26SEP2019 - NEWS - New low-sulphur marine fuel trade begins in Singapore

The first physical cargo trade for low-sulphur fuel oil (LSFO) with a maximum 0.5% sulphur content in Singapore ahead of a sulphur cap by the International Maritime Organization (IMO) next year.

The milestone trade comes ahead of the IMO regulations that will reduce the permissible sulphur content in marine fuels globally from 3.5% currently to 0.5% from the start of 2020.

Shell sold 20,000 tonnes of LSFO marine grade fuel to P66 at $19 per tonne to Singapore 0.5% marine fuel quotes for October for delivery on Oct. 16-20, according to trade data collected by Reuters.

"This first trade signifies that the market is ready and willing to transit to cleaner fuels earlier than most people had anticipated," said Matt Stanley, oil broker at StarFuels in Dubai.