With the fuel switch in full swing, VLSFO prices continue to rise. In Singapore 0.5% VLSFO prices increased by 12% since the beginning of the month and hit an all-time high of $622.5pmt yesterday. The price spread between 3.5% HFO and 0.5% VLSFO also breached the $300pmt mark for the first time since the records began.
Prices are even higher at some of the major ports where supply of the low sulphur fuel is tight. In Melbourne price of the 0.5% fuel climbed to $694pmt and $661pmt in Kaohsiung.
VLSFO is proving to be the most popular choice among owners and operators. Although the price of compliant fuels rose across the board, straight run 0.5% VLSFO saw the sharpest increase. Coupled with tightening supplies, it is now trading at a higher price than 0.1% LSMGO in Singapore.
Prices are expected to remain high at best, probably climb higher as the supply of VLSFO appears to be tightening. There is no accurate data showing the on-shore inventory of compliant fuels. However, floating stocks of LSFO/VLSFO/ULSFO have dropped by 16% since the beginning of the month, during when the demand has increased.
Source:Arrow
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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