Cruise Season Pushes Up MGO Demand, Prices in Vancouver
Data from Ship & Bunker shows the average price of MGO for April was $735.50 pmt, rising to $799.50 pmt for May.
Product for the cruise season is generally supplied on a term contract basis
The start of Vancouver's cruise season has pushed up demand, and prices for Marine Gas Oil (MGO) in the Canadian West Coast port, Platts reports.
The 2015 season started in earnest in April, and data from Ship & Bunker shows the average price of MGO for the month was $735.50 per metric tonne (pmt).
In May, that rose to $799.50 pmt.
The Vancouver - Singapore MGO spread also widened $44 in that time, from $181 on April 1 to $225 at the end of May.
"[Cruise demand] adds 50 percent extra demand from May-September," a Vancouver-based source told Platts.
New Emissions Control Area (ECA) regulations introduced on January 1, 2015 "have really increased demand"
It is understood that by the time the cruise season begins, inquiries are generally closed and product is supplied on a term contract basis.
However the demand that the cruise market makes on overall supply reduces the amount of product available in the spot market.
New Emissions Control Area (ECA) regulations introduced on January 1, 2015 "have really increased demand," according to one Platts source, who added that they anticipated MGO prices continuing to climb over the remaining four months of the cruise season.
However a separate source was less certain.
"These days markets go up and down like crazy," they said.
Skangas duel fuel LNG carrier Coral Energy (image credit/Skangas)
Liquified natural gas (LNG) bunker tanker Coralius has made its first trip loading and delivering LNG to and from Norwegian ports, according to trade press reports.
The 5,800 cubic meter capacity tanker, which is owned by Norwegian gas company Skangas, was delivered to the company in June. Skangas also operates LNG carrier Coral Energy.
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Analysts say everything from Saudi exploration to rising tensions with North Korea could radically alter the dynamics of the international market. File Image / Pixabay
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