The Brent benchmark traded at the premium of $3.06 to WTI. Markets Home ... nor as a complement to, real-time market data feeds. The price spread between LSFO and HSFO, a useful measure to calculate how much money will be saved on bunker costs, has narrowed significantly since January making scrubbers a less lucrative option to comply with IMO 2020. The price spread between LSFO and HSFO at Singapore, a key bunker hub, plunged from a high of around $296/t in January to just around $60/t in August. And in northwest Europe, the spread between HSFO and VLSFO narrowed to less than $40/mt in mid‐April, compared to close to $300/mt on January 1. Today morning oil indexes continue moderate downward trend. As the price of HSFO recovers after the first few years of the sulfur cap due in part to high scrubber acquisitions, the economic incentive to cheat will dissipate. ]: Subscribe for a year or order a 1-month trial. In favour of a move into renewables market. 2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain. The denser meeting schedule will also help OPEC+ get the upperhand in directing oil markets over speculators. After the UK government warned that a new variant of the virus seemed to be spreading much faster than previous kinds, India, Pakistan, Russia, Jordan and Hong Kong joined European countries in suspending travel from Britain, and Saudi Arabia, Kuwait and Oman closed their borders completely. The price spread between LSFO and HSFO, a useful measure to calculate how much money will be saved on bunker costs, has narrowed significantly since January making scrubbers a less lucrative option to comply with IMO 2020. Port HSFO-380 VLSFO 0.5% ULSFO 0.1% MGO Deliv. HSFO suddenly became very scarce in the second half of 2018 driven by a unique (?) MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) rose slightly on Dec.22: 380 HSFO – USD/MT – 337.64 (-1.92) All will feature Anemoi Marine Technologies rotor sails. By continuing to use this site, you agree to our use of cookies. Average IFO380 price across the four major global bunkering ports have fallen 21% from $401.50/mt on August 2 to $314.50/mt on Friday. With over 30 years’ experience, Adrian Tolson has a detailed knowledge and insight of the marine energy supply chain, the changing dynamics of the maritime fuel and propulsion sector, and bunkering infrastructure. 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Ship & Bunker, SeaCred Pick Top 10 Bunker Companies for 2021, Trafigura Execs Cited in Petrobras Graft Allegations, Scorpio Exits Dry Bulk, Puts Remaining Bulker Fleet Up For Sale, Fratelli Drops Chemoil Name from its Monaco Bunker Trading Unit, Monjasa Swaps Floating Storage, Gives Details of IMO 2020 Impact on WAF Bunker Demand, COO of ARA, Hamburg Supplier Trefoil Steps Down, GRAPH: 2020's Average Bunker Price 8% Lower Than 2019, Singapore: Shell Employee Admits Role in MGO Scam. August 20, 2019. Thirdly, and by no means least, we started to see the impact of many of the major traders of HSFO cargoes losing interest in trading HSFO as a commodity. High-sulphur fuel oil (HSFO) can also be used in some power plants, but the scrubber-fitted fleet still generate the bulk of demand for HSFO. Switch to LNG Non-compliance is also possible. We also expect enforcement to become increasingly robust after 2020 as best practices are shared and fines are levied and publicized. ]: Subscribe for a year or order a 1-month trial. 2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain Posted on 2018-10-05 Author BlueOceanMag Comment(0) BunkerEx has investigated where existing 3.5% HSFO bunker demand will go, how this will be replaced and what this means for prices. MGO – USD/MT – 482.07 (-1.51). We expect IFO bunker prices may fall by 3-6 USD today while MGO prices may change irregular in a range of plus-minus 2-4 USD. Earlier this month, OPEC+ members agreed to start raising their combined oil production by half a million barrels daily from next month, to continue until April. World 3 [? Prices for heavy and sour crudes are expected to weaken from 2020, while light crudes are expected to benefit and command a premium over heavy grades, said sources. What about the scrubber guys? As we rapidly approach the demise, or partial demise, of HSFO as bunkers, the HSFO bunker price is suddenly rising in value against both crude oil and against diesel prices. Will this all continue in 2019? marine gas oil, diesel, blends of HSFO and low sulphur distillate, low-sulphur residual fuel oil or hybrid fuels 2. U.S. oil production fell to 11.0 million bpd for the week ending December 11 — 2.1 million bpd lower than the all-time high of 13.1 million bpd reached in March. This decision was widely seen as a compromise between the more aggressive backers of further deep cuts such as Saudi Arabia and those eager to restart production growth such as Iraq and Russia. 1M 1YR Max. 7 56 4 minutes read. August 20, 2019. The Seattle housing market is very competitive. 1: Rotterdam/Antwerp: $ 300: $ 375 When oil is scarce prices go up and some of the regional issues in locations, like NY, where even more exaggerated. VLSFO fuel remains moderately overpriced in all selected ports except of Singapore, where VLSFO was undervalued by 5 USD. On this date, 380 CST HSFO was assessed by Platts at $222.14—a premium of just $70.71/t, which is well down on the $326/t premium seen at the start of the year. As we rapidly approach the demise, or partial demise, of HSFO as bunkers, the HSFO bunker price is suddenly rising in value against both crude oil and against diesel prices. Find information for Gulf Coast HSFO (Platts) Futures Quotes provided by CME Group. Maurice Elfrink "will pursue his career elsewhere". European HSFO values near 2019 prices, bucking expectations Sep 8 The spread between physical prices for 3.5%S FOB Rotterdam barges in 2019 and 2020 reached as close as $4/mt year on year on Sept. 1, assessed at $257/mt, before the spread widened again. But, no worries…HSFO will be very cheap by the end of this year and scrubber economics should be all good again! Gasoil for January delivery gained $3.75 – $418.00. Those price changes began in the third quarter of 2019 and accelerated in the fourth quarter. Commodity player denies involvement following civil lawsuit lodged in Brazil. The Singapore delivered VLSFO cargo price fell from $565/t on January 31 (having peaked at $740/t on January 6) to around $292.85/t on June 16. In particular, Saudi Arabia made the call to shift much of its significant power generation capacity from using its own crude oil to imported HSFO, creating an unexpected demand for HSFO. Settlement prices on instruments without open interest or volume are provided for web users only and are not published on Market Data Platform (MDP). To a certain degree it likely will and this creates some interesting potential for profitable HSFO business. Splash October 5, 2018. ]: Subscribe for a year or order a 1-month trial. Brent, … Markets Home ... nor as a complement to, real-time market data feeds. To judge in a district court in Singapore. 2019 could be a good year for HSFO traders and suppliers? Click here. in Daily Bunker Report,International Shipping News Price data is available from 1 Jan 2003 except for Vesting Contract Reference Prices, since vesting contracts only took effect from 1 Jan 2004. 2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain Posted on 2018-10-05 Author BlueOceanMag Comment(0) BunkerEx has investigated where existing 3.5% HSFO bunker demand will go, how this will be replaced and what this means for prices. The price spread between LSFO and HSFO at Singapore, a key bunker hub, plunged from a high of around $296/t in January to just around $60/t in August. ]: Subscribe for a year or order a 1-month trial. Index: IFO 380: VLSFO 0.5: MGO 0.1: World [? The graph shows the price of HSFO and 0.5% low sulphur fuel oil (VLSFO). ... At the same time, the drastic drop in demand for HSFO will likely cause prices for HSFO to drop– IEA predicts a 57% drop in demand. With prices now rising, 2021 could see a return of $600/mt bunkers. Thursday’s price of $311.50/mt is the lowest the key benchmark has been since August 31, 2017. IMO 2020 will be a big deal. In the meantime, traders betting on this drop-then-rise (called a contango) may seek to physically store HSFO and sell it in the future CEO Timothy Cosulich says move was "in response to the growth of our activities in the bunker trading sector. ... Webinar - Aug, 6, 2020 . Prices for marine gasoil (MGO) and the new blended fuels are expected to rise sharply while HSFO prices will fall. Unscrupulous vessel operators will be tempted to cheat and use non-compliant marine fuel. Following Governor Inslee's announcement of additional temporary restrictions in response to the recent rapid spread of COVID-19 in Washington, the Space Needle has ceased all indoor food and beverage offerings and reduced capacity to under 25%. As well as providing commercial advisory and consulting services in the development of fuel purchasing and supply strategies, he is an established and well-known industry commentator on the future fuels sector, in particular on the impact of the 2020 global sulphur cap, and its impending convergence with shipping’s decarbonisation challenge. However, such a huge drop in HSFO demand is expected to impact the price of HSFO in two key ways: its price relative to other fuels, e.g. The American Petroleum Institute (API) reported on Dtc.22 a build in crude oil inventories of 2.70 million barrels for the week ending December 18. Capital Economics said the OPEC+ agreement earlier this month to increase oil supply will mean that downturns in hydrocarbon sectors across the GCC states will start to ease, so Brent crude will reach $60 per barrel by the end of next year and the Gulf economies will start to benefit from higher prices. View full details on OilPrice.com. West Texas Intermediate for February delivery decreased by $0.95 to $47.02 a barrel on the New York Mercantile Exchange. Price difference between VLFSO HSFO … $114/mt). SKS Dokka has replaced sister vessel, SKS Darent. combination of factors. The only markets left for 3.5% HSFO are power generation, which currently uses LNG and coal (approx. Dec 21 Djibouti LSMGO: $650pmt delivered ex-barge, $670pmt delivered ex-truck at berth in port, $660 pmt delivered ex-pipe at Horizon terminal in the port. Kaohsiung Taiwanese state-owned CPC Corp on Monday lowered the price of Marine Fuel 0.5%, IFO380 and MGO by $5. Fig 1 Expected price difference in high sulphur fuels and IMO 2020 complaint fuels Difference in forward prices between 0.1% compliant gasoil (MGO) and HSFO. What's Up with the HSFO Bunker Prices and Why Are All the Scrubber Guys Getting Worried? Global HSFO prices hit two-year lows this month as IMO 2020 rule is nearing. Massive HSFO price drop So, despite the initial investments in refineries and scrubbers, and some non-compliance, a residue surplus of about 400,000 barrels per day is expected in 2020. About 40%-65% of their vessels are outfitted with IMO 2020-compliant marine exhaust scrubbers. As of May 2020, the scrubber-fitted fleet stands at 2,893 ships, or 2.9% of the combined fleet in terms of ships, but equal to 15.6% of total fleet when looking at deadweight tonne (source: Clarksons). His experience spans leadership roles with some of the industry’s largest marine fuel suppliers, including Chemoil Energy where he was responsible for successfully driving the company through to IPO, and as Vice President and General Manager, he established OW Bunker’s physical supply operation in the US. September 2020. Scrubber Installs Plummet as Low Fuel Prices Negate Cost Advantages July 22, 2020; ... HSFO could account for 20% of global marine fuel demand by the end of … VLSFO – USD/MT – 418.00 (-2.00) The average sale price of a home in Seattle was $740K last month, up 10.8% since last year. The graph shows the price of HSFO and 0.5% low sulphur fuel oil (VLSFO). The average sale price per square foot in Seattle is $465, up 7.0% since last year. On this date, 380 CST HSFO was assessed by Platts at $222.14—a premium of just $70.71/t, which is well down on … Source: MABUX, MABUX: Bunker market this morning, Dec.23, 2020, Online Daily Newspaper on Hellenic and International Shipping, This site uses cookies to enhance your user experience. The US imported 53.98 million barrels of HSFO from November 2019 through June 2020, Kpler data showed. Rotterdam saw 380cst move from 73% of the value of Brent in the first half of the 2018 to 80% in Q4 of 2018. In order to compete, 3.5% HSFO will need to be priced at parity with LNG and coal which results in a price of approximately $220/mt. To combat this possibility, IMO’s Pollution Prevention and Response (PPR) sub-committee has been tasked with improving enforcement mechanisms. And have released the latest version of their Top 10 Bunker Companies report updated for 2021. There has been speculation that this may be allowable if, for example, suitable fuels are not available or if a scrubber has been ordered, but not yet installed. To contact the editor responsible for this story email us at editor@shipandbunker.com. World oil indexes demonstrated irregular changes on Dec.22 as a new strain of the novel coronavirus in the United Kingdom triggered concerns over fuel demand recovery. He founded 20|20 Marine Energy in 2015. Rotterdam saw 380cst move from 73% of the value of Brent in the first half of the 2018 to 80% in Q4 of 2018. Share Copy. Singapore: HSFO Sales Rally on Scrubber-related Demand. Information on registered facilities is … Firstly, some of the predicted reduction in HSFO production from existing refineries actually became reality and so a little less HSFO was on the market. While HSFO is not as profitable as crude, complex refineries in the USGC shift away from sour crude to HSFO if the discounts become wide enough to offset the decreased efficiency and output. Correlation of the MBP Index (Market Bunker Prices) vs the DBP Index (Digital Bunker Prices) in four largest hubs showed on Dec.22, that 380 HSFO was still undervalued in Rotterdam by 9 USD and in Singapore by 5 USD, while remaining overpriced in Fujairah and Houston (plus 4 USD and 16 USD, respectively). Average IFO380 price across the four major global bunkering ports have fallen 21% from $401.50/mt on August 2 to $314.50/mt on Friday. Price data is available from 1 Jan 2003 except for Vesting Contract Reference Prices, since vesting contracts only took effect from 1 Jan 2004. Install Exhaust Gas Cleaning Systems and continue using HSFO; or 3. FUEL OIL PRODUCTION TO DECLINE IN 2019 MGO LS, in turn, was undervalued in all ports ranging from minus 17 USD to minus 40 USD, with the exception of Houston (was overcharged by 23 USD). OPEC+ will take a more hands-on approach to global oil markets now that it plans to meet more frequently. View Quotes. Other ports saw even more extreme price rises, such as New York where we moved from 76% in the first half of 2018 to 87% in Q4. It all really comes down to the simple laws of supply and demand. Prices will likely stabilize down the line. September 2020. November's figures may equal … The price of spot Singapore 380 cst HSFO, however, was indicated higher at $399.50 pmt on 6 January, and prices had been firmly below $400 over … Homes in Seattle receive 4 offers on average and sell in around 9 days. Brent for February settlement declined by $0.83 to $50.08 a barrel on the London-based ICE Futures Europe exchange. Forecasts had predicted an inventory draw of 3.135 million barrels for the week. View Quotes. Will this all continue in 2019? The price differential between IMO 2020-compliant fuel and HSFO will be large. Demand for the shipping industry’s main fuel is widely expected to collapse like never before in 2020, so it might come as a surprise that its value is soaring. Its not clear whether this was driven by consolidation of HSFO and Diesel trading books, poor financial performance in the first half of 2018 (and 2017), the impending IMO 2020 reduction in HSFO trading activity or a series of horrendous quality claims in the US Gulf area, but activity was down and HSFO liquidity suffered in the market. Of the 477,400 tonnes burned monthly by the three lines, about 278,500 tonnes is HSFO. Settlement prices on instruments without open interest or volume are provided for web users only and are not published on Market Data Platform (MDP). November 30, 2020, 4 ... HSFO margins, meanwhile, are expected to remain supported over the next three months with consumer demand seen elevated until at … Information on registered facilities is … 619. Scrubber Installs Plummet as Low Fuel Prices Negate Cost Advantages July 22, 2020; ... HSFO could account for 20% of global marine fuel demand by the end of … 23/12/2020. Global HSFO prices hit two-year lows this month as IMO 2020 rule is nearing. Ship operators have a choice of 2020 compliance options: 1. The tone of IMO … Adrian Tolson, Senior Partner at 20|20 Marine Energy. Thursday’s price of $311.50/mt is the lowest the key benchmark has been since August 31, 2017. By 3-6 USD today while MGO prices may fall by 3-6 USD today while MGO prices may fall 3-6! 53.98 million barrels of HSFO and 0.5 % ULSFO 0.1 % MGO Deliv News 23/12/2020 month. Blue Communications over speculators may fall by 3-6 USD today while MGO prices may change irregular in a range plus-minus! 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Hsfo traders and suppliers prices now rising, 2021 could see a return of 3.06. Price differential between IMO 2020-compliant fuel and HSFO will be large recent weeks have given to... Says move was `` in response to the simple laws of supply demand... Benchmark traded at the premium of $ 311.50/mt is the lowest the key benchmark has been since August,.