EMEA News
IMO2020: Pharma Firm to Stick With Failed Fuel Bets
Norway's Vistin Pharma, who last week revealed it had lost as much as $12 million betting on the price of IMO 2020 compliant bunker fuel, says it will stick with the derivative contracts.
However, the firm will not enter into any new energy trading investments and close its newly formed Energy Trading business after less than a year.
With the price and demand for low sulfur fuel expected to rise significantly as we head towards the January 1, 2020 start date of the 0.50% global sulfur cap, the company could still come good on it position.
"Under these contracts, the company is financially exposed to the difference in USD price (spread) per metric ton between ICE low sulphur Gasoil and Sing380," Vistin explained.
"The total contract volume is 150,000 metric tons, and the contracts expire on 31 December 2020."
