Global energy and commodity price reporting agency Argus Media on Monday (7 October) provided a marine fuels industry update:
Turkish oil product supplier Petrol Ofisi has delivered IMO-compliant 0.5pc sulphur fuel oil in Istanbul for the first time.
The company — a subsidiary of trading firm Vitol — supplied 100t of 0.5pc fuel oil to a tanker in Istanbul on 4 October. "Our current price for delivered 0.5pc fuel oil is at $560/t," Petrol Ofisi said today.
This compares with Argus' assessments of $653.75/t for delivered 0.1pc sulphur marine gasoil (MGO) and $362.50/t for delivered high-sulphur fuel oil on 4 October.
The lower price of 0.5pc fuel oil against MGO could drive demand for the product ahead of the IMO 2020 sulphur cap from ships not sailing in the European Emission Control Area (ECA), where shipowners must burn 0.1pc sulphur marine fuels.
Petrol Ofisi has started using independent surveyors for all of its marine fuel deliveries in the past month to ensure quality and compatibility, especially for 0.5pc sulphur fuels. Under the new "Bunker Quality Quantity Security System", independent surveyors will approve each delivery and take samples of the fuel supplied. IMO 2020-compliant marine fuels are largely untested by shipowners. This has led to calls for greater clarity on compatibility with fuels from different sources.
Turkey will rely more on marine fuel imports next year as domestic refineries, operated by Tupras and Azerbaijan's Socar, will not produce 0.5pc sulphur fuels.
Source: Argus Media
Photo credit: Petrol Ofisi
Published: 9 October, 2019
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