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
Enters 24-month bareboat charter agreements for 4,710 dwt sisterships New Navigator 2 and New Navigator 3.
Quarantine applies to ships that have called at 'contaminated countries'; medical checks of crew are also required to be conducted by port sanitary officers.
Niestern Sander aims to give the vessel a second life through its unique LNG conversion plan to reduce emissions and noise while maintaining speed and power.
Partnership announced by the port on 24 May allows BP to re-enter the New Zealand VLSFO market and once again deliver VLSFO to its customers.
Scrubber technology firm explains why 2020 will see a second wave in scrubber orders when shippers seek solutions to the ‘headaches’ of compliant fuel.
Notices were published in the Government Gazette to announce the appointments from Grant Thornton Singapore.
Buyers can nominate deliveries on platform and plan operations together with suppliers following ‘one single truth’ concept with all players aware of what has been agreed when and by whom, says DNV spokesman.
Rotterdam’s intention to mandate the usage of MFMs goes down well with licensed bunker supplier VT Group; MFM providers supportive of move but stressed continuous monitoring is needed for optimum performance.
Cost of alternative bunker fuels, bunker operations and technology advancement are some considerations to be examined by the maritime industry, says Neo, director of SDE International Pte Ltd.
Kim Hyung Joon and Han Donghoon were planning to join the Singapore entities of Hartree Group - either Hartree Partners Singapore Pte Ltd or Hartree Marine Fuels - in October, discovered management.
‘When you think of Helmsman on the next occasion, think of us as lawyers with expertise in various fields. Come to us before a problem develops. It’s the process that matters,’ says Tang Chong Jun, Executive Director.
Bernard Chew was a former shareholder of MB Marine and was an authorised signatory of the company’s cheques at the material time, according to court documents obtained by Manifold Times.
