By Srinivas Chowdary Sunkara // petrobazaar // 5th Sep, 2018.
Fuel oil prices were closed up in Singapore market yesterday. Both the 180 cSt and 380 cSt graded fuel oil futures were up by $4 or 0.81 pct from previous close. MGO spiked by $20. Fuel oil markets started the month weaker with the expectation of higher arbitrage inflows into Singapore in Sep weighed on sentiment as per FIS. As i reported earlier, The fuel oil prices in India were revised down by state owned oil companies on Sep 1st.
Shifting in demand for cylinder lubricants
As the global sulphur cap on marine fuels falling to 0.5% from 1st Jan, 2020, Shell Marine sees a significant shift for cylinder lubricants that are proven to protect cylinders against cold corrosion under extreme stress. To meet sulphur cap, shipowners will continue to use higher sulphur heavy fuel oils with two stroke engines, A significant volumes of higher BN cylinders oils to be replaced by BN40 or BN 70 grades as per Mr.Joris Van Brussel, General Manager, Shell Marine to Ship and Bunker.
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