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Houston offers second-lowest VLSFO prices

  • Märkte: Oil products
  • 10.02.20

Houston's very-low sulphur fuel oil with 0.5pc sulphur content (VLSFO) had the second-lowest assessment after Rotterdam among major bunkering hubs in the first week of February amid ample supply.

Other major hubs where international shippers might choose to refuel based on price include Fujairah, Singapore and Panama.

Houston retail VLSFO was at $478/t delivered, with that price lower only in Rotterdam at $461/t delivered average for the first week of February, according to Argus assessments. VLSFO in Singapore, which is the biggest selling port internationally, was assessed at an average of $531/t delivered in the same week.

US Gulf coast suppliers said more low-sulphur vacuum gasoil (VGO) is in the bunkering pool — either blended or outright — as gasoline and gasoil cracks have become less economic and prompted refiners to run their fluid catalytic crackers (FCC) at lower rates.

Argus assessed wholesale US Gulf 0.5pc sulphur residual fuel oil at $436.23/t ($64.84/bl) and 0.5pc sulphur VGO at $414.81/t ($61.60/bl) average for the first week of February.

Meanwhile, seller competition for 0.5pc sulphur fuel oil has ramped up in the US Gulf coast. One supplier compared competition in that market to seller competition forhigh-sulphur fuel oil (HSFO) prior to 2020. Houston VLSFO retail prices in the first week of February fell by 20pc from their peak of $599/t in December.

By comparison demand for HSFO for bunkering in Houston has dropped to several inquiries per week from as many as 12/day in 2019 amid ample supplies. HSFO buying interest declined in the lead up to the International Maritime Organization's (IMO) global marine fuel emissions regulation, which started on 1 January and effectively capped marine fuel sulphur content to 0.5pc from 3.5pc.

In 2019, before VLSFO demand ramped up, HSFO accounted for the bulk of marine fuel sales. In 2019, before VLSFO demand ramped up, HSFO accounted for the bulk of marine fuel sales. Fujairah, closely followed by Rotterdam, was offering the cheapest HSFO in the fourth quarter of 2019.


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