Straight-run kerosene, usually processed into jet fuel, is now being used to make very low-sulfur fuel oil for the maritime industry amid a plunge in consumption by airlines. Higher than normal amounts of diesel and vacuum gasoil are also finding their way into shipping fuel. Jet fuel prices in Singapore plunged from above $70 a barrel in January to close to $20 in early May before recovering to trade around $41, according to Bloomberg Fair Value data. Trading houses and refiners typically buy a variety of fuel oil and distillates to mix into fuel for ships. However, jet fuel grades can have a far lower flash point, or temperature at which it ignites, than what’s required for shipping fuels, he said.

Source: Mint September 20, 2020 21:56 UTC