The invasion of Ukraine could reduce the price spread between high and low-sulphur fuel oils, impacting the economics of scrubbers, says a top shipbroker.
Russia is pivotal to the global high-sulphur fuel oil (HSFO) market with almost 90% of its approximately 800,000 barrels per day (bpd) of fuel exports being HSFO.
“Therefore, a major loss in HSFO supplies will raise its price, and all else being equal, narrow the scrubber spread,” said Anoop Singh, head of tanker research at Braemar ACM Shipbroking.
