News Update 31 August 2020

Here are 13 news stories that have appeared over the past week including the impact of the slowdown on the trade and prices.

Bangladesh’s LSFO demand to double in H2 as imports commence – Bunkerworld

The South Asian country started importing 0.005% sulfur gas oil in July. Read here

Singapore high-sulfur bunker demand endures as sales increase – Bunkerworld

Spot market volatility props up HSFO demand. Read here

Transition to low sulphur fuel not without problems, survey shows – Ship Management International

A survey has shown that the transition to IMO 2020 compliant fuel oil has not been without problems.Between February and May 2020 BIMCO, The International Chamber of Shipping (ICS), INTERCARGO and INTERTANKO conducted The Fuel Oil Quality and Safety Survey with the aim to get a greater understanding of the quality of the new0.5% sulphur fuel oils and possible safety implications of the IMO 2020 sulphur regulation. Read article here

East Indian Refiner to Produce 0.5% Sulfur Marine Fuel – Bunkerworld

CPCL says initial runs will be 5,000 mt a month. Read here

Alphatanker Sees 2021 Worldscale Flat Rates Drop by 20-25% on VLSFO Collapse – Ship and Bunker

Worldscale flat rates are set annually and are used as the basis of some freight markets with trades being made at a differential to them. Read here

Durban VLSFO bunker prices jump $61/mt in two days – Bunkerworld

Delivered-Durban 0.5% sulfur fuel oil bunker prices reached $435/mt on Aug. 25, up from $374/mt on Aug. 21 in just two consecutive trading sessions, S&P Global Platts data shows. Read here

High-Sulfur Fuel Oil Prices Return to Pre-Crude Collapse Levels – Ship and Bunker

While HSFO has rallied strongly, VLSFO prices remain significantly lower than their levels before the OPEC+ row hammered markets. Read here

Upcoming S Korea ECA low sulfur norms at ports to have a minimal impact: sources – Bunkerworld

South Korea’s new Emission Control Area, requiring ships to use fuel with maximum 0.1% sulfur content while berthing from Sept. 1, is expected to have a minimal impact, market sources said in the week started Aug. 23. Read here

MGO-ULSFO bunker spread hits 8-month low in Europe – Bunkerworld

Ultra low sulfur fuel oil remains cheaper than marine gasoil but only marginally as price differentials narrowed to an eight-month low in Europe, S&P Global Platts data showed. Read here

HSFO still a force in bunker fuel market post-IMO 2020 – Bunkerworld

Once a staple of the bunkers market, demand for high sulfur (3.5%) fuel oil was expected to drop off a cliff after IMO 2020 — — the lower, 0.5% sulfur cap on marine fuel globally since Jan. 1. Read here

Singapore 380 CST HSFO differential slips to discount on declining demand – Bunkerworld

The Singapore 380 CST high sulfur fuel oil cash differential over the grade’s swaps values slipped into negative territory on Aug. 27 due to declining demand from Saudi Arabia. Read here

Straits Inter Logistics Sees 63% Drop in Oil Trading and Bunkering Profit – Ship and Bunker

The company mostly cited this year’s slowdown in shipping as being behind its worsening performance. Read here