Oil market has gained support last week on the vaccine news and hopes for ending the oil demand uncertainty. Following oil prices, oil products have increased 3.3-10.9 % during last week. Fuel oil 3.5 has increased almost 3.8 % to 245.57 USD/t, low sulfur oil (MFO 0.5) has also gained 3.5 % and closed at 308.87 USD/t, and MGO 0.1 has increased by 4.7 %week on week and closed at 340.74 USD/t.
According to Argus Media, shipowners are placing new orders for LNG dual-fuel vessels as refuelling infrastructure improves. Around 10 % of the total tanker orders made so far in 2020 were for LNG dual-fueled vessels, bringing the total number of LNG dual-fueled ships under construction to 55. The number includes three very large crude carriers (VLCC), nine Suezmaxes, twenty two Aframaxes, four Long Range 2 (LR2) and three Medium Range (MR). This shift comes at a time of a global push for more stringent environmental shipping standards. The International Maritime Organization (IMO) is targeting a reduction in CO2 emissions of 40 % by 2030 and 70 % by 2050, both from a 2008 baseline. The IMO is also aiming at a 50 % reduction in overall greenhouse gas (GHG) emissions from the same baseline by 2050, which is encouraging shipping to explore and adopt new propulsion technologies.