World News
New Asian Gasoil Availability by Early 2015
New suppliers of gasoil from Asian refineries may be available for the marine fuel market late this year or early in 2015, Platts reports, citing trade sources.
Demand for gasoil is expected to rise because many shipowners will start fuelling ships with gasoil as a solution to tighter rules on the sulfur content of fuel within Emissions Control Areas (ECAs) starting next year.
Traders said expanding refinery capacity in the Middle East and Asia, including new facilities and upgrades to existing ones, will mean more high-end cleaner distillate products and less fuel oil.
China has added 1 to 1.2 million barrels per day (bpd) of refining capacity between 2012 and 2013 and has exported much of its extra gasoil supply because domestic demand has been weak.
India now has 1.16 million bpd in surplus refining capacity, and Middle East refiners could add more than 1.5 million bpd in the next few years.
A ShippingWatch survey found that, due in part to the expense of adding scrubbers or adopting liquefied natural gas (LNG) bunkers, most shipping companies plan to use marine gas oil (MGO) to comply with ECA rules net year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 641.00 | 4.00 | 762.00 | 5.50 |
| Rotterdam | 599.00 | 1.00 | 751.00 | 0.50 |
| Houston | 629.50 | 2.00 | 802.50 | 6.50 |
| Fujairah | 647.50 | 2.00 | 883.50 | 5.50 |
| Global 20 Ports Average | 661.50 | 3.50 | 859.00 | 5.00 |
| Global 4 Ports Average | 629.50 | 1.00 | 799.50 | 1.50 |
| Global Average Bunker Price | 719.00 | 3.50 | 915.00 | 7.50 |
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