By Srinivas Chowdary Sunkara // petrobazaar // 5th August, 2019.
The World Bunker Index consists of a range of products for 380 HSFO, 180 HSFO and MGO (Gasoil) dropped on Friday. In Singapore, Both the 180 cSt and 380 cSt graded fuel oil futures prices nosedived by $47 to settle at $451.5 and $421.5 respectively while MGO prices slipped by $28. On Friday, The world crude oil benchmark indexes rebounded after a massive drop triggered by Trump surprise proposal of fresh tariffs on Chinese goods. Analysts are in the opinion that the markets overreacted and will reach to below the levels where they were prior to the news. Bunker prices are expected change irregular today.
Argus Media reported that the Bunker premiums in Singapore have become increasingly volatile and are expected to remain so because of the IMO2020 implementation of a global cap on sulphur in marine fuels. This new derivative product can help manage the risk of disconnection between cargo and delivered bunker markets. Singapore Fuel Oil Bunker 380 cSt (Argus) Futures with contract code ABF will settle on the monthly average of Argus high-sulphur fuel oil (HSFO) 3.5pc delivered bunker assessments.
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