By Srinivas Chowdary Sunkara // petrobazaar // 14th May, 2019.
Fuel oil prices across all the major ports were slumped since the beginning of the month. In Singapore, Both 180 cSt and 380 cSt graded fuel oil prices were slipped by $21.5 or 4.51% down at $456 and $424 respectively. MGO prices shrank by $4.5 at $624. The global crude markers nosedived by above 4% since the starting of the month. In India, Industrial fuel oil prices may be revised down by oil marketing companies for the second half of May, 2019 following the lowering of fuel oil prices in the international markets.
Turning to IMO 2020 news, IMO prepared a ship implementation plan(SIP) to assist ship owners in preparing for the use of low sulfur fuels to comply with 2020 sulfur limit. The document is made available over IMO website. M/s Trafigura predicts that the industry will see an excess of 350Kbpd of excess traditional fuel oil with higher sulfur levels and there will be a 350Kbpd shortage of lower sulfur distillates, which is typically called as 馶/350' problem.
Disclaimer: Views and opinions expressed here are personal. This commentary is for information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com
