KPI Bridge Oil, global market trader, announced that its sales of 2020-compliant fuels exceeded the sale of high sulphur fuel oils for the first time, an achievement made close to the upcoming 2020 sulphur cap.
Specifically, Soren Holl, CEO of KPI Bridge Oil commented that the market has to get ready for big swings in pricing for Very Low Sulphur Fuel Oil (VLSFO), depending on location, until the market stabilizes.
He further added that the company begun issuing 0.5% sulphur contracts in the beginning of Q2, and the demand from partners that were looking to ensure their fuel compliance was as expected.
In this final stage of the switch to 2020 compliant fuels we’re experiencing significant price and availability fluctuations in most ports around the world as the market adjusts.
Concluding, Holl stated that until the market is stabilised and the supply side is fully completed the transition, the price swings will not stop, as they depend on location and availability.
