By Srinivas Chowdary Sunkara // petrobazaar // 20th 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 closed lower across the major world ports on late week. In Singapore market, 180 cSt and 380 cSt graded fuel oil futures prices edged down on Friday to settle at $380 and $350 respectively while MGO futures prices dropped $6 to $656.5 on Friday. Fuel oil futures prices posted a significant weekly loss of $38 with a slump of around 10% from the previous week while MGO futures prices logged in a weekly loss of $52.5 during the week in Singapore market.
Now the biggest question posed to the market is that whether switching over to new VLSFO from HSFO went well so far? or shipping industry is experiencing any teeth problems? The answer is yes. Ships consuming the new very low sulfur fuel oil (VLSFO) blends since the start of IMO 2020 has, so far, failed to materialize as per the ship&bunker report. Few instances of off-spec fuel with VLSFO than that have been HSFO and the sulfur content of new fuels are the factors that are complicating the matter. Further more Barges, fuel tanks and pipes that have not been thoroughly cleaned since the handling high sulphur fuel oil could leave VLSFO that was earlier tested below 0.5% considerably dirtier by the time it passes through them to the engine.
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imo news courtesy:ship&bunker