By Srinivas Chowdary Sunkara // petrobazaar // 10th July, 2019.
Fuel Oil (F.O) futures prices edged lower yesterday in Singapore market. Both the 180 cSt and 380 cSt graded Fuel Oil (F.O) prices have fallen $1.5 or 0.31% to $480.5 and $450.5 respectively where as MGO prices settled $2.5 lower at $585 yesterday. Crude markers are trading high on falling U.S inventories and dip in Russians output.
IMO 2020 – HSFO OUTLOOK
According to Argus Media, The delivered premium to the 380 cSt high sulphur fuel oil (HSFO) cargo price in Singapore rose recently due to shortage of fuel oil cargoes and tight barging schedules in the run up to the IMO 2020 sulphur cap. Strong summer demand for the fuel oil in the Middle East restricted inflows to Singapore. The tightness has been compounded by efforts by refiners globally to limit the fuel oil production ahead of the IMO 2020 cap. Barge availability is also being squeezed by preparations for the IMO 2020 regulations as some barges are bring cleaned so they can deliver low sulphur fuel oil (LSFO) and Marine Gas oil (MGO).
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