Under COVID-19 VLSFO is Sufficient in 2020

After the implementation of Sulphur Cap, whether there will be a supply shortage of VLSFO has been the focus of the industry. Producers have been preparing for “Strong Demand Coming Soon .” Alphatanker pointed out in its latest report: “Given the negative impact of the COVID-19 on demand, VLSFO will not tight supply.” VLSFO A source told the media last Friday: “It feels that the market has fallen into a swamp, sporadic demand exists, but it cannot promote the whole market. Most people are still in confusion.” From the perspective of the investment market, it is expected that the fuel futures market will maintain Contango for the rest of 2020, and some investors are beginning to worry about storage capacity. A trader said: “The current fuel storage capacity may not be an obstacle, because floating warehouse can be a powerful supplement.” However, some analysts believe that floating storage costs are too high.

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