By Srinivas Chowdary Sunkara // petrobazaar // 6th January 2020.
The Bunker Price Index consist of a range of prices for 180 HSFO, 380 HSFO and MGO(Gasoil) in the main world hubs, shot up across the world major ports on Friday. In Singapore market, IFO 180 cSt and 380 cSt graded fuel oil futures prices crept up to close at $430 and $400 respectively while MGO prices were lifted by $15 on late week. The world crude oil benchmark futures prices extended gains to the highest level since the attacks on Saudi buoyed by escalation of tensions in middle east region.
Iran officials downplayed the shortage concerns of VLSFO, an IMO compliant fuel. With reference to the secretary general of Iranian Shipowners Association, The country's vessels will struggle to comply with the new global 0.5% sulfur cap as only one refinery in the country is obliged to produce IMO2020 compliant fuel. On the other hand, The M.D of the National Iranian Oil Product Distribution Company said the marine fuel needs will be catered and the issues are attributed to third parties. Ongoing U.S sanctions on Iran currently makes it difficult for the ships to lift bunkers outside of the country as published in ship&bunker.
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