The International Maritime Organization (IMO) 2020 sulphur cap which requires vessels to use 0.50% sulphur limit marine fuel will create increased demand for crude and drive the price of brent crude to as much as $90 per barrel by 2020, believes Morgan Stanley analysts.
“We foresee a scramble for middle distillates that will drive crack spreads higher and drag oil prices with it,” writes Martijn Rats in a report as quoted by Bloomberg.
The system configurations of certain refiners such favour middle distillate production and minimal high-sulphur fuel oil output, such as Repsol SA, Reliance Industries Ltd., Valero Energy Corp. and Tupras Turkiye Petrol Rafinerileri AS, will be among those which will see “the most advantageous combination after 2019,” he suggests.
The increased use of distillate fuels by vessels to meet the IMO 0.50% sulphur cap is expected to boost demand by an additional 1.5 million barrels a day by 2020.
However, current refining capacity will not be enough to meet the world’s total demand of 5.7 million barrels a day by 2020.
“The last period of severe middle distillate tightness occurred in late-2007/early-2008 and arguably was the critical factor that drove up Brent prices in that period,” Rats wrote; he referred to the period when crude oil approached levels close to $150 a barrel.
“We expect the crude oil market to remain under-supplied and inventories to continue to draw,” the bank said. “This will likely underpin prices.”
Published: 18 May, 2018
MT Minerva Grace, New Dynasty, MT Alami Sky, MT Yolanda, and MT Castor were detained on 30 March at the Tompok Utara anchorage area, it said.
Accompanying the launch of the new website is a word search contest in which winners will have a chance to receive a USD 50 gift card from Amazon.
HSFO in Rotterdam has declined by almost $20/t since 26 March, broadening the bunker spread from under $90/t in March to $111/t yesterday, reports Argus Media.
Staff from both Total’s China arm and Zhejiang Energy confirmed development with Reuters on Friday.
For foreign ships, crew change will be considered if the ship meets all requirements and are in Singapore for cargo operations, bunkering or other marine services, it said.
Draft ‘2020 Guidelines for sampling of fuel oil intended to be used or carried for use on board a ship’ recently agreed at PPR 7.
Top three positive movers in 2021 were Hong Lam Fuels Pte Ltd (+14); Sirius Marine Pte Ltd (+12); and TFG Marine (+11); according to the latest data from the Maritime and Port Authority of Singapore.
Webinar will offer delegates insights on the prevention of operational issues when using VLSFOs, along with an update on biofuels and bunker fuel quality trends for 2021 and its forecast for the current year.
Heating VLSFOs to prevent cold flow issues causes issues related to distillate ageing, and there is a gentle balance to be maintained when handling the product.
Research into n-paraffin distribution of VLSFOs has shown that they not only differ from MGO, but significantly differ from each other as well, states bulletin.
Bunker Holding and Dan-Bunkering have decided not to appeal the city court ruling in the case where the companies were on trial for breaching EU sanctions against Syria, states USTC.
Poll shows market participants think Singapore’s future as a bunkering hub in the near term will be impacted most by growth in alternative bunker fuels and intensifying competition from other ports in Asia.
