By Srinivas Chowdary Sunkara // petrobazaar // 25th Nov 2019.
Bunker Price Index consist of a range of prices for 180 HSFO, 380 HSFO and MGO(Gasoil) in the main world hubs settled lower on Friday. Fuel oil futures prices in Singapore rose around 5% on Friday. IFO 180 cSt and 380 cSt graded fuel oil futures prices advanced $16.5 to $348 and $318 respectively while MGO futures gained $17 to $585 on Friday. Both the fuel oil futures logged in $15.5 gains during the week. The world crude oil prices indexes demonstrated upward momentum last week on expected extension of production pact while concerns over trade talks capped the gains on late week.
ship&bunker reported that some physical suppliers have been tightening their credit terms ahead of IMO2020 , adding further pressure to the market as the bunker prices rose alongside the new fuel rules. As per Mr.Sonnich Thomsen, A massive mismatch exists and bunker traders can act as facilitators of credit. The new fuels are estimated to push up prices 20%-40% . It will be a bumpy rise for the industry in the next six months but things will settle thereafter as per Mr.Thomsen.
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imo news courtesy:ship&bunker