Tuesday, April 28, 2015

Should oil pipelines be better regulated instead of flat out opposed?

 
If you haven’t heard of “pigging,” whereby oil and gas companies shove what amounts to a highly engineered spitball down a pipeline in order to clean and inspect it, you would not be alone. But the process became a kind of obsession for Jonathan Waldman, the author of Rust, a recently published book on corrosion’s effects on America’s industries and government.
 
His curiosity about rust’s effect on oil and gas infrastructure led him to the Trans Alaska Pipeline, which stretches across Alaska and transports 500,000 barrels of oil a day. It’s also one of the most tightly regulated and inspected pipelines. In his book, Waldman describes the lengths the pipeline’s managers go to ensure that it's properly pigged, or inspected.

 
The up-close look at oil inspections convinced Waldman that environmentalists should think twice about taking a stand against pipelines. In a New York Times op-ed, Waldman argued that pipelines like Keystone shouldn’t be opposed, but strongly regulated instead. He spoke with HCN about why he thinks regulation works.
 
High Country News: Will you describe the Trans Alaska pipeline? I think most people kind of think of it as a relatively placid thing, traversing the landscape.
 
Jonathan Waldman: The pipeline up (in Alaska) is on stilts because it's on permafrost. So you can't bury it. The pipeline pretty much parallels what's called the Haul Road for 200 or 300 miles up the North Slope of Alaska. The North Slope is sort of a gentle slope like Kansas but it goes from sea level up to 5,000 feet in 150 miles. So you've got the oil a mile high and it wants to run down the hill. When the pig is there to inspect the pipeline, ideally it'd be going nice and slow and smoothly. But as it crests the hill and starts going downhill, it can get going pretty fast and the sensors can break or the wires can snap or the whole thing can heat up and melt. Then as the pipeline keeps going there are more pump stations pushing it up and over the Alaska Range and over the Chugach range.
 
HCN: How steep is that drop on the other side?
 
JW: The steepest drop is down the Chugach Range, as it nears the final descent to Valdez and the port where the oil is put on boats and shipped to California and Washington. That part of the pipeline was the hardest to build. They were raising and lowering bulldozers using huge cables. It's very steep and much of that rock is pretty crumbly, so they buried it and encased it in concrete.
 
HCN: In the book, you say "the pipeline needs the oil as much as the oil needs the pipeline." Will you explain that?
 
JW: Since the peak day in 1988, the Alaskan oil fields have been producing about 5 percent less every year. Technology is getting better at sucking oil out of the ground but there's less oil to suck out. The problem is this: because there is less oil, as it flows across the state, it now cools. As it cools, it deposits wax on the side of pipeline wall, which makes inspecting hard. The water that's naturally in the oil drops out of solution and forms a little river on the bottom of the pipeline, which makes corrosion problems even greater than before. Below a certain level, things are going to be critical. The pipeline has come pretty close at least once to turning into what they call a giant popsicle (when the oil cools and gels). If that ever happens, it's the end of the pipeline that cost 2 billion dollars to build and many more hundreds of millions to maintain and repair it. It all comes down to oil production, which is why they want to drill offshore in Alaska and why the (Arctic National Wildlife Refuge) and petroleum reserves are so contentious. It's not like oil companies are hellbent on getting Alaskan oil; it's extremely difficult oil to get. But if there's a pipeline to get that oil out, now is the time to get that oil. Without the pipeline, there's no other way to get it.
 
HCN: Do you think creating sustainable oil and gas infrastructure makes extraction inevitable?
 
JW: That's like saying aluminum cans encourage soda drinking. The cans don't encourage it. Our thirst encourages it. Whether you like it or not, the world is still thirsty for fossil fuel. Alternative energy is still not capable of replacing all of the fossil fuel energy that the world wants or needs. I wish it were otherwise.
 
KS: What is the range of pipeline infrastructure in the United States? If Trans Alaska is one of the most progressively regulated and maintained pipeline, what does the bottom look like?
 
JW: The bottom is probably terrifying. There are a couple million miles of pipelines. You can't inspect every little line that goes under the street in Paonia (Colorado) or here in Boulder. Some of them run across states. A lot of them run from Texas all the way up to New York and Philadelphia. Some of them just cross the state of Texas. Some of them stay entirely within New Mexico and are operated by little mom and pop companies.
A Trans-Alaska pig, displayed in a cutaway pipeline. This is a scraper pig, designed to remove the waxy build-up from the side of the pipeline.
 
KS: I came away from your op-ed in the New York Times still wondering whether it was possible to regulate and inspect pipelines enough to make sure they're safe, especially given the political climate and the existing infrastructure.
 
JW: It's definitely mechanically possible. Politically, the one thing pipeline operators hate more than opposition to pipelines is regulating pipelines. All the liberal politicians out there are behind laws built to increase the regulation and inspection of pipelines that don't end up going anywhere in Congress. They're not politically tenable right now. I think they could be. I think it could if the environmental movement got behind it and said, "Instead of opposing something, we could stand for improving something.”
 
HCN: So do you think there's enough urgency among regulators to make sure these pipelines are safe?
 
JW: Well, it doesn't quite work like that. Regulators don't go to their boss and say, "We need to toughen up the laws." They don't lobby their congressman. We're the ones who lobby our representatives. It doesn't work from within the system. It has to come from outside the system. Every time there's an accident, we have a six-month window of opportunity. Industry knows this and they resist it. There's an accident, we all go crazy and then nothing happens. Then time passes and it happens again and again and again.
--
Kate Schimel is an editorial intern at High Country News. 

Gold surges: World's 'biggest pawnbroker' makes deal

Gold
Source: World Gold Council
 
 
Gold surged above $1,200 an ounce Monday in its best day since January, amid market intrigue surrounding a deal between Venezuela and Citigroup to swap $1 billion in cash for part of the country's gold reserves.
 
The swap, reported last week, provides cash to President Nicolas Maduro's socialist government as the country reels from a steep drop in oil revenue. Reuters reported Friday that the Venezuelan central bank was expected to have provided 1.4 million ounces of gold in exchange for the cash, and the country would have to pay interest on the funds.
"He had to pawn their gold. That's what they've done. They can buy it back. They have rights of first refusal," said Dennis Gartman, publisher of The Gartman Letter. "They went to the biggest pawnbroker of gold—Citibank."
 
 
The deal was cited as one of several things that helped drive gold futures to the highest level in two weeks. Futures for June jumped 2.4 percent to 1,203.20 an ounce. Gold stocks also rallied, with Freeport-McMoran up 5 percent and Newmont Mining up almost 3 percent.

"That was a huge potential seller taken out of the market. It's not an overhang anymore," Gartman said of the Venezuela deal. GLD, the Spdr Gold Trust ETF, was up 2 percent, its best day since late January.

Kevin Grady, president of Phoenix Futures and Options, said while there was talk about the big gold swap, he said the bigger factor driving prices was the expiration of May options Monday and short covering.

"If we didn't have the options positions rolling off again, I don't think we would have had the market going to $1,200," Grady said. On Tuesday, the April futures contract expires. There also was an increase of 13,000 shorts in the market, a positive since those traders could be forced to buy gold when they cover, he said.

"I'm bearish until gold settles at $1,230 ... every time you get up there, there's a major wall of selling that comes into the market. Even this rally today—as impressive as it is—$30 on the day. We're stuck in this range," Grady said. He said gold rallied to the middle of the range, which is between $1,177 and $1,220.

Even so, George Gero of RBC said he believes the Venezuela deal juiced the market. "I think that has a lot to do with raising awareness of institutions. Where they are in the second quarter, in the second week—how they haven't allocated to gold. ... This was like a wake-up call," he said.

Read MoreVenezuela may have missed $24 billion in oil revenues

Gero said the market may now be able to hold $1,200. Gartman agrees. "It's important, yes it will hold," he said.

For Gartman, the decision by the Peoples Bank of China to buy regional and national securities was a big factor for the market. "The Peoples Bank of China has gone full in for QE," he said. "Finally, you've got the PBOC, which is a monstrous bank making an implied bet on inflation."

Strategists also said the market was positioning ahead of Wednesday's Federal Reserve statement.

"I think there's some short covering prior to the Fed meeting," said Gero, adding traders think the U.S. central bank will promote a dovish mood.

Howard Wen, precious metals analyst at HSBC, also said the market was moving on speculation about what the Fed would say after its meeting Wednesday..

"We have the FOMC meeting ahead and from a historical perspective, prices tend to be more volatile ahead of FOMC meetings," said Wen. He said the market also will be watching the coming data including Tuesday's consumer confidence and Wednesday's first-quarter GDP, both potentially dollar-moving data points.

"It seems like the $1,200 level hasn't been that significant lately. It's kind of been trading in a range so far in April, in and out of $1,200. That might be the middle point between the upper and lower bound," he said.

If the Fed sounds in any way hawkish, gold could decline and the dollar would rise, he said.

Monday, April 27, 2015

Nigeria’s Buhari to Investigate $20bn ‘Missing’ Oil Money

Buhari
World
A man works at an illegal oil refinery site near river Nun in Nigeria's oil state of Bayelsa November 27, 2012 Akintunde Akinleye/REUTERS
 
 
Nigerian presidential-elect Muhammadu Buhari yesterday revealed that he is to investigate an alleged $20bn hole in the finances of the Nigerian National Petroleum Corporation (NNPC) when he is sworn in next month.
 
In a meeting with a delegation from the All Progressive’s Congress (APC) party’s Adamawa State chapter at his headquarters in the capital, Abuja, the former military ruler announced that he would investigate the claim of the former governor of the Nigerian Central Bank, Lamido Sanusi - now the emir of the northern city of Kano - that $20bn (£13.13bn) could not be accounted for.
 
Sanusi was suspended by president Goodluck Jonathan for “financial recklessness and misconduct” last year after he exposed the alleged shortfall in oil revenues in 2012 and 2013. At the time, the NNPC denied that any money was “missing” but Buhari, who will be sworn in on May 29, has now criticised the decision to sack Sanusi instead of investigating his claims.
 
"This issue is not over yet. Once we assume office, we will order a fresh probe into the matter,” the former oil minister confirmed in his address. “We will not allow people to steal money meant for Nigerians to buy shares and stash away in foreign lands."
 
"Imagine a situation where the former CBN (Central Bank of Nigeria) governor, who by God's grace, is now the emir of Kano, raised an issue of missing billions of money, not in naira but in dollars, $20 billion,” Buhari continued.
 
"What happened, instead of investigating whether it was true, they simply found a reason to remove him. So, these are the issues we are talking about,” he added. "I heard that some people have started returning money; I will not believe it until I see it by myself.
 
At the same time as the announcement, Nigeria’s Petroleum Resources minister Diezani Alison-Madueke announced that an unremitted payment of $1.4bn would be refunded to state coffers on recommendation of an audit carried out by Jonathan, Africa-focused outlet Sahara Reporters reported.
 
His confirmation of the oil probe comes as little surprise, says Manji Cheto, vice-president of risk consultancy Teneo Intelligence, with the incoming leader looking to assert his authority and build his credibility and he has long spoken of the oil ministry with suspicion.
 
“It was always quite obvious that he was going to go for the oil sector. It is a low-hanging fruit,” says Cheto. “The oil industry is an industry he understands. He knows exactly where money should be going and how the allocation should be.”
 
“If they can tackle a major corruption case, it gives them the credibility boost that they need to make bigger structural changes that they need going forward,” she adds. “They need to win public support first of all, they need people to believe from the onset that they are a credible government and that they mean business. It’s clearly a strategy designed to give them a bit of breathing room.”
 
Last month, Buhari sealed a historic election victory, defeating outgoing president Goodluck Jonathan in what is the country's first ever democratic change of power to an opposition party. A Reuters tally confirmed that his APC party secured 15.4 million votes to People’s Democratic Party (PDP) leader Jonathan’s 13.3 million in the country’s 36 states.
 
Before this win, Buhari, 72, had failed on three occasions (2003, 2007 and 2011) in his bid to return as Nigerian president since the country moved from a series of military rulers to a democratic system in 1999. He survived a Boko Haram assassination attempt last July when a suicide bomber aligned to the radical Islamist group targeted his car in the northern city of Kaduna.

Friday, April 24, 2015

Derailments Put Safety Record of Crude Oil Trains in Question

Explosion: A train derailment early Friday morning in Aliceville, Alabama resulted in the explosion of three oil tankers, which spread to damage nine cars total and leak oil into a nearby slough
 
 
Dozens of trains carrying volatile crude oil are rolling through the Chicago area each week while placing countless residents, buildings and schools in potential evacuation zones in case of spills or derailments.
 
NBC 5 Investigates obtained state records that show how often railway companies are sending trains carrying the highly flammable cargo through the state of Illinois. For example, approximately 40 crude oil trains cross Kane, DuPage and Cook counties each week before interchanging in Chicago or continuing to the eastern half of the United States.
 
"A potential derailment would be unthinkable if it happened in a neighborhood like Pilsen, and other cities face the same threat,” said Shannon Breymaier, a spokesperson for the City of Chicago.
Aurora mayor Tom Weisner said an average of four crude oil "unit trains" travel through Aurora each day.
 
"We have a city of 200,000 population with trains running tanker cars right through the downtown,” Weisner said. "It makes me nervous."
 
Federal guidelines recommend an evacuation radius of one-half mile in case of a train derailment or accident involving crude oil.
 
"We are as prepared as we can be, but I don’t think anyone can guarantee the public that there’s no hazard or that things will be taken care of," Weisner said.
 
The safety record of crude oil trains is in question after a string of derailments in recent years, including a deadly crash in Quebec in 2013 that killed 47 people. That was followed by crude oil train derailments in Virginia in 2013 and West Virginia in 2014 in which tank cars ruptured and burned.
 
A train carrying crude oil derailed in a wooded area near Galena, Illinois in March and shot a fireball toward the sky. The fire burned for several days. No one was hurt, but first responders suggested nearby residents evacuate the area.
 
"We didn’t have the resources available at that time to combat it," said Jo Daviess County Sheriff Kevin Turner. "We had an LP tank that was on where the accident actually happened and we were worried about that exploding."
 
John Schultz lives near the Galena derailment site and said he chose to remain in his house because a large hill separated his home from the burning tank cars. However, he said the burning crude oil "sounded like a jet engine taking off."
 
The cause of the derailment in Galena remained under investigation as of Thursday, according to the US Department of Transportation. The rail company, BNSF, would not confirm if the train was heading toward Chicago.
 
An increase in the amount of crude oil produced in the Bakken region of North Dakota, which federal regulators have said may be more flammable than other heavy crude, has resulted in more of the product being shipped by rail across the country. According to the Association of American Railroads, crude oil shipments totaled 9,500 carloads in 2008 and increased to 493,126 carloads in 2014.
 
Association of American Railroads spokesperson Ed Greenberg said safety is a priority for the freight industry.
 
"We recognize that more has to be done as part of shared responsibility with shippers and with other stakeholders to further advance the safe movement of this project," Greenberg said.
 
A BNSF spokesperson said the company is implementing safety changes in the wake of the Galena derailment, including reducing train speeds in certain areas and increasing rail and wheel inspections.
Greenberg also said railway companies are sharing safety plans with first responders and supporting a push for stronger tank cars. The National Transportation Safety Board has issued a series of recommendations calling for retrofits to fuel-hauling tank cars.
 
Federal law requires all railroads operating trains carrying more than one million gallons of oil (or approximately 35 tank cars) being transported from the Bakken region to notify each state’s emergency management agency about the operation of these trains through their states.
 
The Illinois Emergency Management Agency (IEMA), however, redacted route details in the information it provided to NBC 5 Investigates regarding crude oil rail shipments throughout the state.
"It is a security issue for our industry," Greenberg said.
 
Diamond-shaped placards are a hint that a train is carrying hazardous materials. For example, a sign numbered "1267" signifies highly-flammable crude oil is being transported.
 
Emergency management officials said the Galena accident highlights the importance for neighboring communities to work together for mutual aid and for residents to have a safety plan.
 
"Training is a very good thing," said Jo Daviess County emergency manager Charles Pederson.
 
Breymaier said the City of Chicago has emergency operations in place to address all conceivable events and issues.
 
"We will take the necessary steps to respond and mitigate the impact of any incident in order to ensure the safety of our residents and communities," Breymaier said.
 
Suburban mayors, including Weisner, are calling for more aggressive rail safeguards and for improved train braking systems. Weisner also said oil producers should do more to improve safety standards.
 
The American Petroleum Institute's (API) website addresses the topic of crude oil by rail.
 
"While rail moves 99.99 percent of hazardous materials without incident, our goal is zero incidents," the API website reads. "The API is working jointly with regulators and other stakeholders to remove the last elements of risk in the system through a comprehensive safety approach that addresses accident prevention, mitigation and response."
 
But Schulz, whose property lies just a few yards from the Galena derailment site, had another idea.
 
"I’d like to see it go in a pipeline, which would reduce the number of cars," Schultz said. "I realize there’s a problem with pipelines but normally a pipeline doesn’t catch on fire."
 
According to the Association of American Railroads, billions of private dollars are spent each year on maintaining and modernizing the freight rail system. Companies have spent $575 billion since 1980 and are projected to spend $29 billion in 2015.

Tuesday, April 21, 2015

Oil down as Saudis end Yemen bombing; traders eye crude build

Oilfield workers collect a crude oil sample at an oil well operated by Venezuela's state oil company PDVSA, in the oil rich Orinoco belt, near Morichal at the state of Monagas April 16, 2015. REUTERS/Carlos Garcia Rawlins
 
NEW YORK (Reuters) - Oil prices fell on Tuesday after Saudi Arabia announced the end of its military campaign in Yemen, easing tensions in the Middle East, and traders expected another weekly build in U.S. crude stockpiles.

The Saudi-led coalition bombing Yemen said its three-week operation against Iran-allied Houthi rebels was over and it would focus now on security, counterterrorism, aid and a political solution for Yemen.
 
"The market's gone up quite a bit lately and was due for a correction, so the Saudi announcement was a step in the right direction in the sense that it diffuses some of the tensions in the Middle East," said Joseph Posillico, senior vice president of energy futures at Jefferies in New York.
 
On the stockpiles side, a Reuters survey showed that U.S. crude inventories likely rose for the 15th straight week, adding nearly 3 million barrels last week. [EIA/S]
 
The American Petroleum Institute, an industry group, meanwhile, said its own reading showed a stock build of 5.5 million barrels last week. [API/S]
 
Official stockpiles data will be issued on Wednesday by the government's Energy Information Administration.
 
U.S. crude's front-month May contract CLK5, which expired at the close of Tuesday's session, finished down $1.12, or 2 percent, at $55.26 a barrel. The nearby June contract LCM5, which will become the front-month beginning on Wednesday, settled down $1.27 at $56.61.
 
UK North Sea Brent crude LCOc1, the more widely used global benchmark for oil, fell $1.37, or 2.1 percent, to $62.08.
 
Both U.S. crude and Brent extended losses in post-settlement trade, after the release of the API data.
Despite those declines, Brent remained up nearly 12 percent for April while U.S. crude was about 16 percent higher after gains over the past two weeks on speculation that the selloff in oil that began last summer was losing steam.
 
Some analysts disagree that the market is on the cusp of a longer-term recovery.
 
Commerzbank's Carsten Fritsch sees Brent heading down to the low $50s a barrel last seen in March.
The head of the world's largest oil trading company, Vitol, said oil prices were likely to slip as refineries undergo maintenance work in the second quarter.
 
"We will probably see another dip in oil prices in Q2", but not below January lows, Ian Taylor told Reuters on the sidelines of an industry conference in Lausanne, Switzerland.

(Additional reporting by Christopher Johnson in London and Jacob Gronholt-Pedersen in Singapore; Editing by Alison Williams, Meredith Mazzilli, Ted Botha and Jonathan Oatis)

Monday, April 20, 2015

Iran oil exports to surge as sanctions are eased

Sanctions ban the import of Iranian crude to Europe and also target Iran's central bank.
Abu Dhabi: Iran’s oil exports are expected to surge once sanctions are lifted in July, with forecasts showing an increase of 200,000 barrels per day by the end of the summer, and another 300,000 barrels per day by the end of the year.
According to Dr Fereidun Fesharaki, chairman of Facts Global Energy, an international energy consultancy, a further boost of 700,000 barrels per day is expected from Iran by June 2016.
Speaking at the 23rd annual Middle East Petroleum and Gas conference, Fesharaki said he expected condensate exports to rise by 200,000 barrels per day.
As for the impact this will have on the Middle East, he said Iran could potentially work on gas pipelines to the UAE, Oman, and Kuwait, and export liquid natural gas to the GCC.
During his speech at the two-day conference, which kicked off on Monday, Fesharaki discussed projections for oil prices, saying that there were two scenarios; the first that will see oil ranging between $50 and $80 over the next 10 years, while the other was between $40 and $60.
“Stability in the oil market is unnatural. If it happens, this means that someone is managing the market. By the end of June, prices may fall $15 and Opec [Organisation of Petroleum Exporting Countries] may meet and announce changes,” he said.
Fesharaki also discussed the emergence of the US as an energy superpower, saying that oil production in the US reached 4.5 million barrels per day in the last four to five years — a level that measures up with the entire Opec’s production.
This puts the US among the top three liquid natural gas exports by 2020, as the largest producer of condensates worldwide, and as an emerging ethane exporter.
Also attending the conference was Hatem Nuseibeh, president and chief representative of Total UAE, who said he expected gas to emerge as the second main energy source as oil maintains its position as the primary energy source.
Asked about the impact of low oil prices on Total, Nuseibeh said the company was able to adapt to lower prices, and that the long term outlook was more important.
“Profits go down with lower oil prices, but what’s important is that projects continue…Lower oil prices push companies to spend less and squeeze service companies, so the cost of energy is going to go down, which is a positive on the long-term,” he said.

Friday, April 17, 2015

Asia VLCC rates at more than 2-month high on supply squeeze, strong demand

Platts

http://www.platts.com/latest-news/shipping/singapore/asia-vlcc-rates-at-more-than-2-month-high-on-27297050

Worldscale rates for VLCCs are at the highest in more than two months on tight supply due to delays in Basrah and North Asia and rising demand amid the postponement of refinery maintenance shutdowns, market participants said Friday, April 10.

The number of cargoes is turning out to be much higher than expected in April, providing a sudden uptick in demand, they said.

Until a few days ago the rates were struggling to stay above w50 but have since rebounded sharply.

At least two VLCC fixtures were finalized overnight by Thai Oil for Persian Gulf loading later this month at w65, a level not seen since end January, brokers said.

One of the fixtures for April 17 loading was done on a 15-year-old ship which did not prove a deterrent to garnering a higher rate, they said.

Rates are high at a time of year when they typically slide due to refinery maintenance season, when demand to move crude falls.

Charterers who were earlier holding back on fixtures in anticipation of the seasonal decline in rates rushed to seek tonnage this week.

"Owner sentiment is strong and we expect to see rates approach w70 after the [Persian Gulf cargo] stem nominations for May are out by next week," said a chartering manager with a VLCC owner.

Even charterers who usually do not pay higher rates are doing so now, the manager said, adding it had tried to pull rates below w50 a few times in the last month but they were pushed back again.

Lower crude prices have indirectly contributed to pushing up VLCC rates because refiners are putting off maintenance plans due to higher margins, said a chartering source with a Japanese refiner.

Sources said Indian refiner Essar Oil has deferred the planned full turnaround of its 20 million mt/year (400,000 b/d) refinery at Vadinar to September or October from the initial May-June schedule.

"There seems to be enough demand for third decade loading to maintain the new market level but the challenge for owners is to carry the sentiment into the first decade of May," said a VLCC broker in Singapore.

CRUDE FIXTURES UP ON YEAR

The number of crude oil fixtures for loading in the Persian Gulf for voyages to both East and West combined were estimated at 126 in March, up from 109 a year earlier, according to broker estimates.

So far close to 100 cargoes for loading in April have been covered with tonnage.

"With the third decade fixing in full swing and a more balanced tonnage list, owners look set to enjoy the upper hand for rest of the week," Morgan Stanley said a daily report.

Analysts pointed out that the loading program was strong even in April last year, with more than 130 VLCC fixtures from the Middle East, but supply is tight this time around.

"The market has started to rise and the main reason for this is tight tonnage," said a chartering source with a South Korean refiner. This is caused by several factors including logistical delays and inclement weather in Basrah, the source said.

At least five ships are tied up at one South Korean terminal because of bad weather, he said.

One of the ships that was scheduled to reach Fujairah in the last decade of April remained stuck in South Korea.

More than 20 VLCCs are lined up to load crude in Basra as Iraq has allocated more cargoes than the country's port infrastructure can handle, said a shipping industry official in Taiwan.

The rally in rates is translating into higher earnings for owners.

At current worldscale rates, daily earnings from some spot charter voyages on the Persian Gulf-North Asia route are close to $60,000, compared with $14,600 a year earlier, brokers said.

Lower bunker prices are also contributing to higher earnings for owners. 380 CST bunker delivered in Singapore was assessed at $323-$324/mt Thursday, down from $590.50-$591.50/mt a year earlier, Platts data showed.

--Sameer C. Mohindru, sameer.mohindru@platts.com
--Edited by Wendy Wells, wendy.wells@platts.com