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Vitol: Market changes for fuel oil expected coming 2020

26 Feb 2018

The approaching global 0.50% sulphur cap for marine fuel effective 2020 will likely introduce issues for the global shipping sector, says the executive committee member of energy and commodities trading and distribution firm Vitol.

“It’s going to be more and more difficult to burn that fuel oil with more economies going to natural gas for power,” Chris Bake told Reuters.

“[Lower sulphur] marine gasoil has to build ahead of 2020. At the same time fuel oil will have to build because there is lack of demand but it’s difficult to figure out when that inflection point is,” he said.

A chance by the shipping industry to install scrubbers, which allow vessels to continue using cheaper fuel oil as a bunker fuel, has been missed, he says.

Photo credit: Vitol
Published: 26 February, 2018
 

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