Oil Markets

The UK's Grangemouth refinery is set to cease operations in the coming years to be converted into a fuel import terminal, owner Petroineos has said, with current operations to continue into at least early 2025. The refinery supplies close to 86,000 b/d of transport and heating fuels to the UK market and has a direct pipeline of supply from Forties crude, though has in recent years it has seen its reliance on the North Sea grade wane. The news marks a continuing theme of refinery closures in Europe, with the International Energy Agency estimating close to 610,000 b/d of production capacity being taken offline between 2020 and 2022. In this podcast, S&P Global Commodity Insights' Global Director of Crude and Fuel Oil markets, Joel Hanley, speaks with Kelly Norways, reporter for downstream oil, Elza Turner, senior editor covering oil markets and Matthew Tracey-cook, associate editor, EMEA Light Ends to discuss the knock-on effects of Grangemouth's coming closure, and casts an eye on the latest developments in the refining sector in the UK, across Europe and more globally.

A reduction in daily transits at both the Neopanamax and Panamax lock systems have resulted in longer wait times to transit the Panama Canal. These limits to daily transits are expected to continue into 2024, leading shipowners to raise freight costs as they look for reimbursement for higher transit and demurrage fees. As the price of auction slots continues to rise, owners are looking at alternative routes to circumvent the canal altogether. The uncertainty may also affect bunkering demand at what has become one of the biggest hubs in the world. Commodity Insights' Americas dirty products manager Patrick Burns sits down with Americas tankers reporter Catherine Rogers to discuss how shipping markets have been impacted by the continued conservation measures taken by the ACP, what upcoming restrictions mean for shipowners, and how shippers plan to navigate the logistical bottleneck heading into 2024.

The new year looks set to see a seismic shift in China's oil industry, as concerns grow about the future of crude oil imports and by extension product exports from the country, amid headwinds in the country's refining sector. Questions abound about the impact of China's reduction in crude imports and the knock-on effect it might have on product exports from the swing exporter. In this podcast, S&P Global Commodity Insights' Oceana Zhou and Daisy Xu, our China market specialist for oil join Jonathan Nonis, our Associate Editorial Director to discuss some of these questions.

The West African Gasoline market is about to undergo major transformations. Belgium has proposed new environmental measures to suspend low-quality motor fuel exports, following similar move by the Netherlands. Will consumers like Nigeria turn to alternative blending hubs, or resign themselves to higher prices at the pump? In this episode of the Platts Oil Markets podcast, London-based downstream reporter Kelly Norways and gasoline editor Matthew Tracey-Cook join Joel Hanley to discuss the impacts of these new regulations and how the markets have reacted so far. Related price assessments: AAKUV00 – Platts Gasoline FOB NWE West Africa Cargo PGABM00 – Platts Gasoline Prem Unleaded 10ppm FOB ARA Barge Further reading: Belgium moves to prohibit export of low-quality motor fuels to Africa Imports of gasoline into Nigeria to meet 200 ppm sulfur cap: sources

The lifting of Venezuelan oil sanctions by the US has sparked a series of reactions in the upstream market. S&P Global expects an increase of roughly 100,000 b/d in crude exports from Venezuela to 850,000 b/d. Jeff Mower, director of Americas oil news, sits down with Americas crude markets editor Patrick Harrington and Mexico energy editor Sheky Espejo to discuss the sanctions and the impact their lifting will have on competing Mexican and Canadian crude grades.

European fuel oil sulfur spreads surged in October as events further afield spurred opposing price movements for low- and high-sulfur fuel grades. A sudden easing of US oil and gas sanctions on Venezuela has sent high sulfur markets tumbling, while a mysterious shift in exports from Kuwait hit low sulfur markets in the Middle East and Asia, all against the backdrop of a gentle wind-down to an unusual European summer. In this episode of the Platts Oil Markets podcast, Francesco Di Salvo is joined by Managing Editor for fuel oil Rowan Staden-Coats. Related price assessments: PUABC00 - FO 3.5%S FOB Rdam Barge PUMFD00 - Marine Fuel 0.5% FOB Rdam Barge $/mt

Oil market volatility amid the conflict in the Middle East has started to ring alarm bells for Asian refiners. Hamas' surprise attack on Israel has fanned worries of a long-drawn period of geopolitical turbulence at a time when global oil markets are already been facing a squeeze in supplies, while demand continues to grow. This has rekindled the debate on oil crossing the $100/b threshold again. S&P Global Commodity Insights' Asia energy editor Sambit Mohanty speaks with Kang Wu, head of global demand and Asia analytics, and Daniel Colover, head of market engagement for the Middle East, on how some of the recent geopolitical developments, including the removal of sanctions on Venezuela, could potentially affect Asian oil markets.

Geopolitical tensions are, once again, spooking oil markets, with the Israel-Hamas war dominating all discussions. Even with the impact of the armed conflict so far restricted to the Mediterranean, market players are increasingly concerned about the potential for escalation, which is being reflected in rising insurance premiums. In this episode of the Platts Oil Markets podcast, Andy Critchlow, the London-based head of the S&P Global Commodity Insights news team, and oil and freight reporters Nadia Bliznikova and Lei Zhong join Joel Hanley to discuss the impact of a conflict that evokes memories of major oil crises in the past. Related price assessments: AAWYZ00 - ULSD 10ppmS CIF Med Cargo PFADB10 - Clean Med-Med 30kt MR Wsc As mentioned in the episode, explore our Energy Security Sentinel™ and see how disruptions affect energy flows in the region.

After sanctions on Russia in the aftermath of the invasion of Ukraine, Brazil started sourcing 78% of its imports from Russia. But in mid-September, Russia announced a ban on refined product exports to ease its own domestic fuel prices. It quickly changed course, however, partially lifting the ban in early October to free up storage for winter grade diesel and to offload remaining summer product. Now, the Brazilian market must decide whether to trust Russia as a steady source of fuel or to to return to the more reliable US Gulf Coast for diesel supply. S&P Global Commodity Insights' light ends pricing manager Sarah Hernandez, middle distillates manager Jordan Daniel, and Latin America refined products reporter Maria Jimenez Moya discuss how Russia lifting its diesel ban is affecting trade flows in Brazil. Links: (NEW) AULDA00 - ULSD DAP South Brazil (All-Origin) $/bbl Join us on Platts Connect

Global fuel markets were set to receive another shockwave when Russia announced a ban on diesel and gasoline exports amid tight domestic supplies. Brazil and other importers of Russian diesel were expected to suffer the most. But judging by the falling prices, things are not going quite as some had expected. In this episode of the Platts Oil Markets podcast, London-based oil news reporter Elza Turner and oil price reporters Matthew Tracey-Cook and Sasha Foss join Francesco Di Salvo to discuss the market's reaction to a ban that many traders doubt Russia can stick to for much longer. Related price assessments: AAVBG00 - ULSD 10ppmS CIF NWE Cargo AULDA00 - ULSD DAP South Brazil (All-Origin) AAQZV00 - Gasoline Eurobob FOB AR Barge Read more: Russian authorities discussing easing diesel export ban: energy minister