Low sulphur fuels price on Wednesday (12 February) reached record lows in the market downtrend from the start of the year, as demands slowed down, as reported in Reuters.
In Singapore, front-month backwardation in the very low sulphur fuel oil (VLSFO) market fell from a record USD 22 a tonne on 20 January to USD 2 a tonne this week, while its refining margin fell to 2-1/2 month low of USD 16.35 a barrel above Brent crude, down from a record USD 29.35 at the start of 2020, Refinitiv Eikon data showed.
Trade sources have indicated that bunker fuel demands typically slows down during the Lunar New Year holiday however the spread of coronavirus in China has exacerbated the downturn period.
Reuters reported the cooling of low sulphur fuels price are also an early sign of stabilising market fundamentals after months of volatility due to the industry adoption of Marpol Annex VI rules by the International Marine Organization (IMO).
“Demand just isn’t there,” said Starfuels Dubai Oil Broker Matt Stanley, as quoted by the news agency.
“With China on lockdown really for all of Q1, demand is going to inevitably collapse.”
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Manifold Times earlier reported the Coronavirus affecting scrubber production in China.
Caroline Yang, President of SSA, addresses issues earlier raised by players; including PMC No. 04, the seven-day restriction, contactless bunkering, sampling point, hose connection, and more.
IBIA Asia, ABIS, sources from Singapore’s bunkering and surveying companies, and an industry veteran share with Manifold Times the issues expected from MPA’s latest Covid-19 measures.
The top three positive movers in the 2020 bunker supplier list are Hong Lam Fuels Pte Ltd (+13); Chevron Singapore Pte Ltd (+12); and SK Energy International (+8), according to MPA list.
‘We will operate in the Singapore bunkering market from the Tokyo, with support from local staff at Sumitomo Corporation Singapore,’ source tells Manifold Times.
Changes include abolishing advance declaration of bunkers as dangerous cargo, reducing pilotage fees on vessels receiving bunkers, and a ‘whitelist’ system for bunker tankers.
Claim relates to deliveries of MGO to the vessels Pacific Diligence, Pacific Valkyrie, Pacific Defiance, Crest Alpha 1, and Pacific Warlock between March 2020 to April 2020.