Ferry enters Rotterdam port. File image/Pixabay.
Sales of low sulfur bunker fuel meeting the coming IMO2020 requirement on sulfur have overtaken high sulfur in the ARA market.
Price reporting agency Argus Media reports shrinking supplies of high sulfur fuel oil with the corollory of increasing supplies of 0.5% sulfur product.
One physical bunker supplier in the Amsterdam-Rotterdam-Antwerp (ARA) area is cited as saying that HSFO demand is down to 100/200 metric tonne clips as ship operators keep fuel tanks topped up before January 1 next year, when the new rule applies.
The changing fundamental in the ARA market is replicated elsewhere with brokers expecting marine fuel buys to be in a two-thirds/one third split between low and high sulfur, according to the report.