Posts Tagged ‘diesel’

Freezing temps across US Northeast warm the diesel market

Spring might be around the corner, but for residents of New York and Boston who just experienced one of the coldest Februarys on record, the change in seasons cannot come soon enough.

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The plunging US Gulf Coast diesel market

It has been a wild ride for the US Gulf Coast diesel market, driven by oversupply and tax considerations in just the last two weeks.

The longer-term market is reflecting that glut, because the NYMEX ULSD contract is in a relatively steep contango of 10 cts/gal out over the next year. But in the short-term, it’s been the physical Gulf Coast market that’s been the most interesting.

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The Oil Big Five: Looking into the short future of 2014

The end of December is just around the corner, and it’s typical at this time of year for publications to take a grand look backward to sum up the year. What kind of proclamations can we make about the global oil industry in 2014? What sort of lessons are there to be learned, and how will we look back on 2014 years from now?

As tempting as it may be to take that look in the rearview mirror, today we’re going to look ahead with our December version of The Oil Big Five. By now you know the drill: We ask our Platts editors and analysts in offices around the globe what they think are the biggest issues or topics in the oil world for the upcoming month, and then we ask you for your thoughts. Are we right, are we wrong, and what do you want to see covered? Leave us your comments here or with #oilbig5 on Twitter.

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The UK’s diesel addiction will get worse before it gets better

London mayor and prime minister hopeful Boris Johnson announced this week amid much fanfare a new levy on diesel vehicles entering the capital. This made it to the front pages of many UK newspapers, despite ongoing wars in Syria, Gaza, Iraq, Libya and Ukraine, underscoring the significance to the daily lives of many Britons.

The plan is to charge diesel vehicles entering London £10 ($13) on top of the existing congestion charge (£10-11.50) from 2020, presumably providing an incentive for switching to cleaner vehicles over time. The levy will only apply to vehicles that do not meet the Euro 6 fuel standard, which means most diesel cars built before this year. Petrol cars built before 2006 will also be affected by the policy.

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Cheaper line space says a lot about the strength of US oil product markets

For the pulse of the fuels markets, it’s always best to look at the price of spot pipeline space, and a steady-to-weakening market for pipeline capacity in the US Gulf Coast and Atlantic Coast markets is reflecting how motivated traders are to ship gasoline and distillates along the nation’s busiest products pipeline.

Space on the Colonial Pipeline’s 1.16 million b/d Line 2—which ships diesel, heating oil and jet fuel in parallel to the gasoline-specific Line 1 from Pasadena, Texas, to the hookup with Line 3 in Greensboro, North Carolina—was trading at a discount Friday and Monday. Sources said the space was offered at minus 25 points/gal Monday after trading at 25 points/gal and 50 points/gal Friday.

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When is energy pro-union? When gasoline buyers form a co-op

I was slowing down over at the Pricelock energy listings in search of a job posting for a flatbed driver — maybe a Ford, maybe not, who knows? — when something much more interesting caught my eye.

Four cities in New England were looking to buy 1.214 million gallons of 87- and 89-octane gasoline over the next three years.

That’s a serious chunk of change, and enough gasoline to fill 60,000 Crown Vic police cruisers.

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Regulation and Environment: Malaysia’s clean fuel goals run into its subsidies

Malaysia wants to introduce cleaner fuels. But that isn’t easy in a country where fuel prices are subsidized. Jonathan Nonis and Yen Ling Song teamed up to look at the issue in this week’s Oilgram News column, Regulation & Environment.

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Do you want to know an oil refinery secret? Look to Twitter

It’s hard to keep the cat in the bag when you’ve got a few hundred people pulling its tail.

Consider what goes on behind the fence at a refinery. Sure, there’s always flaring, and steam being released, and hard-hatted workers rushing to and fro.

But what’s really up? The companies would rather the public didn’t know the nitty-gritty, mainly for the cause of staying competitive in a business where regulation and a general downdraft in gasoline prices always put considerable pressure on the bottom line.

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New Frontiers: Now it’s crude oil from algae that is being tested

Turning algae into a distillate-type fuel has long been one prospective area of renewable liquid fuels; it’s even the renewable project where ExxonMobil has been the most aggressive in its investments. Turning algae into a crude-like substance is the target of another company, as Herman Wang discusses in this week’s Oilgram News column, New Frontiers.

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When the bunker fuel pool cleans up, it will be good ol’ diesel doing the job

The bottom of the barrel — residual fuel, bunker fuel, asphalt and petroleum coke — take up a little more than 5% of total US consumption. But because of new rules affecting the second of that group, bunkers, it’s about to undergo an upheaval that could easily spill over into other markets.

The consensus on day one of the Platts 10th Bunker & Residual Fuel Conference in Houston is that despite significant talk about the shipping industry getting to mandated lower sulfur levels through a variety of means — LNG or desulfurizing onboard scrubbers being the most prominent alternatives — it’s almost certainly going to be marine gasoil or marine diesel that gets the shipping industry across the finish line.

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