Oil Markets

Jet fuel took center stage at the recent International Air Transport Association Fuel Forum, as the industry grapples with the demand destruction due to air travel restrictions, but also paves the way for a clear decarbonisation agenda. Jet fuel and derivatives editors Emma Thomas and Christopher Ewen join Francesco Di Salvo to reflect on the key takeaways from the event and the impact on the markets for conventional and sustainable aviation fuels.

Diesel prices across the US soared last week, reaching multiyear highs in nearly every region. The aftermath of several hurricanes this year curtailed production, and perhaps shut some refineries for good. That, combined with strong agriculture demand, created a perfect storm for strong spot market prices.

As coronavirus cases rise sharply in Europe, many countries are entering into second lockdowns to curb the spread of the virus – but are the markets prepared for a potential second round of curtailed demand? S&P Global Platts reporters Chris Ewen, Kieran Hess and Sarah-Jane Flaws discuss with Joel Hanley the state of refined products and the challenges ahead for transportation fuels.

China's GDP grew by 4.9% the third quarter, putting the country's economy back on an expansionary track. China is one of the very few countries to register a positive growth amid the COVID-19 pandemic. Against this backdrop, S&P Global Platts Head of News in Asia Mriganka Jaipuriyar, senior oil writer Oceana Zhou, and Head of Global Demand and Asia Analytics Dr. Kang Wu examine China's prospects in a world that continues to face an immense oil demand destruction, forecasts of peak oil demand amid a decarbonization drive across the globe, and the implications the US elections might have on China's near to medium term growth.

Despite demand for some refined products returning to pre-COVID levels, refinery margins in Europe have remained at all-time lows, leading to a bottleneck in the upstream market. S&P Global Platts editors Solomon Lanitis and Elza Turner discuss with Joel Hanley falling demand for crude oil in Europe, the building inventories of floating storage, and the health and prospects for the refinery sector.

For the first time, the African Refiners and Distributors Week was held virtually in the week commencing Oct. 5, discussing the challenges of the downstream sector in the region, but also the strong signs of resilience in the continent in the midst of the Coronavirus pandemic. Platts editors Eklavya Gupte, Joseph Mcdonnell and Virginie Malicier discuss with Francesco Di Salvo key takeaways from the conference as well as the latest views on oil fundamentals in the continent.

With global demand destruction and COVID-19 continuing to impact US production, the expected trajectory of US crude exports is vastly different than just a few months ago. Before the pandemic, S&P Global Platts Analytics expected US crude exports to end 2020 at a run rate of nearly 4 million b/d, rising past 6 million b/d by the mid-2020s, but with demand loss for now putting a cap on WTI at about $40/b, Analytics now expects exports to fall below 2 million b/d by mid-2021. S&P Global Platts editors Laura Huchzermeyer, Kristian Tialios and Matt Eversman look at the factors affecting US crude exports.

The COVID-19 pandemic continues to create interesting opportunities; one of the more surprising is seeing kerosene finding its way into marine fuel. Platts reporters Sarah-Jane Flaws and Gary Clark discuss with Joel Hanley how a once-premium product has mingled with shipping fuel.

Fresh from the recent Asia Pacific Petroleum Conference or Platts APPEC, Gawoon Phil Vahn and Surabhi Sahu join Mriganka Jaipuriyar to share key themes and insights discussed at the event, which brought together - virtually - the who's who in the oil industry. This episode takes a deep dive into the impact of the current fragile demand environment on the region's refining industry, the strategies being deployed by major companies to fight against weak refining margins as the coronavirus pandemic continues to affect oil product demand, as well as the big push for energy transition and the pressure on the aviation industry to cut emissions.

US Gulf Coast market players looking to get light naphtha barrels off their hands, a hungry Asian market and weakened freight is the perfect arbitrage recipe. But with shipowners reluctant to move their ships East, where the freight market is weak, the balance has been delicate. Sarah Raslan, US naphtha editor, and Marieke Alsguth, US clean tankers editor, chat with Americas Oil Markets Editorial Director Director Richard Swann to dissect the ingredients that have set the table for this arbitrage opportunity.