Bunker Prices Stabilize Over the Week
Oil market fundamentals continue to be weak especially with increasing COVID-19 cases globally. This surge in infections raises concerns of new lockdown measures on the European continent over the next few months, which may lead to a slower recovery of global oil and fuel demand.
The World Bunker Index MABUX has been steady and demonstrated slight irregular changes for a week. The 380 HSFO index fell from 291.90 to 291.35 USD/ MT (-0.55 USD), VLSFO added 2.00 USD: from 346 to 348 USD / MT while MGO gained 4.60 USD: from 407.70 to 412.30 USD / MT. There are no any significant changes in the Global Scrubber Spread (SS) (price difference between 380 HSFOs and VLSFOs) as well: it has added only 1.57 USD and averaged 53.41 USD (51.84 USD a week ago).
Rotterdam SS Spread’s lagging behind Singapore’s SS index significantly reduced over the past three weeks. SS Spread in Rotterdam changed during the week in a range of 54 (05.10) – 66 USD (01.10; 08.10). SS weekly average increased by 6.50 USD from 54.00 USD to 60.50 USD.
In Singapore SS Spread rose slightly during the week and added 5 USD: from 67 USD to 72 USD. SS weekly average gained 2.00 USD: from 67.33 USD to 68.33 USD.
Meantime, bunker sales volumes are starting to pick up again in some ports, with Singapore being an example of such a trend. Preliminary estimates from the Maritime and Port Authority of Singapore on Sept. 14 showed that in August bunker fuel sales in Singapore, added 0.27% on the month and rose 13.6% on the year to 4.17 million MT.
BIMCO is concerned that the inclusion of shipping in the EU Emissions Trading Scheme (ETS) will inhibit global action on reducing CO2 emissions. Instead, BIMCO urges the EU to work with the international community at the International Maritime Organization (IMO) to get a global market-based measure established, when the required technology is available, which would ensure the industry operates on a level playing field. When the EU attempted to unilaterally enforce its ETS on airlines flying in or out of EU in 2012, it was met with stiff opposition from large countries, such as China, India and the U.S. An EU-imposed regional ETS for shipping could lead to similar responses.
IMO reported, the implementation of the IMO 2020 fuel regulation had been smoother than expected. Only 55 Fuel Oil Non-Availability Reports (FONARs) submitted since the introduction of the 0.50% global sulphur cap this year.