By Srinivas Chowdary Sunkara // petrobazaar // 8th July, 2019.
Fuel Oil (F.O ) prices traded high last week. Both the IFO 180 cSt and 380 cSt graded fuel oil prices rose around 3.75% during the week to close at $468.5 and $438.5 respectively on Friday. MGO prices traded mix to settle at $576.5. The global crude markers posted weekly loss after the oil complex carried a heavy feel of global economic slowdown will falter the oil demand.
In a seminar conducted by Veritas Petroleum Services in London, The commercial director Steve Bee estimated that the new sulfur cap on bunker fuel will cause a 3 million barrel a day shift of bunker demand from Heavy fuel oil to distillates. He also added that the energy levels of the 0.5% sulfur fuels are very similar to distillates. On the other hand, Shell reminded shipowners not to forget to factor in new lubricant requirement as part of their 0.5% sulfur cap plan. Lubes are often overlooked, but optimizing this process could lead to significant savings to ship owners.
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IMO news courtesy:ship&bunker