Asia is witnessing signs of rising mobility, improving the demand outlook for transportation fuels. It has also raised hopes for a sustained oil products demand…
Aug 26, 2021
Asia is witnessing signs of rising mobility, improving the demand outlook for transportation fuels. It has also raised hopes for a sustained oil products demand revival in the region after a long period of weak consumption growth.
S&P Global Platts Senior Asia Energy Editor Sambit Mohanty, Global Director for Oil Products Richard Swann, Associate Editorial Director for Refined Products Jonathan Nonis, and S&P Global Ratings Asia-Pacific Economist Vishrut Rana examine whether the resurgence of COVID-19 in Southeast and Northeast Asia and rising oil prices could act as hurdles and derail the fragile oil demand revival and economic recovery in the region.
Jul 29, 2021
China, Asia’s biggest oil consumer, saw its January to June crude oil imports post negative growth for the first time in eight years, pulled down by sharp falls in May and June inflows. But there are expectations that the commissioning of new refining capacity would create incremental demand for cargoes.
In a wide-ranging discussion with S&P Global Platts Senior Asia Energy Editor, Sambit Mohanty, Platts Global Head of Oil Pricing Vera Blei and Platts Analytics Global Head of Oil Demand Kang Wu share their views on the key global and domestic factors – including OPEC+ decision to ease quota limits and the potential return of Iranian barrels to the market – that could influence the outlook on China’s imports in the second half of the year and in 2022.
Aug 19, 2021
All eyes are on supply in European diesel markets, where demand has remained relatively stable at almost back to pre-pandemic levels, but due to the spread of the Delta variant in Asia more cargoes are making their way to Europe and elsewhere. In both the diesel and gasoline Mediterranean markets, prices are strong due to good demand and some supply tightness, while the gasoline Europe to US arbitrage has been firmly open during the summer driving season.
In this episode of the Oil Markets Podcast, S&P Global Platts diesel reporter Rowan Staden-Coats and gasoline reporter Joseph McDonnell discuss with Gary Clark the latest dynamics in the European road fuel markets and how they are being impacted by other regions of the world.
Cash differentials for jet fuel barges trading in ARA reached 17-month highs mid-July. At the same time, the European Commission announced sweeping proposals to make flying…
Jul 22, 2021
Cash differentials for jet fuel barges trading in ARA reached 17-month highs mid-July. At the same time, the European Commission announced sweeping proposals to make flying greener, including a future tax on jet fuel. How far is the jet market from a complete recovery from the COVID-19 pandemic and what will the EC’s “Fit for 55” plan mean for the aviation sector and the jet fuel market?
In this episode of the Oil Markets Podcast, S&P Global Platts senior jet fuel editor Virginie Malicier and middle distillates editor Christopher Ewen discuss with Gary Clark the latest dynamics in the European jet fuel market and the potential impact of the EU Green Deal on future jet demand.
Despite growing concern over the spread of the COVID-19 Delta variant, key oil-based fuels are edging closer to pre-pandemic levels as the global economy reopens. While jet…
Jul 23, 2021
Despite growing concern over the spread of the COVID-19 Delta variant, key oil-based fuels are edging closer to pre-pandemic levels as the global economy reopens.
While jet fuel demand is struggling back amid global travel curbs, gasoline and diesel sales have seen a sharp rebound. Strong power sector demand and a resilient shipping market have already propelled heavy fuel oil demand to a full recovery.
The uneven fuel demand recovery is forcing some refiners to target more profitable barrels and adjust their crude slates to match.
Apr 28, 2021
Building a roadmap to success in a time of declining demand for refineries What next steps does refining need to take as it comes out…
Sep 22, 2021
What next steps does refining need to take as it comes out of the demand dip caused by the covid-19 pandemic? So many opportunities in the market today rely on knowing how and when demand will recover – for refiners, looking to the next steps could be the difference between long term success and failure.
The S&P Global Platts 15th Annual European Refining Summit brings together the top thought-leaders in the space to analyse market trends and predict when the refining industry will get back on its feet. With deep-dives into demand dynamics for downstream markets, in-depth analysis of regulations impacting refiners and insightful looks at what sustainability measures will help companies thrive in this turbulent time.
Join more than 100 industry professionals in-person this 22 September in Brussels – with face to face meetings being a key tool for attendees to uncover trends impacting the industry today, this event is the best chance you have to connect with fellow professionals.
The EU has raised its 2030 greenhouse gas reduction target from a gross 40% to a net 55% on 1990 levels. An ambitious package of…
Jul 06, 2021
The EU has raised its 2030 greenhouse gas reduction target from a gross 40% to a net 55% on 1990 levels. An ambitious package of initiatives, Fit for 55, is to deliver the target.
Reform of the EU Emissions Trading System is at the heart of the package, but across the piece it is transport that emerges as the EC’s key target, as it has proved largely immune to decarbonization efforts thus far.
Ahead of London International Shipping Week 2021, a six-part S&P Global Platts podcast miniseries looks into the pricing of alternative marine fuels for the global…
Aug 31, 2021
Ahead of London International Shipping Week 2021, a six-part S&P Global Platts podcast miniseries looks into the pricing of alternative marine fuels for the global shipping industry. In each episode of Marine Fuels of the Future, Platts editors investigate the current state of the major fuel alternatives, as the shipping sector seeks to reduce its greenhouse gas emissions ahead of stringent caps in 2030 and 2050. In episode four, we look at whether those caps can be met with existing fuels or with innovative vessel optimization technologies.
Roughly 75% of Louisiana refining capacity and nearly 95% of offshore US Gulf of Mexico oil production remained offline Aug. 30 as a result of…
Aug 30, 2021
Roughly 75% of Louisiana refining capacity and nearly 95% of offshore US Gulf of Mexico oil production remained offline Aug. 30 as a result of Tropical Storm Ida, which caused widespread power outages after making landfall as a major Category 4 hurricane the prior day.
According to estimates from S&P Global Platts Analytics, about 2.2 million b/d of refining capacity was offline, with the majority of plants without power from outside supplier Entergy.
As of about 1 pm CT Aug. 30, almost 1.2 million electric customers lacked service in Louisiana, Mississippi and Florida, according to various utilities plus PowerOutage.us.
Entergy had almost 874,000 customers offline in Louisiana and Mississippi.
The bulk of US Gulf of Mexico oil and gas output remained down Aug. 30 as E&P operators began inspecting platforms or made arrangements for flyover visuals.
According to the US Bureau of Safety and Environmental Enforcement, 1.72 million b/d of crude output and 2 Bcf/d of natural gas output was down, 94.5% and 93.5% of total US GOM production, respectively.
The return of offshore production could face delays as Port Fourchon, Louisiana took a near-direct hit from Ida. The port is a key hub of supplies and equipment, and a transportation point of entry and exit to and from the Gulf.
Port Fourchon also is the home of the Louisiana Offshore Oil Port’s onshore facilities, which includes a booster station and Clovelly Dome Storage Terminal. LOOP, the only deepwater port in the US capable of loading VLCCs with crude, had suspended deliveries ahead of Ida, and could not be reached for comment Aug. 30.
Colonial Pipeline — the primary fuel artery from Houston to the South and East Coast – closed ahead of Ida and said it would restart late Aug. 30 following a damage assessment.
The Colonial Pipeline outage boosted NYMEX RBOB gasoline futures, with the front-month crack spread to ICE Brent ending at $17.25/b Aug. 30, up from $16.32/b the prior day.
Crude futures were little moved, however, reflecting some confidence that the Gulf of Mexico offshore output would soon return.
-Crude and refined product futures settled higher Aug. 30 as the market assessed the impacts of Hurricane Ida on US Gulf Coast energy infrastructure.
-NYMEX September RBOB settled up 3.85 cents at $2.3127/gal and September ULSD climbed 3.11 cents to settle at $2.1403/gal.
-NYMEX October WTI settled 47 cents higher at $69.21/b and ICE October Brent rallied 71 cents to settle at $73.41/b.
-Spot US Gulf Coast ULSD was assessed by S&P Global Platts at a five-month high of October ULSD futures minus 4.17 cents/gal, up 38 points.
-Spot offline Colonial Pipeline CBOB gasoline prices rose 3 cents to close at parity to NYMEX September RBOB as the pipeline temporarily shut as a precaution. CBOB prices climbed as high as September plus 1.10 cents/gal to start the day before losing steam.
-In New York Harbor, barge and Buckeye Pipeline RBOB gained 1.8 cents to September RBOB plus 80 points/gal, likely suggesting short-term concerns about Gulf Coast supply.
-VLCC freight rates were rangebound Aug. 30 despite suspended operations at LOOP, as flows have been slow, with only six VLCCs leaving the terminal laden to Northeast Asia so far in 2021.
-Freight for the Aframax 70,000 mt US Gulf Coast-UK Continent benchmark route climbed 12.5% to Worldscale 90, or $15.34/mt, as weather delays in the Gulf of Mexico spurred on an already bullish freight market.
-Medium range clean tanker freight rates might decline this week as reduced exports due to closed refining capacity in Louisiana and Mississippi could lead to excessive tonnage in the Gulf of Mexico.
-Due in part to US LNG export uncertainties, spot LNG prices in the Asia-Pacific region rose further Aug. 30; the Platts JKM for October was assessed at $18.675/MMBtu.
-Benchmark gas prices at the Henry Hub dipped 14 cents on Aug. 30 to end trading around $4.21/MMBtu preliminary settlement data from S&P Global Platts showed.
-Henry Hub prompt-month futures lost about 7 cents to settle at $4.31/MMBtu; the winter contracts saw similar losses with the December, January and February calendar months ending the session around $4.45, $4.50 and $4.40/MMBtu, respectively, data from CME Group showed.
-Power outages fell almost entirely within the Midcontinent Independent System Operator’s footprint, where load peaked around 95.5 GW on Aug. 30, compared with a forecast of about 100.9 GW and an average peakload of 105.9 GW for the previous four Mondays in August.
-Despite relatively light power demand, the MISO Louisiana Hub real-time locational marginal price was about $42.35/MWh around 2 pm CT Aug. 30, compared with an on-peak average of less than $39.90/MWh for the previous four Mondays in August.
-Dirty tanker market participants are eyeing the impacts of offline refinery capacity, prompting ideas of a potential increase in tanker demand in the coming days as excess crude barrels need to be relocated.
-LOOP had closed operations ahead of Ida and could not be reached for comment Aug. 30.
-Ida hit Port Fourchon, which is the home of LOOP’s onshore facilities, which includes a booster station and Clovelly Dome Storage Terminal.
-The Dome Terminal has a capacity of 40 million barrels of crude, according to LOOP.
-Ports of New Orleans, Houma and Pascagoula — covering Alabama and Mississippi coasts — were closed to inbound and outbound traffic as of Aug. 30..
-Louisiana’s total demand sample, still subject to revision, sat at 1 Bcf/d on Aug. 30, down from a recent high of 1.6 Bcf/d on Aug. 24, amid power outages and disruptions to industrial demand at Gulf Coast refineries, petrochemical and other facilities, according to Platts Analytics.
-US LNG production did not appear to be impacted by Ida, though some shipments from two Gulf Coast facilities could be delayed before reaching Japan.
-One tanker was moored at Cheniere’s Sabine Pass in southwest Louisiana on Aug. 30; the LNG tanker La Seine left Cameron LNG, south of Lake Charles, on Aug. 28.
-As of Aug. 30, 1.72 million b/d, or 94.6%, of Gulf of Mexico offshore crude oil production, or 94.6%, remained shut in, compared to 95.7% the prior day, the US Bureau of Safety and Environmental Enforcement said.
-According to BSEE, 2 Bcf/d of natural gas output was shut in, or 93.5%, down slightly from 93.8% the prior day.
-US Gulf operators evacuated 288 platforms, or 51.43% of the region’s total, unchanged from Aug. 29, BSEE said.
-Shell said late Aug. 29 the US Coast Guard flew over its producing platforms in the area earlier in the day for a “general assessment” and found “visual confirmation” that its operated Mars, Olympus and Ursa platforms remained on location.
-Shell has five other US Gulf assets: Stones, Auger, Enchilada/Salsa and Appomattox, and said it has scheduled its own flyover Aug. 30 to assess the other assets that were in the path of the storm.
-BP, Chevron, BHP, Murphy Oil and Equinor all had confirmed production shut-ins prior to Ida’s strike.
-According to estimates from S&P Global Platts Analytics, about 2.2 million b/d of refining capacity was offline as of Aug. 30, reflecting roughly 75% of the state’s capacity.
-Louisiana’s two largest refineries — ExxonMobil’s 520,000 b/d Baton Rouge plant and Marathon’s 578,000 b/d Garyville refinery — were shut down.
-ExxonMobil said its Baton Rouge plant did not sustain any significant damage and would begin to return to service once the company confirms it has access to feedstocks and third-party utilities.
-Marathon said Aug. 30 it was assessing a timeline to resume operations at Garyville.
-Entergy’s power outage map showed the two Norco, Louisiana refineries shut ahead of Ida — Shell’s 230,611 b/d plant and Valero’s 215,000 b/d plant — have access to power.
Hurricane Ida zeros in on New Orleans-area refineries
-Colonial Pipeline — the primary fuel artery from Houston to the South and East Coast – said it would restart late Aug. 30 following a damage assessment.
-Louisiana took the largest hit from the storm with offshore output there remaining at just 13 MMcf/d on Aug. 30, off from an average 1.3 Bcf/d prior to the storm, according to Platts Analytics.
-Mississippi offshore production was estimated at zero, down from pre-storm levels around 650 MMcf/d.
-Louisiana Gulf Coast production was more than halved by Ida, with Aug. 30 sample estimates at 205 MMcf/d.
-As of about 1 pm CT Aug. 30, almost 1.2 million electric customers lacked service in Florida, Louisiana and Mississippi, according to various utilities plus PowerOutage.us.
-Entergy had almost 874,000 customers offline in Louisiana and Mississippi, and it was followed by Cleco with more than 102,000 customers offline and the Dixie Electric Membership Corporation, with almost 80,000.
-Entergy’s 1.2-GW Waterford-3 nuclear generating unit in Killona, Louisiana was shut Aug. 29 in advance of the storm’s arrival and lost off-site electric power as Ida passed.
-Entergy’s 992-MW River Bend nuclear unit in St. Francisville, Louisiana was operating at 35% of capacity at the request of the system operator.
-Entergy’s 1.5-GW Grand Gulf-1 in Port Gibson, Mississippi, was operating at 100%, the US Nuclear Regulatory Commission said.
The US Department of Energy’s newly rebranded Office of Fossil Energy and Carbon Management aims to fund the research and technology deployment that will help the US…
Jul 26, 2021
The US Department of Energy’s newly rebranded Office of Fossil Energy and Carbon Management aims to fund the research and technology deployment that will help the US reach net-zero carbon emissions by 2050.
We spoke with Acting Assistant Secretary Jennifer Wilcox, head of the office and a carbon capture expert, about some of the promising technologies to curb US dependence on fossil fuels and cut emissions. We talked about harder-to-decarbonize sectors like aviation, shipping and long-haul trucking, as well as a proposal to expand the 45Q tax credit for carbon capture.
Stick around after the interview for the Market Minute, a look at near-term oil market drivers.