The market for low sulfur fuel oils – 0.1% S and 0.5% S – has tightened on the refinery response to COVID-19, while as a result of IMO 2020, lackluster demand for 3.5% S is encouraging shippers to fit scrubbers which could flip fundamentals between the grades in the future. Meanwhile, a recent cold weather spell in Asia drew fuel oil supplies away from Europe, further adding to price volatility to those fuels at the bottom of the barrel.
S&P Global Platts fuel oil specialists Stepan Lavrouk, Sarah-Jane Flaws and Britt Russel-Webster discuss the market with Joel Hanley.
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