While the spread between the two IMO-2020-compliant fuels narrowed in Jan. due to shipowners actively stockpiling supplies of LSFO, the differential widened during the week ending Feb. 21 to $ 10/mt, compared to $4.60/mt in the week ending Feb 7. In Dec, tight availability of LSFO prompted some shipowners to use low-sulfur marine gasoil (LSMGO) with one source reporting, "In Dec, even if I wanted to pay for LSFO, I couldn't get any, so I had to stock up on LSMGO instead." This development has caused LSMGO sales at Singapore to increase 94.3 on the year to 445.9K mt during Jan. While increased prices for LSFO prompted more shipowners to use LSMGO earlier, slowing demand for LSFO from China, which was farther dragged down due to the coronavirus, allowed prices to fall back down.
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