The Singapore Marine Fuel 0.5%S cash differential over swaps values flipped into positive territory on Sept. 17 for the first time since Aug. 3, supported by lower stocks and stable demand, S&P Global Platts data showed.

Stocks rose for the first time since Aug. 19 when it had dropped for three consecutive weeks to an eight-month low of 20.735 million barrels, the data showed.

Japan's total volume of ship and oil domestic cargo ship transports plunged 28% on the year to 15.56 million mt, or 97.9 million barrels, in July, according to the latest data from the Japan Federation of Coastal Shipping Associations.

NYMEX WTI futures were trading higher midday Sept. 18 as offshore operators in the western Gulf of Mexico began evacuating platforms ahead of the formation of a tropical depression in the region.

The premium of Singapore-delivered to Fujairah-delivered, 0.5% sulfur marine fuel narrowed to $2/mt on Sept. 18, the lowest in three months, S&P Global Platts data showed, on tight barge availability and an uptick in demand in the Middle East.

The glut in low sulfur fuels has been a double-edged sword for the shipping industry. It muted the impact of availability and compatibility concerns at the cost of lower prices, which have mirrored the wider crude market since May.

The spread between physical prices for 3.5%S FOB Rotterdam barges in 2019 and 2020 reached as close as $4/mt year on year on Sept. 1, assessed at $257/mt, before the spread widened again.

US crude oil inventories likely edged lower in the week ended Sept. 4 as refinery demand picked up following Hurricane Laura, an S&P Global Platts analysis showed Sept. 8.

The discussion has now pivoted to decarbonization, with methanol potentially set to play a bigger role, Raitt said.

South Korea, which relies on imports to meet all of its oil and gas needs, is making a push towards renewable and clean energy sources including hydrogen, but hurdles such as high costs and political uncertainty could slow progress.

Group is also looking at alternative fuels such as LNG and plans are underway on that side, Cosulich said.

DFDS will inject the methanol into combustion chambers, replacing up to 10%-15% of HFO needed to fuel the same voyage currently.

Prices for twenty-foot equivalent unit containers have been increased by $300 per unit, while forty-foot equivalent unit containers have risen by $400 per unit, the company said Sept. 7.

Going ahead, the third quarter results should mark a new improvement, the carrier said.

The engine room of the ship caught fire around 38 nautical miles from Sri Lanka's coastline but no oil spill has been detected so far.

"The non-compliant fuel oil on board had sulfur content of 1.38%," AMSA said.

From Jan-Mar 2020, about 96% of the ships that arrived in the Port of Singapore used compliant fuel.

"As the Korean coastline is not very long, it is efficient to use MGO [marine gasoil]," a bunker trader in South Korea said.

That followed complaints from ship supply companies that they were being prevented from delivering to ships in some ports.

"Only staff on essential duties should be nominated and permitted to travel to offshore/remote locations."