Cargill To Deliver Low Sulfur Cargo

Friday, June 09, 2000
Cargill Inc. is in the process of shipping the first low-sulfur gas oil or diesel cargo from Southeast Asia to Europe. Traders said the company had chartered a tanker called the Young Lady, which is on its maiden clean products voyage, to lift a total of 680,000 barrels of gas oil from the Malacca II refinery in June.

The Malaysian refinery is the only major refinery in Southeast Asia that can produce high-quality diesel that meets tight United States CARB and European EN590 specifications, traders said. They said the rare opportunity to export gas oil to Europe emerged because of multiple factors, including cheaper freight, closed arbitrage to the United States and low prices in the benchmark Singapore market. The price of standard 0.5 percent-sulfur gas oil in Singapore was hovering at $29.50 per barrel compared with July futures on the International Petroleum Exchange at $225 per ton, or $30 per barrel.

"The arb to Europe is not really open but because they (Cargill) managed to get such cheap freight, they are able to do it. They also got the cargoes at low premiums," a gas oil trader said. Cargill officials could not be reached for comment.

Traders said Cargill had purchased a total of 440,000 barrels of diesel that met the U.S. CARB standard and 240,000 barrels of 0.05 percent-sulfur gas oil.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Philippines Mulls Bilateral Sea Talks with China

The Philippines may consider two-way talks with China to resolve a territorial dispute in the South China Sea but only if it wins its case with Beijing at an arbitration tribunal in The Hague,

Adani Ports Income Up by 15%

Adani Ports and Special Economic Zone Limited (“APSEZ”), India’s largest port developer and part of Adani Group, today announced the financial results for the quarter

Shipping Corporation Q3 Profit Surges

The Shipping Corporation of India (SCI) declared its unaudited financial results for the quarter ended 31st December 2015 posting a net profit of Rs. 59.66 crores as against a net profit of Rs.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0728 sec (14 req/sec)