The International Maritime Organisation (IMO) has ruled that from 1 January 2020, marine sector emissions in international waters be slashed. Though the IMO sulphur legislation doesn’t go into effect until 2020, we can expect to see a major impact on both the shipping and refining sectors before then.
As shippers rush to ensure compliance ahead of the legislation’s effective start date, demand for more expensive low-sulphur fuel oil will grow stronger. Meanwhile, the switch away from high-sulphur fuel oil could cost shippers billions and dramatically drive demand for middle distillates.
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Our North American Refining & Oil Products team addresses the following questions:
- How could the changing mix of fuel types consumed by the shipping sector disrupt wider markets?
- As the IMO's legislation effective date approaches, will shippers encounter smooth sailing or rough seas as they make the transition to low-sulphur fuels?
- Which product markets will fare better than others or will scrubbers emerge as the most popular choice?
Having a clear view of the refining and oil product markets is extremely challenging when you consider the global complexities including crude oil supply and price, demand developments, and environmental regulation. Our Product Markets Service provides clarity of the short- and long-term oil product markets with robust analysis of supply, utilization and demand, pricing and margins dynamics.
If you saw one of our IMO videos on social media, be sure to check out the rest of the three-part video series here.