Argus LSFO Price Assessments for Fujairah
Oil price reporting agency Argus Argus has launched low-sulphur fuel oil (LSFO) price assessments for the ex-wharf and delivered bunker markets in Fujairah.
Fujairah is a major bunker fuel hub on the Gulf of Oman in the UAE, supplying up to 1mn t/month to vessels.
The Argus LSFO 0.5pc sulphur prices for the ex-wharf and delivered bunker markets are the first assessments to be launched in the Fujairah market for the quality of fuel needed to comply with the International Maritime Organisation's (IMO) new sulphur limits for marine fuel. The IMO's new regulation will reduce the maximum sulphur content in marine fuels to 0.5pc from 3.5pc from 1 January 2020.
The IMO is a division of the UN with a remit to provide a regulatory framework for shipping. The tighter sulphur regulations are intended to reduce air pollution. Some coastal regions already have Emission Control Areas with a 0.1pc sulphur limit, but the global limit of 0.5pc will cause major disruption to the marine fuels industry, which will require new fuels and new price benchmarks against which to assess them.
The Argus LSFO 0.5pc sulphur ex-wharf price in Fujairah will assess 4,000-7,000t barge-size cargoes of product with a maximum viscosity of 380cst for deliveries taking place within 5-15 days from the trade date.
The Argus LSFO 0.5pc sulphur delivered bunker price in Fujairah will assess deliveries taking place 4-12 days from the trade date for shipments of 500-3,000t with a maximum viscosity of 380cst. In the absence of physical trade indications, Argus will assess the value of the product based on indicative numbers provided by a range of market participants.
"The IMO 2020 sulphur cap presents a strong opportunity for the development of independent pricing in Fujairah, the region's largest trading and bunkering hub," Argus Media chairman and chief executive Adrian Binks said. "Argus' LSFO 0.5pc sulphur prices for the ex-wharf and delivered bunker markets in Fujairah provide the solution the bunker community requires."