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 | 567.50 | 3.50 | 700.00 | 14.50 |
| Rotterdam | 512.50 | 4.00 | 695.00 | 17.50 |
| Houston | 556.00 | 6.00 | 679.00 | 1.00 |
| Fujairah | 562.50 | 2.50 | 755.00 | 0.00 |
| Global 20 Ports Average | 589.00 | 3.00 | 764.50 | 3.50 |
| Global 4 Ports Average | 552.00 | 3.00 | 699.00 | 2.50 |
| Global Average Bunker Price | 635.50 | 1.00 | 811.50 | 11.00 |
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