VLSFO bunker prices in Singapore ended at a premium to MGO, reports Ship&Bunker.
Average data indications
Data showed average indications as $613/mt for the 0.50% sulfur product, compared to $603/mt for MGO and $610/mt for 0.10% sulfur LSMGO.
Pricing more than LSMGO
Argus says its data indicates LSFO in Singapore has been priced above LSMGO since December 6.
Discount for gasoil
At all other ports tracked, the 0.50%S VLSFO is priced at a discount to gasoil.
A gasoil supplier was quoted saying, “Buyers are now more actively comparing prices for LSFO and LSMGO in the market.” the supplier added that they did not anticipate there would be a reversal in price relationship.
Paying premium for VLSFO
The development will not be a complete surprise to some, with Ship & Bunker reporting in July that a source had predicted some operators may be happy to pay a premium for VLSFO in order to get a higher performing product.
Engine suitability
As has also been previously noted, the engines of some vessels are not well suited to extended use on lower viscosity fuels, and while MGO has a higher calorific value than fuel oil, volumetrically fuel oil has a higher energy density.
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Source: Ship&Bunker
