:: Bunkering --- ID :: 16343
Bunkering News // 9-7-2019
VLSFO futures contracts are gaining momentum ahead of IMO-2020

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.

Disclaimer: Views and opinions expressed here are personal. This commentary is  for  information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com

IMO news courtesy:ship&bunker