Argus, the oil price reporting agency has introduced LSFO price assessments for the former yard and supplied the bunker markets in Fujairah.
Fujairah is a major bunker hub on the Gulf of Oman in the United Arab Emirates, delivering up to 1 million t / month of vessels.
The Argus LSFO 0.5pc sulfur prices for the former quay and delivered bunker markets are the first ratings to be implemented on the Fujairah market for fuel quality required to meet the new sulfur limits set by the International Maritime Organization (IMO) To comply with marine fuel. The new IMO regulation will reduce the maximum sulfur content in marine fuels from 3.5% to 0.5% from 1 January 2020.
The IMO is a United Nations division tasked with creating a regulatory framework for shipping. The stricter sulfur regulations are intended to reduce air pollution. Some coastal regions already have emission control zones with a sulfur limit of 0.1%, but the 0.5% global limit will significantly affect the fuel industry, requiring new fuels and new price benchmarks to assess them.
The Argus LSFO Sulfur Price for Sulfur from a Quay in Fujairah will evaluate shipments of 4,000 to 7,000 tonnes and a maximum viscosity of 380 cst for deliveries within 5 to 15 days of the trading day.
The bunker price in Fujairah delivered with Argus LSFO 0.5pc will estimate deliveries made 4-12 days from the trading day for deliveries of 500-3,000 t with a maximum viscosity of 380 cst. In the absence of physical trade information, Argus will evaluate the value of the product based on indicative figures provided by a number 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.”