Fuelling the Future
Fuel oil trading, including both high-sulfur fuel oil (HSFO) and low-sulfur fuel oil (LSFO) in various viscosity grades (measured in centistokes, CST), is a critical part of the global energy market. These fuels are used for various industrial purposes, including as a source of energy for shipping, power generation, and heating.
HSFO (High Sulfur Fuel Oil): HSFO typically has a higher sulfur content, often exceeding 3.5% sulfur. It is used in industries like marine shipping, power generation, and heating.
LSFO (Low Sulfur Fuel Oil): LSFO contains less than 1.0% sulfur and is used to meet environmental regulations such as the International Maritime Organization's (IMO) sulfur cap for ships' fuel.
The demand for HSFO has decreased due to environmental regulations, leading to a shift toward LSFO. The shipping industry, in particular, has undergone significant changes to comply with lower sulfur emission standards. Both HSFO and LSFO must meet specific quality standards and regulations, including sulfur content limits. LSFO has stricter environmental standards due to its lower sulfur content.