09 March 2022
The discount of very-low sulphur fuel oil (VLSFO) bunkers in far east Russia has fallen to record levels versus Singapore values, as many shipowners have stopped buying because of the country’s increasing economic isolation following the invasion of Ukraine.
Argus today assessed the far east Russia VLSFO discount to Singapore at $288.83/t, when typically the discount averages around $20/t.
Japanese and South Korean shipowners and operators have completely stopped buying from Russia, several market participants told Argus. Nearly all remaining enquiries are from Chinese buyers, who have not curtailed oil imports from Russia unlike most companies from other countries that fear legal or reputational repercussions.
“Most suppliers and traders are scrutinising where vessels have been over the past few months and if they have called at Russia, then they won’t quote on it in order to ensure no breach of sanctions”, a broker said.
“Vessels moving into Russian ports now would almost certainly face great difficulty getting bunkers elsewhere for the next 6-12 months depending on how the conflict pans out”, the broker added.
But despite the substantial discount, Russian trading firms were still booking some profits because of the strong depreciation of the ruble against other currencies. Some Chinese buyers were possibly paying for bunkers in cash in yuan, although this could not be confirmed.
By Sammy Six
Photo credit and source: Argus Media
Published: 10 March, 2022
Programme will have a special emphasis on the potential application of the system for methanol-fuelled Maersk vessels.
Hybrid tugboats are a perfect vessel for green ports, as they perform as well as diesel-powered equivalents while drastically reducing emissions, it states.
Full focus has been given to taking a proactive approach to expand the portfolio to include other commodities besides oil and oil-related products, it said.
P&I Club Steamship Mutual Underwriting Association (Europe) Limited has issued letter of undertaking to STI Orchard assuring total liability of not more than USD 17 million, show court documents.
‘It is an insider transaction designed solely to benefit Mercuria and is not in the best interests of the Debtors’ estates.’
Bunker fuel in Singapore is experiencing an emerging dual pricing system as contamination concerns spread throughout Asia-Pacific.
Program introduces periodic assessments, mass flow metering data analysis, and regular training for relevant key personnel to better handle the MFMS to ensure a high level of continuous operational competency.
U.S. Claims Register Summary recorded a total USD 833 million claim from a total 180 creditors against O.W. Bunker USA, according to the creditor list seen by Singapore bunkering publication Manifold Times.
Glencore purchased fuel through Straits Pinnacle which contracted supply from Unicious Energy. Contaminated HSFO was loaded at Khor Fakkan port and shipped to a FSU in Tanjong Pelepas, Malaysia to be further blended.
Individuals were employees of surveying companies engaged by Shell to inspect the volume of oil loaded onto the vessels which Shell supplied oil to; they allegedly accepted bribes totalling at least USD 213,000.
MPA preliminary investigations revealed that the affected marine fuel was supplied by Glencore Singapore Pte Ltd who later sold part of the same cargo to PetroChina International (Singapore) Pte Ltd.
‘MPA had immediately contacted the relevant bunker suppliers to take necessary steps to ensure that the relevant batch of fuel was no longer supplied. Further investigations are currently on-going,’ it informs.
