By Srinivas Chowdary Sunkara // petrobazaar // 9th August, 2019.
The World Bunker Index consist of a range of prices for 380 HSFO, 180 HSFO and MGO ( Gasoil) continued downward evolution yesterday. In Singapore, Both the 180 cSt and 380 cSt graded Fuel oil (F.O) futures prices plunged $18 or 4.52% to $380 and $350 respectively while MGO futures prices dropped by $12.5 to $547.5 and MGO(LS) futures closed $15 lower at $552.5 during the last session. The world crude benchmark futures rebounded above 2% from previous session loss as a normal correction from short term oversold condition.
U.S refiners feel the heat of the news sulfur emission rules of the International Maritime Organisation which will enter into effect next January. Narrowing the spread between heavy sour crude and light sweet crude resulting from supply crunch in the latter has pressurized the refiner's margins. Analysts are in the opinion that the pressure is temporary and spread will be widening after IMO 2020 rules enter into effect.
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