The International Maritime Organization’s new rules on fuel emissions
that will come into effect in 2020 will help to lift diesel demand,
according to industry insiders attending an S&P Global Platts event in Brussels this week.
The
new emission rules stipulate that only vessels using fuels with a
sulfur content of 0.5 percent or less will be allowed to roam the
oceans, as per the IMO’s strategy aimed at cutting total carbon
emissions from maritime transport in half by
2050.
Those that use fuel with a higher sulfur content—the current
limit is 3.5 percent—will only be allowed to remain in operation if they
are equipped with emission-clearing equipment, which comes at no small
cost.
As a result, expectations are, naturally, that high-sulfur
fuels demand will take a hit while low-sulfur fuels enjoy higher demand.
Diesel is among these latter fuels, as is low-sulfur fuel oil.
According to one attendant at the S&P Global Platts European
Refining Summit, the additional demand for these two fuels could reach
1.6 million bpd.
Investors and business enthusiasts take note.....
Credit: Irina Slav
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