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Global shelter investor KPI Bridge Oil has actually reported that its sales of 2020-compliant gas has actually gone beyond the sale of high sulphur gas oils for the very first time.

The turning point comes simply months in advance of brand-new regulations from the International Maritime Organization (IMO) needing making use of shelter gas with a sulphur limitation of 0.5%, below 3.5% presently.

According to Soren Holl, CHIEF EXECUTIVE OFFICER of KPI Bridge Oil, the marketplace must get ready for large swings in prices for Very Low Sulphur Fuel Oil (VLSFO), relying on area, till the marketplace stabalizes.

“We started fixing 0.5% sulphur contracts in flow ports at the beginning of Q2 and, as expected, the demand from business partners looking to secure availability of 2020 compliant fuels has steadily increased since,” statedHoll “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. We have previously talked about an anticipated price differential of 30-40% between compliant and non-compliant fuels, depending on region and local availability and this upward drive on prices seems to be materialising.”

“Until the market settles at a new equilibrium and the supply side has fully completed the transition we’ll see frequent and significant price swings depending on location and availability,” included Holl.