IMO 2020: High/low sulfur price differential widens

IMO 2020: High/low sulfur price differential widens

Shipping account Moore Stephens regularly tests the water of industry opinion its quarterly surveys.

Its latest asked question around bunker fuel prices related to the coming International Maritime Organisation (IMO) rule change on the composition of bunker fuel.

The answer do nothing to assuage the uncertainty that pervades the market.

Read the full article here

China to extend sulfur limitations for bunker fuels along entire coastline

China to extend sulfur limitations for bunker fuels along entire coastline

Hunan, China — China is set to tighten its sulfur-limit restrictions for ships by extending the 0.5% bunker fuel sulfur limit from the initially designated Emission Control Areas (ECAs) to the entire coastline, industry sources told Platts.

In view of the rising concerns over environmental pollution, tightening sulfur-limit restrictions is no surprise, a Beijing-based coal trader noted, adding that coastal shipowners will have to bear the brunt, and in turn, may be forced to raise coastal freights.

Read the full article here

China’s tighter sulfur limit rule for ships to spur LSMGO, LSFO demand

China’s tighter sulfur limit rule for ships to spur LSMGO, LSFO demand

Singapore — In less than a month, China is set to tighten its sulfur limit restrictions for ships by imposing a 0.5% bunker fuel sulfur limit in not only its initially designated Emission Control Areas but also along its entire coastline, a move likely to spur demand for cleaner fuels, industry sources said.

“The policy will further support demand for LSMGO,” a bunker trader with state-owned Chinese trader, Sinochem, told S&P Global Platts.

Low sulfur fuel oil demand is also set for a significant rise, thanks to the new rule, sources said.

Read the full article here

 

Hong Kong Dec low sulfur marine gasoil price drops 18% from Nov on weak demand

Hong Kong Dec low sulfur marine gasoil price drops 18% from Nov on weak demand

Singapore — Delivered low sulfur marine gasoil prices in Hong Kong tumbled 17.93% in December so far versus November, as demand has been surprisingly weak despite the upcoming implementation of the Emission Control Area regulation, due to ample supply.

Prices have dropped from an average of $681.86/mt in November to $559.60/mt to date in December, S&P Global Platts data showed.

China will extend the 0.5% sulfur limit on marine fuels from Yangtze Delta to its entire coastline from January 1, a year ahead of the International Maritime Organization’s regulation. The IMO rule will cap sulfur in marine fuels at 0.5% worldwide from January 1, 2020, down from the current 3.5%.

Read the full article here

 

 

Coming changes in marine fuel sulfur limits will affect global oil markets

Coming changes in marine fuel sulfur limits will affect global oil markets

International regulations limiting sulfur in fuels for ocean-going vessels, set to take effect in January 2020, have implications for vessel operators, refiners, and global oil markets. Stakeholders will respond to these regulations in different ways, increasing uncertainty for crude oil and petroleum product price formation in both the short and long term.

When burned, the sulfur in marine fuel produces sulfur dioxide, a precursor to acid rain. The sulfur content of transportation fuels has been declining for many years because of increasingly stringent regulations implemented by individual countries or groups of countries. In the United States, federal and state regulations limit the amount of sulfur present in motor gasoline, diesel fuel, and heating oil.

The upcoming 2020 rules apply across multiple countries’ jurisdictions to fuels used in the open ocean, representing the largest portion of the approximately 3.9 million barrel per day global marine fuel market, according to the International Energy Agency.

Read the full article here