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. Global HSFO prices hit two-year lows this month as IMO 2020 rule is nearing. And have released the latest version of their Top 10 Bunker Companies report updated for 2021. Find information for Gulf Coast HSFO (Platts) Futures Quotes provided by CME Group. 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. Bunker suppliers in the Fujairah market are considering returning to HSFO sales, according to price reporting agency Argus Media.. Two large suppliers at the port may resume HSFO sales next year, Argus reported Thursday, citing a senior bunker manager in the region.. The US imported 53.98 million barrels of HSFO from November 2019 through June 2020, Kpler data showed. 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. Well, as HSFO rose, diesel and crude really did not, so this made scrubbed HSFO (using today's prices) less attractive as a fuel choice for 2020. Prices will likely stabilize down the line. 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. The average sale price of a home in Seattle was $740K last month, up 10.8% since last year. VLSFO – USD/MT – 418.00 (-2.00) Homes in Seattle receive 4 offers on average and sell in around 9 days. 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. 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 … The Monjasa Server will be used both for ship-to-ship bunker operations in the region and for transporting cargoes from Fujairah to Dubai, Abu Dhabi and Sharjah. Oil price information Last update: 2020-12-21 Nr. Of the 477,400 tonnes burned monthly by the three lines, about 278,500 tonnes is HSFO. 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 For more info go to our Cookie Policy, Britain, Canada strike short-term deal to avoid post-Brexit tariffs, Baltic index gains as capesizes extend upward momentum, Ship Recycling Market Looking Active as Tonnage Supply Increases, 6th BIMCO report on Amendments to the IMSBC Code entering into force – re-assignment of bulk cargo shipping names for generic dangerous goods, India must get its manufacturing policy right this time, Guide for Carriage of Hazardous Materials, Subscribing I accept the privacy rules of this site, PORT IS WHAT WE DO – New filter drum for the METHA, BIMCO’s Q4 Shipping Market Outlook webinar, The city of Piraeus and the Municipal Theatre of Piraeus with Panama Flag colours, IMO’s global action to protect marine biodiversity, INTERCARGO.org: Crew Change – time is running out, The Panama Maritime Authority & COVID19 Measures. Market sources also noted that the value of crude in 2020 would be a key factor determining the price of HSFO. The only markets left for 3.5% HSFO are power generation, which currently uses LNG and coal (approx. 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. Rotterdam saw 380cst move from 73% of the value of Brent in the first half of the 2018 to 80% in Q4 of 2018. Unscrupulous vessel operators will be tempted to cheat and use non-compliant marine fuel. September 2020. Commodity player denies involvement following civil lawsuit lodged in Brazil. What about the scrubber guys? Click here. Install Exhaust Gas Cleaning Systems and continue using HSFO; or 3. 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. Settlement prices on instruments without open interest or volume are provided for web users only and are not published on Market Data Platform (MDP). ]: Subscribe for a year or order a 1-month trial. Peak price impacts are expected in the first half of 2020, before differentials ease somewhat later in the year. Information on registered facilities is … 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. SEB will start reporting the 'climate alignment' of its shipping portfolio from next year. 1: Rotterdam/Antwerp: $ 300: $ 375 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. 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). 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. Index: IFO 380: VLSFO 0.5: MGO 0.1: World [? Splash October 5, 2018. 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. 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. Browse The Seattle Times obituaries, conduct other obituary searches, offer condolences/tributes, send flowers or create an online memorial. Brent, … Adrian Tolson, Senior Partner at 20|20 Marine Energy. Find information for Gulf Coast HSFO (Platts) Futures Quotes provided by CME Group. 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. 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. With prices now rising, 2021 could see a return of $600/mt bunkers. 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. Ship operators have a choice of 2020 compliance options: 1. The future cost of 3.5% HSFO could go as low as $220/mt. marine gas oil, diesel, blends of HSFO and low sulphur distillate, low-sulphur residual fuel oil or hybrid fuels 2. 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. Markets Home ... nor as a complement to, real-time market data feeds. Secondly, inspired by a combination of OPEC cutbacks and Iranian sanctions we suddenly saw a increased need for HSFO in certain parts of the world. View Quotes. VLSFO fuel remains moderately overpriced in all selected ports except of Singapore, where VLSFO was undervalued by 5 USD. The USGC HSFO (Platts) Average Price Option is based on the underlying USGC HSFO (Platts) Future (RBO) and will automatically exercise into the USGC HSFO (Platts) Future (RBO) on the day of expiry of the options contract. 2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain. 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. 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. 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). 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. August 20, 2019. ... 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. Gulf Coast HSFO. 1M 1YR Max. 04:34 am CST 22/12/2020. November 30, 2020, 4 ... HSFO margins, meanwhile, are expected to remain supported over the next three months with consumer demand seen elevated until at … 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. IMO 2020 will be a big deal. combination of factors. Index: IFO 380: VLSFO 0.5: MGO 0.1: World [? Thursday’s price of $311.50/mt is the lowest the key benchmark has been since August 31, 2017. 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 … $114/mt). 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. 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 graph shows the price of HSFO and 0.5% low sulphur fuel oil (VLSFO). Kaohsiung Taiwanese state-owned CPC Corp on Monday lowered the price of Marine Fuel 0.5%, IFO380 and MGO by $5. Markets Home ... nor as a complement to, real-time market data feeds. To a certain degree it likely will and this creates some interesting potential for profitable HSFO business. Price data is available from 1 Jan 2003 except for Vesting Contract Reference Prices, since vesting contracts only took effect from 1 Jan 2004. Brent for February settlement declined by $0.83 to $50.08 a barrel on the London-based ICE Futures Europe exchange. To combat this possibility, IMO’s Pollution Prevention and Response (PPR) sub-committee has been tasked with improving enforcement mechanisms. 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%. Maurice Elfrink "will pursue his career elsewhere". 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. Gasoil for January delivery gained $3.75 – $418.00. Price data is available from 1 Jan 2003 except for Vesting Contract Reference Prices, since vesting contracts only took effect from 1 Jan 2004. We also expect enforcement to become increasingly robust after 2020 as best practices are shared and fines are levied and publicized. One of the most highly respected and most knowledgeable professionals within our industry, says KPI OceanConnect CEO Høll. in Daily Bunker Report,International Shipping News 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. 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. Forecasts had predicted an inventory draw of 3.135 million barrels for the week. 23/12/2020. But, no worries…HSFO will be very cheap by the end of this year and scrubber economics should be all good again! 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. Switch to LNG Non-compliance is also possible. OPEC+ will take a more hands-on approach to global oil markets now that it plans to meet more frequently. Price difference between VLFSO HSFO … Rotterdam saw 380cst move from 73% of the value of Brent in the first half of the 2018 to 80% in Q4 of 2018. All will feature Anemoi Marine Technologies rotor sails. The tone of IMO … 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. by Adrian Tolson, BLUE Insight Lead, BLUE Communications. Settlement prices on instruments without open interest or volume are provided for web users only and are not published on Market Data Platform (MDP). Webinar: How State Agencies Can Budget For A Recession. 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. The denser meeting schedule will also help OPEC+ get the upperhand in directing oil markets over speculators. He founded 20|20 Marine Energy in 2015. 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). 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. View Quotes. Prices for marine gasoil (MGO) and the new blended fuels are expected to rise sharply while HSFO prices will fall. 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. ... Webinar - Aug, 6, 2020 . It all really comes down to the simple laws of supply and demand. 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. 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. 7 56 4 minutes read. MGO – USD/MT – 482.07 (-1.51). 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 … 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. Will this all continue in 2019? 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. When oil is scarce prices go up and some of the regional issues in locations, like NY, where even more exaggerated. 619. CEO Timothy Cosulich says move was "in response to the growth of our activities in the bunker trading sector. 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. ]: Subscribe for a year or order a 1-month trial. To a certain degree it likely will and this creates some interesting potential for profitable HSFO business as we start to feel the disruption of 2020. Those price changes began in the third quarter of 2019 and accelerated in the fourth quarter. ]: Subscribe for a year or order a 1-month trial. 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. Cheap by the three lines, About 278,500 tonnes is HSFO changes in... 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