By Srinivas Chowdary Sunkara // petrobazaar // 13th June, 2019.
Fuel Oil (F.O) futures prices slipped further in Singapore market yesterday. Both the 180 cSt and 380 cSt graded fuel oil prices tumbled $14.5 or 3.43% at $408 and $376 respectively while MGO prices were settled down by $10 yesterday. Fuel oil(F.O) futures slipped around 4% since the beginning of the month. The global crude oil futures prices slumped 4% yesterday after a surprise build in U.S crude and product inventories which indicated bleaker demand. Furnace oil and LDO prices in India are very likely to revise down for the second half of June month.
The Bunker fuel demand for 2018 was 3.5 Mbpd. Analysts forecast demand for IMO-2020 compliant marine fuel should reach between 1.6 Mbpd and 2.7 Mbpd as shippers begin loading storage tanks and clearing vessels of existing bunker fuels. With the rise in demand, those refiners able to produce IMO-2020 compliant fuels reap benefits in terms of a rise in profits as per report said. Analysts reaffirmed that the distillates prices will rise ahead of the global switch to low sulfur bunker fuel.
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IMO news courtesy:ship&bunker