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Surplus HFO in 2020: How will the dynamics play out?
Oct 05:
Also know more about how the High Sulphur Fuel Oil (HFO) market is going to change from 2020.
8The expected supply overhang has put pressure on HFO prices, and the current spread to MGO (0.1% sulphur content) for January 2020 is USD365/tonne.
8Given these spreads, find out more about why refineries are still facing a dilemma
8Also know more about how the shipping fleet will seek to minimise fuel costs by opting for the cheapest solution to comply with the regulations.
8The expectation is a blended alternative 0.5% sulphur fuel to be available at a discount to cleaner MGO. A synthetic compliant fuel blend can be found using the blended cost for LSFO with 1.0% sulphur content (low-sulphur fuel oil versus high-sulphur fuel oil (HSFO) with 3.5% sulphur content) and MGO with 0.1% sulphur to reach compliant levels of sulphur.
8On current 2020 forward prices, the synthetic blend is selling for about USD100/tonne less than MGO and narrowing the 2020 spread to USD246/tonne.
Get full details here. click on Reports.
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8The expected supply overhang has put pressure on HFO prices, and the current spread to MGO (0.1% sulphur content) for January 2020 is USD365/tonne.
8Given these spreads, find out more about why refineries are still facing a dilemma
8Also know more about how the shipping fleet will seek to minimise fuel costs by opting for the cheapest solution to comply with the regulations.
8The expectation is a blended alternative 0.5% sulphur fuel to be available at a discount to cleaner MGO. A synthetic compliant fuel blend can be found using the blended cost for LSFO with 1.0% sulphur content (low-sulphur fuel oil versus high-sulphur fuel oil (HSFO) with 3.5% sulphur content) and MGO with 0.1% sulphur to reach compliant levels of sulphur.
8On current 2020 forward prices, the synthetic blend is selling for about USD100/tonne less than MGO and narrowing the 2020 spread to USD246/tonne.
Get full details here. click on Reports.
