Business

Argus Media: LSFO bunker spreads at record lows

Lower demand and improved supply logistics for LSFO main factors behind the narrowing of price premium over HSFO.

Published

6 years ago

February 28, 2020

Admin

Erik Hoffman and Enes Tunagur of global energy and commodity price reporting agency Argus Media on Wednesday (26 February) issued a report analysing the diminishing LSFO fuel spread over 3.5% sulphur marine fuel:

Lower demand and improved supply logistics for low-sulphur marine fuel have pushed its price premium to high-sulphur marine fuel to all-time lows at the world’s three largest bunkering hubs.

The premium of 0.5% sulphur marine fuel oil (0.5% fuel oil) over 3.5% sulphur 380cst marine fuel oil (3.5% fuel oil) has narrowed most sharply in Fujairah. Since 30 December last year — when it was at its highest — the premium has come down by 72%, from $497.50/t to $140.50/t yesterday.

In Rotterdam it dropped by 60% from a high of $309.50/t on 30 December to $125/t yesterday. The equivalent barge fob price premium for 0.5% sulphur fuel oil fell even more steeply in Rotterdam over the period, dropping by 64% from $323.25/t on 3 January to $116.50/t yesterday. Rising European fuel oil supply and inflows from Scandinavia weighed on 0.5% fuel oil fob barge prices. Fuel oil output in the EU-16, including high and low-sulphur fuels, was at its highest in January since April 2019 at 1.08mn b/d, Euroilstock data showed. Fresh 0.5% fuel oil production boosted output.

In Singapore the premium has narrowed by 58% since its widest on 2 January, from $370.50/t to $155.25/t yesterday.

Underlying front-month Ice Brent and Ice gasoil values have contributed to bring the low-sulphur premiums down. But their impact on the premiums has not been as sharp as the drop in 0.5% fuel oil prices.

Front-month Ice Brent and Ice gasoil prices came down by 20% and 24%, respectively, between 30 December and yesterday. This compares with 0.5% fuel oil prices, which have fallen by 43% in Fujairah and 31% in Rotterdam since 30 December, and 38% in Singapore since 2 January.

Global 0.5% fuel oil demand peaked in December amid limited supply logistics as shipowners were scrambling to secure compliant fuel before the IMO’s 0.5% sulphur cap was implemented on 1 January.

Delivery times for 0.5% fuel oil have improved significantly since the weeks leading up to the sulphur cap. In late November, shipowners had to book eight days in advance to get 0.5% fuel oil when demand for IMO-compliant fuel started picking up. A barge shortage in Fujairah around the same time caused loading delays of 2-4 days at terminals. Barge queues also limited 0.5% fuel oil supply in Rotterdam and led suppliers to charge premiums of around $20/t for prompt deliveries.

The price for 3.5% fuel oil did not collapse around 1 January, as some predicted, but has held up better than 0.5% fuel oil and 0.1% sulphur marine gasoil (MGO) prices in 2020. Since 30 December the 3.5% fuel oil price has fallen by 15% from $340/t to $290/t in Singapore, held at $279.50/t in Rotterdam, and risen by 10% from $268.50/t to $295/t in Fujairah.

The US has replaced Singapore as the largest cargo buyer of 3.5% fuel oil from Russia — the world’s largest producer — in 2020, as bunkering demand for the non-compliant product dropped along with delayed scrubber installations. Fresh demand from US refineries resulted in a rebound of 3.5% fuel oil barge fob prices, driving values in northwest Europe from a low of $179/t on 29 November to $265/t yesterday.

More scrubber-fitted vessels are expected to return to operation in March and April to boost demand for 3.5% fuel oil, which could add upward price pressure and narrow the spread.

Some suppliers are reassessing demand for 3.5% fuel oil and possibly allocating more storage and barge tank space to it, which would add downward price pressure.

Photo credit and source: Argus Media
Published: 28 February, 2020

Winding up

Singapore: Notice of intended dividend issued for Xihe Holdings’ subsidiaries

Creditors will need to produce proofs of debt to liquidators of Da Xin Tankers and Nan Chiau Maritime by 5 August, according to Government Gazette notice.

Published

3 hours ago

July 23, 2026

Admin

Two notices to declare the intended dividend of Xihe Holdings’ subsidiaries to their creditors have been posted on the Government Gazette on Wednesday (22 July).

The subsidiaries are Da Xin Tankers Pte Ltd and Nan Chiau Maritime Pte Ltd.

The following are the details of the notices of intended dividend:

Name of Company : Da Xin Tankers (Pte) Ltd (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 198400895W
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Name of Company : Nan Chiau Maritime (Pte.) Ltd. (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No.: 200814296Z
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Photo credit: steve pb from Pixabay
Published: 23 July, 2026

Biofuel

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

Company says it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply.

Published

3 hours ago

July 23, 2026

Admin

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

South Korean petroleum and refining company S-Oil on Wednesday (22 July) said it has started supplying B30 very low sulphur fuel oil (VLSFO), as the company seeks to support shipping’s decarbonisation efforts and growing demand for lower-carbon bunker fuels.

The company said its B30 VLSFO contains 30% sustainable biofuel blended with conventional VLSFO and can be used without requiring modifications to existing vessels, enabling shipowners to comply more readily with emissions regulations from the International Maritime Organization (IMO) and the European Union (EU).

S-Oil said it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply. The system combines VLSFO produced at its Onsan refinery with biofuel production facilities and storage infrastructure in the Ulsan region, allowing the entire process to be carried out within a single logistics hub.

According to the company, the integrated supply chain reduces transportation requirements during production while improving supply efficiency and reliability.

S-Oil also highlighted Ulsan Port as a strategic location for marine biofuel supply, noting the port has strong demand for bio-bunker fuels, particularly from car carriers, enabling prompt and stable deliveries to key customers.

An S-Oil official stated: “In the bio-marine fuel market, not only product quality but also securing a stable supply of raw materials and an efficient supply system are important competitive advantages.

“Based on our existing bunkering business capabilities and the excellent supply infrastructure in the Onsan area, we plan to supply stable and competitive low-carbon fuel.”

Photo credit: S-Oil
Published: 23 July, 2026

Decarbonisation

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

Both will explore solutions spanning emissions measurement and verification, a digital Book-and-Claim framework, and a joint maritime-land inset token package.

Published

3 hours ago

July 23, 2026

Admin

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

PSA International (PSA) on Monday (20 July) said it has signed a Memorandum of Understanding (MoU) with Yang Ming Marine Transport Corporation (Yang Ming) to jointly accelerate the adoption of low-carbon solutions across the maritime value chain.

Beyond emissions measurement and verification, the collaboration will focus on a digital Book-and-Claim framework and a joint maritime-land based inset token package.

“This synergy provides cargo stakeholders with a transparent and accountable sea-land pathway to achieve their decarbonisation targets,” PSA said on its website.

Yang Ming launched the green transport service, EcoSea+. This initiative integrates Yang Ming’s low-carbon navigation capabilities to empower customers with a flexible and transparent strategy to effectively reduce their Scope 3 transportation emissions. By joining forces with PSA, Yang Ming is able to expand the impact of these sustainability actions beyond the ocean.

Building on its position as a global port operator, PSA advances its Node to Network strategy through integrated port and supply chain capabilities that enable a green network of terminal and landside operations to reduce end-to-end supply chain emissions.

The agreement was officially signed by Mr Ivan Chiang, Chief Logistics Officer & Senior Vice President of Yang Ming, and Mr Eddy Ng, Group Head of Operations, Technology and Sustainability of PSA International.

Mr Ong Kim Pong, PSA International Group CEO, said, “As responsible stewards of tomorrow, PSA is committed to delivering sustainable impact across the global port and supply chain ecosystem.

“Tackling the challenges arising from climate change will require the collective efforts of all players in the maritime supply chain sector. We are excited to partner Yang Ming on the decarbonisation of global supply chains and support the transition towards a more sustainable global economy.”

Photo credit: PSA International
Published: 23 July, 2026