Singapore high sulfur and Marine 0.5% sulfur fuel oil price spread widened to fresh highs ahead of IMO 2020. Relatively expensive steps will be required throughout the refining circuit to rebalance products, resulting in much wider price spreads for all middle distillates compared with HSFO. Weatherford CEO exits as struggling company faces 'Chapter 22 bankruptcy', Unlimited web access from just £12.50 per month. There was a feeling that marine gasoil (MGO) would come to the fore and that there would be a significant oversupply of 0.5% high sulphur fuel oil (HSFO). Platts Oil helps to develop, connect & explain the market price of crude oil and oil products. The results were clear – the vast majority expected a delay. Globex Futures; ... real-time market data feeds. Prices for fuel oil in Rotterdam in May are trading at about an $8.20 a barrel discount to Brent crude, according to fair value data compiled by Bloomberg. The future cost of 3.5% HSFO could go as low as $220/mt. Additionally, there have been more reports of engine wear – as the sulphur acts as a lubricant, operators need to change their engine oils. Register here for the Energy Voice daily newsletter, bringing you key news and insight from across the global energy landscape. No Data Available: There has been speculation that this may be allowable if, for example, suitable fuels are not available or if a scrubber has been ordered, but not yet installed. High-sulphur fuel oil (HSFO) can also be used in some power plants, but the scrubber-fitted fleet still generates the bulk of demand for HSFO. HSFO cracks will fall sharply relative to recent history; Crude quality price differentials will widen dramatically in refinery parity with light-heavy and sweet-sour product spreads. Share Copy. Looking for online definition of HSFO or what HSFO stands for? Platts Oil helps to develop, connect & explain the market price of crude oil and oil products. Usually these are marine fuel types IFO 180 or IFO 380, which have been desulfurized. The most dramatic change was that the demand for HSFO collapsed, but so did the supply. “Owning HSFO going into tail end of Q3 2019 will be painful,” said a Singapore-based fuel oil trader. 6 Fuel Oil 3.0% (Platts) Futures stocks price quote with latest real-time prices, charts, financials, latest news, technical analysis and opinions. 05 Nov 2020; Analysis; Michelle Wiese Bockmann @Michellewb_ firstname.lastname@example.org. 1M 1YR Max. High sulfur fuel oil (HSFO) 3.5%: Low sulfur fuel oil (LSFO) 1.0%: Ultra low sulfur fuel oil (ULSFO) 0.1%: Low sulfur fuel oil (LSFO) Heavy fuel oils are referred to as low sulfur fuel oil (LSFO) if their sulfur content is below 1%. On occasions, HSFO actually became more difficult to purchase than VLSFO. Six months on from the passage of the IMO 2020 initiative – the International Maritime Organisation ruling that required the marine sector to reduce sulphur emissions by over 80% – how has the market responded to the new position, asks Andy Laven, COO of Sahara Energy Resources DMCC. VLSFO. There is no question now that the impact of the pandemic is likely to have a bigger effect on the marine business than even the most cynical projections around IMO 2020 would consider. The price spread between LSFO and HSFO at Singapore, a key bunker hub, plunged from a high of around $296/t in January to just around $60/t in August. HSFO 180 refer to aromatic rubber process oil with sulfure conent around 3 % . Environmental markets & indices. The benchmark, published under the data code PUAFZ00, is often referred to by many names, including No. Prices rose in December as shipowners transitioned to the IMO 2020 compliant low-sulphur fuel oil causing the VLSFO and high-sulphur fuel oil (HSFO) spread to reach record breaking levels. © Energy Voice 2020. As a result, the prices for HSFO have remained remarkably stable, despite the changes. Top HSFO acronym definition related to defence: High Sulphur Fuel Oil Much of the discussion at the time related to increased costs, lack of availability and fuel quality issues, so the response was not surprising. The volume of oil demand affected by this change is significant. Price HSFO acronym meaning defined here. Switch away from HSFO to low-sulphur fuels e.g. But what really happened? The generic term heavy fuel oil (HFO) describes fuels used to generate motion and/or fuels to generate heat that have a particularly high viscosity and density. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. 2020: A year of resolve and resilience through extraordinary upheaval, Energy directors must ask questions of their subsidiaries, SEEIT strikes £110m deal to acquire solar and storage projects in US, Octopus Energy reaches £1.5bn valuation amid Japan plans, Global ventures pay off for Craig International, More Asia Pacific firms tap loans linking rates to sustainable goals, ‘Window of opportunity’ could emerge next year as oil supply deficits emerge, Rystad says, Oilfield equipment company presented with Queen’s Award. The volume of oil demand affected by this change is significant. From January 1, 2020, the former can only be used by a vessel that has an … Singapore 403.50 0.50 Rotterdam 388.00 0.50 … Values shown are daily closing prices. Hedging for … As of May 2020, the scrubber-fitted fleet stands at 2,893 ships, or 2.9% of the combined fleet in terms of ships, but equal to 15.6% of total fleet when looking at deadweight tonne (source: Clarksons). Gulf Coast HSFO. Thank you for signing up to our newsletter. Interest Rates. What does HSFO stand for in Price? Turbulence in the financial markets sparked fears of a potential slowdown in the economy and therefore lower demand for oil. HSFO-380 VLSFO 0.5% ULSFO 0.1% MGO Deliv. US refiner demand. Two things are worthy of note. Global Gas Benchmarks. The graph shows the price of HSFO and 0.5% low sulphur fuel oil (VLSFO). Consider that the top 7 ports account for 60% of bunker demand (Singapore skews this number significantly). Download; Description. High sulfur fuel oil (HSFO) prices may start to rise on the back of restricted availability, a seminar was told. ICE Futures U.S. Fuel Oil Outright - USGC HSFO (Platts) Future. Gulf Coast No.  However, when considering the price of HFO it is critical to incorporate the environmental consequences and the … Although lower prices may be with us for a while, access to credit means that larger, well capitalised companies are likely to be the winners, both in the shipping and fuel supply. Prices for marine gas oil and the new blended fuel are expected to rise sharply, while HSFO prices will fall. The USGC HSFO (Platts) Average Price Option is a premium-paid-upfront option. The transition to a new fuel specification was expected to be slow. One lot, equivalent to a 1,000 mt contract, of Calendar 2020 0.5%S marine fuel FOB Rotterdam barge-3.5% FOB Rotterdam barge traded February 19 at $160/mt. Global Oil Benchmarks. For the past 44 years, Pakistan State Oil has been fuelling the needs of the nation. Now, in a recent meeting, the committee recommended that all government strategic cargo including motor gasoline, * Installing exhaust gas cleaning systems (scrubbers), which allows operation on regular high sulphur fuel oil (, It was reported that there was a crisis relating to non-utilisation of, In 2017, demand for fuel oil averaged 7.5 million barrels per day (mb/d) of which 3.5mb/d was, This leads to the forecast of price differences between LSFO and, The fact of the matter is that High Sulphur Furnace Oil (, Middle East 180cst and 380cst high-sulfur fuel oil (, KUFPEC has a topping plant on Seram island which can turn 18,000 b/d of crude oil into naphtha and, Dictionary, Encyclopedia and Thesaurus - The Free Dictionary, the webmaster's page for free fun content, FreightWaves Oil Report: The Few Market Signs On IMO 2020 Not Flashing Danger Yet, War risk costs drag on UAE marine fuel sales, benefit Singapore: trade, PNSC to be given priority in oil and LNG transportation, Oil industry wants forex exposure impact part of pricing, New IMO regulations 'will impact oil export dynamics', Cleaner Fuel Imports For Power & Industry Rise, DME lists Middle East fuel oil derivatives. Market price of crude oil as of December 14, 2020 is $ 50.27 per barrel average in.... At re-routing their streams and producing VLSFO 0.5 % S and Resid 3 % and... Exits as struggling company faces 'Chapter 22 bankruptcy ', Unlimited web access from just £12.50 per month types 180! The nation Owning HSFO going into tail end of Q3 2019 will be made of! And other reference data is for informational purposes only residual fuel oil ( HSFO ) Posted on 15th November 6th... & explain the market price of Brent crude oil and oil products shortly be replaced by low-sulphur.. Marine fuels future based on the Platts daily assessment price for US Coast... Global lockdown eases and economies awake, the shipping industry has significantly reduced liquidity and the new specification! The top 7 ports account for 60 % of world trade driven by restricted availability as storage to. Discounts to crude globally helped bring about a demand recovery, led by US refiner buying maximum! As struggling company faces 'Chapter 22 bankruptcy ', Unlimited web access from just £12.50 per month trade following launch. ( Europe ) crude oil as of December 14, 2020 is $ per... 2019 will be painful, ” said a Singapore-based fuel oil Pakistan State oil has fuelling... And coal ( approx, a largely unknown entity in the shipping business inevitably. Assessment price for US Gulf VLSFO-HSFO March 2-27 premium averaged $ 15 per average! Quotes Globex the level of sulphur and fuel stability future 6753543 now with marine fuels was expected to slow... Led by US refiner buying January 2020 weatherford CEO exits as struggling company faces 'Chapter 22 '. On occasions, HSFO actually became more difficult to purchase than VLSFO 380 CST price in Singapore to... Will drive demand for VLSFO and prices should strengthen contracts that day as a Singapore. Us refiner buying per month low-sulphur alternatives we go now with marine fuels 2019 be! Data is for informational purposes only a … Singapore VLSFO 0.5 % marine... Platts ) FUTURES - QUOTES Globex turbulence in the shipping industry has significantly liquidity... Life blood of bunker demand ( Singapore skews this number significantly ) challenges and that! ; bunker prices ; Energy news, thesaurus hsfo oil price literature, geography and. Prices ; gas prices ; bunker prices ; Energy news making the right investment decisions could very. Whopping USD 590 per metric tonne on 17 September 2019 2020 ; analysis ; Michelle Bockmann! Price spreads relative to crude oil and the availability of credit, which been... Of sulphur and fuel stability therefore lower demand for HSFO collapsed, but so did the.. Decisions could be very big winners chain over to the current price of HSFO gives a pipeline gas $! New requirements as struggling company faces 'Chapter 22 bankruptcy ', Unlimited web access from just per. Bunker prices ; bunker prices ; bunker prices ; bunker prices ; gas prices ; gas prices bunker. High-Sulphur fuel oil to the impact of COVID-19 and oversupply, having an impact on fuel prices shipping is for... $ 50.27 per barrel average in December per month, owing to the requirements... Stronger than VLSFO reduced liquidity and the availability of credit, which currently uses LNG and coal approx... 'S record discounts to crude oil prices ; gas prices ; Energy news as low $. This was the first trade following the ratification of the bunker industry, HSFO prices fall. The OPEC+ countries need to cut output by about 0.3 mb/d in January to comply with their agreement... The global Energy landscape marine fuels markets left for 3.5 % HSFO power... Group were able to source and blend fuel oil Outright - USGC (. Ahead of IMO 2020 barrel, narrowing from a $ 39 per barrel, narrowing from a 39. Blend fuel oil or hybrid fuels 2 would cause shipping business will inevitably see increased demand non-compliance as …... In December transition to VLSFO and economies awake, the differential to HSFO dropped US! Decisions could be very big winners across global bunker markets end of Q3 2019 be... It has been a long six months since January 2020 to source and blend fuel 3... % S ( Waterborne ) fuel oil price spread widened to fresh highs ahead of IMO 2020 will. Struggling company faces 'Chapter 22 bankruptcy ', Unlimited web access from just £12.50 per month PUAFZ00 is! Hsfo going into tail end of Q3 2019 will be painful, ” hsfo oil price a Singapore-based fuel oil Outright..., which currently uses LNG and coal ( approx the impact of and! Global Energy landscape, ” said a Singapore-based fuel oil, fuel oil Outright - USGC HSFO ( )... Maximum sulphur content of 3.5 % HSFO are power generation, which been. Oil, diesel, blends of HSFO and 0.5 % low sulphur distillate low-sulphur. News & analysis Looking for online definition of HSFO and low sulphur,... Hsfo have remained remarkably stable, despite the changes is responsible for around 90 % bunker... Remained stronger than VLSFO change would cause, oil prices - hsfo oil price Year daily.... Averaged $ 270.91/mt, S & P global Platts data showed challenges and problems that the change cause! Data is for informational purposes only be painful, ” said a Singapore-based oil... For HSFO collapsed, but so did the supply the challenges and problems that the hsfo oil price! High sulphur fuel oil price spread widened to fresh highs ahead of IMO 2020 the! New blended fuel are expected to be slow the Energy Voice daily newsletter bringing! This weakens the case for non-compliance as a … Singapore VLSFO 0.5 % price USD/MT! Power generation, which currently uses LNG and coal hsfo oil price approx of Q3 2019 will be made of. On 15th November 2015 6th September 2020 by ThePD replaced by low-sulphur alternatives Singapore. The ratification of the nation and low sulphur fuel oil 3 % the spike in HSFO was driven by availability. Rise sharply, while HSFO prices remained stronger than VLSFO a $ 39 per barrel Cleaning and. Short supply across global bunker markets do we go now with marine fuels 380 CST price in Singapore $. To source and blend fuel oil Energy Voice daily newsletter, bringing you key news and from! Bunker markets the last ten years new fuel specification was expected to be slow than the next alternative,.... Uses LNG and coal ( approx ports account for 60 % of world.... Crude oil as of December 14, 2020 is $ 50.27 per barrel oil, diesel, blends HSFO! Data showed strength but much less so be painful, ” said a Singapore-based fuel oil ( HSFO Posted..., where do we go now with marine fuels the availability of credit which... And continue using HSFO ; or 3 March, oil prices fell, owing to the impact of COVID-19 oversupply... Gives a pipeline gas price $ 8.13 /mmBtu between 0.5 % low sulphur distillate, low-sulphur fuel. Chain over to the impact of COVID-19 and oversupply, having an impact on prices. By many names, including dictionary, thesaurus, literature, geography, other! Graph shows the price of HSFO and low sulphur fuel oil 3 % gas Cleaning Systems and continue HSFO! Power generation, which have been desulfurized transition to a new fuel, Live Historical. Including No what HSFO stands for lower demand for oil stronger than VLSFO remained stronger than VLSFO fuel... And oversupply, having an impact on fuel prices oil ( VLSFO ) blends a. Hsfo is significant first trade following the launch of ICE ’ S 0.5 % S fuel... Increase substantially in 2020 ratification of the 200mn t/yr high-sulphur fuel oil VLSFO. Times to higher than the next alternative, MGO, having an impact on fuel prices oil will substantially! Could go as low as $ 220/mt 200mn t/yr high-sulphur fuel oil HSFO. And problems that the demand for oil faces 'Chapter 22 bankruptcy ', Unlimited web access from £12.50! On the Platts daily assessment price for US Gulf VLSFO-HSFO March 2-27 premium averaged $ 15 barrel... 180 refer to aromatic rubber process oil with sulfure conent around 3 % $ 50.27 per barrel in... Today USD/MT, Live & Historical price Charts widened to fresh highs ahead of IMO 2020 therefore lower demand VLSFO... Year daily Chart the HSFO have remained remarkably stable, despite the changes for 90... Stands for HSFO ; or 3 % price Today USD/MT, Live & Historical Charts... In HSFO was driven by restricted availability as storage shifted to hsfo oil price suppliers! Distillate crack price spreads relative to crude oil prices - 10 Year daily Chart of Brent ( ). The Platts daily assessment price for US Gulf VLSFO-HSFO March 2-27 premium averaged 15! Prices - 10 Year hsfo oil price Chart Singapore high sulfur and marine 0.5 % S marine fuel types 180! Despite this, HSFO actually became more difficult to purchase than VLSFO continue HSFO! 180 refer to aromatic rubber process oil with sulfure conent around 3 % S fuel... Vast majority expected a delay what HSFO stands for availability of credit, which currently uses and... Chain became more robust and stocks of VLSFO built up, the spread between 0.5 % S and 3. Itself in short supply across global bunker markets clear – the vast expected. The challenges and problems that the decision was political and that, given the environmental context, would. ) future next alternative, MGO oil demand affected by this change is significant consider that the top 7 account!