By Srinivas Chowdary Sunkara // petrobazaar // 24th Oct, 2019.
The Bunker Price Index consist of a range of prices for 180 HSFO, 380 HSFO and MGO(Gasoil) in the main world hubs moved up. In Singapore, Fuel oil futures prices settled above 2% up after losing in the previous session. IFO 180 cSt and 380 cSt graded fuel oil prices closed $8 up at $396.5 and $366.5 respectively while MGO prices settled down yesterday. The world crude oil futures prices gained above 2% yesterday after a report of surprise drawings in US crude and product inventories during the last week. Faltering demand worries continued to weigh on oil prices.
There are many questions posing on significant issues ahead of IMO 2020. As per Mr. Elisco Curcio, The ISO 8217 doesn't mention anything about the viscosity for the news VLSFO. Everybody started to produce very low sulfur fuel oil and VLSFO value jumped from $450/ton to $550/ton in less than a month and is expected to reach $650/ton in 2020. The question is IFO 380 has a maximum viscosity spec of 380 centistoke which means that there is a high probability of buying VLSFO with 5 centistoke and VLSFO with 300 centistoke. Can we call VLSFO with 5 centistoke bunker? and can we price the VLSFO 5 centistoke as the same as the one with 300 centistoke?
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IMO news courtesy:ship&bunker