"People are increasingly taking more low sulfur bunker volumes and the market is generally expecting more demand," a trader said.

"There is still demand for delivered [380 CST bunkers] even as more people are transitioning towards a 0.5% [marine fuel] market," a trader said.

Low sulfur IMO 2020 compliant fuels are now available at 14 out of the 22 refineries in Japan.

Bunker deliveries will be delayed during this period and are expected to resume from October 15, traders said.

Singapore's gasoil imports posted a sharp 40.2% week-on-week decline to 192,820 mt over October 3-9.

Many middle distillate traders and analysts expect the implementation of IMO 2020 to boost demand for middle distillates.

Going forward, Monjasa will have both VLSFO and MGO 0.1% products available in Colombia, it said.

"I think Baltic will go above $80/mt soon; hearing level of last done fixture in the East is over $80/mt," one shipping source said.

"We added the Istanbul Annex due to special procedures in case of cancellation and untaken orders by buyers," the official said.

"I expect we will see increasing supply of VLSFO during October, November and December in most markets," Einemo said.

The transaction value totals Eur125 million.

"Premiums have been sky-high [at Shanghai] and demand has gone to other ports like Japan," a Chinese bunker trader said.

One shipowner active in the West of Suez tanker markets said it feels like "Merry Christmas already."

"It is up to the owners of the tankers to resolve the issue," Gyetvay said.

This comes as the IMO 2020 rules is less than three months away.

"We then see more than 80% of the trading fleet will need to run on marine gasoil, or ultra low sulfur fuel oil, from the very start of 2020," it said.

Regional HSFO supply is expected to remain tight as suppliers transition to LSFO production.

The US sanctions on Cosco Dalian company, imposed on September 25 for violations of sanctions against Iran, have reduced global VLCC supply by 5%.