23JUL2019 - NEWS - Singapore stocks up on low-sulphur fuel ahead of new shipping rules

SINGAPORE: Oil traders are chartering more ships and snapping up fuel oil storage tanks in and around Singapore, the world’s top bunkering port, to stock up cleaner fuel that will meet new shipping rules coming into force next year, industry sources said. The move has pushed up lease rates for tank storage in Singapore and increased the number of supertankers floating in Singapore and Malaysian waters as traders store fuel months ahead, betting on a spike in prices for low-sulphur fuel oil (LSFO). Under new International Maritime Organization rules aimed at curbing pollution, ships have to reduce the sulphur content of the fuel they burn to 0.5% from the current 3.5% from January 2020.