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Fujairah delivered marine fuel 0.5%S hits record low for second time in 2 days on coronavirus

Fujairah delivered marine fuel 0.5%S tumbled $30/mt day on day to hit a fresh record low of $420/mt — from the previous record low hit the day before — as the coronavirusoutbreak continued to impact demand, market sources said.

The assessment was last lower at $450/mt on Wednesday, S&P Global Platts data showed.
Some UAE-based bunker suppliers have been lowering price indications for bunker fuel in the hope of encouraging sales, but demand has remained tepid as the coronavirus spreads beyond China across Europe and the Middle East and impacts shipping globally, market sources said.

“The virus effect is stronger that what we thought,” a UAE-based bunker trader said.

Most suppliers are currently able to offer prompt delivery of marine fuel 0.5%S — in stark contrast to the average of 8-10 days forward seen in December and early January.

“Prices are lower day on day but I still can’t fix any deal. There is no incentive at all to be offering any prompt delivery cargo,” a UAE-based bunker supplier said.

Demand for LSFO in Fujairah has fallen 15% since mid-January, following the transition to IMO 2020 on January 1, Platts had reported earlier.

The Fujairah-delivered marine fuel 0.5%S premium to benchmark FOB Singapore marine fuel 0.5%S was down a sharp 73.25% at $33.79/mt Thursday from a record high of $126.32/mt on January 6, Platts data showed.

“It’s hard to tell if prices will recover; there is no telling how prices will move these days,” the supplier added.
Source: Platts

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