The remainder will be made up of very-low sulphur fuel oil (VLSFO) blends, a largely unknown entity in the bunker market. In favour of a move into renewables market. Ship & Bunker, SeaCred Pick Top 10 Bunker Companies for 2021, Scorpio Exits Dry Bulk, Puts Remaining Bulker Fleet Up For Sale, Fratelli Drops Chemoil Name from its Monaco Bunker Trading Unit, Monjasa Swaps Floating Storage, Gives Details of IMO 2020 Impact on WAF Bunker Demand, Trafigura Execs Cited in Petrobras Graft Allegations. Among his first experience at Exxon was computerized bunker blending in Aruba. Very Low Sulfur Fuel Oil (VLSFO) pricing as of November 2019 is as muddy as it was at mid-to late 2019, when the ISO PAS was issued. The future cost of 3.5% HSFO could go as low as $220/mt. "It's a disaster waiting to happen because the thing is, a lot of this fuel [VLSFO] hasn't been burnt and consumed yet. The graph shows the price of HSFO and 0.5% low sulphur fuel oil (VLSFO). CRUDE OIL PRICES; BUNKER PRICES; Gas Prices; ENERGY NEWS. The demand for marine scrubbers has taken a hit this year with the global pandemic shifting fuel prices and weakening the business case for the technology. The price for VLSFO at Rotterdam has shown some volatility in recent days and has ended the week some $35 down, at $365 p/mt, which is still by far the cheapest price for this grade among the main supply hubs. In Europe, you’ll find 0.5% VLSFO, HSFO, and DMA prices out of these essential ports: Rotterdam; Antwerp; Hamburg; Istanbul; Gibraltar and Piraeus. The OPIS BTU Indicator helps buyers plan cost-effective fuel purchases by calculating the energy content in the new 0.5% VLSFO compared with legacy high-sulfur marine fuels. Is it worth the risk, since stability and compatibility of the blend depends heavily on the degree of aromaticity of VTB's and asphaltene content of the HSFO? Contact Us; About Us; Submit Articles to OM ; Home; Bunker Fuel Prices; Far East and South … Pare down the data you receive to the most important prices and ports needed to monitor the transitioning marine fuel market. Cluster1 price is in the range of $550 to 600/MT. Index: IFO 380: VLSFO 0.5: MGO 0.1: World [? Help is only an email or phone call away. It may not just be sediment issues but flash point too," said one shipowner Friday. “And you need individual guidelines for your business. Click here. And when the new fuel spec starts trading, OPIS will report on its true market value as we do with all other fuel prices we report. The only markets left for 3.5% HSFO are power generation, which currently uses LNG and coal (approx. Easily track marine cargo and bunker fuel prices for Asia, Europe and the Americas with this concise report featuring at-a-glance tables and charts. Here’s a look at the current market. He holds BS and MS degrees in electrical engineering from City University of New York. Image Credit: RAI. Lately he has been involved in the IMO 2020 bunker blends, recipes, and ISO 8217 specs. This is a highly aromatic blend available in Europe which has many Visbreakers and access to low Sulfur crudes. The VLSFO/MGO price differential has widened slightly at Rotterdam this week, increasing from $51 on 27 February to $57 on 6 March. Cluster 3 price is in the range of $250 to 360/MT. For more info on blend formulations and impact, contact us at info@refautom.com. VGO bunker blends. “If you are a purchaser and you go around the world, it is challenging,” Zerdekof explained. Singapore VLSFO 0.5% Price Today USD/MT, Live & Historical Price Charts. Bunker Fuel Prices Today, IFO 380, IFO 180, MGO Prices per Ton, Live & Historical Price Charts IMO 2020 emission regulations issued by the International Maritime Organization required vessels to use lower-sulfur bunkering fuel, effective January 1, 2020. Oil price information Last update: 2020-12-21 Nr. The answer is no. Currently there are 3 significantly different VLSFO spec clusters being sold: This is highly paraffinic HSFO using ATM or VAC bottoms (ATB or VTB) cut with mostly gasoil, in a ratio of about 1:4. Callao VLSFO 0.5% Price Today USD/MT, Live & Historical Price Charts. As you all know from the "Houston" contamination problem, being "fit for use" without numerical specs is worthless. Colombo Bunker Fuel Prices Today, IFO 380, IFO 180, MGO Prices per Ton, Live & Historical Price Charts The average increase in January thus is expected to exceed USD 50/mt,” Maersk said in an advisory. By Ara Barsamian and Daniel Byeong C. Son, Refinery Automation Institute, LLC. And when the new fuel spec starts trading, OPIS will report on its true market value as we do with all other fuel prices we report. Date Price $/mt Change High Low Spread; F Dec 18: 403.50 +0.50: 417.00: 394.50: 22.50: T Dec 17: 403.00 +7.00 And even some near-term bullish fundamentals that would typically provide the impetus for a rally may not do much to stem the slide. The supplier is about to open an office in Athens in its first international expansion since its formation three years ago. Easily get answers to your questions because every report issue includes contact information for our market editors. Around 8% of VLSFO samples tested by VPS (Veritas Petroleum Services) at the end of 2019 had sulphur content over 0.50%, but by March-April 2020 that index had fallen to 1.1%. Index: IFO 380: VLSFO 0.5: MGO 0.1: World [? This report is a “one-stop shop” for key marine fuel prices in the most important regions, presented with handy tables, charts and graphs for at-a-glance reading. Good news last week was that there was sharp decline registered in non-compliant very low sulphur fuel oil (VLSFO) samples globally. So what's available on the market? Energy news covering oil, petroleum, natural gas and investment advice But have bunker fuels been forgotten? Table 1 above clearly shows the VLSFO cluster formulation prices for typical recipes: It is you, the buyer that has to do the detective work to find out which specs go with what prices since the impact on marine engines is significantly different, and could be catastrophic. Singapore VLSFO max 0.5% Price Today USD/MT, Live & Historical Price Charts. Indicative prices for 0.5% VLSFO are based on a formula that relies on price assessments calculated on a full day’s trading. Price does tell us a lot, and we have seen VLSFO in Singapore fall from $740/ton at the start of the year to a low of $190 in late April and back up to around $320 today. Because of the highly paraffinic nature, it could be highly unstable with potentially disastrous consequences for shipowners. When you examine Platts, Argus, OPIS, or other marine bunker price information sources, there is only one price for the column labelled VLSFO. SKS Dokka has replaced sister vessel, SKS Darent. With VGO so readily available and cheap during this time, many looked to use the product in the VLSFO blending pool as storage was strained for all oil products. ]: Subscribe for a year or order a 1-month trial. CRUDE OIL PRICES; BUNKER PRICES; Gas Prices; ENERGY NEWS. IFO 180---VLSFO 0.5: Subscribe: MGO 0.1/0.5: Date: 430.50 -1.50: 2020-12-15 Bunkerspot provides news, in-depth analysis, expert comment and price indications for the global marine fuels industry twitter ... when stored for longer time frames were addressed in an online webinar today hosted by Integr8 Fuels, with Douglas Raitt, Global FOBAS Manager, suggesting that the fuel may not be ‘a formulation to be kept for a period of time’. The current coronavirus-driven dynamics of the marine fuel market are a far cry from the fears of price spikes post IMO 2020 when the sector rushed to stockpile compliant fuels, and this has caught some companies out. Latest Prices, VLSFO Fuel Oil, IMO2020 Grade, 0.5%S. The Global Marine Fuels Report also includes the most up to date daily fixtures of fuel oil, vacuum gasoil, and other marine fuel blending components cargoes. Loading price … Because of lack of precise specs for VLSFO, everybody's doing their own thing. ]: Subscribe for a year or order a 1-month trial. The VLSFO/MGO price differential has widened slightly at Rotterdam this week, increasing from $51 on 27 February to $57 on 6 March. Consequently, if the price of VLSFO is much higher than that of HFO, a scrubber-equipped ship burning HFO earns a much higher TCE rate for the same spot contract than a non-scrubber ship, due to fuel savings. The European very low sulfur fuel oil market has hit nine-month high as product comes to the market ahead of year-end. Oil price information Last update: 2020-12-18 Nr. Looking back further, Singapore VLSFO prices had remained relatively steady at around $520-550 pmt between July to November 2019 before a sudden hike from mid-December as … Commodity player denies involvement following civil lawsuit lodged in Brazil. The transition to a new, 0.5% spec very-low sulfur fuel oil has impacted refiners, ship owners and operators. Daniel can be reached at daniel@refautom.com. 1: Rotterdam/Antwerp: $ 305: $ 385 Read our collection of the latest bunker fuel market news and insight on IMO 2020 impact on diesel prices and distillate blends, VLSFO, bunker fuel prices and more. Latest Prices, VLSFO Fuel Oil, IMO2020 Grade, 0.5%S. In Asia, prices for 0.5% VLSFO, 380 CST HSFO, and MGO are reported for the key ports of Singapore; Fujairah; Chiba, Japan; Busan, South Korea; Kaohsiung, Taiwan and Zhoushan, China. Oil price charts for Brent Crude, WTI & oil futures. Before, we used to work on plus/minus 10 indexes [to hedge], and now it is perhaps 40-50.” Global Bunker Fuels Industry Looks to the Future. For cluster 2.2 one can use a blend of 40% LS VAC bottoms and 60% LS VGO to get a highly paraffinic VLSFO with a price significantly lower than cluster 1 but not as cheap as Cluster 3 or Cluster 2.1 (VGO being significantly more expensive than Slurry). Crude Oil; Natural Gas; Energy Futures; Maritime; Companies; Products; Events; Press Release; Promote your business Register Free. Loading price data... Sign in. Physical Bulk and Bunker Marine Fuel Pricing and News for Asia, Europe and the Americas. ]: Subscribe for a year or order a 1-month trial. Dive deeper with our rich data, rate tables and tools. Start a free 30-day trial and receive a daily file via email at the end of each business day. In order to compete, 3.5% HSFO will need to be priced at parity with LNG and coal which results in a price of approximately $220/mt. In this post, part two of our five-part series on IMO 2020, we take a look at what VLSFO blends may look like next year, what the main components will be, where they will be produced and what compatibility issues may arise. Cluster 2 price is in the range of $500 to 540/MT. Daniel is a member of AIChE, and will graduate in December 2019 with a BS degree in Chemical Engineering from New Jersey Institute of Technology. World 3 [? The remainder will be made up of very-low sulphur fuel oil (VLSFO) blends, a largely unknown entity in the bunker market. The report is published using OPIS’ full-day spot pricing methodology for sound and accurate price data. The Global Marine Fuels Report includes price assessments for 0.5% VLSFO and high-sulfur bulk and bunkering fuels in the most important ports around the world. The market has become distracted from its prior focus on IMO 2020 due to COVID-19 and a crude oil price war. Latest Prices, VLSFO Fuel Oil, IMO2020 Grade, 0.5%S. World 3 [? Click here. Los Angeles VLSFO max 0.5% Price Today USD/MT, Live & Historical Price Charts. The global shipping world in 2020 will see a challenge no other petroleum-dependent industry has witnessed to date. The repercussions set the stage for high fuel prices. Ara Barsamian is the president and CEO of Refinery Automation Institute LLC (RAI), has over 48 years of experience in bunker, gasoline, diesel, and biofuels blending operations and technology. Download a sample report and see for yourself. He was involved in the implementation of a crude blend compatibility predictor calculator, a crude assay blend calculator, and with the research of IMO 2020 bunker availability study update. Besides the price advantage, for the shipowner, it is "business as usual" by burning a residual fuel close to today's IFO380 3.5%S, without surprises like thermal shocks or lubricity issues. Cluster 2 price is in the range of $500 to 540/MT. But which VLSFO specs do they cover? Las Palmas VLSFO 0.5% Price Today USD/MT, Live & Historical Price Charts. Loading price data... Sign in. CEO Timothy Cosulich says move was "in response to the growth of our activities in the bunker trading sector. Get the pricing information you need to take quick action. Mr. Barsamian is a member of AIChE, ASTM, and IBIA. In conclusion, VLSFO pricing will inevitably be variable across the globe, depending on the blend composition; this is just one more issue to consider in addition to headaches due to commingling and different fuel behavior (heating, lubricity, stability and compatibility). CRUDE OIL PRICES; BUNKER PRICES; Gas Prices; ENERGY NEWS. In particular, VLSFO price in Asia (Singapore) for a period exceeded 700 USD/TON, more than 20% increase compared to the previous bunker prices used for the Bunker Adjustment Factor (BAF) and Environmental Fuel Fee (EFF) calculation. Port HSFO-380 VLSFO 0.5% ULSFO 0.1% MGO Deliv. Detailed analysis of the science for why VLSFO is dangerous is published in a separate article today, entitled, “SHIPPING-GATE: Why Toxic VLSFO Fuel Is Such A Danger For Global Shipping.” Still, the impact of recent bunker quality issues remained relatively muted on the price of the fuel due to weak market fundamentals. Port HSFO-380 VLSFO 0.5% ULSFO 0.1% MGO Deliv. Earlier in his career, he was a group head with Exxon Research & Engineering Co., president of 3X Corp., and vice-president of ABB Simcon, all in the area of fuels blending. The two-month freefall in the price of very low-sulfur fuel oil (VLSFO) is accelerating due to the widespread economic impact of the coronavirus disease 2019 (COVID-19), energy experts said this week. The advantage is that for the shipowner, it is more or less "business as usual" by burning a residual fuel without unpleasant surprises like thermal shocks or lubricity issues. Oil Price Information Service (OPIS) © 2020 All rights reserved, Watch now to discover the benefits of the Global Marine Fuels Report, International Feedstocks Intelligence Report, Retail Year in Review and Profit Outlook Report, Customized Retail Fuel Prices and Margins, OPIS/STALSBY Petroleum Terminal Encyclopedia, View the Global Marine Fuels Report product fact sheet, California Do Not Sell My Personal Information. Register with us today and in less than 60 seconds continue your access to: Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts The COVID-19 pandemic, which has triggered a drastic drop in crude oil and oil product prices… But 'Peak Oil' may have already been reached, says demand analyst. However, as VLSFO prices begin to rise again and demand for cheaper heavy fuel oil (HFO) picks up, Yara Marine Technologies expects to see a greater installation of scrubbers in 2021. Crude Oil; Natural Gas; Energy Futures; Maritime; Companies ; Products; Events; Press Release; Promote your business Register Free. Also featured are exclusive OPIS benchmarked ULSD rack prices for key North American markets, plus ULSD spot prices for Gulf Coast, New York Barge, Los Angeles, and the Pacific Northwest. The price for VLSFO at Rotterdam has shown some volatility in recent days and has ended the week some $35 down, at $365 p/mt, which is still by far the cheapest price for this grade among the main supply hubs. This is simply a blend to dilute the HFO Sulfur to 0.5% using gasoils; thus one can expect the price to be about 80% of gasoil, pretty close to that of MGO. Budget friendly. BTU Indicator: Plan the most cost-effective fuel purchase by calculating the energy content in the new 0.5% VLSFO compared to your previous bunker fuel. Stay on top of the changing U.S. and global markets with our market summary page. Of the total, 17 or 46% were issued for flash point issues -- nine for MGO, five for VLSFO and three for HSFO, he said, adding VLSFOs account for 65% of all fuel samples tested by VPS. “Today, the absolute price of everything is lower. The results is a nightmare, primarily for shipowners who may be stuck with unknown blend formulations and unusual characteristics. Los Angeles VLSFO max 0.5% Price Today USD/MT, Live & Historical Price Charts Indicative prices for 0.5% VLSFO are based on a formula that relies on price assessments calculated on a full day’s trading. ]: Subscribe for a year or order a 1-month trial. The reason the HFO-VLSFO spread is so slim is that the VLSFO price has fallen as well. The organisation estimates it will cost $23.3-24.8 million to bring shore power to the terminal. Indicative prices for 0.5% VLSFO are based on a formula that relies on price assessments calculated on a full day’s trading. The spread between the physical and front-month paper market, more commonly known as the cash-paper spread, for 0.5%S FOB Rotterdam barges was assessed at $7.25/mt on Dec. 3 after rallying more than $8 in just over a week. Evaluate compliance options, source fuel and make cost-effective operating decisions. Date Price $/mt Change High Low Spread; F Dec 18: 414.50: 0.00: 414.50: 414.50: 0.00: T Dec 17: 414.50 +6.50 1: Rotterdam/Antwerp: $ 300: $ 375 But the flat-price “one size fits all” VLSFO specification and swap remains elusive. Trust OPIS price assessments because they are based on transactional data that occurs over the course of the entire trading day. This collapse in demand led to prices for LSVGO falling to values not seen since January 2002, assessed at $134.75/mt April 27. Typically the VLSFO blends use 60 to 80% LS Visbreaker tar cut with about 20-40% FCC Slurry, so it is significantly cheaper than cluster 1. In the Americas, prices for all the above products plus LT cycle oil and LNG in Houston; New York; New Orleans; Savannah; Los Angeles; Seattle; Panama; Philadelphia; Norfolk; Vancouver, Canada; Manzanillo, Mexico; Veracruz, Mexico and Valparaiso, Mexico. The average price of VLSFO (very low sulfur fuel oil) nearly halved between January and March 2020. Date Price $/mt Change High Low Spread; F Dec 18: 388.00 +0.50: 426.00: 377.50: 48.50: T Dec 17: 387.50 +6.50 Table 1 above clearly shows the VLSFO cluster formulation prices for typical recipes: Cluster1 price is in the range of $550 to 600/MT. Easily get answers to your questions because every report issue includes contact information for our market editors. 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