World News
Sour Crude Discounts Widen on IMO2020
The same IMO2020 forces that are driving up the price of low sulfur crudes such as certain UK and Indonesian grades, are sending the price for sour crudes in the opposite direction.
Russian Urals is one such crude, with discounts against dated Brent crude having widened to a 12-month high of minus $2.85/bbl, according to data from Reuters.
“It’s a new trend: we’ll need less sour soon, so we buy less Urals and pay less for it,” a trading company source was quoted as saying.
Urals has a sulfur content of around 1.5%, according to data from McKinsey, significantly higher than the 0.50% cap of the upcoming IMO2002 rule.
The new marine fuel regs come into force from January 1, 2020, with the majority of vessels looking to use switch to low sulfur fuel for compliance.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.00 | 0.50 | 775.00 | 3.50 |
| Rotterdam | 603.50 | 1.50 | 759.50 | 11.50 |
| Houston | 626.50 | 2.50 | 794.00 | 2.00 |
| Fujairah | 649.00 | 0.50 | 904.50 | 6.50 |
| Global 20 Ports Average | 664.00 | 2.00 | 855.00 | 0.00 |
| Global 4 Ports Average | 632.00 | 1.00 | 808.00 | 4.00 |
| Global Average Bunker Price | 716.50 | 1.00 | 901.00 | 12.50 |
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