World News
Oz Heavy-sweet Crude Values Rise on Pre-IMO2020 Demand
Australia's heavy-sweet crude oil grades are in demand as oil producers gear up for the switchover to low sulfur fuel oil for the global shipping fleet.
According to Reuters, premiums on these grades have risen to more than $7 a barrel to dated Brent, up more than $1 from the previous month.
"People are putting it into their system for IMO," an oil trading source was quoted as saying.
Companies, such as Shell, which were reported to buying up heavy-sweet crude oil cargoes, were contacted by the news agency but declined to comment.
In eight months' time, the global fleet must use 0.5% sulfur bunker fuel unless ships have emissions abatement technology installed onboard. Demand for distillates and low sulfur fuel oil will rise sharply on the change, market observers believe.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 549.00 | 7.00 | 670.50 | 3.50 |
| Rotterdam | 508.00 | 1.00 | 659.00 | 4.50 |
| Houston | 546.50 | 3.00 | 672.00 | 5.00 |
| Fujairah | 542.00 | 6.50 | 744.00 | 4.50 |
| Global 20 Ports Average | 578.00 | 2.00 | 758.50 | 2.50 |
| Global 4 Ports Average | 536.50 | 3.50 | 686.50 | 4.50 |
| Global Average Bunker Price | 623.50 | 2.00 | 807.50 | 2.00 |
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