A variety of market concerns have led to a slow down in the convergence of the price between VLSFO and HFO according to market commentators.
The extension of the Lunar New Year to 14 February along with, albeit reduced, trade tensions between the US and China and the concerns over the growing difficulties with the coronavirus outbreak in China are leading to a slowing of trade in general and the decline in bunker prices overall.
In all three major bunkering regions, North America, North Europe and Asia the cost of HFO, VLSFO and the distillate fuel MGO has declined with the expectation of further price decreases to come.
HFO is the most stable in price with declines ranging from US5/tonne in Northern Europe to US$2.50 in North America. While Southern Europe, Central America and South America showed modest gains of US$0.50, US$1.00 and US$1.50 respectively.
VLSFO has had a mixed day with declines of US$15.00 and US$9.66 in South Europe and Asia & Oceania respectively, but also an increase of US$12.00 in Central America.
Whereas MGO has seen steep declines in both North and South Europe of US$13.00 and US$13.75 while only South America registered a modest increase of US$1.50.