By Srinivas Chowdary Sunkara // petrobazaar // 24th Sep, 2019.
The Bunker Price Index consist of a range of prices for 180 HSFO, 380 HSFO and MGO(Gasoil) in the main world hubs slumped yesterday after a little upside correction during the previous session. In Singapore, Fuel oil 180 cSt and 380 cSt graded product prices moved down by $50 to $498.5 and $468.5 respectively while MGO prices closed down by $6.5 yesterday. The world crude oil price index curve moved up amid volatile trading yesterday. Market seems to be hesitant to go higher without any firm news on supply.
Ship&bunker reported that HSFO price pressure could prompt shipowners to switch early to VLSFO. As per the latest publication, Analysts are in the opinion that the Saudi will most likely need to import HSFO to replace the lost crude for the power generation market, Tightening HSFO supply as a result. The outage is likely to support physical HSFO further given a strong incentive to limit crude burning in order to free up exports for term crude commitments.
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