IMO 2020 and lower sulfur-content requirements. High Sulphur Fuel Oil (HSFO) is the bottom of the oil barrel with the lowest priced oil product now that is the alternative to using marine fuels with such low sulphur content. The OPEC+ countries need to cut output by about 0.3 mb/d in January to comply with their new agreement. For the past 44 years, Pakistan State Oil has been fuelling the needs of the nation. Singapore VLSFO 0.5% Price Today USD/MT, Live & Historical Price Charts. Install Exhaust Gas Cleaning Systems and continue using HSFO; or 3. The only markets left for 3.5% HSFO are power generation, which currently uses LNG and coal (approx. Now, in a recent meeting, the committee recommended that all government strategic cargo including motor gasoline, * Installing exhaust gas cleaning systems (scrubbers), which allows operation on regular high sulphur fuel oil (, It was reported that there was a crisis relating to non-utilisation of, In 2017, demand for fuel oil averaged 7.5 million barrels per day (mb/d) of which 3.5mb/d was, This leads to the forecast of price differences between LSFO and, The fact of the matter is that High Sulphur Furnace Oil (, Middle East 180cst and 380cst high-sulfur fuel oil (, KUFPEC has a topping plant on Seram island which can turn 18,000 b/d of crude oil into naphtha and, Dictionary, Encyclopedia and Thesaurus - The Free Dictionary, the webmaster's page for free fun content, FreightWaves Oil Report: The Few Market Signs On IMO 2020 Not Flashing Danger Yet, War risk costs drag on UAE marine fuel sales, benefit Singapore: trade, PNSC to be given priority in oil and LNG transportation, Oil industry wants forex exposure impact part of pricing, New IMO regulations 'will impact oil export dynamics', Cleaner Fuel Imports For Power & Industry Rise, DME lists Middle East fuel oil derivatives. The build-up of stocks in advance of 2020 meant shortages did not occur and the reduction in demand through COVID-19 meant the supply chain hasn’t been fully tested. It has been a long six months since January 2020. The most dramatic change was that the demand for HSFO collapsed, but so did the supply. 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 tonnage (source: Clarksons). Virtually no-one switched to MGO. 6 3.0%S (Waterborne) Fuel Oil, Fuel Oil 3%S and Resid 3%. The transition to a new fuel specification was expected to be slow. On occasions, HSFO actually became more difficult to purchase than VLSFO. VERY low sulphur fuel oil’s (VLSFO) premium to high-sulphur fuel oil (HSFO) is expected to remain flat or narrow further until the coronavirus pandemic is contained and the Saudi Arabia-Russia price war subsides. Demand for high-sulfur residual fuel oil for ship bunkers was 3.5 million barrels per day in 2018—out of 7 million barrels per d… Relatively expensive steps will be required throughout the refining circuit to rebalance products, resulting in much wider price spreads for all middle distillates compared with HSFO. There was a feeling that marine gasoil (MGO) would come to the fore and that there would be a significant oversupply of 0.5% high sulphur fuel oil (HSFO). Platts Oil helps to develop, connect & explain the market price of crude oil and oil products. The future cost of 3.5% HSFO could go as low as $220/mt. Proactive suppliers like Sahara Group were able to source and blend fuel oil to the new requirements. High-sulphur fuel oil (HSFO) can also be used in some power plants, but the scrubber-fitted fleet still generates the bulk of demand for HSFO. All Rights Reserved. Brent Crude Oil Prices - 10 Year Daily Chart. 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