World News
An Eighth of Total 2020 Bunker Demand from Non-Compliance: Argus
Bunker demand in 2020 will be around 196 million metric tonnes (mt) while non-compliance with the 2020 0.5% sulfur rule would account for an eighth of that figure, according to London-based price reporting agency Petroleum Argus.
Marine gasoil, which many observers believe will be the first fuel choice of ship operators, would make up half of the overall figure. Fity-six million mt of mgo will be in the market while 45 million mt should become available by 2020 based on refinery investment plans, the agency said.
The non-compliance market share number would amount to 25 million mt although, according to Argus economist Alan Hayes, it may be more.
'It's a consenus number,' said Hayes, adding that, in his view, the figure would be higher.
Low sulfur fuel oil would account for a further 25 million mt with demand from ships fitted with ship exhaust abatement units, commonly called scrubbers, adding a further 45 million mt to the overall demand picture.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 645.00 | 2.00 | 767.50 | 11.50 |
| Rotterdam | 600.00 | 8.00 | 751.50 | 13.00 |
| Houston | 627.50 | 9.00 | 796.00 | 11.50 |
| Fujairah | 649.50 | 0.00 | 889.00 | 0.50 |
| Global 20 Ports Average | 665.00 | 0.50 | 864.00 | 6.50 |
| Global 4 Ports Average | 630.50 | 5.00 | 801.00 | 9.00 |
| Global Average Bunker Price | 722.50 | 2.50 | 922.50 | 3.00 |
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