Singapore braced for looming fuel oil deadline
Market backwardation and IMO 2020 adjustments balance storage trends
The Asia-Pacific oil storage sector is facing two countervailing trends in rough balance as it moves into late 2019. Backwardated markets—when spot prices exceed forward contract prices—are discouraging inventory builds, while January 2020's switch to new International Maritime Organization (IMO) fuel oil sulphur content rules is encouraging increased fuel oil and components storage. Looking to a more distant horizon, leading independent oil storage companies highlight a growth in gas and chemicals storage over oil products tankage. Industry officials have broadly focussed on fuel oil storage trends. "The reality is that this industry is in transition. For a period, you may not get double st
Also in this section
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
