Kraken Oil !!10 Jan 2020 09:06
Maybe this has something to do with rise recently??
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 aboutΒ $640Β a ton this week in Singapore, the equivalent of aboutΒ $95Β a barrel.
See also: Ship Fuel Goes From Pariah Product to Gold-Dust for Oil Refiners
Santos had sought a target price ofΒ $32/B to Dated in Tender" class="terminal-news-story" target="_blank" style="background-color: transparent; margin: 0px; padding: 0px; border-width: 0px 0px 1px; border-top-style: initial; border-right-style: initial; border-bottom-style: dotted; border-left-style: initial; border-top-color: initial; border-right-color: initial; border-bottom-color: rgb(0, 0, 0); border-left-color: initial; border-image: initial; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: 16px; line-height: inherit; font-family: inherit; vertical-align: baseline; overflow-wrap: break-word; color: rgb(0, 0, 0); text-decoration: none;">$32Β a barrel or moreΒ over Dated Brent, according to traders. The company has a minority stake in the Pyrenees project, which it acquired through its 2018Β purchaseof Quadrant Energy.
βNew IMO 2020 environmental regulations for shipping bunker fuel are driving the low-sulfur fuel oil market,β a Santos spokeswoman said in an emailed statement. βHeavy 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.β
Pyrenees is also particularly valued because of its relative scarcity, withΒ productionΒ of 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 thanΒ $17/B" class="terminal-news-story" target="_blank" style="background-color: transparent; margin: 0px; padding: 0px; border-width: 0px 0px 1px; border-top-style: initial; border-right-style: initial; border-bottom-style: dotted; border-left-style: initial; border-top-color: initial; border-right-color: initial; border-bottom-color: rgb(0, 0, 0); border-left-color: initial; border-image: initial; font-variant: inherit; font-weight: inherit; font-stretch: inherit; font-size: 16px; line-height: inherit; font-family: inherit; vertical-align: baseline; overflow-wrap: break-word; color: rgb(0, 0, 0); text-decoration: none;">$17Β a barrelΒ over Dated Brent. Another Australian heavy-sweet crude,Β $19/Bbl" class="terminal-news-story" target="_blank" style="background-color: transparent; margin: 0px; padding: 0px; border-width: 0px 0px 1px; border-top-style: initial; border-right-style: initial; border-bottom-style: dotted