That was a recent headline from a news item by Reuters (March 8) and it sets the tone for the future with concerns among refiners and storage facilities about the volume and availability of new fuel come the latter part of 2019. But there is another angle to this and in their news article Reuters pointed out:
“Refiners will likely process an additional 2.5 million barrels of crude daily to make additional distillate, said Robert Herman, executive vice president of refining at Phillips 66.
Increased demand for light, sweet crude could widen its premium over heavier, sour crudes with a higher sulfur content. That wider price gap could boost the advantage some U.S. refiners have gained by configuring their plants to further process heavy, sour crude over the past 20 years, as it cheapens the cost of heavy crude feedstock.”
The availability of new fuel to meet the cap in 202 is still a major concern and we keep saying there is precious little real information coming from the refiners and IMO about where and when this will be available. This is not helping those involved in the industry come to terms with the changeover – or is this something we just have to learn to live with?