of 10
Argus Marine Fuels
Issue 15-167 | Tuesday 25 August 2015
nEWS
ern end and the Bosporus strait at the northern end near
Istanbul. They are the only means of transit between the
Mediterranean and the Black Sea.
German oil products demand up in June
German demand for oil products climbed slightly by 1.6pc
year-on-year in June, ending a three-month decline this year.
Diesel consumption was up by 10.6pc to 3.17mn t (788,000 b/d)
in June compared with a year earlier. LPG demand was also
up, by 11.9pc to 291,025t in the period, and fuel oil, which
strengthened by 264,958t to 460,249 t (98,953 b/d).
But this was offset by a decline of 21.8pc to 832,615 t
(207,043 b/d) in heating oil consumption and weaker demand
for naphtha. At 1,22mn t naphtha consumption was down by
12.5pc. Demand for gasoline was steady compared with a year
earlier at 1.55mn t (437,294 b/d).
Shell confirms Deer Park maintenance
Shell confirmed maintenance underway today at its 340,000
b/d joint venture refinery in Deer Park, Texas.
The refiner did not comment on the planned length of
maintenance or the units involved.
Shell operates the refinery in a joint venture with Mexican
national oil firm Pemex.
US gasoline and distillate stocks expected to rise
The Energy Information Administration (EIA) is expected to
report US gasoline inventories climbed by 0.5mn bl last week
and distillate stocks were 1mn bl higher, according to a forecast from IAF Advisors.
Motor gasoline inventories stand at 212.8mn bl, 0.3pc
below year-ago levels. This time last year, gasoline stocks fell
by 2.4pc.
Distillate stocks are 18.2pc above last year's levels, at
148.4mn bl. Distillate inventories declined by 6.2pc this time
last year.
Chicago gasoline prices fell more than 70¢/USG last week
while retreating from highs reached the prior week as prices
jumped $1/USG following a shutdown of a 250,000 b/d crude
distillation unit at BP’s refinery in Whiting, Indiana. Shipments
from the US Gulf coast have helped ease supply concerns and
allowed gasoline prices to fall from their highest levels since
late September 2014 when crude was valued over $90/bl, narrowing the spread between the two markets in the process.
Copyright © 2015 Argus Media Ltd
US Gulf coast gasoline prices continued to fall last week,
declining 20¢/USG, with regional refineries running at almost
97pc of capacity. Falling prices in the US Gulf have improved
the arbitrage for shipping product to the US northeast, but
buying interest there remains poor with the restart of a
catalytic cracker at the 300,000 b/d refinery in Philadelphia,
Pennsylvania.
Nymex prices were mixed today, with September RBOB
settling 3.24¢/USG weaker at $1.4386/USG. Front-month ULSD
futures were up 0.23¢/USG at $1.3952/USG.
BP restarts Whiting refinery crude unit
BP is this week ramping up rates on its largest crude unit
following unscheduled repairs at its 410,000 b/d refinery in
Whiting, Indiana.
The company today said fuel production would "ramp up
over time" and that the rest of the refinery continued to operate.
BP shut the unit on 8 August for unplanned repairs, and at
the time offered no timeline for its return.
The outage sent Chicago gasoline prices rocketing higher
and smothered West Canadian Select (WCS) crude prices.
Argus assessments immediately following the outage climbed
higher by 44.75¢/USG for regular Chicago CBOB and by 48.75¢/
USG for regular Chicago RBOB.
Differentials for WCS, the heavy crude BP reconfigured its
refinery to process over the past three years, fell to $20.75/
bl in the wake of the outage, its widest discount in more than
a year, based on Argus assessments. Both gasoline and heavy
crude prices returned to more normal levels as confidence in a
restart grew.
Page 9 of 10
the Argus conference department: +7 (495) 933-75-71 or
[email protected]
Market Reporting
Issue 15-167 | Tuesday 25Consulting
August 2015
Argus Marine Fuels
illuminating the markets
aNNOUNCEMENTS
Events
International conference
There will be no Argus Marine Fuels data or commentary for
North America and Latin America on 7 September, for AsiaPacific on 24 September, for China on 28 September-7 October
and for Europe and Africa on 31 August.
Argus Far East Bunkering 2015
14–15 October
Hyundai Hotel Vladivostok
Vladivostok, Russia
For more information please contact
the Argus conference department: +7 (495) 933-75-71 or
[email protected]
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