Market Eye: Low-Sulfur Premium Evaporates in Euro Fuel Oil Market

摘要

Low-sulfur fuel oil (LSFO) has lost its regular premium over high-sulfur in Northwest Europe, crashing from a $60 per metric ton premium in early June to parity last week. Regional production of low-sulfur residue has surged as the US' move toward selfsufficiency has diverted LSFO-rich light, sweet West African crude to Europe at a time when local buying interest in 1% sulfur bunker fuel is starting to wane. Traders say shipowners are starting to test their engines with very-low-sulfur marine gasoil blends ahead of new International Maritime Organization sulfur limits from Jan. 1, 2015