México

Guyana

Trinidad
& Tobago




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

US sanctions on Venezuela creating strong pull for HSSR from Europe to USGC


 

 

By Sarah-Jane Flaws, Tamara Sleiman / Platts

LONDON
Petroleumworld 03 07 2019

A strong pull from the US Gulf Coast for high sulfur oil products has emerged amid US sanctions on Venezuela, drawing heavy flows of high sulfur straight run cargoes from the Baltic and Northwest Europe across the Atlantic.

The sanctions against Venezuela's state-owned oil company PDVSA, introduced on January 28 and expected to remain in effect until Venezuelan President Nicolas Maduro leaves office, have forced US Gulf Coast refiners to scramble for new sources of heavy crude and cut off flows of US refined products and diluents to Venezuela.

Displaced heavy crude barrels mean there are less heavy byproducts being produced by refineries in the US that would typically run Venezuelan crudes. Consequently, refineries in the USGC have turned to HSSR to process in their crude distillation units. HSSR is used as alternative to crude when medium to heavy sour crude prices are high.

In parallel, the Urals crude market has maintained strength, with Urals NWE last assessed at forward Dated Brent minus 75 cents/b on Tuesday, compared with minus $2.7/b this time last year. An increase in Urals differentials would typically boost the feedstocks market, particularly high sulfur feedstocks such as HSSR.

The arbitrage from the Baltic Sea was said to be workable by numerous sources, with many attributing it to the counterseasonal strength in the high sulfur fuel oil crack amid falling supply from Russia, a strong pull for product from Singapore, and ongoing refinery upgrades globally in preparation for the International Maritime Organization's sulfur cap, which will require sulfur content in marine fuels to be cut to 0.5% from next year from 3.5% currently.

The front-month fuel oil crack was last seen trading on ICE Wednesday at minus $3/b, compared with minus $10.72/b this time last year. The front month fuel oil crack reached the narrowest discount on February 13 at $2.6/b, since the assessment began in June 2006.

HSSR is currently trading below the HSFO crack, one source said, providing more of an incentive to work the arb for HSSR, a cheaper alternative, from the Baltic ports to the USGC.

The Suezmax Sonangol Huila was heard on subjects to carry HSSR STS Malta mid-March, destined to discharge in the USGC, according to shipping sources.

 


________________________


We invite you to join us as a sponsor.

 

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

________________________

Story by Sarah-Jane Flaws, Tamara Sleiman from Platts / SPGlobal.

- newsdesk@spglobal.com

spglobal.com
03 06
2019

 

Hit your target - Advertise with us

PW 300.000 plus request per week

Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

 

 

Write to editor@petroleumworld.com


By using this link, you agree to allow PW
to publish your comments on our letters page.



Any question or suggestions,
please write to: editor@petroleumworld.com

 

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld   / Elio Ohep - All rights reserved

 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.