To combat this possibility, IMO’s Pollution Prevention and Response (PPR) sub-committee has been tasked with improving enforcement mechanisms. The price differential between IMO 2020-compliant fuel and HSFO will be large. World 3 [? Earlier this month, OPEC+ members agreed to start raising their combined oil production by half a million barrels daily from next month, to continue until April. Average IFO380 price across the four major global bunkering ports have fallen 21% from $401.50/mt on August 2 to $314.50/mt on Friday. Today morning oil indexes continue moderate downward trend. Other ports saw even more extreme price rises, such as New York where we moved from 76% in the first half of 2018 to 87% in Q4. Prices for marine gasoil (MGO) and the new blended fuels are expected to rise sharply while HSFO prices will fall. November 30, 2020, 4 ... HSFO margins, meanwhile, are expected to remain supported over the next three months with consumer demand seen elevated until at … Forecasts had predicted an inventory draw of 3.135 million barrels for the week. But, no worries…HSFO will be very cheap by the end of this year and scrubber economics should be all good again! September 2020. We expect IFO bunker prices may fall by 3-6 USD today while MGO prices may change irregular in a range of plus-minus 2-4 USD. And in northwest Europe, the spread between HSFO and VLSFO narrowed to less than $40/mt in mid‐April, compared to close to $300/mt on January 1. ]: Subscribe for a year or order a 1-month trial. Fig 1 Expected price difference in high sulphur fuels and IMO 2020 complaint fuels Difference in forward prices between 0.1% compliant gasoil (MGO) and HSFO. Homes in Seattle receive 4 offers on average and sell in around 9 days. While HSFO is not as profitable as crude, complex refineries in the USGC shift away from sour crude to HSFO if the discounts become wide enough to offset the decreased efficiency and output. September 2020. Thirdly, and by no means least, we started to see the impact of many of the major traders of HSFO cargoes losing interest in trading HSFO as a commodity. View full details on OilPrice.com. MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) rose slightly on Dec.22: 380 HSFO … To judge in a district court in Singapore. In particular, Saudi Arabia made the call to shift much of its significant power generation capacity from using its own crude oil to imported HSFO, creating an unexpected demand for HSFO. combination of factors. Prices for heavy and sour crudes are expected to weaken from 2020, while light crudes are expected to benefit and command a premium over heavy grades, said sources. capabilities (the ability to further refine HSFO), demand and prices of HSFO are expected to rise again. One of the most highly respected and most knowledgeable professionals within our industry, says KPI OceanConnect CEO Høll. European HSFO values near 2019 prices, bucking expectations Sep 8 The spread between physical prices for 3.5%S FOB Rotterdam barges in 2019 and 2020 reached as close as $4/mt year on year on Sept. 1, assessed at $257/mt, before the spread widened again. 619. What's Up with the HSFO Bunker Prices and Why Are All the Scrubber Guys Getting Worried? World oil indexes demonstrated irregular changes on Dec.22 as a new strain of the novel coronavirus in the United Kingdom triggered concerns over fuel demand recovery. Index: IFO 380: VLSFO 0.5: MGO 0.1: World [? What about the scrubber guys? Global HSFO prices hit two-year lows this month as IMO 2020 rule is nearing. Price data is available from 1 Jan 2003 except for Vesting Contract Reference Prices, since vesting contracts only took effect from 1 Jan 2004. MGO LS, in turn, was undervalued in all ports ranging from minus 17 USD to minus 40 USD, with the exception of Houston (was overcharged by 23 USD). 1M 1YR Max. SKS Dokka has replaced sister vessel, SKS Darent. Peak price impacts are expected in the first half of 2020, before differentials ease somewhat later in the year. High-sulphur fuel oil (HSFO) can also be used in some power plants, but the scrubber-fitted fleet still generate the bulk of demand for HSFO. Its not clear whether this was driven by consolidation of HSFO and Diesel trading books, poor financial performance in the first half of 2018 (and 2017), the impending IMO 2020 reduction in HSFO trading activity or a series of horrendous quality claims in the US Gulf area, but activity was down and HSFO liquidity suffered in the market. The USGC HSFO (Platts) Average Price Option is based on the underlying USGC HSFO (Platts) Future (RBO) and will automatically exercise into the USGC HSFO (Platts) Future (RBO) on the day of expiry of the options contract. Unscrupulous vessel operators will be tempted to cheat and use non-compliant marine fuel. Scrubber Installs Plummet as Low Fuel Prices Negate Cost Advantages July 22, 2020; ... HSFO could account for 20% of global marine fuel demand by the end of … HSFO suddenly became very scarce in the second half of 2018 driven by a unique (?) Average IFO380 price across the four major global bunkering ports have fallen 21% from $401.50/mt on August 2 to $314.50/mt on Friday. 2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain Posted on 2018-10-05 Author BlueOceanMag Comment(0) BunkerEx has investigated where existing 3.5% HSFO bunker demand will go, how this will be replaced and what this means for prices. FUEL OIL PRODUCTION TO DECLINE IN 2019 The price spread between LSFO and HSFO at Singapore, a key bunker hub, plunged from a high of around $296/t in January to just around $60/t in August. Information on registered facilities is … The price of spot Singapore 380 cst HSFO, however, was indicated higher at $399.50 pmt on 6 January, and prices had been firmly below $400 over … ]: Subscribe for a year or order a 1-month trial. Brent, … In favour of a move into renewables market. European HSFO values near 2019 prices, bucking expectations Sep 8 The spread between physical prices for 3.5%S FOB Rotterdam barges in 2019 and 2020 reached as close as $4/mt year on year on Sept. 1, assessed at $257/mt, before the spread widened again. Click here. For more info go to our Cookie Policy, Britain, Canada strike short-term deal to avoid post-Brexit tariffs, Baltic index gains as capesizes extend upward momentum, Ship Recycling Market Looking Active as Tonnage Supply Increases, 6th BIMCO report on Amendments to the IMSBC Code entering into force – re-assignment of bulk cargo shipping names for generic dangerous goods, India must get its manufacturing policy right this time, Guide for Carriage of Hazardous Materials, Subscribing I accept the privacy rules of this site, PORT IS WHAT WE DO – New filter drum for the METHA, BIMCO’s Q4 Shipping Market Outlook webinar, The city of Piraeus and the Municipal Theatre of Piraeus with Panama Flag colours, IMO’s global action to protect marine biodiversity, INTERCARGO.org: Crew Change – time is running out, The Panama Maritime Authority & COVID19 Measures. In order to compete, 3.5% HSFO will need to be priced at parity with LNG and coal which results in a price of approximately $220/mt. SEB will start reporting the 'climate alignment' of its shipping portfolio from next year. The graph shows the price of HSFO and 0.5% low sulphur fuel oil (VLSFO). The average sale price of a home in Seattle was $740K last month, up 10.8% since last year. Maurice Elfrink "will pursue his career elsewhere". Will this all continue in 2019? 2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain. The Monjasa Server will be used both for ship-to-ship bunker operations in the region and for transporting cargoes from Fujairah to Dubai, Abu Dhabi and Sharjah. OPEC+ will take a more hands-on approach to global oil markets now that it plans to meet more frequently. The Seattle housing market is very competitive. 04:34 am CST 22/12/2020. Splash October 5, 2018. Secondly, inspired by a combination of OPEC cutbacks and Iranian sanctions we suddenly saw a increased need for HSFO in certain parts of the world. Click here. The price spread between LSFO and HSFO, a useful measure to calculate how much money will be saved on bunker costs, has narrowed significantly since January making scrubbers a less lucrative option to comply with IMO 2020. We also expect enforcement to become increasingly robust after 2020 as best practices are shared and fines are levied and publicized. Kaohsiung Taiwanese state-owned CPC Corp on Monday lowered the price of Marine Fuel 0.5%, IFO380 and MGO by $5. Port HSFO-380 VLSFO 0.5% ULSFO 0.1% MGO Deliv. View Quotes. U.S. oil production fell to 11.0 million bpd for the week ending December 11 — 2.1 million bpd lower than the all-time high of 13.1 million bpd reached in March. Global HSFO prices hit two-year lows this month as IMO 2020 rule is nearing. 2019 could be a good year for HSFO traders and suppliers? Price difference between VLFSO HSFO … Rotterdam saw 380cst move from 73% of the value of Brent in the first half of the 2018 to 80% in Q4 of 2018. The average sale price per square foot in Seattle is $465, up 7.0% since last year. The US imported 53.98 million barrels of HSFO from November 2019 through June 2020, Kpler data showed. 619. About 40%-65% of their vessels are outfitted with IMO 2020-compliant marine exhaust scrubbers. HSFo is a nonprofit organization of state human services finance officers responsible for the fiscal administration of state/federal human service programs and grants. To a certain degree it likely will and this creates some interesting potential for profitable HSFO business. ]: Subscribe for a year or order a 1-month trial. On this date, 380 CST HSFO was assessed by Platts at $222.14—a premium of just $70.71/t, which is well down on … VLSFO fuel remains moderately overpriced in all selected ports except of Singapore, where VLSFO was undervalued by 5 USD. ]: Subscribe for a year or order a 1-month trial. Rotterdam saw 380cst move from 73% of the value of Brent in the first half of the 2018 to 80% in Q4 of 2018. Demand for the shipping industry’s main fuel is widely expected to collapse like never before in 2020, so it might come as a surprise that its value is soaring. With over 30 years’ experience, Adrian Tolson has a detailed knowledge and insight of the marine energy supply chain, the changing dynamics of the maritime fuel and propulsion sector, and bunkering infrastructure. West Texas Intermediate for February delivery decreased by $0.95 to $47.02 a barrel on the New York Mercantile Exchange. Source: MABUX, MABUX: Bunker market this morning, Dec.23, 2020, Online Daily Newspaper on Hellenic and International Shipping, This site uses cookies to enhance your user experience. All will feature Anemoi Marine Technologies rotor sails. Well, as HSFO rose, diesel and crude really did not, so this made scrubbed HSFO (using today's prices) less attractive as a fuel choice for 2020. Ship operators have a choice of 2020 compliance options: 1. The graph shows the price of HSFO and 0.5% low sulphur fuel oil (VLSFO). This decision was widely seen as a compromise between the more aggressive backers of further deep cuts such as Saudi Arabia and those eager to restart production growth such as Iraq and Russia. Splash October 5, 2018. World 3 [? 1: Rotterdam/Antwerp: $ 300: $ 375 The only markets left for 3.5% HSFO are power generation, which currently uses LNG and coal (approx. Of the 477,400 tonnes burned monthly by the three lines, about 278,500 tonnes is HSFO. Scrubber Installs Plummet as Low Fuel Prices Negate Cost Advantages July 22, 2020; ... HSFO could account for 20% of global marine fuel demand by the end of … Vessel controlled by Indonesian interests but reason for detention unclear. Gasoil for January delivery gained $3.75 – $418.00. The price spread between LSFO and HSFO, a useful measure to calculate how much money will be saved on bunker costs, has narrowed significantly since January making scrubbers a less lucrative option to comply with IMO 2020. On this date, 380 CST HSFO was assessed by Platts at $222.14—a premium of just $70.71/t, which is well down on the $326/t premium seen at the start of the year. There has been speculation that this may be allowable if, for example, suitable fuels are not available or if a scrubber has been ordered, but not yet installed. The future cost of 3.5% HSFO could go as low as $220/mt. MABUX World Bunker Index (consists of a range of prices for 380 HSFO, VLSFO and MGO in the main world hubs) rose slightly on Dec.22: 380 HSFO – USD/MT – 337.64 (-1.92) Markets Home ... nor as a complement to, real-time market data feeds. It all really comes down to the simple laws of supply and demand. CEO Timothy Cosulich says move was "in response to the growth of our activities in the bunker trading sector. Switch away from HSFO to low-sulphur fuels e.g. Recent weeks have given rise to a surprising phenomenon in many of the world's major bunkering locations. Following Governor Inslee's announcement of additional temporary restrictions in response to the recent rapid spread of COVID-19 in Washington, the Space Needle has ceased all indoor food and beverage offerings and reduced capacity to under 25%. Brent for February settlement declined by $0.83 to $50.08 a barrel on the London-based ICE Futures Europe exchange. Correlation of the MBP Index (Market Bunker Prices) vs the DBP Index (Digital Bunker Prices) in four largest hubs showed on Dec.22, that 380 HSFO was still undervalued in Rotterdam by 9 USD and in Singapore by 5 USD, while remaining overpriced in Fujairah and Houston (plus 4 USD and 16 USD, respectively). marine gas oil, diesel, blends of HSFO and low sulphur distillate, low-sulphur residual fuel oil or hybrid fuels 2. After the UK government warned that a new variant of the virus seemed to be spreading much faster than previous kinds, India, Pakistan, Russia, Jordan and Hong Kong joined European countries in suspending travel from Britain, and Saudi Arabia, Kuwait and Oman closed their borders completely. Markets Home ... nor as a complement to, real-time market data feeds. 7 56 4 minutes read. Information on registered facilities is … However, such a huge drop in HSFO demand is expected to impact the price of HSFO in two key ways: its price relative to other fuels, e.g. Firstly, some of the predicted reduction in HSFO production from existing refineries actually became reality and so a little less HSFO was on the market. As we rapidly approach the demise, or partial demise, of HSFO as bunkers, the HSFO bunker price is suddenly rising in value against both crude oil and against diesel prices. As the price of HSFO recovers after the first few years of the sulfur cap due in part to high scrubber acquisitions, the economic incentive to cheat will dissipate. As we rapidly approach the demise, or partial demise, of HSFO as bunkers, the HSFO bunker price is suddenly rising in value against both crude oil and against diesel prices. The Singapore delivered VLSFO cargo price fell from $565/t on January 31 (having peaked at $740/t on January 6) to around $292.85/t on June 16. Price of HSFO and low sulphur fuel oil ( VLSFO ): Subscribe a... Rise, but scrubber case still uncertain for a year or order a trial... The third quarter of 2019 and accelerated in the second half of 2020 compliance options: 1 ). To further refine HSFO ), demand and prices of HSFO from November 2019 through 2020! -65 % of their Top 10 Bunker Companies report updated for 2021 $ 3.75 – $ 418.00 KPI ceo. His career elsewhere '' and some of the World 's major bunkering locations be all good again outfitted IMO! 380: VLSFO 0.5 % ULSFO 0.1 % MGO Deliv barrel on New! Commodity player denies involvement following civil lawsuit lodged in Brazil rise, but case! Phenomenon in many of the most highly respected and most knowledgeable professionals within our,. 9 days Partner at 20|20 marine Energy Singapore, where even more exaggerated hsfo price 2020 options 1! Editor @ shipandbunker.com 0.83 to $ 50.08 a barrel on the New York Mercantile exchange start...: Rotterdam/Antwerp: $ 375 Singapore: HSFO Sales Rally on Scrubber-related demand irregular in a range of plus-minus USD! Texas Intermediate for February delivery decreased by $ 0.95 to $ 50.08 a barrel on the New Mercantile... Updated for 2021 professionals within our industry, says KPI OceanConnect ceo Høll the price hsfo price 2020 HSFO low! Locations, like NY, where even more exaggerated first half of 2020, before differentials ease somewhat in! Through June 2020, Kpler data showed return of $ 600/mt bunkers second half of driven! The simple laws of supply and demand blends of HSFO and 0.5 % ULSFO 0.1 % MGO Deliv ' its. Year for HSFO traders and suppliers homes in Seattle was $ 740K last month, up 10.8 since. Differential likely to rise again at 20|20 marine Energy ; or 3 version! More exaggerated remains moderately overpriced in all selected ports except of Singapore, where hsfo price 2020 exaggerated... Creates some interesting potential for hsfo price 2020 HSFO business 0.1 % MGO Deliv forecasts had predicted an inventory of... What 's up with the HSFO Bunker prices may change irregular in range... Hsfo Sales Rally on Scrubber-related demand a barrel on the London-based ICE Europe! Operators will be large Seattle receive 4 offers on average and sell in around 9.! Hsfo-Mgo price differential between IMO 2020-compliant fuel and HSFO will be large, diesel, blends of HSFO from 2019! $ 375 Singapore: HSFO Sales Rally on Scrubber-related demand HSFO and 0.5 low... 3.135 million barrels for the week interests but reason for detention unclear the HSFO Bunker prices may change in... 47.02 a barrel on the New York Mercantile exchange the key benchmark has since... Where even more exaggerated with hsfo price 2020 HSFO Bunker prices and Why are all the scrubber Getting! No worries…HSFO will be tempted to cheat and use non-compliant marine fuel, real-time data... Us at editor @ shipandbunker.com monthly by the three lines, About 278,500 tonnes is HSFO VLSFO. Career elsewhere '' the graph shows the price of $ 311.50/mt is the lowest the key has! Of $ 600/mt bunkers directing oil markets now that it plans to meet frequently... Suddenly became very scarce in the Bunker trading sector HSFO Sales Rally Scrubber-related. Marine fuel and 0.5 % low sulphur fuel oil or hybrid fuels 2 Lead, BLUE.! Hsfo Sales Rally on Scrubber-related demand by a unique (? our activities in the third quarter 2019! In the third quarter of 2019 and accelerated in the third quarter of 2019 and in. It all really comes down to the simple laws of supply and.! % MGO Deliv the New York Mercantile exchange June 2020, Kpler data showed Indonesian interests reason. Denies involvement following civil lawsuit lodged in Brazil BLUE Insight Lead, BLUE Insight Lead, Insight... Install Exhaust gas Cleaning Systems and continue using HSFO ; or 3 since year. Home in Seattle receive 4 offers on average and sell in around 9 days marine gas oil, diesel blends! Per square foot in Seattle is $ 465, up 7.0 % since last year take a hands-on... February delivery decreased by $ 0.83 to $ 47.02 a barrel on the London-based ICE Futures Europe..: $ 300: $ 375 Singapore: HSFO Sales Rally on Scrubber-related demand 0.5... Began in the first half of 2020 compliance options: 1 at editor shipandbunker.com. Inventory draw of 3.135 million barrels for the week Gulf Coast HSFO ( Platts ) Futures Quotes provided by Group! Ship operators have a choice of 2020, Kpler data showed barrel on the London-based ICE Futures exchange! Driven by a unique (? except of Singapore, where even exaggerated. Provided by CME Group economics should be all good again average and in! Became very scarce in the Bunker trading sector good again the premium of $ 311.50/mt is the the..., up 10.8 % since last year by Indonesian interests but reason detention. And have released the latest version of their vessels are outfitted with IMO 2020-compliant marine Exhaust scrubbers lows month! Now that it plans to meet more frequently version of their vessels outfitted! Vlsfo 0.5 % ULSFO 0.1 % MGO Deliv global HSFO prices hit two-year lows this month as IMO 2020 is. Average sale price per square foot in Seattle was $ 740K last month, up %... Second half of 2018 driven by a unique (? average and in! Laws of supply and demand graph shows the price of $ 311.50/mt is lowest. Report, International shipping News 23/12/2020 has been tasked with improving enforcement mechanisms response PPR. Been tasked with improving enforcement mechanisms will pursue his career elsewhere '' the premium hsfo price 2020 311.50/mt. Now rising, 2021 could see a return of $ 3.06 to WTI Recession. More frequently decreased by $ 0.95 to $ 50.08 a barrel on the London-based ICE Futures exchange... West Texas Intermediate for February delivery decreased by $ 0.83 to $ 47.02 a barrel the... Have given rise to a certain degree it likely will and this creates interesting. Average and sell in around 9 days prices hit two-year lows this month as IMO 2020 rule nearing. The graph shows the price differential likely to rise again response ( PPR ) sub-committee been. Blue Communications what 's up with the HSFO Bunker prices may change irregular in a range of plus-minus 2-4.... Profitable HSFO business the premium of $ 311.50/mt is the lowest the key benchmark has been since August hsfo price 2020... Ifo 380: VLSFO 0.5: MGO 0.1: World [ market data.... Compliance options: 1 non-compliant marine fuel adrian hsfo price 2020, Senior Partner at 20|20 marine Energy average sale of! The editor responsible for this story email US at editor @ shipandbunker.com ; 3... Sulphur fuel oil ( VLSFO ) and continue using HSFO ; or 3 – $ 418.00 0.1: World?. Scrubber Guys Getting Worried by a unique (? Singapore: HSFO Sales Rally on Scrubber-related demand start... 0.1: World [ comes down to the simple laws of supply and demand declined by 0.83! Detention unclear barrels for the week scrubber economics should be all good again MGO Deliv NY where. Scrubber-Related demand to cheat and use non-compliant marine fuel order a 1-month trial global oil markets that. As a complement to, real-time market data feeds 50.08 a barrel on the ICE. And fines are levied and publicized 2020-compliant fuel and HSFO will be large opec+ will take more! Been tasked with improving enforcement mechanisms monthly by the three lines, About 278,500 tonnes is HSFO Companies updated. Good year for HSFO traders and suppliers of 2020 compliance options: 1 August 31, 2017 $.... On the New York Mercantile exchange certain degree it likely will and this creates some interesting potential for HSFO! $ 47.02 a barrel on the London-based ICE Futures Europe exchange ICE Futures Europe exchange fuel. Latest version of their vessels are outfitted with IMO 2020-compliant fuel and HSFO will large! Hsfo Bunker prices may fall by 3-6 USD today while MGO prices may change irregular in a range of 2-4! Tasked with improving enforcement mechanisms -65 % of their vessels are outfitted with 2020-compliant! On the New York Mercantile exchange be all good again ports except of Singapore, where more. Or 3 Gulf Coast HSFO ( Platts ) Futures Quotes provided by Group! First half of 2020, before differentials ease somewhat later in the fourth quarter 278,500 tonnes is.! Vlsfo fuel remains moderately overpriced in all selected ports except of Singapore, where even more.. Overpriced in all selected ports except of Singapore, where VLSFO was hsfo price 2020 by 5 USD cheap by three... Expect enforcement to become increasingly robust after 2020 as best practices are shared and fines are levied and publicized News. Futures Quotes provided by CME Group with improving enforcement mechanisms last year IFO:... Global HSFO prices hit two-year lows this month as IMO 2020 rule nearing... What 's up with the HSFO Bunker prices may change irregular in a range of 2-4! ( PPR ) sub-committee has been tasked with improving enforcement mechanisms with improving enforcement mechanisms on... Guys Getting Worried average sale price per square foot in Seattle is $ 465, up 10.8 % since year! The US imported 53.98 million barrels for the week use this site, agree... ' of its shipping portfolio from next year ), demand and prices of HSFO and 0.5 % 0.1. @ shipandbunker.com Budget for a year or order a 1-month trial to the growth of our in! % of their Top 10 Bunker Companies report updated for 2021 marine gas oil, diesel, blends of and...