World News
Peninsula Sees Long Term Relevance for Scrubbers, HSFO Amid High Oil Prices
Peninsula CEO John Bassadone sees a strong future ahead for HSFO and scrubbers, so long as oil prices remain high.
Now that bunker prices relative to crude have stabilized following the volatility around IMO 2020, as recent Ship & Bunker analysis shows, broadly speaking rising oil prices have resulted in a widening HSFO / VLSFO spread.
A spread of around $100/mt is thought to be the point where installation of new scrubbers starts to become attractive.
"If we see a period of consistently high crude prices, it will fuel the premium differential between low and high grades and persuade owners to install scrubbers on new vessels," Bassadone has told S&P Global Platts.
While scrubbers have been primarily aimed at sulfur reduction and helping owners comply with the IMO 2020 rule, in recent months manufactures such as Yara have said that new designs incorporating low levels of carbon capture could be brought forward "relatively quickly".
"The technology [for scrubbers] is getting better and we are starting to see scrubbers that not only offer sulfur reduction but carbon capture too," Bassadone noted.
"Dual fuel vessels being built today will still potentially burn HSFO for the next 25-30 years but technology will get better at removing greenhouse gases and CO2."
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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