The price spread between high and very low sulfur fuel oil in Europe, a key marker for the costs of abating marine fuel pollution, has collapsed from recent highs as the market expects planned European Union sanctions on Russian oil to choke supplies of high sulfur product. S&P Global Platts Commodity Insights assessed the delivered 3.5%/0.5% sulfur spread, known as the Hi-5, at Rotterdam at ff175/ mt May 9. it has averaged ff172/mt in May, down from a high of ff392/ mt March 9 and an April average of ff221/mt. The EU announced its proposed ban on Russian oil imports at the start of May. Russia is a major supplier of 3.5%S FO and rounds of sanctions and corporate boycotts on Russian products and services have raised concerns about sourcing material.
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