2 Heating Oil: New York Harbor since 1986. Ultra-Low Sulphur Fuel Oil Shell’s new residual fuel formulation (Patents Pending) is designed to be utilised by engines rated to use ISO 8217 residual fuels. Low-sulfur fuels consumed across freight transportation reached their high prices for 2020 on January 6 and have experienced intense downward pressure since. Multiply For $/Bbl. The tone of IMO communications, however suggests that sanctioned non-compliance for this sort of reason may not be forthcoming. The challenge for the refining industry will be two-fold: Meeting the 0.50%S demand could be initially achieved by increasing refinery throughput and changes in refinery conversion runs to produce fuel blends of high sulphur residual and low sulphur distillate, together with some low sulphur fuel oil. Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio. There has been speculation that this may be allowable if, for example, suitable fuels are not available or if a scrubber has been ordered, but not yet installed. © 2019 Copyright - Sustainable Maritime Solutions Ltd for EGCSA. Beginning July 26, 2010 publication of Ultra Low Sulfur Diesel (ULSD) price became fully represented by the Diesel Average All Types price. These include: 60 - Manufacturers, 40 - Exporters, 20 - Wholesalers, 50 - Suppliers, 12 - Retailers, 6 - Buying Houses, 8 - Traders, 2 - Services, 2 - Others, There are 479 high sulfur fuel oil importers and buyers on ExportHub. Switch away from HSFO to low-sulphur fuels e.g. marine gas oil, diesel, blends of HSFO and low sulphur distillate, low-sulphur residual fuel oil or hybrid fuels 2. In the fall of 2018, additional policy analysis of a potential high sulfur (HS) No. The company is comprised of four Designated Contract Markets (DCMs).  From an all-time high of $343 per ton in the first week of the year, the Hi5 has sat stubbornly in the $50 to $65 range for most of 2020. Manage the risk associated with renewable energies, environmental change and sustainable investments. The marine fuel sector may be small, but it has the potential to have significant influence on global crude oil and refined product markets, so said Victor Shum Vice President of IHS Markit at the recent Asian Emissions Technologies conference in Singapore. 13160 Contract Symbol. The front-month July FOB Singapore 180 CST high sulfur fuel oil/Dubai crack swap was assessed at minus $1.834/b Thursday, close to an eight-month high. Settlement prices on instruments without open interest or volume are provided for web users only and are not published on Market Data Platform (MDP). In 2016, the International Marine Organization (IMO) agreed to limit the sulfur content in all marine fuels to 0.5 percent beginning in 2020, with the exception of fuel burned in Sulfur Emission Control Area regions, which are already at lower sulfur limits. The prevalent marine fuel last year, high sulfur fuel oil (3.5% sulfur), averaged $421/mt in April 2019 at Rotterdam, S&P Global Platts data shows. Usually these are marine fuel types IFO 180 or IFO 380, which have been desulfurized. Demand for high-sulfur residual fuel oil for ship bunkers was 3.5 million barrels per day in 2018—out of 7 million barrels per da… Ship operators have a choice of 2020 compliance options: 1. Please choose another time period or contract. Market Specifications Trading Screen Product Name Platts FO Trading Screen Hub Name USGC HSFO (Platts) Rule Number. Low sulfur fuel oil (LSFO) Heavy fuel oils are referred to as low sulfur fuel oil (LSFO) if their sulfur content is below 1%. 2.2 Global High Sulphur Fuel Oil Revenue Share by Manufacturers (2015-2020) 2.3 Global High Sulphur Fuel Oil Average Price by Manufacturers (2015-2020) 2.4 Manufacturers High Sulphur Fuel Oil Manufacturing Sites, Area Served, Product Type 2.5 High Sulphur Fuel Oil Market Competitive Situation and Trends CME Group is the world's leading and most diverse derivatives marketplace. The marine industry is the most significant demand centre for high sulphur residue from product refining, which is the most difficult stream to be processed and upgraded in refineries. If, as predicted, there is a sharp drop in demand for high sulphur fuel oil (HSFO) in 2020 when the global 0.50% sulphur limit comes into force, it is likely to have an acute impact on the price differential with low sulphur fuel products. The industry has traditionally taken a wait and see approach and without an immediate incentive to invest some industry commentators suggest that a more significant uptake in the number of installed scrubbers can only be expected from 2019/2020, when supported by the increasing high sulphur-low sulphur fuel price gap. Search our directory for a broker that fits your needs. There were no trades for this contract during the time period chosen. Stream live futures and options market data directly from CME Group. marine gas oil, diesel, blends of HSFO and low sulphur distillate, low-sulphur residual fuel oil or hybrid fuels, Install Exhaust Gas Cleaning Systems and continue using HSFO; or, Producing sufficient quantities of 0.50%S fuels; and, Finding ways to dispose of the excess high sulphur residue, Because of uncertainty regarding the required fuel mix (which depends on the adoption of scrubbers and LNG), The tight time schedule between IMO deciding on the 0.50%S cap in 2016 and entry into force in 2020; and, Uncertainties around enforcement and the possibility of waivers. While it is predicted that the price differential will gradually return to more usual levels over a number of years as the installation of scrubbers increases and refinery investments facilitate the production of higher volumes of low sulphur fuel oils, it appears that ship operators investing in scrubbers for 2020 could be very big winners, when charterers start to demand the commercial advantage of HSFO capable vessels. Various reports have suggested that a high sulphur-low sulphur price differential of $285-370 would mean a scrubber payback of nine to 18 months, while a … Prior to the lower sulfur cap regulation, Northwest Europe was net long 3.5% sulfur fuel oil, sending supply east to Singapore as well as down to Mediterranean ports. Unit Divide For Cts/Gal Divide For $/Bbl. • Refi ner sales of No. https://www.egcsa.com/wp-content/uploads/egcsa.png. By contrast, despite higher physical bunkering demand for LSFO, US Gulf 0.5pc sulphur fuel oil as a share of the price of Brent has fluctuated at 112-119pc of the price of Brent, after climbing up to 122pc at the beginning of November. Impact on High Sulfur Vacuum Resid & High Sulfur Fuel Oil (HSFO) Prices More than two million barrels per day (MMBPD) of high sulfur vacuum resid (HS resid) will likely be displaced from the global marine fuel pool by the IMO 2020 Rule in the first year of the rule’s implementation (2020). In Rotterdam 380 CST HSFO was trading at $270.50/mt on Monday, according to Ship & Bunker pricing, the highest level since March 6. Of course, there is always the probability of deliberate unsanctioned non-compliance by some, the extent of which will depend on the strength of enforcement. Std. In fact, it is the cheapest liquid fuel available. © 2020 CME Group Inc. All rights reserved. Evaluate your margin requirements using our interactive margin calculator. High-Low Sulfur Fuel Oil Spread Swap Futures (Platts) Prices The All Futures page lists all open contracts for the commodity you've selected. Enough IMO 2020 compliant fuel oil will be available to shipping if it is prepared to pay for it, an investment bank has said. Explore historical market data straight from the source to help refine your trading strategies. The new assessment from Skandinaviska Enskilda Banken couches fuel oil prices relative to the price of other refined oil products. 1 heating oil mandate was completed. Switch to LNG Non-compliance is also possible. High-sulfur fuel oil (HSFO) prices in Northwest Europe have returned to the level they were at before this year's crude collapse in March. The IEA estimates in the annual report that demand for high sulfur fuel oil (HSFO), the main vessel fuel since the 1960s, will plunge to 1.4 million bpd … The tone of IMO … Ship operators have a choice of 2020 compliance options: Non-compliance is also possible. High-density 500/700cSt fuel oil is a well established and proven marine bunker fuel, suitable for use in large modern vessels with low-speed diesel engines. The price premium for low-sulfur marine fuel and any spillover effects for diesel were short-lived because of the fuel demand destruction of COVID-19. This contract has not yet traded and there is no quotes information available at this time. High-sulphur fuel oil (HSFO) has been enjoying high cracks since the end of November, but prices are expected to ease at the end of the year as a result of the International Maritime Organization (IMO) 2020 marine fuel regulation. There are total 201 trusted high sulfur fuel oil companies. As of December 1, 2010 (September 1, 2006 in California), any on-highway diesel fuel sold is ULSD as mandated by EPA on-highway diesel fuel … It is a relatively low viscosity, low density fuel oil with good ignition properties. Intraday futures prices are delayed 10 minutes, per exchange rules, and are listed in CST.  However, it is thought unlikely that there be additional refinery investments on top of the ones that are already planned: So, despite the initial investments in refineries and scrubbers, and some non-compliance, a residue surplus of about 400,000 barrels per day is expected in 2020. However, as forecast by Platts Analytics, declining demand for 3.5% fuel oil is set to see a collapse in the east-west arbitrage. Those making the right investment decisions could be very big winners. LNG is seen as an expensive possible medium-term option with challenges, as it is heavily reliant on infrastructure investment and more suitable for newbuilds rather than for retrofits, so most ship operators will opt to simply switch fuels for compliance in 2020. 6 3%, Gulf Coast No. According to the new rules by the International Maritime Organization (IMO), only 0.5-percent or lower sulfur fuel oil should be used on ships beginning January 1, … Switch away from HSFO to low-sulphur fuels e.g. It is predicted that the oversupply will result in a dramatic reduction in the price of HSFO driven down by the need to be competitive with thermal coal, as the surplus will be available to the shoreside power generation market. These prices are not … In July 2018, the ADEC purchased new data to update the fuel prices used in the analysis. 2 ultra-low sulfur diesel fuel increased to 159.8 million gallons per day in September. Install Exhaust Gas Cleaning Systems and continue using HSFO; or 3. The volume of oil demand affected by this change is significant. … Access real-time data, charts, analytics and news from anywhere at anytime. … Modern Slavery Act Transparency Statement. S&P Global Platts US Gulf Coast 3%S residual fuel oil assessment is a benchmark assessment that reflects the price of high-sulfur fuel oil at five locations within the Houston Ship Channel of Texas. Get quick access to premium educational content, including expert-led webinars, a real-time trading simulator, and more. Emblematic of the topsy-turvy year shipping has endured, the Hi5, the spread between high and low sulfur fuel oil is closing out 2020 heading into triple-digit territory, reports Splash. Until the end of 2014, ships could still travel through Emission Control Areas (ECAs) with this type of marine fuel. Disclaimer  |  Privacy Policy  |  Cookie Policy  |  Terms of Use  |  Data Terms of Use  |  Modern Slavery Act Transparency Statement  |  Report a Security Concern. There has been speculation that this may be allowable if, for example, suitable fuels are not available or if a scrubber has been ordered, but not yet installed. The International Energy Agency forecasts that High-sulphur fuel oil demand will fall 60 percent next year while marine gasoil demand will be more than double due to new international regulations on shipping fuel, says an article published in Reuters. It is more cost competitive than 380cSt fuel, and therefore offers operators comparable performance at lower cost. This content has been added to provide information on the expenditure The current price of heating oil as of December 14, 2020 is 1.37 per gallon. Interactive chart showing the monthly closing price for No. Create a CMEGroup.com Account: More features, more insights. Disruptions anticipated though firms had years to prepare The prices shown are in U.S. dollars. The benchmark, published under the data code PUAFZ00, is often referred to by many names, including No. All-time high. Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX. 2 fuel oil sales fell 5.3 cents to $1.411 per gallon, while the average wholesale price decreased 8.8 cents to $1.091 per gallon. Heating Oil Prices - 30 Year Historical Chart. Its assessment of a pricey 0.5% sulfur fuel oil has already been suggested by price reporting agency Argus Media.. 2020 - dramatic reduction in high sulphur fuel oil price predicted. Multiply For $/MT Bbl/M.Ton; HIGH SULFUR FUEL OIL: 3.5% FOB MED $/MT: 2.66: 6.35 : 6.317: HIGH SULFUR FUEL OIL EGCS – mature, robust, reliable, but what happens if there is a probl... 2020 – dramatic reduction in high sulphur fuel oil price predicted. Get quick access to tools and premium content, or customize a portfolio and set alerts to follow the market. 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