By Srinivas Chowdary Sunkara // petrobazaar // 8th August, 2019.
The World Bunker Index consist of a range of prices for 380 HSFO, 180 HSFO and MGO (Gasoil) continued to dive yesterday. In Singapore, Both the 180 cSt and 380 cSt Fuel oil (F.O) futures prices plunged $30 or 7% to $398 and $368 while MGO and MGO(LS) futures prices shed $5 and $5.5 to close at $560 and $567.5 during the last session. The world crude benchmark indexes plummeted around 5% after EIA reported surprise build in US inventories as against the analysts prediction of drawings. Demand worries continue to exist across the market.
Paul Hardy from NSI said that bunker buyers should not worry as much about VLSFO avails in Singapore or other major ports. He said that the supply risk will be a factor in the minor ports while the real risk in Singapore is logistics and specifications. The other key risk is that of pricing which can be managed by contracting against a liquid and tradeable index, Other wise one can wait until the 0.50% indexes become tradeable, Advised not to pay large premium.
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