{"id":4699,"date":"2020-01-15T11:30:53","date_gmt":"2020-01-15T11:30:53","guid":{"rendered":"http:\/\/euromenaenergy.com\/?p=4699"},"modified":"2020-01-15T11:30:53","modified_gmt":"2020-01-15T11:30:53","slug":"top-quality-oil-sold-near-100-a-barrel-on-new-ship-fuel-rules","status":"publish","type":"post","link":"https:\/\/emimer.com\/?p=4699","title":{"rendered":"Top quality oil sold near $100 a barrel on new ship fuel rules"},"content":{"rendered":"

Just shy of\u00a0$100<\/span>\u00a0a barrel — that\u2019s the cost of a type of crude that\u2019s become prized thanks to the\u00a0scramble<\/span>\u00a0for cleaner-burning fuels.<\/p>\n

Australia\u2019s Santos Ltd. this week sold a cargo of March-loading Pyrenees, a dense and low-sulfur oil, at a premium of about\u00a0$31<\/span>\u00a0a barrel<\/a>\u00a0over Dated Brent, according to traders who took part in the tender. That\u2019s the equivalent to just under\u00a0$100<\/span>\u00a0a barrel given that the global benchmark is trading at about\u00a0$65<\/span>.<\/p>\n

Demand for so-called heavy-sweet oil like Pyrenees has surged in recent months due to cleaner global ship-fuel standards, known as IMO 2020, which took effect Jan. 1. The new rules have boosted the value of these crudes that are low in sulfur and also viscous, which makes them better for marine engines. Low-sulfur marine fuel, another IMO compliant type of oil, cost about\u00a0$640<\/span>\u00a0a ton this week in Singapore, the equivalent of about\u00a0$95<\/span>\u00a0a barrel.<\/p>\n

Santos had sought a target price of\u00a0$32<\/span>\u00a0a barrel or more<\/a>\u00a0over Dated Brent, according to traders. The company has a minority stake in the Pyrenees project, which it acquired through its 2018\u00a0purchase\u00a0of Quadrant Energy.<\/p>\n

\u201cNew IMO 2020 environmental regulations for shipping bunker fuel are driving the low-sulfur fuel oil market,\u201d a Santos spokeswoman said in an emailed statement. \u201cHeavy sweet crudes like those from our Van Gogh and Pyrenees fields are well suited for fuel oil blending to meet the new environmental requirements and are currently in very high demand.\u201d<\/p>\n

Pyrenees is also particularly valued because of its relative scarcity, with\u00a0production\u00a0of about 15,000 barrels a day pumped from fields off Western Australia, according to BHP Group, the majority owner and operator. A cargo to load this month was sold in November at more than\u00a0$17<\/span>\u00a0a barrel<\/a>\u00a0over Dated Brent. Another Australian heavy-sweet crude,\u00a0Van Gogh<\/a>, sold at a premium of as high as\u00a0$19<\/span>\u00a0to Dated Brent in December.<\/p>\n","protected":false},"excerpt":{"rendered":"

Just shy of\u00a0$100\u00a0a barrel — that\u2019s the cost of a type of crude that\u2019s become prized thanks to the\u00a0scramble\u00a0for cleaner-burning fuels. Australia\u2019s Santos Ltd. this week sold a cargo of March-loading Pyrenees,…<\/p>\n","protected":false},"author":1,"featured_media":4710,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[46,48,57,68,76,77,82,86,87,90,96,99,103,107,109,111,113,137,139,146,148,160,174,183,184,201,202,209,222,230,232,233,244,246,249,256,262,263,267,277,279,280,285,288],"class_list":["post-4699","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-gas","tag-aramco","tag-athens","tag-baroudi","tag-carbon","tag-climate","tag-climate-change","tag-co2","tag-cyprus","tag-decarbonising","tag-democracy","tag-doha","tag-eastmed","tag-egypt","tag-embargo","tag-emissions","tag-energy","tag-energy-peace","tag-gas","tag-gazprom","tag-greece","tag-greenenergy","tag-international-maritime-disputes","tag-lebanon","tag-maritime-boundaries-east-mediterranean","tag-maritime-disputes","tag-offshore","tag-oil","tag-opec","tag-pollution","tag-poverty-alleviation","tag-putin","tag-qatar","tag-rosneft","tag-roudi","tag-russia","tag-saudi","tag-solar","tag-solar-power","tag-straddling-hydrocarbons-reserves","tag-total","tag-trump","tag-turkey","tag-unclos","tag-usa"],"_links":{"self":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/4699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4699"}],"version-history":[{"count":0,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/4699\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/media\/4710"}],"wp:attachment":[{"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}