Demand for IMO 2020 fuel rising in Russian far east

Bunkering companies in the Russian far east expect stronger demand for 0.5pc sulphur fuel in the region in September ahead of the International Maritime Organization (IMO) sulphur cap implementation in January 2020.

Local suppliers are estimating the demand for the IMO 2020 compliant fuel at around 20,000t this month. About 10,000t of this volume is expected to be supplied from Rosneft's Komsomolsk refinery which is nearly twice the amount of 0.5pc sulphur fuel oil the company sold in July-August.

Product offers from independent bunkering companies are also heard in the regional market. The 0.5pc sulphur fuel originating from Sibprom's teakettle refinery in Siberia was available at around $555-560/t dob Primorsky krai. But buyers' interest in the product at this price level was moderate and few deals were likely done at this level.