Business

Argus Media: ARA bunker market tightens amid backwardation

Multiple bunker suppliers faced HSFO shortages and said this could persist till next week, MGO avails unaffected.

Published

7 years ago

September 12, 2019

Admin

Global energy and commodity price reporting agency Argus Media on Wednesday (11 September) provided a marine fuels industry related update regarding supply of HSFO within the ARA region:

Bunker grade high-sulphur fuel oil (HSFO) supply has tightened in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub in northwest Europe as backwardation in the swaps market reached its widest on record this week ahead of the International Maritime Organisation's (IMO) 0.5pc sulphur cap.

Multiple bunker suppliers faced HSFO shortages and said this could persist until next week. One bunker supplier said it had prompted regional refiners to answer as to when they would resume supply, but was told that it would not receive bunker fuel oil until 13 September. The bunker supplier will then load at a jetty and expected to supply shipowners by 16-17 September.

While bunker fuel oil supplies will be dry until at least next week, marine gasoil (MGO) can be supplied in 2-3 hours from the order, a bunker supplier said.

Rotterdam barge swaps reflected the spot tightness in the market. The premium of September barge swaps to the October product reached $44/t on 9 September, the widest since 1993 when Argus started assessing prices. Delivered bunker premiums in ARA reached $12/t today against Rotterdam barges.

As the price of HSFO is expected to drop significantly towards 2020, storage economics for the grade have been rendered unviable. HSFO volumes in storage continue to fall, and supplies are tighter. Some companies have started storing IMO-compliant fuel oil and blending it into product in the past few months.

Fuel oil inventories in ARA rose by 7pc in the week to 5 September to 1.3mn t, the highest total since January. But the increase could be driven by higher storage of 0.5pc sulphur fuel oil ahead of 2020.

The falling trend in HSFO refinery output has also weighed on supply in Europe, because of the weaker fuel oil margins and companies ramping up low-sulphur production. Fuel oil output in the EU-16 fell by 10pc on the year in January-July to 1.11mn b/d, according to provisional Euroilstock data.

Rotterdam barge prices did not reflect the shortage in the delivered market, and HSFO margins against Ice Brent crude futures remained near their weakest in five years. The Rotterdam barge discount to Ice November Brent narrowed to $16.40/bl today from $18.23/bl yesterday. Recovering global fuel oil stocks probably drove margins down, after falling inventories pushed cracks to their firmest in five months earlier in July. Companies closing paper positions ahead of 2020 may have weighed on notional fuel oil cracks, according to market participants.

HSFO shortages in northwest Europe came after a similar situation last month in Singapore, the world's largest bunkering hub.

Source: Argus Media
Published: 12 September, 2019

Winding up

Singapore: Notice of intended dividend issued for Xihe Holdings’ subsidiaries

Creditors will need to produce proofs of debt to liquidators of Da Xin Tankers and Nan Chiau Maritime by 5 August, according to Government Gazette notice.

Published

11 hours ago

July 23, 2026

Admin

Two notices to declare the intended dividend of Xihe Holdings’ subsidiaries to their creditors have been posted on the Government Gazette on Wednesday (22 July).

The subsidiaries are Da Xin Tankers Pte Ltd and Nan Chiau Maritime Pte Ltd.

The following are the details of the notices of intended dividend:

Name of Company : Da Xin Tankers (Pte) Ltd (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 198400895W
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Name of Company : Nan Chiau Maritime (Pte.) Ltd. (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No.: 200814296Z
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Photo credit: steve pb from Pixabay
Published: 23 July, 2026

Biofuel

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

Company says it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply.

Published

11 hours ago

July 23, 2026

Admin

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

South Korean petroleum and refining company S-Oil on Wednesday (22 July) said it has started supplying B30 very low sulphur fuel oil (VLSFO), as the company seeks to support shipping’s decarbonisation efforts and growing demand for lower-carbon bunker fuels.

The company said its B30 VLSFO contains 30% sustainable biofuel blended with conventional VLSFO and can be used without requiring modifications to existing vessels, enabling shipowners to comply more readily with emissions regulations from the International Maritime Organization (IMO) and the European Union (EU).

S-Oil said it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply. The system combines VLSFO produced at its Onsan refinery with biofuel production facilities and storage infrastructure in the Ulsan region, allowing the entire process to be carried out within a single logistics hub.

According to the company, the integrated supply chain reduces transportation requirements during production while improving supply efficiency and reliability.

S-Oil also highlighted Ulsan Port as a strategic location for marine biofuel supply, noting the port has strong demand for bio-bunker fuels, particularly from car carriers, enabling prompt and stable deliveries to key customers.

An S-Oil official stated: “In the bio-marine fuel market, not only product quality but also securing a stable supply of raw materials and an efficient supply system are important competitive advantages.

“Based on our existing bunkering business capabilities and the excellent supply infrastructure in the Onsan area, we plan to supply stable and competitive low-carbon fuel.”

Photo credit: S-Oil
Published: 23 July, 2026

Decarbonisation

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

Both will explore solutions spanning emissions measurement and verification, a digital Book-and-Claim framework, and a joint maritime-land inset token package.

Published

11 hours ago

July 23, 2026

Admin

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

PSA International (PSA) on Monday (20 July) said it has signed a Memorandum of Understanding (MoU) with Yang Ming Marine Transport Corporation (Yang Ming) to jointly accelerate the adoption of low-carbon solutions across the maritime value chain.

Beyond emissions measurement and verification, the collaboration will focus on a digital Book-and-Claim framework and a joint maritime-land based inset token package.

“This synergy provides cargo stakeholders with a transparent and accountable sea-land pathway to achieve their decarbonisation targets,” PSA said on its website.

Yang Ming launched the green transport service, EcoSea+. This initiative integrates Yang Ming’s low-carbon navigation capabilities to empower customers with a flexible and transparent strategy to effectively reduce their Scope 3 transportation emissions. By joining forces with PSA, Yang Ming is able to expand the impact of these sustainability actions beyond the ocean.

Building on its position as a global port operator, PSA advances its Node to Network strategy through integrated port and supply chain capabilities that enable a green network of terminal and landside operations to reduce end-to-end supply chain emissions.

The agreement was officially signed by Mr Ivan Chiang, Chief Logistics Officer & Senior Vice President of Yang Ming, and Mr Eddy Ng, Group Head of Operations, Technology and Sustainability of PSA International.

Mr Ong Kim Pong, PSA International Group CEO, said, “As responsible stewards of tomorrow, PSA is committed to delivering sustainable impact across the global port and supply chain ecosystem.

“Tackling the challenges arising from climate change will require the collective efforts of all players in the maritime supply chain sector. We are excited to partner Yang Ming on the decarbonisation of global supply chains and support the transition towards a more sustainable global economy.”

Photo credit: PSA International
Published: 23 July, 2026