Are things looking up for Scrubbers?

Possible good news for scrubber manufacturers as ICE Gasoil is now in contango whilst fuel oil is backwardated.  The spread is now widening, but how far can it go ?

 

scrubber chart

The max spread on the above chart is $149.  This is still lower than it was a year ago.  However, our risk management department pointed out that the gasoil crack spread is currently low at $4.36, but have been as high as $19 over the past year, additionally, the fuel oil crack spread is currently at  -$6.48, but has been as low as -$28 over the past year.  This means that there is plenty of room for the crack spreads to increase, which significantly increase the spread shown on the chart above.