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The fuel oil rally is expected to slow down as the market adjusts to US-Iran policies
Fuel oil margins rose after U.S. president Donald Trump reimposed tougher policies on Iran. However, trade sources expect the rally to be short-lived due to an unclear disruption in supply, and weaker China demand, as well as broader tariff worries, weighed on sentiment. As traders have considered various factors and pondered the uncertainty of supply, there has been a volatile movement in the market this year, especially for high-sulfur fuel. A fuel oil trader stated that the recent increase in crack spread or traded margin was more of an emotional reaction. He added that Chinese demand remains a negative factor. According to sources, the Brent crack/HSFO 380cst for Singapore was discounted by about 70 cents per barrel on Wednesday morning. LSEG data shows that cracks were over 80% more expensive than in early 2025, when the discount was greater than $5 a barrel. End-January saw the front-month price reach a multi-year-high. HSFO benchmarks were supported because of the risk of tighter logistic after the U.S. imposed broader Sanctions on Russia. Market sources say that the strength of the dollar will be limited by a weaker demand. China's fuel imports will be affected by a rise in import taxes and a reduction of rebates due to the tax hike this year. Another fuel oil trader stated that the volatility of the market is also due to concerns about broader tariffs. Trump re-instituted Washington's strict policy towards Iran on Tuesday, including his campaign to "maximize pressure" on Iran, which includes efforts to reduce its oil exports to zero. Iranian oil is usually transported by a shadow fleet that hides its activities in order to avoid sanctions. (Reporting and editing by Rashmi aich; Jeslyn lerh)
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Gaza, ravaged by war, faces a multi-billion-dollar reconstruction challenge
Donald Trump, U.S. president, says Gaza could become "the Riviera of the Middle East". Under U.S. Ownership After Palestinians have been permanently relocated elsewhere. According to the United Nations, it will take billions of dollars to rebuild the coastal area after the war between Israel's militant group Hamas and the Palestinian militant Hamas. Here's a breakdown on the destruction caused in Gaza by the conflict that was sparked by the attack by Hamas militants on Israel, who ruled Gaza at the time. How many causalities are there? According to Israeli statistics, the Hamas attack against Israel resulted in 1,200 deaths. Gaza's Health Ministry reports that Israel's response has resulted in the deaths of more than 47,000 Palestinians. How long will it take to clear the rubble? According to a U.N. report released last month, clearing the rubble that was left behind after Israel's bombardment of Gaza could take up to 21 years and cost $1.2 billion. Asbest is suspected to be present in the debris. Some refugee camps that were hit during the war are known to have been constructed with asbestos. It is also possible that human remains are buried in the rubble. According to the Palestinian Ministry of Health, 10,000 bodies may be buried under debris. In January, a UNDP official stated that the conflict had set Gaza's development back 69 years. How many buildings have been destroyed? According to a U.N. Report released last year, it could take decades for Gaza's homes to be rebuilt. According to U.N. satellite (UNOSAT), data from December, two-thirds of Gaza’s pre-war buildings – over 170,000 structures – have been damaged or destroyed. This is approximately 69% of all structures in Gaza. According to UNOSAT, there are 245,123 total housing units. The U.N. humanitarian agency said that over 1.8 millions people in Gaza are currently in need of an emergency shelter. What is the INFRASTRUCTURE DISSERTATION? A U.N./World Bank report estimated that the damage to infrastructure would total $18.5 billion by end-January 2024. This includes residential buildings, commerce and industry, as well as essential services like education, health and energy. A January update from the U.N.'s humanitarian office showed that less than one-quarter of pre-war supplies of water were available. At least 68% the road network was damaged. How will Gaza feed itself? Satellite images analyzed by the United Nations reveal that more than half of Gaza’s agricultural land - crucial to feeding the territory's hungry people - has been damaged by war. The data shows that the Palestinian enclave is suffering from widespread hunger after 15 months of Israeli bombing. Last year, the U.N. Food and Agriculture Organization reported that nearly half of all sheep and 15,000 cattle had been killed or died in the conflict. WHAT ABOUT SCHOOL, UNIVERSITIES AND RELIGIOUS BUILDINGS? According to Palestinian data, the conflict in Gaza has destroyed over 200 government buildings, 136 universities and schools, 823 Mosques and three churches. The conflict has damaged many hospitals, and only 17 of 36 units were partially functional in January according to the U.N.'s humanitarian office. Amnesty International’s Crisis Evidence Lab has shown the extent of destruction along Gaza’s eastern border. By May 2024, more than 3,500 buildings, or over 90%, had been destroyed or severely damaged. (Updated by Stephen Coates, Edited by Sharon Singleton and William Maclean.
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Governor of Krasnodar says that a drone attack caused a fire at an oil depot in Russia.
The governor of Krasnodar said that a drone attack from Ukraine overnight caused a fire to break out at an oil storage depot in the southern Russian region. 55 firefighters were battling the blaze. In recent days, a series of drone strikes by Ukraine against Russia's energy infrastructure has sparked fires at a major refinery in Volgograd and at the Astrakhan Gas Processing Plant. Veniamin Kodratyev said, "The fire is contained and there are no injuries," on Telegram, as a team of 19 firefighters tried to extinguish flames. Kondratyev didn't specify which depot was burning or the extent of damage. In a Telegram message, the Russian Defence Ministry said that four Ukrainian drones had been destroyed overnight over Russian territory. However, it did not mention Krasnodar in the statement. The Ministry only reports the number of drones destroyed by its air defence system, and not how many drones were launched. Ukraine did not immediately comment. Kyiv claims that its attacks in Russia are meant to destroy infrastructure crucial to Moscow's conflict in Ukraine, and are in response for Russian bombing of Ukraine. (Reporting and editing by Himani Sarkar in Melbourne, Clarence Fernandez, and Lidia Kelly)
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Sino-US tariffs war and rising US crude stocks cause oil prices to fall
The oil prices fell on Wednesday, as market concerns about a Sino-U.S. new trade war and rising U.S. stockpiles offset President Donald Trump’s renewed push to end Iranian crude exports. Brent crude futures fell 39 cents or 0.51% to $75.81 per barrel at 0427 GMT. U.S. West Texas Intermediate (WTI), a crude oil produced in the United States, lost 26 cents or 0.36% to $72.44. Oil traded across a range on Tuesday, with WTI dropping at one point to its lowest level since December 31, after China announced tariffs against U.S. imports for oil, natural gas liquefied and coal as a retaliation for U.S. duties on Chinese exports. The prices rebounded after Trump reinstated the "maximum-pressure" campaign against Iran that he had enacted during his first term, which cut Iranian crude oil exports to zero. The higher than expected U.S. crude inventory data over night weighed down the market, according to Jun Rong Yeap. A market strategist at IG. According to sources citing American Petroleum Institute data, crude stocks increased by 5,03 million barrels during the week ending Jan. 31. According to sources, API reports that gasoline inventories increased by 5.43 millions barrels and distillate stock fell by 6.98million barrels. The official U.S. Government oil inventory data will be released on Wednesday at 1530 GMT. Stockpiles of crude oil and fuel in the largest oil consumer country indicate a decline in consumption. This adds to investor concerns about the impact tarrifs will have on global economic growth and energy demand. Goldman Sachs analysts said that the impact of China’s retaliatory duties on U.S. imports of energy will be limited, "since neither global demand nor supply of these commodities is changed by China’s tariffs." The note stated that both countries would be able find other markets. Trump re-launched his "maximum press" campaign against Iran on Tuesday, which includes efforts to reduce its oil exports to zero to prevent Tehran from acquiring a nuclear bomb. Trump claimed to be open to a nuclear deal with Iran but signed a memorandum that reimposed Washington's strict policy against Iran. Analysts at ANZ, citing data from ship tracking, said that the plan could affect about 1.5 million barrels of oil per day that Iran exports. Yeap, a IG analyst, said that the clampdown on Iran could be just what oil prices need to stabilize for now. There may even be room for a further recovery in the short term. Reporting by Siyi Liu from Singapore and Laila Kearney in New York, with editing by Christian Schmollinger & Kim Coghill
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ABL to Provide MWS Services to Saipem for Libyan Offshore Gas Field
Energy and marine consultancy ABL has been awarded a contract to provide marine warranty survey (MWS) services to Saipem, to support the marine transportation and installation (T&I) operations relating to Libya’s Bouri Gas Utilisation Project (BGUP).The BGUP envisages an upgrade of offshore platforms and facilities at the Bouri gas field, which lies 120 kilometers northwest of Tripoli in 145 to 183 meters water depth.The upgrade will improve the field’s overall carbon footprint with significant reductions of its CO2 emissions.Saipem has been awarded the engineering, procurement, construction, installation and commissioning (EPCIC) contract for an approximately 5000 tonnes gas recovery model onto the existing DP4 offshore facility.The contract includes the laying of 28 kilometres of pipelines connecting the DP3, DP4 and Sabratha platforms.“We are really pleased to be appointed to support Saipem on this project – following a long history of successful collaboration with the company. The BGUP project seeks to improve delivery and production of natural gas to Libya, with potential to supply further in North Africa. It is an important energy infrastructure project for North Africa as a whole,” said Sergio Leone, ABL’s MWS project manager and business development manager.Under the terms of the contract, ABL will conduct technical reviews and approvals of all project documentation, drawings and calculations relating to warranted marine operations.The company’s scope of work also includes suitability surveys and other marine assurance deliverables relating to the proposed fleet, as well as potentially DP trials, where required. ABL will also provide on-site attendances to review and approve warranted marine operations.The main heavy lift operations will be executed by Saipem’s semi-submersible crane vessel Saipem 7000.“Whilst the project will be managed from our operational HQ in London, on-site attendances and vessel surveys will be supported by our extensive marine surveyor footprint across Europe and North Africa. We also benefit from an established market presence and MWS track-record in neighbouring Egypt,” added Shai Tzucker, Energy Operations Director for ABL in Europe and West Africa.
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Interocean Nets Marine Services Contract for Three UK Offshore Wind Farms
Specialist provider of offshore support services Interocean Marine Services has secured a three-year contract to provide marine vetting and assurance to the Morgan, Mona and Morven offshore wind projects.The offshore wind farms are being developed under a joint venture between BP and Energie Württemberg AG (EnBW).Morgan and Mona are located in the Irish Sea approximately 22-37 kilometers from the coast, covering a combined area of approximately 580 km2.Situated in the North Sea, approximately 60km from the coast of Aberdeen, Morven spans an area of approximately 860 km2, with water depths varying from 21 to 76 meters.With a total projected generating capacity of 5.9 GW – enough to power the equivalent of around six million UK households every year – the three wind farms are expected to play a role in achieving the UK’s target of 50GW of offshore wind capacity by 2030.“We are thrilled to have been chosen to contribute to projects of such national importance. As a UK headquartered company, we take immense pride in supporting initiatives that have the potential to enhance energy security and benefit local communities,” said Alex Reid, Interocean’s Chief Operations Officer.
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PMI shows that the non-oil sector in UAE expanded strongly in January.
A survey released on Wednesday showed that the UAE's private non-oil sector expanded strongly at the beginning of 2025 despite capacity challenges and competition. The S&P Global UAE Purchasing Managers' Index, adjusted for season, was 55.0, which is slightly lower than December's nine month high of 55.4, but still well above the 50.0-mark, indicating growth. The business activity and new order indexes rose strongly, mainly due to the favourable market conditions. However, at a slower pace. In January, it slowed down slightly, as the sub-index for new orders dropped from 59.3 in December. David Owen, Senior Economic Analyst at S&P Global Market Intelligence, said: "Robust growth in new business and expansion of existing businesses, as well lower inflation in input costs, suggests the economy is in good shape." Input cost inflation dropped to its lowest level in 13 months, allowing companies to increase their purchases. However, capacity pressures continued, and backlogs increased at the fastest rate since eight months. Owen noted that "strong competition and cash-flow concerns arising from backlogs of heavy orders have appeared to sow doubt in the minds of firms as to their ability to continue to increase revenues." The total level confidence is at its lowest since December 2022. Dubai's separate index fell to 55.3, down from 55.5 in December. Businesses reported better conditions but had tempered expectations about future activity. (Reporting and Editing by Christina Fincher).
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Stocks of China's tungsten producers rise on Beijing's latest restrictions
On the first trading day after the Lunar New Year's holiday, markets responded to Beijing’s new critical controls on mineral exports. China announced that it would limit the export of five minerals used in defence, clean-energy and other industries, including tungsten, bismuth and tellurium. This is to "protect national security interests". Xiamen Tungsten and Chongyi Zhangyuan Tungsten climbed more than 3%. CMOC jumped over 1% at 0206 GMT. Prices have risen in the past when China imposed export restrictions on other minerals of importance, such as August 2023. This was to signal their newfound importance. Once they obtain export licenses, some Chinese exporters can also take advantage of the anticipated rally in overseas prices. Tungsten, an ultra-hard material, is only outshined by diamonds in terms of strength. It is used to produce artillery shells and armour plating, as well as cutting tools. According to the United States Geological Survey, China will produce over 80% global tungsten in 2023. Analysts and traders claim that while tungsten is available outside of China, certain products for the aerospace and defense industries are limited in their non-Chinese equivalents. Sian Morris is a non-ferrous metals expert at Argus. She said that the export controls for APT and tungsten carbide could be most affected, as there are very few alternatives to tungsten used in aerospace and defense applications. APT is used to produce various tungsten-based products. Since the beginning of Russia's conflict in Ukraine, China has increased its share of global tungsten demand.
Oil prices remain unchanged as the market ignores China's tariffs, but Iran's pressure is still a factor.
The oil prices were little altered on Wednesday, after volatile trading the previous session. Investors shrugged off China's tariffs against U.S. imports of energy. President Donald Trump's renewed efforts to eliminate Iranian crude exported provided some support.
Brent crude futures fell 18 cents or 0.24% to $76.02 per barrel at 0210 GMT. U.S. West Texas Intermediate (WTI), a crude oil produced in the United States, lost 9 cents or 0.12% to $72.61
Oil traded across a range on Tuesday, with WTI dropping at one point to its lowest level since December 31, after China announced tariffs against U.S. imports for oil, natural gas liquefied and coal as retaliation for U.S. duties on Chinese exports.
The prices rebounded after Trump reinstated the "maximum-pressure" campaign against Iran that he had enacted during his first term, which cut Iranian crude oil exports to zero.
Goldman Sachs analysts said that the impact of China’s retaliatory duties on energy prices would be limited, "given that China’s tariffs do not change global supply or demand for these commodities," in a Tuesday note.
The note stated that both countries would be able find other markets.
Analysts at ANZ, citing data on ship tracking, said that while Trump had said he would be open to a possible deal with Iran, he also expressed a willingness for him to speak to the Iranian leader. The plan, they said, could have an impact on the 1.5 million barrels of oil per day the country exports.
The U.S., which is the largest oil consumer in the world, also saw a rise in crude and fuel stocks.
According to sources citing American Petroleum Institute data, crude stocks increased by 5,03 million barrels during the week ending Jan. 31.
According to sources, API reports that gasoline inventories increased by 5.43 millions barrels and distillate stock fell by 6.98million barrels.
The official U.S. Government oil inventory data will be released Wednesday.
(source: Reuters)