World News
IMO2020: Expect Bunker Prices to Rise 30-40%, says KPI Bridge Oil
KPI Bridge Oil is anticipating a price increase of 30-40%, depending on region and local availability, as a result of the upcoming IMO2020 global sulfur cap on marine fuel.
With Ship & Bunker data indicating IFO380 in the major bunker hubs is currently around $400/mt, and the global HSFO average as a whole is around $450/mt, the trader's prediction translates to a relatively conservative $160-180/mt premium for bunker buyers next year.
Drewry Maritime Research, in contrast, this week said it expects the average price premium of complaint LSFO over HSFO to be around $240/mt in 2020.
Still, KPI says the price hike will cause a shortage of available credit in the market, a situation it has responded to by recently boosting its revolving credit facility capacity by more than 60%.
While it did not discuss what this translated to in dollar terms, the wider Bunker Holding Group - of which KPI is a member - recently lifted its credit capacity to $2.5 bn.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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