- Braemar ACM suggests that the price differential between LSFO and blended fuels is less than $200 per metric tonne.
- IMO regulations can cause an impact equivalent to 4.5% of global oil demand.
- Price differential between HSFO and LSFO would be more than $100 per tonne by the end of 2020.
Tanker analysts at Braemar ACM are suggesting the price differential between low sulphur fuel oil (LSFO) and blended fuels is less than $200 per metric tonne, reports Splash247.
Even with the differential price, scrubber payback time will be fast.
Less than expected differential
“Initial indications for the blended fuels price spreads versus LSFO are looking at about $180/190mt differential, which is not as big a differential as first expected,” Braemar ACM noted in a weekly tanker report.
However, even with this differential a VLCC should be able to pay off the price of a scrubber within 18 months, the analysts noted.
IMO 2020 influences global oil demand
IMO’s global sulphur cap rules are just around the corner, says the International Energy Agency.
IMO regulations can impact around 4.5m barrels per day of bunker fuel, equivalent to 4.5% of global oil demand.
Increased price differential by 2020
The 18-month payback time for a scrubber on a VLCC could lengthen however during next year if the price differential continues to narrow.
In a poll carried on this site earlier this year, just 19% of readers felt the difference in price between high sulphur fuel oil (HSFO) and LSFO would be more than $100 per tonne by the end of 2020.
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Source: Splash247
