The global commodities and price assessment provider S&P Global Platts has pegged 0.5% sulphur marine fuel delivered in Singapore at US$366.18/tonne, 12 months ahead of the IMO global sulphur cap's introduction.
The price is based on the notional bids, offers and transactions on Platts’ Market at Close online system (MOC) at 07:00 GMT on Wednesdays. The MOC system also assesses similar trades in the region.
According to MOC, the notional value for FOB Singapore Marine Fuel 0.5% cargoes for 17 January-1 February loading is at a premium of US$44.50/tonne to the mean of Platts Singapore 380 CST HSFO, equivalent to about US$371/tonne.
Platts’ reported two significant trades.
Oil major BP submitted a bid for 20,000 tonnes of 0.5% marine fuel on an FOB Singapore basis for 22-26 January loading at US$335/tonne before lowering this to US$332/tonne. The energy group also offered a similar volume of 0.5% marine fuel for 22-26 January ship-to-ship loading from its floating storage unit Grace Star at US$395/tonne.
Mitsui Energy Trading Singapore also offered 20,000 tonnes of 0.5% marine fuel for 27-31 January ship-to-ship loading from its floating storage unit Energy Star at a premium of US$75/tonne to the average of mean of Platts Singapore balance January 180 CST high sulphur fuel oil assessments.
The pricing indicates a premium of US$44.50/tonne to the mean of Platts Singapore 380 CST high sulphur fuel oil and a premium of US$41.99/tonne to 180 CST HSFO.
These have been attempts to gauge the impact on the expected premium ahead of the IMO global sulphur cap’s introduction on 1 January 2020:
The introduction of Platts’ low sulphur marine fuel price assessment is valuable data for owners and operators analysing their compliance strategy for the IMO 2020 global sulphur cap.
In related news, Bomin’s group credit manager Paul Millar told Ship & Bunker News that an owners’ choice of compliance strategy would not impact their credit lines.
Mr Millar felt that regardless of the price of the fuel, credit risk remained with the client and that it was the soundness of the client that was the main criteria.
The impact of low sulphur price will be discussed at the Americas Sulphur Cap 2020 Conference in Houston in March.