By Srinivas Chowdary Sunkara // petrobazaar // 24th June, 2019.
Fuel Oil (F.O) prices moved up last week. Both the 180 cSt and 380 cSt graded fuel oil prices went $7 up to $425.5 and $393.5 respectively on Friday in the Singapore market where as the MGO prices are closed $10 up at $571.5. Fuel oil (F.O) futures prices posted 5.77% weekly gains last week. The global crude markets spiked 5-10% on the escalation of middle east tensions, Softening of trade tensions between two major economies and weak dollar.
Many of the observers are bullish on the price of IMO2020 grade bunker fuel, putting the premium close to $400/mt. However, Philips 66, Marine strategist Simon Newsman cites two reasons to hold down the low sulfur premium. According to his view with Argus Media, More crude would be available in the oil market due to increased supplies which could keep weigh on 0.5% sulfur fuel oil price. Faltering diesel demand due to expected lower economic growth could also cap the upward pressure on marine gasoil prices. Russian refined products trader Imtrade also pegged the premium at $100/mt over high sulfur fuel oil.
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IMO news courtesy:ship&bunker