Global energy and commodity price reporting agency Argus Media on Thursday (14 February) provided an industry update regarding its methodology for Singapore delivered marine fuels:
Argus this week changed the way it assesses 0.5pc low-sulphur fuel oil (LSFO) for delivery in Singapore, and introduced a new price assessment for 0.5pc marine gasoil (MGO), to reflect developments in this rapidly changing market.
Argus launched its price assessment for delivered 0.5pc LSFO in Singapore on 1 October 2018. In the absence of trades, bids and offers, this new blended fuel was initially assessed using a ratio of 7 units of 0.1pc low-sulphur marine gasoil (LSMGO) to 1 unit of 380cst high-sulphur fuel oil (HSFO), yielding a calculated price that was based on our two main flagship delivered price assessments for the port.
Argus retired the 7:1 calculated ratio on 11 February and is now assessing 0.5pc LSFO based on price information heard in the market. Since the beginning of January, Argus has received reported deals of 0.1pc LSFO that were done at an average discount of $38.85/t to the MGO 0.1pc sulphur assessment. Based on a survey of market participants, a buyer of 0.5pc LSFO delivered to ship within 4-12 days would not be able to get much, if any, discount from the 0.1pc LSFO price. Respondents were consistent in their answers, which ranged from a $5/t discount to zero discount to the 0.1pc LSFO price. In light of this, Argus on 11 February assessed 0.5pc LSFO at $539/t — $40/t below the MGO 0.1pc price and $125.51/t above 380cst HSFO.
Argus will continue to use this method, of considering a variety of low-sulphur deal information combined with market surveys in the absence of reported deals, as we move towards volume-weighted averaging of deals for this grade. Argus received 470 Singapore bunker deals into its assessment process in January, an average of more than 20 a day, providing the foundation for robust assessments.
Argus also introduced a new price assessment for 0.5pc MGO in Singapore on 11 February. Argus has received several deals of 0.5pc MGO since mid-December last year, with the trades done at an average discount of $3.35/t to the Argus LSMGO assessment.
A 0.5pc MGO cargo is usually blended by the terminal with the sulphur content ranging from 0.4-0.5pc, one supplier says. Argus is assessing 0.5pc MGO at a $3-5/t discount to LSMGO as a result, although this will change based on deals reported and bids and offers obtained from the market on a daily basis.
Source: Argus Media
Published: 15 February, 2019
Singapore High Court grants Poh Fu Tek and Koh Seng Lee conditional leave to act against the present and/or previous Directors of Vermont, Goldsland and Sin Hua, states Judgement.
The local bunkering sector has adapted to IMO 2020 requirements and LSFO is now available at more than two earlier locations, notes bunker supplier Trillion Energy.
Claiming USD 108,887.87 for the supply and delivery of 310.00 mt of low sulphur marine gas oil at the Port of Jeddah on or about 23 February 2020.
A sanitisation expert offers Manifold Times a summary of the processes involved in disinfecting a ship together with the equipment and products used in the operation.
‘As the saying goes without people buying things, manufacturing will slow, trade will also slow and shipping movements slows down. It’s a whole chain of reaction,’ says Simon Neo.
Laboratory looking to collaborate with Singapore bunker surveyors to roll out COVID 19 testing service, which has been successfully adopted by land-based industries, to the maritime sector.