Distillates

Global Oil Market ‘Looking To Set Foot’ Amid Recovering Crude Futures

  • Dated Brent jumps to nine-month high.
  • Momentum could be halted by new COVID-19 strain in UK.
  • North Sea spot market gets more active.

The world’s physical oil markets are responding unevenly to the recent rally in crude futures, with a healthy dose of skepticism and sanguinity, reports Platts.

Rise in oil pries to prevail?

The divergent paths of some crudes and refined products has led some traders and analysts to question whether the 25% rise in oil prices over the past month can be sustained.

The...

https://mfame.guru/global-oil-market-looking-to-set-foot-amid-recovering-crude-futures/

Freight Rates Decline by 61% Due To Supply Drop and Low Demand

  • A drop in cargo supply has pushed clean tanker freight down to 61%.
  • Refineries have slowed throughput and oil product demand is low.
  • Arbitrage opportunity for USGC in Northwest Europe closed at minus $1.12/b.
  • USGC is taking in fewer barrels or even exporting diesel and gasoline to other regions.
  • Oil product exports decreased by 19% and gasoline exports witnessed a 41% drop.
  • Distillate exports dropped almost 30% and distillate imports increased by almost 43%.

According to an article published...

https://mfame.guru/freight-rates-decline-by-61-due-to-supply-drop-and-low-demand/

Valero Energy Predicts Favorable Market Conditions for Gasoline and Distillate Cracks

Valero expects gasoline and diesel cracks to maintain in the fourth quarter the upward momentum seen at the end of the third quarter as the IMO 2020 deadline nears, reports Platts and Reuters.

IMO regulatory standards

“We expect to see continued product strength with inventories at lower levels and sour crude weakness resulting from the IMO low-sulfur fuel oil mandate, which goes into effect on January 1, 2020,” Chief Executive Joe Gorder said in a statement.

U.S. refiners have been revamping...

http://mfame.guru/valero-energy-predicts-favorable-market-conditions-for-gasoline-and-distillate-cracks/

Oil Product Stocks Fall To 4-Week Low Amid Soft Holiday Trading

  • Eid-al-Fitr holidays cause a slump in refined oil product stockpiles at Fujairah.
  • Total inventories at the hub dropped 0.5% over the past week to 23.889 million barrel.
  • Fujairah-delivered 380 CST bunker fuel was assessed at $394.75/mt as of last week with little change from $395.10/mt a week earlier.
  • According to an article published by Platts, refined oil product stockpiles at Fujairah in the UAE fell to a four-week low as of Monday.
Middle East bunkering hub drops

Amid muted trading during...

http://mfame.guru/oil-product-stocks-fall-to-4-week-low-amid-soft-holiday-trading/

Fujairah Data: Oil Products Stock Slump 8% in a Week!

  • Fujairah’s oil data slumped 7.9% in the past week to 23.721 million barrels as of May 6 and is considered to be the biggest drop in five months.
  • This decline has been attributed to the large increase to slow shipping demand for fuel because of the Arab embargo on Qatar and sanctions on Iran.
  • Stocks of light distillates, including gasoline, retreated 10% week on week, the biggest drop in seven months, to an eight-week low of 10.774 million barrels.

According to an article published by Platts,...

http://mfame.guru/fujairah-data-oil-products-stock-slump-8-in-a-week/

IMO 2020 : ExxonMobil Sights Marine Fuels Business Prospects

  • The IMO responsible for the safety and environmental performance of the shipping sector, has set sulphur cap to reduced sulfur emissions by over 80%.
  • ExxonMobil, the oil major views the IMO 2020 sulphur cap as an emerging opportunity and not an operational problem.
  • The company had been preparing for a low sulfur climate since 2015 and now their points of sales and infrastructure are planned with cost effective supply chain.
  • ExxonMobil is aspiring for the widest possible IMO 2020 compliant...

http://mfame.guru/imo-2020-exxonmobil-sights-marine-fuels-business-prospects/

Do You Know Why Scrubbers Are the Only Healthy Option?

  • Research funded by the German Science Foundation highlights the necessity of scrubbers and how beneficial it is in the long term.
  • Dr. Zimmermann, the principal researcher explained that one-third of particulate matter in ship emissions are independent of the fuel type.
  • From the extrapolation of lack of emission and the shipping industry studies on steady-emission rate since 2008, it can’t be concluded that the hazard is reducing.
  • ‘Ship tracks’ have shown that particulate emission from...

http://mfame.guru/do-you-know-why-scrubbers-are-the-only-healthy-option/