NEW YORK/SINGAPORE - The price of very low-sulfur fuel oil has risen in recent months, a sign of increasing worry there is not enough of the fuel to comply with new global shipping laws that took effect this year, market participants said.
That is an indication that refineries may need to increase production of VLSFO as tankers shift from dirtier, high-sulfur fuel to a cleaner product to comply with International Maritime Organization regulations designed to reduce smog. This suggests not enough VLSFO is being produced and raises concerns about supply this coming spring when refiners go into maintenance season, said Rick Joswick, head of oil pricing and trade flow analytics at S&P Global Platts in New York.
Chinese marine fuel suppliers have signed up short-term deals to purchase VLSFO from companies such as oil major Shell, Germany’s Uniper and U.S. commodities trader Freepoint.
calvinfroedge Look like birds that are flocking away from an apocalypse
Almost like ship operators who have been publicly suggesting that scrubbers weren’t necessary because the market would produce low sulfur fuel in appropriate quantities were wrong.
What fleet is this,Klingon or Federation?
CLEAN GREEN REIGNS SUPREME