MGO-ULSFO bunker spread hits 8-month low in Europe
25th August 2020 20:26 GMT

Ultra low sulfur fuel oil remains cheaper than marine gasoil but only marginally as price differentials narrowed to an eight-month low in Europe, S&P Global Platts data showed.

Platts assessed 0.1%S marine gasoil delivered Rotterdam at $374/mt on Aug. 24 while 0.1%S ultra low sulfur fuel oil was $4/mt lower at $370/mt. The pricing difference was stable from the previous trading day on Aug. 21, and was last seen lower on Dec. 10 last year at $3/mt.

The difference narrowed to all-time monthly lows in July, averaging $6.52/mt in the month, Platts data showed. So far in August it has averaged $6.50/mt. For comparison, July narrowed 35% since IMO 2020 took effect in January, and by 78.3% from a year earlier.

Sources previously said this was a result of its more sulfurous counterpart -- 0.5%S very low sulfur fuel oil – limiting blend components used to make ultra low sulfur fuel oil.

Last week, bunker suppliers in Rotterdam and Gothenburg cited limited availability of the product.

Bunkerworld .,
25th August 2020 20:26 GMT