By Srinivas Chowdary Sunkara // petrobazaar // 21st January 2020.
The Bunker Price Index consist of a range of prices for IFO 380, IFO 180 , MDO and MGO, Showed an upward momentum yesterday across the world major ports. In Singapore market, 180 cSt and 380 cSt graded fuel oil futures prices moved up $10 to $390 and $380 respectively while MGO prices are remain unchanged at $656.5. Meanwhile the world crude oil benchmark futures prices sagged up after an OPEC member country, Libya began shutting down two large crude production bases and the upside was limited after the analysts said that the current scale of outages to be fairly short lived.
A blockade on Libyan oil production would have a significant affect on the low sulphur crude markets in the Mediterranean. That would have incidental affect for VLSFO pricing in the region as Libyan crude produces a high yield of the middle distillate components used for low sulfur marine fuel blending. A prolonged outage is set to take 1Million b/d out of the Mediterranean sweet crude market that could potentially drive the sharp increase in VLSFO Prices in the region.
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imo news courtesy:ship&bunker