By Srinivas Chowdary Sunkara // petrobazaar // 28th June, 2019.
Fuel Oil (F.O) markets closed high yesterday. Both the 180 cSt and 380 cSt graded fuel oil prices surged up $4.5 or 1.02% to $444 and $414 respectively while MGO prices remained unchanged from previous session. Crude markets are trading steady ahead of G-20 and OPEC + meetings.
Turning to IMO compliant fuel markets, Premiums for 0.5pc fuel oil to 1pc fuel oil reached $55/t this week in the spot market, up from $35/t in previous weeks due to firmer demand from Asia-Pacific and Mideast Gulf. Companies in Europe started storing 0.5pc fuel oil while Total, Shell and Russia's Litasco are trying to source 0.5pc fuel oil for eastbound exports as per Argus media report. The prices for IMO compliant fuels could rise further in the coming months, as storage demand increases ahead of the 2020 deadline. As per market participants, 0.5pc fuel oil premium to high sulfur fuel oil in Singapore could reach $175/t in the fourth quarter, up from $114 in the third quarter.
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