IMO 2020

IMO 2020 hit to Canadian crude softened by changing market: Fuel for Thought

A surging differential for Western Canada’s benchmark heavy crude has traders and analysts wondering if predictions that tighter sulfur requirements for marine fuel next year will devalue the country’s oil assets are overblown. “Nobody is talking about IMO 2020 anymore,” one trading director at an investment bank in Calgary said. Market participants say a lot has changed since early forecasts suggested the International Maritime Organization’s rule limiting fuels to 0.5%

Energy and commodities highlights: US steel and aluminum tariffs, Middle East oil and electric power

Tariffs and trade deals are sticking to the top of the commodities agenda, after the US reached an agreement to remove Section 232 tariffs on steel and aluminum imports from Canada and Mexico. The deal, announced on May 17, removes US import tariffs of 25% on steel and 10% on aluminum, without imposing quotas to cap imports. Mexican steel producers welcomed the tariff removal, but remain in a challenging position

IMO 2020 could create fierce competition for scarce water resources

The International Maritime Organization (IMO) regulations set to take effect in 2020 have sparked mountains of research on the expected costs for the energy and maritime sectors. Less thought has been given to IMO 2020’s environmental consequences, especially on water demand. The US refining complex will need more water than ever before after IMO 2020 comes into effect. This conclusion is based primarily on forecasting from S&P Global Platts Analytics

Shippers, refiners at odds over IMO fuel quality

Fuel quality is the great unknown for the shipping and oil refining industry. The International Maritime Organization’s (IMO) January 2020 deadline could see the majority of vessel owners switching to cleaner marine fuels incompatible with each other. Other solutions look similarly haphazard. The IMO’s global sulfur limit for marine fuels drops to 0.5% next January from 3.5%, and the industry is developing a wide range of very low sulfur fuel oils, which

Insight from Washington: US refiners worry about White House wild card as IMO 2020 nears

A strict sulfur limit for marine fuels starting in 2020 and its potential to boost US gasoline and diesel prices may have caught the White House off guard last year, but it’s not taking refiners or members of the shipping industry by surprise. US refiners say they have been preparing for the International Maritime Organization’s 0.5% sulfur cap for a dozen years by making billions of dollars of investments to

IMO 2020 could hold silver lining for clean tanker market

The shipping industry faces a hike in costs and operational headaches as a result of IMO 2020 regulations that will cap the sulfur content of marine fuels. At the same time, new streams of product demand will be created, potentially benefiting some shipowners. The International Maritime Organization’s agreed limit of 0.5% sulfur content for marine fuel will come into effect next January 1 and its ramifications will span the shipping,

Energy and commodities highlights: Oil diplomacy, global LNG flows, trade wars In a week dominated by geopolitical headlines, oil diplomacy was also high on the agenda. Despite a schedule that included a high-profile summit in Hanoi, US President Donald Trump found time to tweet his view of crude prices to OPEC, ahead of a meeting between US and Saudi officials. OPEC’s next regular biannual meeting will take place June 25-26 in Vienna. Meanwhile the so-called NOPEC bill is starting its

IMO meeting eliminates doubts over 2020 delay: Fuel for Thought

If any doubts remained that the International Maritime Organization’s tighter sulfur emission limits for ships in 2020 could be delayed or otherwise watered down, those doubts should have been laid to rest at a key committee meeting of the UN body last week. The IMO’s global marine fuels sulfur limit is set to drop from 3.5% to 0.5% at the start of 2020, forcing ship operators to use cleaner, more

The great scrubber conundrum

It’s been six months since my last 2020 dispatch. Since then, I’ve spent time at major industry gatherings in London (IP week) and Athens (Posidonia) and yet I’m just as uncertain about 2020 as I was then. My only comfort is that judging by my numerous conversations at Posidonia, I’m far from alone. By now, anyone remotely involved in shipping should know about the importance of January 1, 2020 —

Uncertainty looms over marine fuel sulfur limit: Fuel for Thought

In about 20 months, the shipping industry is going to start burning a fuel that today they know next to nothing about. The International Maritime Organization has set a January 2020 deadline for a new 0.5% sulfur limit on marine fuels. The move is poised to force most shipowners to switch from burning residual fuel oil to a new, unfamiliar, less-sulfurous product. A study by CE Delft, commissioned by the