Argus Asia-Pacific Products

Prices and analysis

Issue 24-29 | Friday 9 February 2024

OVERVIEW PRICES AT GLANCE

„ Formosa bought March-delivery spot naphtha Singapore $/bl

Diff to Mops
„ MRPL offered March-loading reformate
Low High Low High ±
„ The gasoil EFS widened to over a one-year low
97R gasoline - - 102.15 102.35 +1.35
„ Emarat sought March-delivery 10ppm sulphur gasoil 95R gasoline 0.50 0.70 100.90 101.10 +1.35
„ PetroRabigh sold February-loading VGO 92R gasoline 0.85 1.05 97.25 97.45 +2.10
Naphtha 1.55 1.75 73.45 73.55 +1.33
Gasoline 92R vs Singapore naphtha swaps $/bl Jet-kerosine 0.50 0.70 104.90 105.10 +1.10
Gasoil 0.5% -1.60 -1.40 106.30 106.50 +1.30
Naphtha Singapore swap month 1 = 0 Gasoil 0.25% -1.50 -1.30 106.40 106.60 +1.30
28 Gasoil 0.05% -0.65 -0.45 107.25 107.45 +1.30
Gasoil 0.005% 0.80 1.00 108.70 108.90 +1.30
26
Gasoil 0.001% 1.20 1.40 109.10 109.30 +1.30
24 HSFO 180cst $/t -3.00 -2.00 453.00 454.00 +11.00
HSFO 380cst $/t -2.75 -1.75 435.25 436.25 +10.25
22 Marine fuel 0.5%S $/t 4.25 5.25 610.00 611.00 +15.75
hhhhhhhhhhh hhhhhhhhhhh

20 South Korea $/bl

Diff to Mops
18
Low High Low High ±
16 Jet-kerosine -3.00 -2.80 101.40 101.60 +1.10
Gasoil 0.05% -4.10 -3.90 103.80 104.00 +1.30
14
Gasoil 0.001% (10ppm) -2.80 -2.60 105.10 105.30 +1.40
9 Nov 23 11 Dec 23 11 Jan 24 9 Feb 24 HSFO 180cst $/t - - 464.00 465.00 +11.00
HSFO 180cst crack spreads $/bl Diff to Mopj
-8.5 Dubai crude = 0 Low High Low High ±

Naphtha 14.75 16.75 699.50 701.50 +11.25

-9.0
Mideast Gulf $/bl
-9.5 Diff to Mopag
Low High Low High ±
-10.0
95R gasoline 6.25 6.45 95.30 95.50 +1.65
-10.5 hhhhhhh 92R gasoline 4.35 4.55 91.65 91.85 +2.40
Naphtha LR1 $/t 42.00 44.00 606.15 614.90 +17.73
-11.0 Naphtha LR2 $/t - - 617.00 625.75 +20.43
Jet-kerosine 3.75 3.95 98.70 98.90 +1.20
Gasoil 0.2% 0.55 0.75 101.05 101.25 +1.40
-11.5
Gasoil 0.05% (500ppm) 0.90 1.10 101.40 101.60 +1.40
Gasoil 0.001% (10ppm) 2.05 2.25 102.55 102.75 +1.40
-12.0
HSFO 180cst $/t - - 420.60 421.60 +11.00
28 Dec 23 12 Jan 24 26 Jan 24 9 Feb 24 HSFO 380cst $/t 25.25 27.25 402.90 403.90 +10.20

CONTENTS Japan $/bl

Prices at a glance, Overview 1 Diff to Mopj
Gasoline commentary and prices2 Low High Low High ±
Naphtha commentary and prices3 Naphtha $/t 15.75 17.75 687.50 696.25 +16.38
Jet-kerosine commentary and prices4 Jet-kerosine - - 109.95 110.15 +1.00
Gasoil 0.005% - - 109.80 110.00 +1.35
Gasoil commentary and prices  5
HSFO 180cst $/t - - 472.55 473.55 +11.00
Residual fuels commentary and prices6
China oil products 7 Indonesia $/t
Freight rates  8 Diff to Mops
Refining margin and methodology 9 Low High Low High ±
Deals done and tenders 10
0.45%S fuel oil V-1250 -25.10 -24.90 580.75 580.95 +15.15
Market news 11

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Licensed to: Pierre Yves RIGAUX, Interasia Energy
Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

GASOLINE

Singapore 92R gasoline prices increased by more than Ice Singapore $/bl
Brent crude values as the crack spread rose for the second Diff to Mops
consecutive session. Indian state-controlled refiner MRPL Low High Low High ±

offered March-loading reformate. 97R gasoline - - 102.15 102.35 +1.35

The March 92R swap was assessed firmer at around 95R gasoline 0.50 0.70 100.90 101.10 +1.35
$95.75/bl compared with $93.85/bl on 8 February. The Feb- 92R gasoline 0.85 1.05 97.25 97.45 +2.10
ruary and March spread was assessed stable around $1.25/ Non-oxy gasoline 3.10 3.30 99.45 99.65 +2.10
bl. The 92R cash value — or the 92R physical price against
March 92R swaps — was discussed with two market partici- Mideast Gulf $/bl
pants submitting cash values at $1.65/bl and $1.68/bl to Diff to Mopag
Argus, averaging around $1.65/bl, higher than the $1.35/bl Low High Low High ±
average on 8 February. There were two 100,000-150,000 bl 95R gasoline 6.25 6.45 95.30 95.50 +1.65
92R cargoes sold at $97.47/bl and $97.55/bl during afternoon 92R gasoline 4.35 4.55 91.65 91.85 +2.40
online trading but the 50,000 bl 92R cargo was offered much
lower at $97.08/bl. A 29 February-4 March loading 95R cargo Fujairah $/bl
was traded at $101.02/bl. Diff to Mopag
MRPL offered what could be its first reformate cargo for Low High Low High ±
March loading, offering 35,000t for 7-9 March loading from 95R gasoline 6.25 6.45 101.05 101.25 +1.85
New Mangalore. MRPL typically sells reformate cargoes on 92R gasoline 4.35 4.55 94.75 94.95 +2.15
the average of Argus and Platts' Singapore 97R spot assess-
ments. The tender closes on 13 February and remains valid Durban $/t
until the same day. MRPL last sold 25,000t for 24-26 Febru- Low High ±
ary loading from New Mangalore. The price was around a
$10-11/t premium. The pricing basis will be on the average 95R gasoline 864.11 864.31 +10.68

of Argus and Platts' 97R spot assessments on a per tonne

basis. The tender closed on 2 February and remained valid Singapore reforming spread $/bl
until the same day. Today Previous ±

South Africa's Engen Petroleum emerged to buy a cargo 97R gasoline 28.75 28.73 +0.02
for March loading. It sought 37,000t (313,000 bl) of 95R for 95R gasoline 27.50 27.48 +0.02
10-12 March loading from Singapore or Malaysia, 14-16 March
92R gasoline 23.85 23.08 +0.77
for loading from India or the Mideast Gulf or 3-5 March load-
ing from the Mediterranean. The pricing basis will be 50pc Singapore 95R gasoline swap $/bl
Singapore spot 95R assessments and 50pc Mediterranean
Low High ±
gasoline price assessments. The tender closed on 8 February
and remains valid until 9 February. Engen last sought 37,000t Feb 101.45 101.65 +1.65
of non-oxygenated gasoline for 11-13 February loading from Mar 100.05 100.25 +1.75
Singapore or Malaysia, 15-17 February loading from India or Apr 98.55 98.75 +1.90
from the Mideast Gulf, as well as 4-6 February loading from
the Mediterranean. The cargo will have a minimum Ron rat-
Singapore 92R gasoline swap $/bl
ing of 95 and a maximum sulphur content of 500ppm. Pricing
Low High ±
will be based on the whole-month average of January's
Mediterranean and Singapore spot gasoline assessments on a Feb 96.90 97.10 +1.90
50:50 basis. The tender closed on 17 January. Mar 95.65 95.85 +1.90
Shipping fixtures show Phillips 66 placing the Oriental
Apr 94.20 94.40 +1.90
Aquamarine on subjects to load 35,000t of gasoline on 19
February from Sikka, India to move towards Singapore or the
Gasoline East-West Spread $/bl
US for WS370 or $4.125mn respectively.
East-west Feb spread -0.80
East-west Mar spread -2.55

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Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

NAPHTHA

First-half April delivery naphtha prices rose by more than Singapore $/bl
Ice Brent crude values, as margins strengthened for the Diff to Mops
fifth consecutive session. Taiwanese private-sector refiner Low High Low High ±

Formosa Petrochemicals concluded its tender to buy March- Naphtha 1.55 1.75 73.45 73.55 +1.33
delivery spot cargoes.
Northeast Asia $/t
The March swap was discussed stronger at $671.75/t
Diff to Mopj
compared with $662.25/t on 8 February. The February-March
Low High Low High ±
spread was discussed stronger at $12/t in backwardation,
Japan 15.75 17.75 687.50 696.25 +16.38
compared with $11.50/t in backwardation in the previous
session. The March east-west spread was discussed weaker South Korea 14.75 16.75 699.50 701.50 +11.25

at around $25/t compared with $27.75/t on 8 February.

Mideast Gulf $/t
Second-half April delivery open-specification naphtha (OSN)
Diff to Mopag
traded at $688/t in afternoon online trading. Low High Low High ±
Japanese petrochemical producer Maruzen Petrochemi-
Naphtha LR1 42.00 44.00 606.15 614.90 +17.73
cal concluded a deal to buy March-delivery spot naphtha. It
bought at least 25,000t (223,000 bl) of OSN for second-half Naphtha LR2 - - 617.00 625.75 +20.43

March delivery to the Japanese port of Chiba. The price

Fujairah $/t
was likely done at around a $12/t premium to the average Diff to Mopag
of Japanese spot naphtha assessments on a 45-day pricing Low High Low High ±
basis, said traders, although this could not be confirmed Naphtha 42.00 44.00 635.15 636.15 +4.75
with Maruzen itself. It is unclear if Maruzen had bought the
cargoes on a private negotiation basis or via an open tender. Japan open-specification naphtha forward prices $/t
Formosa Petrochemicals bought at least 50,000t of light Low High ±
naphtha earlier this week, for second-half March delivery to 16-31 Mar 701.25 702.25 +11.25
the port of Mailiao, said market participants. The cargo will 1-15 Apr 695.25 696.25 +15.75
have a minimum paraffin content of 70pc and the price was 16-30 Apr 687.50 688.50 +17.00
done at around a $9/t premium to the average of Japanese
spot naphtha assessments on a 30-day pricing basis, said Japan naphtha swaps $/t

sources, which added that the offered premiums had a very Low High ±

wide range. The price was done below expected market Feb 683.25 684.25 +10.00
levels and the cargo was not of Russian origin, said a trader. Mar 671.25 672.25 +9.50
Formosa's 1.2mn t/yr No.3 cracker came on line around late Apr 658.75 659.75 +10.00

January after an extended shutdown since August last year.

Singapore naphtha swaps $/bl
It shut its 1.035mn t/yr No.2 cracker a few days later, likely
Low High ±
for two months, according to market sources. The No.3
cracker is still running at low rates at the moment. The No.1 Feb 72.65 72.85 +1.50

and No.3 crackers are running at around 85pc operating Mar 71.10 71.30 +1.90
Apr 69.70 69.90 +1.95
rates, according to sources.
Singapore's light distillate stocks fell to a three-week low NWE naphtha swaps $/t
of 12.97mn bl in the week to 7 February because of a plunge Low High ±
in naphtha imports, which fell by 9.8pc on the week to
Feb 658.90 659.10 +12.00
1.76mn bl. Russia was the top supplier of naphtha to Singa-
Mar 646.65 646.85 +12.25
pore at 493,000 bl. But imports from Qatar and Saudi Arabia, Apr 635.90 636.10 +11.50
which were the top suppliers the previous week at 666,000
bl and 489,000 bl respectively, fell to zero in the latest Naphtha arbitrage $/t

week. Naphtha exports also grew to 862,000, nine times East-west Feb spread 24.750
that of exports last week, with cargoes going out mainly to East-west Mar spread 25.000
China and Malaysia. Japan Mar vs NWE Feb 12.750
Japan Apr vs NWE Feb 0.250

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Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

JET-KEROSINE

Singapore’s jet fuel swaps rose by less than Dubai crude Singapore $/bl
values, weakening crack spreads. Indonesia’s state-owned Diff to Mops
refiner Pertamina bought jet A-1 fuel for March delivery. Low High Low High ±

The February-March spread narrowed slightly to about Jet-kerosine 0.50 0.70 104.90 105.10 +1.10
$0.50/bl in backwardation, from last session’s $0.55/bl. The
March swap rose to $104.15/bl from last session’s $102.95/bl.
Pertamina bought March-delivery cargoes of jet A-1 fuel,
after the close of a spot tender on 6 February. The refiner South Korea $/bl
bought two 200,000 bl cargoes at a premium of about $5/ Diff to Mops
bl to the average of either Argus’ or Platts’ Singapore spot Low High Low High ±

assessments for jet A-1 fuel, whichever is lower. The cargoes Jet-kerosine -3.00 -2.80 101.40 101.60 +1.10
should be delivered into Jakarta between 1-5 March and 9-11
March. This was at similar levels to the refiner’s previous
purchase of jet A-1 fuel, which it had concluded at a pre-
mium of around $5.50/bl to the Singapore spot assessments. Mideast Gulf $/bl
That cargo is to be delivered into Jakarta between 15-19 Diff to Mopag
Low High Low High ±
February, and the sale was concluded after the close of the
spot tender on 26 January. Jet-kerosine 3.75 3.95 98.70 98.90 +1.20
Bad weather is affecting refinery operations in the US
west coast, and pushing up jet fuel prices in the region.
Prompt Los Angeles jet fuel cash differentials rose by almost
Fujairah $/bl
three times from the start of this week to a premium of 58¢/
Diff to Mopag
USG to the March Nymex contract on 8 February. The stron- Low High Low High ±
ger prices could be helping to widen arbitrage opportunities
Jet-kerosine 3.75 3.95 101.90 102.10 +1.35
between northeast Asia and the US west coast, despite con-
tinuing strong Medium Range freight rates. Jet fuel supplies
in northeast Asia are ample in late February, which could be
Japan $/bl
enabling this arbitrage flow, after the influx of more Febru-
ary-loading Chinese cargoes in the market over the previous Low High ±

two weeks. Jet-kerosine 109.95 110.15 +1.00

But latest refinery outages reported in Japan this week,
including at Cosmo Oil’s Chiba plant and a suspected out-
age at Idemitsu Kosan’s Aichi refinery, might boost Japan’s
Durban $/t
import demand.
Low High ±

Singapore regrade $/bl

Jet-kerosine 836.33 836.53 +6.20

5.00

0.00
Singapore jet-kerosine swaps $/bl
Low High ±
-5.00
Feb 104.55 104.75 +1.15
hhhhhhh
-10.00 Mar 104.05 104.25 +1.20

Apr 103.00 103.20 +1.35

-15.00
2Q24 102.00 102.20 +1.65

3Q24 99.20 99.40 +1.35

-20.00
7 Mar 22 31 Aug 22 23 Feb 23 18 Aug 23 9 Feb 24 4Q24 97.30 97.50 +1.20

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Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

GASOIL

Singapore’s March gasoil swaps rose by slightly less than Singapore $/bl
Dubai crude values, narrowing the crack spread slightly. The Diff to Mops
Gasoil EFS widened to a more than one-year low. Low High Low High ±
The February-March spread was assessed at about $1.45/ Gasoil 0.5% -1.60 -1.40 106.30 106.50 +1.30
bl in backwardation on 9 February, from around $1.50/bl in Gasoil 0.25% -1.50 -1.30 106.40 106.60 +1.30
the last session. The March swap rose to $107.20/bl from last Gasoil 0.05% (500ppm) -0.65 -0.45 107.25 107.45 +1.30
session’s $105.85/bl. Gasoil 0.005% (50ppm) 0.80 1.00 108.70 108.90 +1.30
The Asian gasoil market is gaining strength, with mar- Gasoil 0.001% (10ppm) 1.20 1.40 109.10 109.30 +1.30
gins surging to around $27/bl by the close of the week
South Korea $/bl
from about $25/bl on 5 February. This strength could be
Diff to Mops
west-led, with the February EFS — or the Singapore 10ppm Low High Low High ±
sulphur gasoil swaps against Ice gasoil futures — widening
Gasoil 0.05% -4.10 -3.90 103.80 104.00 +1.30
even further on 9 February to around -$76.72/t, from around Gasoil 0.001% (10ppm) -2.80 -2.60 105.10 105.30 +1.40
-$68.42/t on 8 February, and plunging from about -$50/t at
Mideast Gulf $/bl
the start of the week. Europe is due to feel more tightness Diff to Mopag
in supplies, both from upcoming maintenance works, and Low High Low High ±
from the slowdown in import flows from India and the Mid-
Gasoil 0.2% 0.55 0.75 101.05 101.25 +1.40
east Gulf because of the Red Sea tensions. But the widening
Gasoil 0.05% (500ppm) 0.90 1.10 101.40 101.60 +1.40
EFS spread could help to improve the east-west arbitrage Gasoil 0.005% (50ppm) 0.95 1.15 101.45 101.65 +1.40
economics, and fuel more trade flows on that route. Gasoil 0.001% (10ppm) 2.05 2.25 102.55 102.75 +1.40
Supplies in Asia will likely tighten in March as well.
Fujairah $/bl
Few offers have emerged for March-loading cargoes, with
Diff to Mopag
northeast Asian traders largely away for the lunar new year
Low High Low High ±
holidays. But overall gasoil offers should slow in March, with
Gasoil 0.001% (10ppm) 2.05 2.25 103.00 103.20 +1.40
maintenance works planned that would take at least 590,000
b/d of refining capacity off line in South Korea and Taiwan Japan $/bl
alone. Low High ±

The UAE’s state-owned marketer Emarat is seeking Gasoil 0.005% (50ppm) 109.80 110.00 +1.35
March-delivery cargoes of 10ppm sulphur gasoil. Emarat is
Durban $/t
seeking a 15,000t (112,000 bl) cargo for delivery into Jebel
Low High ±
Ali between 1-2 March. The spot tender closes on 14 Febru-
ary. Emarat had earlier sought supplies in the spot market to Gasoil 0.05% (500ppm) 815.17 815.37 +7.18
buy 14,000t of 10ppm sulphur gasoil for delivery to Jebel Ali Gasoil 0.005% (50ppm) 815.54 815.74 +7.18
across 3-4 February. The spot tender closed on 17 January
Gasoil 0.001% (10ppm) 823.75 823.95 +7.18
although results of that tender could not be determined yet.
Kuwait’s state-owned refiner KPC concluded the sale of Singapore gasoil swaps $/bl
a March-loading cargo of 10ppm sulphur gasoil. The refiner Low High ±
sold the 80,000t cargo of ultra-low sulphur diesel likely Feb 108.55 108.75 +1.30
around or below a premium of $2/bl to the Mideast Gulf Mar 107.10 107.30 +1.35
spot assessments for 10ppm sulphur gasoil, said traders Apr 105.50 105.70 +1.30
after the close of a spot tender on 6 February, although the 2Q24 104.05 104.25 +1.70
exact price level is yet to be fully determined. The cargo is 3Q24 100.70 100.90 +1.50
to load from Kuwait between 21-23 March. Traders said the 4Q24 98.30 98.50 +1.30
larger size of the refiner’s latest spot offer, is because of the
Gasoil arbitrage $/t
higher operating rates of Kuwait’s al-Zour refinery, which is
running at maximum capacity of 615,000 b/d. KPC previously East-west Feb spread -76.72
offered spot cargoes in 40,000t or 60,000t sizes. East-west Mar spread -64.29
Singapore Feb vs ICE Mar gasoil -53.47
Singapore Feb vs ICE Apr gasoil -25.72

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Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

RESIDUAL FUELS

The Singapore March 0.5pc sulphur marine fuel swap rose Singapore $/t
Diff to Mops
by more than Dubai crude values as the crack spread rose.
Low High Low High ±
Saudi Arabia’s state-controlled PetroRabigh sold February-
HSFO 180cst -3.00 -2.00 453.00 454.00 +11.00
loading vacuum gasoil (VGO).
HSFO 380cst -2.75 -1.75 435.25 436.25 +10.25
The March 0.5pc sulphur marine fuel swap traded at
HSFO 180cst 2% sulphur - - 463.25 464.25 +11.25
$602/t, higher than the $587/t on 8 February. The Singapore
Marine Fuel 0.5%S 4.25 5.25 610.00 611.00 +15.75
0.5pc sulphur marine fuel February-March backwardation
Marine Fuel 0.5%S (Diff to
widened to $8/t from $7.75/t. The March 380cst HSFO east- 380cst)
172.00 173.00 - - -

west spread rose to -$9.50/t from -$10.50/t on 8 February.

Mideast Gulf $/t
March 0.5pc sulphur marine fuel east-west spreads were
Diff to Mopag
assessed higher at $48.50/t compared with $47.50/t the
Low High Low High ±
previous day.
HSFO 180cst - - 420.60 421.60 +11.00
PetroRabigh sold February-loading VGO through a tender
HSFO 380cst 25.25 27.25 402.90 403.90 +10.20
that closed on 31 January. The 400,000 b/d Rabigh refinery,
operated by Saudi Aramco’s PetroRabigh joint venture with South Korea $/t
Japanese trading house Sumitomo, sold 450,000 bl of VGO Low High ±
for 11 February loading. The cargo was sold to Aramco Trad- HSFO 180cst 464.00 465.00 +11.00
ing at around a high single-digit premium, said a source with
knowledge of the deal. The pricing basis was against Brent Japan $/t
crude assessments. Low High ±

PetroRabigh suffered an unplanned shutdown at its high- HSFO 180cst 472.55 473.55 +11.00
olefins fluid catalytic cracker (HOFCC) unit in late December
Indonesia $/t
last year, which prompted it to offer 300,000-400,000 bl
Diff to Mops
of straight-run fuel oil for 28-29 December 2023, 1-2 Janu-
Low High Low High ±
ary and 5-6 January loading. But the refiner did not end up
0.45%S fuel oil V-1250 -25.10 -24.90 580.75 580.95 +15.15
awarding the tenders and chose to absorb the volumes inter-
nally. The HOFCC unit is still having repairs but the mainte- Singapore $/t
nance is expected to be completed soon, said a source close HSFO 180cst swaps Low High ±
to the company. Additional details, including the start-up Feb 455.25 456.25 +10.75
date of the unit, could not be confirmed. Mar 455.75 456.75 +10.25
Apr 455.75 456.75 +9.25
Indian private-sector refiner Reliance Industries (RIL) sold
2Q24 453.75 454.75 +9.50
40,000t of carbon black feedstock (CBFS) for 25 February 3Q24 441.50 442.50 +8.25
loading from Sikka through a tender that closed earlier this 4Q24 424.50 425.50 +7.50
week. CBFS is residual material from the refinery’s fluid
Singapore $/t
catalytic cracker. RIL last sold to Shell a 40,000t CBFS cargo
HSFO 380cst swaps Low High ±
for 4-5 February loading.
Feb 436.25 437.25 +9.75
Singapore onshore fuel oil inventories fell to around a Mar 438.75 439.75 +9.50
two-week low of 21.8mn bl for the week ending 7 February Apr 440.50 441.50 +9.50
because of increased exports and fall in imports, accord- 2Q24 438.50 439.50 +8.50
3Q24 426.00 427.00 +7.50
ing to Enterprise Singapore data. Imports fell to 5.62mn bl, 4Q24 408.00 409.00 +7.00
down from 7.7mn bl the previous week. China, Hong Kong
Singapore $/t
and South Korea emerged as the top destinations, driven by
Marine Fuel 0.5%S Swaps Low High ±
heightened bunker demand in the region. Imports from the
UAE rose to 913,000 bl this week, marking the first time Sin- Feb 609.50 610.50 +15.25
Mar 601.50 602.50 +15.00
gapore received volumes from the UAE this year. Singapore’s Apr 591.50 592.50 +14.50
fuel oil stocks still remains higher compared with a five-year
Fuel Oil East-West spread $/t
average and above year-earlier levels.
380cst Fuel oil east-west March spread -9.50
0.5%S Fuel oil east-west March spread 48.50

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Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

CHINA OIL PRODUCTS

China transportation fuels Gasoil 0.001% (10ppm)

Yn/t (inc. tax) $/bl (exc. tax)

Shandong private-sector refiners cut operations to run down Bohai fob 7,080 96.76
stocks during the 10-17 February lunar new year holiday, Yangtze River Delta (YRD) ex tank 7,303 99.30
Bohai-YRD freight 120 2.25
when transportation of hazardous chemicals will be banned
YRD-freight-Bohai (arbitrage) 103 0.29
on high-speed roads.
Singapore fob NA 109.20
Traders south of China left the Bohai bay market for holi- Singapore-Bohai (arbitrage) exc.
NA 12.44
days, with few offers from local refiners. Argus-assessed fob freight
92R gasoline and diesel prices were stable at 8,275 yuan/t
and Yn7,080/t respectively on 9 February. 92R Gasoline
Yn/t (inc. tax) $/bl (exc. tax)
Shandong refiners cut their runs by over 3 percentage
points this week, refinery sources said. They raised their Bohai fob 8,275 91.10

trucked gasoline and diesel prices further on 9 February giv- Yangtze River Delta (YRD) ex tank 8,465 92.70
Bohai-YRD freight 120 1.98
en low inventories, with gasoline stocks below 20pc of stor-
YRD-freight-Bohai (arbitrage) 70 -0.38
age capacity. But state-controlled refiners plan to raise their
Singapore fob NA 97.35
crude runs to maximise gasoline production this month. Singapore-Bohai (arbitrage) exc.
NA 6.25
Higher supply since January weighed on gasoline and freight
diesel prices, cutting crack margins. The Bohai gasoil crack
spread was at $16.30/bl on 8 February, down from $20.40/ South China fuel oil fob yuan/t
Low High ±
bl a month earlier, and that for gasoline was at $10.70/bl,
down from $14.20/bl. Weak domestic crack spreads opened HSFO 180cst barge ex-terminal 4,590 4,610 +80.00

the export arbitrage. The Singapore-Bohai gasoil arbitrage

spread widened to $14.50/bl on 8 February from $1.90/bl the South China fuel oil c+f $/t
previous month, with gasoline rising to $4.48/bl from -$5.30/ Low High ±

bl. Feb 463.50 465.50 +11.00

Mar 464.00 466.00 +10.50
China fuel oil and bunkers Apr 464.00 466.00 +9.50

Bunkers 380cst $/t

Chinese delivery bunker fuel prices rose in line with firmer
Low High Mid ±
Singapore cargo values. The market was subdued as many
market participants were already away for the lunar new Singapore - - 451.00 +6.50
year holidays. Singapore 0.5% - - 642.00 +15.00

A sole 750t very-low sulphur fuel oil (VLSFO) deal in Ulsan/Busan/Yeosu 487.50 492.50 490.00 +5.00

Shanghai port was concluded at $632/t. Spot VLSFO demand Fujairah - - 433.00 +13.00
Hong Kong 455.00 465.00 460.00 +10.00
was muted in Zhoushan port with its assessed price also at
Shanghai 445.00 455.00 450.00 +10.00
$632/t.
Qingdao 445.00 455.00 450.00 +10.00
A 250t marine gasoil deal in Zhoushan was fixed at
$830/t.
Bunkers 500cst $/t
Mid ±

Singapore 446.00 +6.50

Copyright © 2024 Argus Media group Page 7 of 16

Licensed to: Pierre Yves RIGAUX, Interasia Energy
Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

FREIGHT ROUTES

Freight snapshot (full view in Argus Tanker Freight)

Mideast Gulf-Singapore Size t $/t Mideast Gulf-Japan Size t $/t

Fuel oil 80,000 32.38 Naphtha 55,000 81.33

Naphtha 75,000 70.50

Mideast Gulf-Singapore Size t $/bl

Gasoline 35,000 5.59

Mideast Gulf-Singapore Size t $/bl

Gasoil 55,000 6.53

Jet 55,000 6.18

Singapore-Japan Size t $/t

Clean products 30,000 39.84

Singapore-Japan Size t $/bl

Gasoil 30,000 5.34

Jet 30,000 5.06

Indonesia-Japan Size t $/t

Fuel oil 80,000 19.55

The full range of tanker freight assessments, news & analysis and exclusive tools is available in Argus Tanker Freight.
For more details, please e-mail: FreightTeam@argusmedia.com

Singapore HSFO 380cst vs 180cst$/t Singapore 92R gasoline vs Singapore Marine fuel 0.5%S$/t
5 225 Marine Fuel 0.5%S = 0

0 200

-5
175
-10
150
-15 hhhhhhh hhhhhhh
125
-20

-25 100

-30 75
9 Nov 23 11 Dec 23 11 Jan 24 9 Feb 24 9 Nov 23 11 Dec 23 11 Jan 24 9 Feb 24

Copyright © 2024 Argus Media group Page 8 of 16

Licensed to: Pierre Yves RIGAUX, Interasia Energy
Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

OIL PRODUCT CRACK SPREADS

Gasoil and jet-kero crack spreads$/bl Oil Product crack spreads

Period
Gasoil Jet-kerosine
28.0 Dubai swaps $/bl
Singapore fuel oil 180cst Mar -9.69
26.0
Singapore gasoil Mar 26.77
Singapore jet Mar 23.72
24.0
Ice Brent crude $/t
hhhhhhh
22.0 Japan naphtha c+f half month 1 na na
Japan naphtha c+f half month 2 1-15 Apr 83.97
20.0 Japan naphtha c+f half month 3 16-30 Apr 76.22

Dubai crude = 0 Ice Brent crude $/bl

18.0 Singapore naphtha fob spot - -8.07
28 Dec 23 12 Jan 24 26 Jan 24 9 Feb 24
Singapore 97R gasoline - 20.68
Singapore 95R gasoline - 19.43
Naphtha and gasoline crack spreads$/bl Singapore 92R gasoline - 15.78

Naphtha 97R 95R 92R

30

20

10
hhhhhhh
0

-10

-20
1 Dec 23 26 Dec 23 18 Jan 24 9 Feb 24

Argus Freight
METHODOLOGY
Argus Asia-Pacific products price assessments represent the
market over the course of the entire trading day. Argus believes
that a fair and representative price will include trade through-
out the day. If the market shows high intra-day volatility, Argus
will weight the assessments towards trading activity at the end
of the working day. We have launched clean tanker freight
Price assessments rely on a wide variety of sources and plat- assessments for exports of Russian
forms for information, including discussion with refiners, market- petroleum products from the Black and
ers, importers, traders and brokers, to reflect a daily consensus
the Baltic Seas on key international routes.
on the price of the day.
Argus works to verify all deal prices, counterparties, and These are available in Argus Tanker Freight
volumes. Argus values transparency, so we publish as much
price, volume, and specification information as we discover.
For more information please contact:
This allows you to cross-check and verify the deals against the
FreightTeam@argusmedia.com
published prices.
The details of our methodology are available at: www.argus- or to request trial access to Argus Tanker Freight,
media.com or by calling any Argus office. please fill out this short form here

Copyright © 2024 Argus Media group Page 9 of 16

Licensed to: Pierre Yves RIGAUX, Interasia Energy
Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

DEALS AND TENDERS

Deals done
Seller Buyer Product Volume Diff Basis Price $ Timing

Trafigura Gunvor Gasoil 0.001% Singapore 220,000 bl Mops +1.40 28 Feb-03 Mar
Vitol BP Gasoil 0.001% Singapore 150,000 bl Mops +1.30 26 Feb-01 Mar
Vitol Unipec Gasoline 92R Singapore 50,000 bl 97.55 01 Mar-05 Mar
PTT Trading Petrochina Gasoline 92R Singapore 50,000 bl 97.47 02 Mar-06 Mar
Saudi Aramco PTT Trading Gasoline 95R Singapore 50,000 bl 101.02 29 Feb-04 Mar
Unknown Pertamina Jet Fuel 200,000 bl Argus/Platts +5.00 01 Mar-11 Mar
Vitol BP Naphtha open spec Japan c+f 25,000t 688.00 16 Apr-30 Apr

Issued tenders
Issuer Trade Timing fob/cfr location Close Valid

PSO Buy 165,000t of 92R gasoline gasoline 1 Apr - 30 Jun cfr Karachi 19 Mar 19 Mar

Ceypetco Buy 4x300000bl of 92R gasoline 1 Mar - 31 Jul dap Colombo 16 Jan 16 Mar

Ceypetco Buy 4x300000bl of 92R gasoline 1 Mar - 31 Jul dap Colombo 16 Jan 16 Mar

Ceypetco Buy 300,000bl of 92R Oxy gasoline 23-24 Mar dap Colombo 13 Feb 15 Feb

EGPC Buy 34,000t of 95R Non oxy gasoline 13-15 Mar cfr Suez 13 Feb 15 Feb

EGPC Buy 34,000t of 95R Non oxy gasoline 3-5 Mar cfr Suez 13 Feb 15 Feb

EGPC Buy 31,500t of 95R Non oxy gasoline 15-17 Mar cfr Alexandria 13 Feb 15 Feb

Pertamina Buy 200,000bl of 2500ppm sulphur gasoil 4-6 Mar IBT Pulau Laut 13 Feb 15 Feb

Pertamina Buy 500,000bl of 2500ppm sulphur gasoil 1-3 Mar STS kotabaru 13 Feb 15 Feb

Pertamina Buy 500,000bl of 2500ppm sulphur gasoil 1-3 Mar Tuban 13 Feb 15 Feb

Pertamina Buy 200,000bl of 2500ppm sulphur gasoil 1-3 Mar Baubau 13 Feb 15 Feb

Emarat Buy 15,000t of 10ppm sulphur gasoil 1-2 Mar cfr Jebel Ali 14 Feb 14 Feb
Balongan or fob Singa-
KPI Buy 200,000bl of naphtha 1-30 Apr 07 Feb 13 Feb
pore/Malaysia/Brunei
MRPL Sell 40000/60000t of A-1 jet fuel 4-6 Mar fob New Mangalore 13 Feb 13 Feb

MRPL Sell 35,000t of reformate gasoline 7-9 Mar fob New Mangalore 13 Feb 13 Feb

MRPL Sell 40,000t of 10ppm sulphur gasoil 2-3 Mar fob New Mangalore 13 Feb 13 Feb

Pertamina Buy 500,000bl of 92R HOMC gasoline 1 Apr - 30 Jun cfr Balikpapan 06 Feb 09 Feb

Copyright © 2024 Argus Media group Page 10 of 16

Licensed to: Pierre Yves RIGAUX, Interasia Energy
Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

NEWS

Venezuela returns to threats against drilling Independent ARA stocks on 7 February 000t
± week-on- ±% week-on-
Venezuela is threatening to use force against US major Product Stocks
week week
ExxonMobil over planned offshore Guyana drilling, violat- Gasoil 1,887 -71 -3.6
ing an agreement reached in December to not make such Fuel oil 1,318 -79 -5.7
threats. Gasoline 1,069 121 12.8
ExxonMobil announced plans this week to drill two Naphtha 281 -23 -7.6
exploratory wells west of its existing Liza and Payara pro-
Jet 652 -54 -7.6
duction operations in the Stabroek block. A decades-long
Total 5,207 -106 -2.0
disagreement over Guyana's
— Insights Global
Essequibo province has prevented the two countries from
agreeing on a maritime border, which puts Stabroek in the
middle of the dispute. sultancy Insights Global, on the back of lower imports and
ExxonMobil's plan drew a strong response from Venezu- steady demand across the barrel.
ela's defense minister Vladimir Padrino this week. The decline was driven by a steep 5.7pc drop in fuel oil
“If ExxonMobil operates in the maritime space that by stocks to 1.32mn t, the lowest in five weeks. Higher bun-
right belongs to Venezuela, supported by its private security kering demand in west Africa pulled more fuel oil from the
company represented by the US Southern Command, it will ARA, as more vessels were travelling around the Cape of
receive a proportional, forceful and legal response,” Padrino Good Hope, avoiding the Red Sea.
warned on 7 February. Fuel oil cargoes arrived from Germany, Sweden and the
Such threats were supposed to be off limits following a UK and departed into the Mediterranean and west Africa.
meeting in December between Guyana and Venezuela of- Gasoil stocks fell by 3.6pc to 1.89mn t on the week,
ficials to cool tensions Essequibo province. mostly on lower arrivals from east of Suez, according to
ExxonMobil Guyana president Alistair Routledge said Insights Global. To fill the supply gap, the ARA market pulled
the company believes local and international law sup- more gasoil cargoes from the Mediterranean. Demand in
ports its rights to move forward with the drilling plan, but Germany, the main diesel consumer in northwest Europe,
Venezuelan vice president Delcy Rodriguez characterized remained low, according to the consultancy. Jet stocks were
Exxon's statements as "threatening," saying the company was also reduced by lower imports and more demand from the
protecting its "illicit operations... under the warmongering UK.
mantle of the US in complicity with Guyana." Tankers carrying gasoil came from northwest Europe and
The foreign ministers of both countries have met since Turkey, while gasoil exports were seen heading to France,
December's summit to continue discussions on the border Germany, Spain and the UK. There were no jet imports on
dispute and to prepare for another meeting of the presi- the week, with only the UK receiving cargoes from ARA.
dents, with the most recent occurring two weeks ago. Gasoline stocks rose by another 12.8pc to 1.07mn t in
Earlier this week US national security advisor Jon the week to 7 February, the highest reading in two months.
Finer traveled to Guyana to meet with President Irfaan The rise comes as the arbitrage route into the US remains
Ali to reaffirm the US' "...unwavering support for Guyana’s unworkable, while the contango structure in the market
sovereignty, territorial integrity, and defense capabilities," encourages participants to store gasoline. Market partici-
according to the White House. pants were anticipating higher exports from ARA into the US
Guyana has asked the UN's International Court of Justice sometime in March to April, according to Insights Global.
(ICJ) to determine the merits of Venezuela’s claim to Esse- Naphtha stocks declined by 7.6pc to 281,000t on the
quibo but Venezuela has rejected the ICJ’s role. It is seeking week with higher gasoline blending activity and firm pet-
direct bilateral talks on the dispute, which Guyana refuses. rochemical sector demand. Gasoline blending economics
By Canute James remained favourable for naphtha, encouraging more naph-
tha to be incorporated into the blend. Demand for naphtha
ARA stocks retreat on slower imports from the petrochemical sector rose during the week, mainly
Independently-held oil product stocks at the Amsterdam- because of delayed polymers imports from east of Suez, ac-
Rotterdam-Antwerp (ARA) trading hub fell by 2pc on the cording to market participants.
week to reach 5.21mn t on 7 February, according to con- By Mykyta Hryshchuk

Copyright © 2024 Argus Media group Page 11 of 16

Licensed to: Pierre Yves RIGAUX, Interasia Energy
Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

Nigerian gasoline price rise not imminent: NNPC California refining throughputs and storage
The Nigerian National Petroleum Company (NNPC) said that Commodity 2-Feb-23 26-Jan-23 ±

an increase in the cost of gasoline is not imminent in the Throughputs '000

b/d
country, as outright Eurobob non-oxy gasoline barge prices Crude 1,244 1,269 -25
rose to two-month highs and pressured a de facto cap on CARBOB 735 829 -94
local gasoline prices. Total gasoline 845 937 -92
The NNPC would not raise the cost of gasoline, known lo-
Jet fuel 277 306 -29
cally as premium motor spirit (PMS), at its retail stations as it
California distillate 101 140 -39
pointed to rumours of an "upward review of the PMS price".
Inventories '000 bl
There was a very slight increase in queues outside retail
Crude 12,723 12,793 -70
stations across the country today, according to one market
CARBOB 6,478 6,850 -372
participant.
Jet fuel 3,605 3,632 -27
As the largest downstream fuel retailer marketing a
California distillate 2,038 2,151 -113
quarter of PMS volumes in January, according to one source,
— California Energy Commission
the NNPC introduced a de facto cap on PMS prices at around
620 naira/litre (44¢/l) in July following the end of a gaso-
line subsidy, which was in effect between 2017 and May California jet fuel production decreased by 9.5pc to
2023. The NNPC is thought to subsidise gasoline prices at 277,000 b/d, according to CEC data. For the week ended 2
below-market levels in fierce competition with over 30 other February, jet fuel stockpiles were down by 0.7pc to 3.61mn
downstream fuel marketers. bl.
But an increase in Eurobob non-oxy barge values since California in-state CARB diesel production declined by
late November has probably added cost pressures which 27.9pc to 101,000 b/d in the latest week, the lowest since
the NNPC may be unable to bear and may be considering the week ended 7 July 2023. CARB diesel inventories fell for
passing onto its clients, according to one source. Barges hit a third week to 2.04mn bl, a decrease of 5.2pc.
$793/t on 29 January — a two-month high — and have since Production of other diesel fuels in California — including
rebounded to $788.75/t on 7 February. export-grade EPA ultra-low sulphur diesel (ULSD) and renew-
In a sign of a widening disconnect between local PMS and able diesel — tripled in the latest week to 115,000 b/d, the
local diesel — automotive gasoil (AGO) — prices, ex-Apapa highest volumes since the week ended 1 December 2023.
hub AGO premiums to PMS hit 598 naira/litre on 29 January, Other diesel fuel inventories fell by 2.8pc to 1.3mn bl.
according to Major Energies Marketers Association of Nigeria California crude throughputs declined for a third week,
(MEMAN) data. This level surpassed all AGO premiums falling by 2pc to 1.24mn b/d on the week. California crude
against PMS in 2023, even when gasoline prices were heavily stockpiles fell by 0.5pc to 12.72mn bl.
subsidised against diesel. The Energy Information Administration (EIA) showed
Nevertheless, market participants in the region are overall US west coast jet fuel imports increased for the
mixed on whether any rise in PMS prices will come soon. week ended 2 February by 15pc to 92,000 b/d, up from
By George Maher-Bonnett 80,000 b/d the week prior.
By Carrie Carter
California gasoline production falls
California CARBOB production fell to the lowest level in US airline traffic rises to November record
two months as CARB diesel output dropped to the lowest in US airline passenger traffic in November reached a record
seven months, according to the California Energy Commis- high for the month, Bureau of Transportation Statistics (BTS)
sion. data shows.
California CARBOB production decreased by 11.4pc for US airlines carried 82.1mn passengers in November, up
the week ended 2 February to 735,000 b/d, down from by 8.1pc from a year earlier, according to BTS' seasonally
829,000 bl the previous week, said CEC. This marked the adjusted estimates. November's total was
second week of decreases and the lowest volumes since the the highest for any November since at least 2003, when
week ended 1 December 2023. Inventories of the in-state BTS began tracking such data.
gasoline declined to 6.48mn bl, down from 6.85mn in the Seasonally adjusted passenger traffic was 6.3pc higher
previous week. Total California gasoline production fell by than in November 2019, prior to the Covid-19 pandemic,
9.8pc to 945,000 b/d over the same period. which held the previous November record for airline traffic.

Copyright © 2024 Argus Media group Page 12 of 16

Licensed to: Pierre Yves RIGAUX, Interasia Energy
Argus Asia-Pacific Products
Seasonal adjustments are employed by the BTS to reduce
the variance introduced by differences in the number of
weekends from month to month as well as holidays and
seasonal activity.
Seasonally unadjusted passenger traffic reached 77.7mn
passengers in November. International flights accounted for
9.3mn passengers, up by 13pc from a year earlier, and do-
mestic flights carried 68.4mn passengers, up by 7.4pc from
November 2022.
As air traffic and fuel consumption expanded in Novem-
ber, falling fuel prices kept airlines' total fuel below year-
earlier levels. US airlines consumed 1.50bn USG of jet fuel in
November, a 7.1pc year-over-year increase, while total fuel
expenditures fell 2.4pc over the same period to $4.53bn, ac-
cording to a separate BTS report. The price of jet fuel fell to
$3.01/USG in November, down by 9.4pc from a year earlier.
By Hannah Borai
Mideast Gulf clean tanker rate begins to cool
Slowing demand for Middle East naphtha among Asian
importers has pulled clean tanker rates on the route down
from recent highs gained after intensifying ship attacks in
the Red Sea and Gulf of Aden forced tanker operators to
reroute westbound voyages under the longer Cape of Good
Hope route.
Since 26 January, Mideast Gulf-Japan long range (LR2)
product tanker rates have dropped by 21pc from their four-
year high to $67.32/t as traders shift away from naphtha
in favor of LPG to feed Asian crackers. LR1 tanker rates on
the same route fell by 13pc to $74.66/t from their one-year
highs.
Naphtha supplies tightened after the Red Sea and Gulf of
Aden attacks delayed shipments from Mediterranean and Rus-
sian exporters, causing Asian importers to opt for more read-
ily available propane and butane, carried on LPG carriers.
January’s run-up in Mideast Gulf clean tanker rates
began months after the attacks started, when their rising
frequency and intensity forced oil shippers to send cargoes
that would normally go via the Suez Canal on the longer and
costlier Cape of Good Hope route.
While eastbound Mideast Gulf-loading voyages do not
transit the Suez Canal, once westbound cargo diversions be-
gan, eastbound shippers in the region had to compete with
higher-earning rerouted voyages, thus driving eastbound
rates higher. Prior to December 2023, tanker reroutings
to avoid the Red Sea were minimal and tanker rates were
largely unaffected.
Suez Canal toll revenues have fallen by 40pc since the
end of November 2023, illustrating the transit decline.
By Nicholas Watt, John Ollett and Sean Zhuang
Copyright © 2024 Argus Media group Page 13 of 16
Licensed to: Pierre Yves RIGAUX, Interasia Energy
Issue 24-29 | Friday 9 February 2024
US targets shippers over Russian crude
US sanctions enforcers today announced penalties against
three UAE-based shippers for allegedly violating price cap
rules affecting Russian crude shipments.
The US Treasury Department has sanctioned Zeenit Sup-
ply and Trading, Talassa Shipping and Oil Tankers SCF Mgmt
— all of them tied to the NS Leader tanker that in November
allegedly carried Russian crude priced at over $80/bl. Trea-
sury also imposed sanctions against Liberia-based NS Leader
Shipping, which is the registered owner of the NS Leader.
The G7 countries and Australia allow trading firms,
brokers and providers of maritime insurance and financial
services in their countries to facilitate Russian sales to third
countries, as long as the loaded price is at or below $60/bl
for crude. There are no penalties or price caps for Russian
sales shipped or facilitated by companies outside the G7. In
the case of the NS Leader, the Russian cargo priced above
the price cap relied on a western service company, accord-
ing to Treasury.
Treasury's announcement today also shows how quickly
the exporters of Russian crude have adjusted to the western
sanctions pressure. Oil Tankers SCF Mgmt, which Treasury
says is owned by major Russian shipper Somcovflot, took
over management of the NS Leader from SUN Ship Manage-
ment D in September 2023, after the latter became a target
of US sanctions. Oil Tankers SCF Mgmt also operates the Li-
govsky Prospect, the Kazan, the NS Century, the NS Champi-
on and the Viktor Bakaev, all of which were placed on the US
sanctions list late last year over Russia price cap violations.
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gasoline markets:
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Argus Asia-Pacific Products
Russian medium sour Urals cargoes shipped from Baltic
ports have held above the $60/bl since 9 January. The US
overall continues to consider the price cap scheme to be
successful. "Russia’s own top energy official admits that the
coalition’s price cap and our sanctions have led to widening
discounts on Russian oil, limiting the revenue the Kremlin
relies on for its illegal war" in Ukraine, Treasury under secre-
tary Brian Nelson said today.
But western sanctions enforcers have vowed to focus
more closely on trying to make it costlier for Russia to ex-
port its crude, and by extension, pressuring sales prices and
the government's tax receipts.
The cost of operating Russia's shadow fleet reached an
estimated £2.25bn ($2.84bn) in 2023, UK Treasury's sanctions
office OFSI head of oil price enforcement Olga Dimitrescu
said this week in a podcast hosted by P&I company North
Standard. "This further diminishes Russia's profits from oil
exports, even if indirectly," Dimitrescu said.
The US, UK and the EU are also introducing new attesta-
tion rules for shippers involved in Russian oil trade beginning
on 19 February. The new rules require shippers to make
attestations on the price of the cargo every time they load
Russian oil, to counter sanctions evasion. Those transport-
ing Russian oil will also have to share itemized information
across the supply chain on their ancillary costs, such as
insurance and freight.
The new rules aim to make the underlying price for Rus-
sian crude more transparent to crack down on evasion, while
preserving the intent to keep Russian oil in global markets,
Dimitrescu said. "These changes have been designed to
ensure a balance between enforceability and maintaining
incentives to continue trading."
Stricter enforcement measures already have had some
effects, including by hastening the exodus of Greek shipown-
ers from the Urals trade. The cost of shipping Russian crude
through the Suez Canal to India's west coast and to China
rose sharply late last month. Discounts for Urals have wid-
ened in recent months because of difficulties in processing
payments and organizing shipments.
By Haik Gugarats
Ice Brent remains above $80/bl
Ice Brent crude futures were largely steady in early Asian
trading today after climbing in the previous session, with
continued tensions in the Middle East and Venezuela threat-
ening to use force against ExxonMobil.
At 04:00 GMT, the Ice front-month April Brent contract
was at $81.67/bl, higher by 4¢/bl from its settlement on 8
February when the contract ended $2.42/bl higher.
Copyright © 2024 Argus Media group Page 14 of 16
Licensed to: Pierre Yves RIGAUX, Interasia Energy
Issue 24-29 | Friday 9 February 2024
The Nymex front-month March crude contract was at
$76.28/bl, up by 6¢/bl from its settlement on 8 February
when the contract ended $2.36/bl higher.
Venezuela is threatening to use force against ExxonMobil
over planned offshore Guyana drilling, violating an agree-
ment reached in December to not make such threats.
ExxonMobil announced plans this week to drill two
exploratory wells west of its existing Liza and Payara pro-
duction operations in the Stabroek block. A decades-long
disagreement over Guyana's Essequibo province has prevent-
ed the two countries from agreeing on a maritime border,
which puts Stabroek in the middle of the dispute.
"If ExxonMobil operates in the maritime space that by
right belongs to Venezuela, supported by its private secu-
rity company represented by the US Southern Command,
it will receive a proportional, forceful and legal response,"
Venezuela's defense minister Vladimir Padrino warned on 7
February.
In the Middle east, a US drone strike that killed the
senior commander of an Iran-backed militia in Baghdad on
7 February has compelled Iraq to end the presence of US
troops in the country, said Iraqi armed forces spokesman
Yehia Rasool.
"Even more concerning is that the [Global Coalition Forc-
es, headed by the US] consistently deviates from the reasons
and objectives for its presence on our territory," Rasool said
in the first official Iraqi reaction to the US drone strike.
Israel's rejection of a Gaza ceasefire offer implies no im-
mediate end in sight to prolonged tensions in the Middle East.
Israeli prime minister Benjamin Netanyahu on 7 Febru-
ary rejected Hamas' latest offer for a ceasefire and return
of hostages held in Gaza, according to reports. But US
secretary of state Tony Blinken said there was still room for
negotiation toward an agreement.
By Rhalain Reyes
Argus Asia-Pacific Products Issue 24-29 | Friday 9 February 2024

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February
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Argus Asia
Carbon Conference
13-15 May 2024
Kuala Lumpur, Malaysia

The starting line for pan-Asia’s carbon market

Why attend?
Designed for industry newcomers
through to industry leaders alike, this
is your opportunity to get up to speed
with developments in pan-Asia’s
carbon market.
Gain crucial insights from leaders
in both government and industry
as Asia makes strides towards the
energy transition.
Sponsorship and exhibition
opportunities:
Are you interested in establishing yourself as a
leader in the Asian carbon market? Do you want to
showcase your products or elevate your business?
Get in touch to find out more about tailored
sponsorship packages.
Contact Beata Griskevic:
T: +44 (0) 20 8158 5518
E: sponsorship@argusmedia.com
for more information

Make the contacts you need to

build your carbon strategy and
forge valuable connections during
networking lunches, two hosted
receptions, and refreshment breaks.
.

Register online now - www.argusmedia.com/asia-carbon-conference

Licensed to: Pierre Yves RIGAUX, Interasia Energy