Platts

0.5% Marine Fuel Witnesses a Mixed Market Trend

  • Marine Fuel 0.5% market witnessed mixed sentiment on the first trading day.
  • Singapore Marine Fuel 0.5% swaps curve has progressively slipped deeper into contango.
  • The end-user Marine Fuel 0.5% bunker market remained supported.
  • It is due to a widening contango that led sellers to refrain from offering down to attract buying interest and hold on to oil instead.
  • A supply overhang coupled with lackluster demand has led the differential.
  • Mean of Platts Singapore Marine Fuel 0.5% assessments to dip...

https://mfame.guru/0-5-marine-fuel-witnesses-a-mixed-market-trend/

Jet fuel Demand Expected To Tumble as COVID-19 Restricts Travel

  • Demand for Middle East jet fuel is forecast to tumble by a record amount this year as COVID-19 restricts travel.
  • Regional demand to drop to lowest level in a decade and average jet fuel yield in Middle East refineries is around 17%.
  • Refining margins or cracks are the difference in value between crude oil and the products produced, with a negative value indicating refiners losing money creating jet fuel.
  • As airlines grapple with losses, refineries in the Middle East as well will have to alter...

http://mfame.guru/jet-fuel-demand-expected-to-tumble-as-covid-19-restricts-travel/

Chinese Firm Offers Force Majeure on Gas Imports! Threat To US LNG?

  • US LNG might face minimal threat from PetroChina force majeure on gas imports.
  • Declaration to put further pressure on an already depressed market due to weaker than expected demand and low international prices.
  • Cheniere Energy Inc. has two long-term contracts with PetroChina for a combined 1.2 million tonnes per annum of LNG. 
  • Cheniere’s contracts are typically robust and able to accommodate flexibility.
  • The biggest U.S. LNG exporter said that it was notified of cancellations of two loadings...

http://mfame.guru/chinese-firm-offers-force-majeure-on-gas-imports-threat-to-us-lng/

Crude Demand Fall! Traders Resort To Floating Storage on VLCCs

  • Crude floating storage on VLCCs rises as China demand falls.
  • This fall has compelled several trading companies and cargo-holders to resort to floating storage, mainly on VLCCs. 
  • The US Energy Information Administration lowered its forecast for average global petroleum and liquid fuels demand for the first quarter of 2020 by 0.9 million b/d.
  • At least 40 VLCCs are being used for floating storage near Singapore, but close to half of them are loaded with fuel oil.
  • Crude slid for a fifth straight...

http://mfame.guru/crude-demand-fall-traders-resort-to-floating-storage-on-vlccs/

OPEC Slash Not To do Much in Short Term

  • Even if OPEC slashes production by 600K barrels per day, the price of oil “could still be weak in March and April, before it improves in the summer,” said Kang Wu, head of Asia analytics at S&P Global Platts.
  • “A lot of inventory build up right now needs to be absorbed in April” amid lower crude demand due to the coronavirus outbreak.
  • Prices have been under pressure due to the closure of many parts of the Chinese economy, while the virus has forced flight cancellations across the globe.

Accordi...

http://mfame.guru/opec-slash-not-to-do-much-in-short-term/

IBIA And Platts To Host Middle East Bunker Fuel Conference

IBIA is delighted to announce our very first Middle East Bunker Conference in partnership with S&P Global Platts, says a press release published on their website.

Agenda of the event

The event will discuss the IMO sulphur cap that has been in place for just over two months. At this time of change, how are shipping and bunker markets expecting to react?

Date & Venue: March 11-12, 2020, Queen Elizabeth 2 Hotel, Dubai.

Key issues to be addresses

With bunker market participants managing increasing...

http://mfame.guru/ibia-and-platts-to-host-middle-east-bunker-fuel-conference/

Platts All Set To Host Annual Mediterranean Bunker Fuel Conference

Platts Mediterranean Bunker Fuel Conference returns at a key time, as we approach the final month for the supply chain to prepare for the IMO 2020 switch, says a press release published on their website.

Join them as they assemble the world’s leading bunker suppliers, refiners, traders, brokers, ship owners/operators, and other marine fuel industry organizations to provide a detailed outlook into the market post-IMO 2020.

What to expect for 2019?

Assess how well prepared the supply chain is for...

http://mfame.guru/platts-all-set-to-host-8th-mediterranean-bunker-fuel-conference/

Pemex Replaces HSFO With Swings in Sweet-Sour Spreads

With its revised formula for Maya crude, Pemex may have replaced volatility in high sulfur fuel oil with swings in sweet-sour spreads as the main challenge in setting its monthly Official Selling Price for its crude exports, reports Platts.

IMO 2020 Sulphur cap

With the IMO’s 0.5% cap on sulfur for marine fuels fast approaching, Mexico’s state-owned oil company was under pressure to revise its long-standing crude formula to reduce exposure to refined products with falling demand.

The legacy Maya...

http://mfame.guru/pemex-replaces-hsfo-with-swings-in-sweet-sour-spreads/

Platts Unveils Cape T4 Parallel Ship Indices With Huge Spread

  • Ships with scrubbers can continue to use cheaper 3.5% sulfur high-sulfur fuel oil (HSFO).
  • Platts Cape T4 Index is a weighted average of time-charter equivalent (TCE) assessments of four roundtrip voyages by so-called Capesize vessels.
  • Cape T4 index implies that the earnings spread on November 1 is $4,943 per day to the advantage of scrubber-equipped Capesizes.
  • The spread is $4,302 on the China-Australia dual indices and $5,374 on the China-Brazil indices.
  • The dollars-per-day spread between the...

http://mfame.guru/platts-unveils-cape-t4-parallel-ship-indices-with-huge-spread/

IMO 2020: Analysis of The Forties De-escalator And Brent Basket!

Evolution of Platts North Sea benchmark Brent BFOE
  • The sulfur de-escalator was introduced in July 2007 to bring more stability for pricing for the North Sea’s Forties crude.
  • Quality of the Forties can vary substantially depending on the percentage of Buzzard crude in the blend at any given time.
  • Buzzard field can drastically change the quality of the crude sold as Forties Blend: with Buzzard at 30% of the total blend compared with 0%.
  • Platts began publishing a de-escalator to represent the value of a 0.1 percentage point of sulfur.
  • The Brent...

http://mfame.guru/imo-2020-analysis-of-the-forties-de-escalator-and-brent-basket/

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