CEFE Group (Feb 15, 2023): The energy market has been busy with various developments and updates in the past few weeks. The European Union (EU) recently proposed that fossil-fueled truck sales be allowed past 2040, but with a 90% reduction in greenhouse gas (GHG) emissions. The proposal came amidst concerns of job losses and high costs in the transport sector.
Meanwhile, in Asia, the high sulphur fuel oil (HSFO) crack hit a nine-week high due to increasing demand. The surge in demand could be attributed to the upcoming heating season and increasing demand for shipping fuels.
On the other hand, oil futures saw a decline as the United States announced the release of 26 million barrels of light sweet crude from the Strategic Petroleum Reserve (SPR) in Q2. This move comes as a precautionary measure in case of a potential supply disruption. However, the Organisation of the Petroleum Exporting Countries (OPEC) lifted its demand outlook, stating that the oil market was tightening.
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In other news, Platts, a leading energy and commodities information provider, has removed Russian Gasoline from its Singapore and Middle East quotes due to the impact of sanctions. The move is expected to have a significant impact on gasoline prices in these regions.
Shell’s LNG-powered barge fleet, which is used for transporting goods on the Amsterdam-Rotterdam-Antwerp (ARA) route, was recently idled due to a technical fault. The company is working to rectify the issue and resume operations as soon as possible.
Vietnam’s energy group is reportedly considering building a new 60,000 barrels per day (bpd) refinery, while Kuwait is set to increase refinery output but is expected to see a decline in crude exports. The US shale output is also expected to hit a record of 9.4 million bpd in March, according to the Energy Information Administration (EIA).
In the shipping industry, transatlantic freight rates have spiked due to a tightening tanker market. Additionally, the merged bunker group, Baseblue, has announced its focus on green fuels, while Gunvor has merged its Rotterdam refining and terminal assets as part of its low carbon plans.
Finally, the EU Parliament has ratified the 2035 fossil car ban, along with a lifecycle review of carbon dioxide (CO2). The move is part of the EU’s efforts to combat climate change and reduce its carbon footprint.
Overall, the energy market remains dynamic and constantly evolving, with new developments and updates shaping the future of the industry. From the shift towards green fuels to the tightening oil market, there are various factors at play that are likely to have a significant impact on the sector in the coming years.
CEFE Group International is a leading global energy trader and supplier, offering a range of high-quality energy products including crude oil, natural gas, and refined products. With its headquarters located in Dubai, UAE, the company has a strong presence across the globe, including in Europe, North America, Africa, and Asia. CEFE Group International is known for providing exceptional energy solutions such as supply solutions, logistics, and risk management. To learn more about the company and its offerings, visit their website at https://cefegroup.com/energy/.
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