The delivered Japan/Singapore marine fuel 0.5% bunker was at its widest on emerging demand for IMO-compliant shipping fuels, reports S&P Global Platts.
Assessment of bunker prices
S&P Global Platts had assessed the spread at $41.25/mt at the Asian close on Sep 26. It was last higher at $38/mt on August 26.
During the Platts Market on Close assessment process on Sep 26, Japanese fuel oil trader and bunker supplier Mitsui and Co. Petroleum had submitted a bid for 1,300-1,500 mt of Marine Fuel 0.5% for loading over October 4-6 at $591/mt.
This was the first Marine Fuel 0.5% bid submitted during the Platts North Asia bunker MOC assessment process.
Marine fuel cargo deal
Mitsui had submitted its bid one day after the first Marine Fuel 0.5% cargo deal was reported on the Platts Market on Close assessment process in Singapore.
Shell had sold a 20,000 mt cargo of Marine Fuel 0.5% on a FOB Straits basis to P66 at a premium of $19/mt to October average of the Mean of Platts Singapore Marine Fuel 0.5% assessments.
In the broader market, demand for low sulfur bunker fuel is increasing, traders said.
Offers for a 300 mt clip of low sulfur bunker fuel at Tokyo Bay loading on October 19 was reportedly $620/mt on Sep 26 while a 750 mt clip for loading October 24 was at $650/mt on Wednesday.
“There have been more inquiries over the past week and it should increase as we enter October,” a Japanese trader said.
RMG specifications by IMO
Platts launched daily cargo and barge assessments for Marine Fuel 0.5% reflecting residual marine fuels with a maximum sulfur limit of 0.5% at key ports across the globe starting January 2, 2019.
These assessments were launched 12 months ahead of the planned introduction of new sulfur limits in marine fuels by the International Maritime Organization from January 1, 2020.
Marine Fuel 0.5% reflects specifications for RMG fuels as defined by the International Organization for Standardization in document ‘ISO 8217:2010 Petroleum products – Fuels (class F) – Specifications of marine fuels,’ but with a sulfur cap of 0.5%.
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Source: S&P Global Platts
