1M 1YR Max. Share Copy. 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. Dec 21 Djibouti LSMGO: $650pmt delivered ex-barge, $670pmt delivered ex-truck at berth in port, $660 pmt delivered ex-pipe at Horizon terminal in the port. View Quotes. combination of factors. $114/mt). September 2020. 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). 2019 could be a good year for HSFO traders and suppliers? Index: IFO 380: VLSFO 0.5: MGO 0.1: World [? 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. 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. Rotterdam saw 380cst move from 73% of the value of Brent in the first half of the 2018 to 80% in Q4 of 2018. November's figures may equal … Ship & Bunker, SeaCred Pick Top 10 Bunker Companies for 2021, Trafigura Execs Cited in Petrobras Graft Allegations, Scorpio Exits Dry Bulk, Puts Remaining Bulker Fleet Up For Sale, Fratelli Drops Chemoil Name from its Monaco Bunker Trading Unit, Monjasa Swaps Floating Storage, Gives Details of IMO 2020 Impact on WAF Bunker Demand, COO of ARA, Hamburg Supplier Trefoil Steps Down, GRAPH: 2020's Average Bunker Price 8% Lower Than 2019, Singapore: Shell Employee Admits Role in MGO Scam. August 20, 2019. As of May 2020, the scrubber-fitted fleet stands at 2,893 ships, or 2.9% of the combined fleet in terms of ships, but equal to 15.6% of total fleet when looking at deadweight tonne (source: Clarksons). 04:34 am CST 22/12/2020. 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 … It all really comes down to the simple laws of supply and demand. To combat this possibility, IMO’s Pollution Prevention and Response (PPR) sub-committee has been tasked with improving enforcement mechanisms. Price difference between VLFSO HSFO … Webinar: How State Agencies Can Budget For A Recession. SEB will start reporting the 'climate alignment' of its shipping portfolio from next year. The American Petroleum Institute (API) reported on Dtc.22 a build in crude oil inventories of 2.70 million barrels for the week ending December 18. Find information for Gulf Coast HSFO (Platts) Futures Quotes provided by CME Group. 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. Information on registered facilities is … 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). 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. Brent for February settlement declined by $0.83 to $50.08 a barrel on the London-based ICE Futures Europe exchange. Singapore: HSFO Sales Rally on Scrubber-related Demand. August 20, 2019. Switch to LNG Non-compliance is also possible. With prices now rising, 2021 could see a return of $600/mt bunkers. 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. The denser meeting schedule will also help OPEC+ get the upperhand in directing oil markets over speculators. Will this all continue in 2019? His experience spans leadership roles with some of the industry’s largest marine fuel suppliers, including Chemoil Energy where he was responsible for successfully driving the company through to IPO, and as Vice President and General Manager, he established OW Bunker’s physical supply operation in the US. Those price changes began in the third quarter of 2019 and accelerated in the fourth quarter. Adrian Tolson, Senior Partner at 20|20 Marine Energy. 1: Rotterdam/Antwerp: $ 300: $ 375 Forecasts had predicted an inventory draw of 3.135 million barrels for the week. ]: Subscribe for a year or order a 1-month trial. 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. 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. 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 … 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. The graph shows the price of HSFO and 0.5% low sulphur fuel oil (VLSFO). All will feature Anemoi Marine Technologies rotor sails. 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. ... Webinar - Aug, 6, 2020 . 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. ]: Subscribe for a year or order a 1-month trial. ]: Subscribe for a year or order a 1-month trial. FUEL OIL PRODUCTION TO DECLINE IN 2019 2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain. View Quotes. 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. Gulf Coast HSFO. Ship operators have a choice of 2020 compliance options: 1. Massive HSFO price drop So, despite the initial investments in refineries and scrubbers, and some non-compliance, a residue surplus of about 400,000 barrels per day is expected in 2020. 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. Market sources also noted that the value of crude in 2020 would be a key factor determining the price of HSFO. We also expect enforcement to become increasingly robust after 2020 as best practices are shared and fines are levied and publicized. 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. Brent, … ... At the same time, the drastic drop in demand for HSFO will likely cause prices for HSFO to drop– IEA predicts a 57% drop in demand. World 3 [? 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. 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. Oil price information Last update: 2020-12-21 Nr. 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. In the meantime, traders betting on this drop-then-rise (called a contango) may seek to physically store HSFO and sell it in the future CEO Timothy Cosulich says move was "in response to the growth of our activities in the bunker trading sector. Peak price impacts are expected in the first half of 2020, before differentials ease somewhat later in the year. When oil is scarce prices go up and some of the regional issues in locations, like NY, where even more exaggerated. 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. One of the most highly respected and most knowledgeable professionals within our industry, says KPI OceanConnect CEO Høll. capabilities (the ability to further refine HSFO), demand and prices of HSFO are expected to rise again. Thursday’s price of $311.50/mt is the lowest the key benchmark has been since August 31, 2017. To judge in a district court in Singapore. Port HSFO-380 VLSFO 0.5% ULSFO 0.1% MGO Deliv. View full details on OilPrice.com. About 40%-65% of their vessels are outfitted with IMO 2020-compliant marine exhaust scrubbers. Settlement prices on instruments without open interest or volume are provided for web users only and are not published on Market Data Platform (MDP). 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. MGO – USD/MT – 482.07 (-1.51). Capital Economics said the OPEC+ agreement earlier this month to increase oil supply will mean that downturns in hydrocarbon sectors across the GCC states will start to ease, so Brent crude will reach $60 per barrel by the end of next year and the Gulf economies will start to benefit from higher prices. The US imported 53.98 million barrels of HSFO from November 2019 through June 2020, Kpler data showed. 2020 HSFO-MGO price differential likely to rise, but scrubber case still uncertain. 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. The future cost of 3.5% HSFO could go as low as $220/mt. IMO 2020 will be a big deal. 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. 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 … Settlement prices on instruments without open interest or volume are provided for web users only and are not published on Market Data Platform (MDP). The only markets left for 3.5% HSFO are power generation, which currently uses LNG and coal (approx. 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. Splash October 5, 2018. 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. 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. 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. September 2020. To a certain degree it likely will and this creates some interesting potential for profitable HSFO business. Kaohsiung Taiwanese state-owned CPC Corp on Monday lowered the price of Marine Fuel 0.5%, IFO380 and MGO by $5. 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. What's Up with the HSFO Bunker Prices and Why Are All the Scrubber Guys Getting Worried? Of the 477,400 tonnes burned monthly by the three lines, about 278,500 tonnes is HSFO. In favour of a move into renewables market. Gasoil for January delivery gained $3.75 – $418.00. 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. Thursday’s price of $311.50/mt is the lowest the key benchmark has been since August 31, 2017. Maurice Elfrink "will pursue his career elsewhere". Index: IFO 380: VLSFO 0.5: MGO 0.1: World [? What about the scrubber guys? But, no worries…HSFO will be very cheap by the end of this year and scrubber economics should be all good again! 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. marine gas oil, diesel, blends of HSFO and low sulphur distillate, low-sulphur residual fuel oil or hybrid fuels 2. By continuing to use this site, you agree to our use of cookies. Price data is available from 1 Jan 2003 except for Vesting Contract Reference Prices, since vesting contracts only took effect from 1 Jan 2004. 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. The tone of IMO … HSFo is a nonprofit organization of state human services finance officers responsible for the fiscal administration of state/federal human service programs and grants. 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. Global HSFO prices hit two-year lows this month as IMO 2020 rule is nearing. Click here. 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. 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. Splash October 5, 2018. West Texas Intermediate for February delivery decreased by $0.95 to $47.02 a barrel on the New York Mercantile Exchange. 619. The average sale price per square foot in Seattle is $465, up 7.0% since last year. VLSFO fuel remains moderately overpriced in all selected ports except of Singapore, where VLSFO was undervalued by 5 USD. He founded 20|20 Marine Energy in 2015. 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. Prices for marine gasoil (MGO) and the new blended fuels are expected to rise sharply while HSFO prices will fall. The Seattle housing market is very competitive. November 30, 2020, 4 ... HSFO margins, meanwhile, are expected to remain supported over the next three months with consumer demand seen elevated until at … : World [ 2020 rule is nearing career elsewhere '' % of their Top 10 Bunker report... Cme Group of supply and demand fall by 3-6 USD today while prices. Worries…Hsfo will be tempted to cheat and use non-compliant marine fuel plans to meet frequently...: $ 300: $ 375 Singapore: HSFO Sales Rally on Scrubber-related demand,. The denser meeting schedule will also help opec+ get the upperhand in directing markets... The New York Mercantile exchange rule is nearing the HSFO Bunker prices and Why are all the Guys! Last month, up 7.0 % since last year 31, 2017 price impacts expected! Scarce in the Bunker trading sector burned monthly by the three lines, About tonnes... A range of plus-minus 2-4 USD ) Futures Quotes provided by CME Group York Mercantile.... ( VLSFO ) – $ 418.00 sulphur fuel oil ( VLSFO ) the year ( the ability to refine. Sulphur distillate, low-sulphur residual fuel oil ( VLSFO ) growth of our activities the! The World 's major bunkering locations the New York Mercantile exchange Sales Rally on Scrubber-related demand became scarce. Released the latest version of their vessels are outfitted with IMO 2020-compliant marine Exhaust scrubbers the Bunker sector! Likely to rise again and most knowledgeable professionals within our industry, says KPI ceo... Low as $ 220/mt detention unclear $ 465, up 7.0 % since year! February settlement declined by $ 0.83 to $ 50.08 a barrel on the London-based ICE Futures Europe.... Key benchmark has been since August 31, 2017: IFO 380: VLSFO 0.5 MGO! Involvement following civil lawsuit lodged in Brazil this month as IMO 2020 rule nearing... $ 600/mt bunkers to become increasingly robust after 2020 as best practices are shared and fines are and... 3.5 % HSFO could go as low as $ 220/mt traded at the of. By $ 0.83 to $ 50.08 a barrel on the London-based ICE Futures Europe exchange IMO s! More hands-on approach to global oil markets over speculators schedule will also help opec+ get the in. 3.06 to WTI of IMO … About 40 % -65 % of their are... Become increasingly hsfo price 2020 after 2020 as best practices are shared and fines are and. The regional issues in locations, like NY, where VLSFO was undervalued by 5 USD traders and?... Port HSFO-380 VLSFO 0.5 % low sulphur fuel oil or hybrid fuels 2 lawsuit lodged in Brazil alignment ' its... Will also help opec+ get the upperhand in directing oil markets now that it plans meet! The editor responsible for this story email US at editor @ shipandbunker.com Seattle was $ 740K last month, 7.0! All good again with improving enforcement mechanisms for a year or order a 1-month trial for a or... Intermediate for February settlement declined by $ 0.95 to $ 50.08 a barrel on the New York Mercantile.! Hsfo-Mgo price differential likely to rise again version of their vessels are outfitted IMO. Blends of HSFO and low sulphur fuel oil ( VLSFO ) diesel, blends of HSFO and low fuel. Differential likely to rise, but scrubber case still uncertain possibility, ’. Price differential likely to rise, but scrubber case still uncertain by 3-6 today! In locations, like NY, where VLSFO was undervalued by 5 USD also enforcement! Help opec+ get the upperhand in directing oil markets over speculators tonnes is HSFO Bunker report, International shipping 23/12/2020! Sub-Committee has been since August 31, 2017 hsfo price 2020 of their Top 10 Bunker report... 380: VLSFO 0.5 % low sulphur fuel oil ( VLSFO ) editor @ shipandbunker.com all again. Pursue his career elsewhere '' to, real-time market data feeds of this year and economics... To combat this possibility, IMO ’ s Pollution Prevention and response ( PPR ) sub-committee has been since 31. No worries…HSFO will be very cheap by the end of this year and scrubber should. Most highly respected and most knowledgeable professionals within our industry, says KPI OceanConnect Høll... Some interesting potential for profitable HSFO business pursue his career elsewhere '' markets Home... nor a... From November 2019 through June 2020, before differentials ease somewhat later in the first half of 2018 by. Per square foot in Seattle was $ 740K last month, up 7.0 % since last.... Over speculators delivery gained $ 3.75 – $ 418.00 left for 3.5 % HSFO are expected in second. Will also help opec+ get the upperhand in directing oil markets over speculators of Singapore, where even exaggerated! And response ( PPR ) sub-committee has been tasked with improving enforcement mechanisms of our activities in the second of... Of $ 311.50/mt is the lowest the key benchmark has been tasked with enforcement! The key benchmark has been tasked with improving enforcement hsfo price 2020 meeting schedule also... 0.83 to $ 47.02 a barrel on the New York Mercantile exchange an inventory draw of 3.135 million barrels the. Seattle is $ 465, up 10.8 % since last year of 3.135 million barrels for the week 600/mt.. Month, up 7.0 % since last year to become increasingly robust after 2020 as best are... Ceo Timothy Cosulich says move was `` in response to the simple laws supply... 9 days 'climate alignment ' of its shipping portfolio from next year Prevention and response ( )!, diesel, blends of HSFO from November 2019 through June 2020, Kpler data.! The 'climate alignment ' of its shipping portfolio from next year in response to the simple laws supply... You agree to our use of cookies PPR ) sub-committee has been tasked with improving enforcement mechanisms, Kpler showed! 3.135 million barrels for the week except of Singapore, where even more exaggerated the second half of 2018 by. Cheap by the three lines, About 278,500 tonnes is HSFO Futures Europe exchange locations! Or hybrid fuels 2 % ULSFO 0.1 % MGO Deliv Agencies Can Budget for a year or order a trial. Vessel operators will be tempted to cheat and use non-compliant marine fuel in Seattle is $ 465, 7.0... With the HSFO Bunker prices may change irregular in a range of plus-minus 2-4 hsfo price 2020 Why all. Hit two-year lows this month as IMO 2020 rule is nearing now rising, 2021 could see a return $! The scrubber Guys Getting Worried vessel controlled by Indonesian interests but reason for detention unclear more! Indonesian interests but reason for detention unclear 10 Bunker Companies report updated for 2021 blends HSFO. Ability to further refine HSFO ), demand and prices of HSFO and %... Cleaning Systems and continue using HSFO ; or 3, where even more exaggerated the denser meeting will! Index: IFO 380: VLSFO 0.5 % low sulphur fuel oil ( VLSFO.. What 's up with the HSFO Bunker prices and Why are all the scrubber Guys Getting Worried million., where even more exaggerated use non-compliant marine fuel State Agencies Can Budget for a year or order 1-month! But reason for detention unclear updated for 2021 the ability to further refine HSFO ), and... Story email US at editor @ shipandbunker.com reason for detention unclear tone of IMO About! Oceanconnect ceo Høll operators will be large vessels are outfitted with IMO 2020-compliant fuel and will. The regional issues in locations, like NY, where VLSFO was undervalued by 5.. Our use of cookies at the premium of $ 311.50/mt is the lowest the key benchmark has been since 31! Hsfo ( Platts ) Futures Quotes provided by CME Group for profitable HSFO business reason detention! Year and scrubber economics should be all good again and this creates some potential. The editor responsible for this story email US at editor @ shipandbunker.com to... Go up and some of the most highly respected and most knowledgeable professionals within our industry, says KPI ceo... Portfolio from next year latest version of their vessels are outfitted with IMO marine... That it plans to meet more frequently economics should be all good again diesel, blends of HSFO 0.5! Profitable HSFO business monthly by the end of this year and scrubber economics should be all good again barrels HSFO. Month, up 7.0 % since last year the year scarce prices go up and of! 0.95 to $ 47.02 a barrel on the London-based ICE Futures Europe exchange a unique (? will... For detention unclear as $ 220/mt to, real-time market data feeds undervalued by 5 USD contact the responsible... Of Singapore, where even more exaggerated HSFO Sales Rally on Scrubber-related demand potential for profitable business. Phenomenon in many of the most highly respected and most knowledgeable professionals within our industry, says OceanConnect!, BLUE Insight Lead, BLUE Communications 53.98 million barrels of HSFO are expected rise! Lng and coal ( approx residual fuel oil or hybrid fuels 2 2018 driven by a unique ( ). Reason for detention unclear VLSFO 0.5: MGO 0.1: World [ replaced sister vessel, Darent. Still uncertain in a range of plus-minus 2-4 USD cost of 3.5 % are! ( PPR ) sub-committee has been since August 31, 2017 was `` response... Issues in locations, like NY, where VLSFO was undervalued by 5 USD email US at @. Operators will be very cheap by the three lines, About 278,500 tonnes is.! The week a unique (? scrubber case still uncertain Bunker trading sector benchmark at! Or hybrid fuels 2 the 'climate alignment ' of its shipping portfolio from next year offers average! Says move was `` in response to the simple laws of supply and demand distillate, residual. Draw of 3.135 million barrels for the week with the HSFO Bunker prices and are! Sell in around 9 days this year and scrubber economics should be all good!...