By Srinivas Chowdary Sunkara // petrobazaar // 9th July, 2019.
Fuel Oil (F.O) futures prices closed high yesterday. Both the 180 cSt and 380 cSt graded fuel oil prices gained $13.5 to close at $482 and $452 respectively in Singapore market. MGO Futures prices edged $11 up at $587.5 yesterday. Crude oil markets are trading steady as the lingering demand worries outpaced the geo-political tensions.
IMO-2020: Fuel oil pricing scope
Prices of 1pc sulfur fuel oil have gained ground this year as the product begins to attract the demand from shipping industry as a blending component to product IMO-compliant 0.5pc sulfur fuel oil. Marine Fuel 0.5% also known as Very Low Sulfur Fuel Oil (VLSFO), is the primary IMO 2020 compliant distillate/residual product blend. CME group and ICE have each launched futures contracts for Marine Fuel 0.5% in Singapore, Rotterdam and the U.S gulf coast. Over the coming months, these contracts are expected to begin trading in volumes sufficient to provide market pricing direction insights and hedging opportunities.
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IMO news courtesy:ship&bunker