By Srinivas Chowdary Sunkara // petrobazaar // 25th Oct, 2019.
Bunker Price Index consist of a range of prices for 180 HSFO, 380 HSFO and MGO(Gasoil) in the main world hubs advanced yesterday. Fuel oil futures in Singapore markets gained above 5% from previous session. IFO 180 cSt and 380 cSt graded fuel oil futures prices went $20 up at $416.5 and $386.5 respectively while MGO(Gasoil) futures prices settled $13.5 up at $595. The world crude oil benchmark prices continued to gain yesterday on a bullish sentiment buoyed by the surprise drawings in U.S inventories. Prospectus of supporting action by producer's club also propped up oil prices.
Why the lower viscosity fuel oil cost high? The lower viscosity fuel oil requires more expensive MGO( Marine gas oil) to dilute the high viscosity bunker. Now a days, With an availability of variety of low viscosity and sulfur cheap blend components, diluting a high viscosity bunker cheaper an easier.
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