26/03/10
South Africa MGO price at unprecedented high
South Africa MGO price at unprecedented high
London, 10 March (Argus) — The price of marine gasoil (MGO) at Cape Town, South
Africa, more than doubled today, with an acute lack of availability caused by
disruption since last week to marine fuels shipments from the Mideast Gulf. The
delivered on board (dob) price of 0.5pc sulphur marine gasoil surged to $3,200/t
dob today, 10 March, from $1,453.50/t the prior day. Today's price is by far the
highest on Argus' records that date back to December 2012, beating the previous
record, set in the early days of the Russia-Ukraine conflict, of $1,565/t on 14
June 2022. Prices in Europe and Asia corrected heavily downwards today after big
gains on Monday, chasing a sharp drop in crude and cargo prices. Front-month Ice
Brent fell to $88.89/bl at 16:30 GMT from $100.10/bl yesterday, when levels
reached the highest since July 2022, while front-month Ice gasoil price dropped
to $1,042.50/t from $1,166/t. The slump in crude values followed US president
Donald Trump's statement that the war with Iran was "practically over" and he
floated the possibility the US may ease sanctions on Russia and provide naval
escorts through the strait of Hormuz if required. The G7 also reiterated
readiness to support supply "if needed" but ruled out immediate emergency stock
releases. Prices for very-low-sulphur fuel oil (VLSFO) in the key port of
Singapore fell by $142/t to $1,049.14/t dob, and prices for high-sulphur fuel
oil (HSFO) posted a steeper fall of $242.60/t to $830/t dob. In Europe, prices
in the Amsterdam-Rotterdam-Antwerp (ARA) and Gibraltar-Algeciras-Ceuta hubs fell
today. But trading volumes have slowed significantly since the outbreak of the
US-Iran war as buyers held back purchasing when they could or booked further
ahead for late-March and early April-deliveries. Prices in Cape Town reflect the
lack of flexibility some buyers have in waiting out the price volatility. And
with doubts still about the viability of shipments through Hormuz, prices
elsewhere in South Africa and premiums in the Middle East, where the effects of
shipment disruptions are more immediately felt, continued to climb today. The
VLSFO price in Cape Town was indicated as high as $1,550/t today, nearly $400/t
above Monday's assessment, and in Durban VLSFO was offered at $1,400-1,500/t,
said traders. In the Middle East, marine fuel premiums rose to record highs .
The VLSFO price against the Singapore 0.5pc sulphur marine fuel value, used as a
price basis by Fujairah traders, rose to a $161/t premium, from $56.50/t. By
Siew Hua Seah Send comments and request more information at
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