New bank research has argued that the impact of IMO2020 will be positive for refiners by producing higher gasoline and distillate margins.

A segment of that analysis rests on a bearish view on the price of high sulphur fuel oil (HSFO) which, it estimates, will see 80% of bunker demand for the high sulphur product fall away.

According to Scotiabank analyst Paul Cheng, since bunker demand accounts for around half of global HSFO demand, the effect of IMO2020 will be to create a large pool of HSFO with nowhere to go.

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