LSFO swap premium hits fve-year high

摘要

Low-sulphur fuel oil (LSFO) cargo swaps in northwest Europe have risen to their highest premiums to high-sulphur fuel oil (HSFO) barge swaps since July 2014. LSFO front-month cargo swaps - with a 1pc maximum sulphur content - traded at $433/t on 21 May, a $37.50/t premium to high-sulphur barges (see graph). This puts the value of 1pc sulphur cargoes at close to recent 0.5pc sulphur fuel oil trades, potentially signalling a pricing shift ahead of the implementation of tighter IMO sulphur regulations for bunker fuels starting next year. Shipping company Euronav bid at a premium of $30-40/t to HSFO Rotterdam barges to secure 0.5pc fuel oil for foating storage of Malta.