Carbon markets are increasingly being seen by countries in the Asia Pacific as a tool to reach decarbonization goals, and stay abreast of policy changes such as cross border carbon tariffs. Across the region, carbon markets fall across a full spectrum of growth – with its fair share of both emerging and mature markets.
Anyone working in the gas liquids market knows the need (and hassle) to convert global NGLs.
NGLs — a.k.a. ethane, propane, pentanes+, normal butane and isobutane — are shipped all over the world, every day, from export hubs as diverse as Mont Belvieu, Texas, and the Arab Gulf.
Fun fact of the day: refiners, generally speaking, don’t make gasoline.
Spot fuel markets are where gasoline, diesel, jet fuel and other commodities get a physical price tag.
Buying fuel is confusing even for seasoned pros. We’re here to help.
The petroleum market features a slew of specialized fuel blends and no one-size-fits all requirement for what you can use — or where or when you can use it.
Whether you are new to the fuel industry or are already an expert, the words “spot,” “rack” and especially “basis” are terms that confuse even the most veteran buyer. There’s a good chance you or someone on your team may not be 100% sure what these words mean.
One year after Russia invaded Ukraine, energy commodity flows across the globe have shifted and prices have experienced extreme bouts of volatility.
Volatility was the name of the game for east of the Rockies gasoline and distillate spot markets in 2022, with the war in Ukraine creating upheaval in Europe and shifting international product movements.
With stubborn global inflation, the increased likelihood of a U.S. recession this year and continued conflict between Russia and Ukraine, this year’s uncertainty will hang over the marketplace into 2023.
For much of 2022, gasoline and distillates contended with steep backwardation — in both futures and physical markets — with prices dropping off quickly over time. The backwardation widened in the wake of the Ukraine invasion, as refined product exports rose.
But that pricing structure changed quickly in December, as RBOB prices moved toward a contango structure, with front-month RBOB futures valued below the next-month futures contract. The backwardation in ULSD futures narrowed to roughly 3cts between front-month and next-month contracts in early December.
With east of the Rockies production levels high and inventories remaining low along the East Coast (PADD 1), domestic and international product flows are likely to continue to play a sizable role in the year to come.
Refinery outages and falling inventory levels in Europe have significantly tightened diesel supplies across the continent, causing spot price differentials to soar to record levels.
Ukraine is in the grip of widespread fuel shortages as the country tears itself away from Russian exports, and imports from the west are impeded by logistical challenges and regional shortages in a redraw of the European energy map.
Since Russia’s invasion of Ukraine on February 24, about 60% of its retail fuel stations have closed, according to Kyiv-based Artem Kuyun, director of Ukrainian fuel consulting group A-95. Motorists who want to drive to the border face waiting times of between five and seven hours to fill up their tanks, with some resorting to sleeping in their cars parked at the stations. Supplies are unpredictable, as some regions have adequate gasoline but no diesel, while other locations only have diesel and no gasoline.
The U.K. government aims to attract private investment of 4 billion British pounds sterling ($5.51 billion) in blue and green hydrogen production, distribution, storage and consumption, primarily in the nation’s industrial heartlands, via plans outlined in its much-awaited and much-delayed Hydrogen Strategy.