Will the combination of oil prices, refinery cracks and scrubber economics result in easing of fears of tight supplies? Two reports chime in.
Trump government looks to phase out IMO2020 sulfur cap regulations; Shanghai Composite Index crashes by 3%; Amazon revisting cities for finalizing HQ2.
Oil Major Shell has announced upcoming availability its newly developed Very Low Sulphur Fuel Oil (VLSFO) ahead of the IMO 2020 – 0.50% global sulphur limit for marine fuels. FreightWaves has the charts.
The scenario laid out by a leading energy economist is that the market needs a way to soften the blow of higher oil prices that would be spurred by the new environment rule.
A significant increase in the use of scrubbers would have an impact on the amount of middle distillates that the shipping sector needs to consume under IMO2020 rules.
The monthly numbers of ACT and FTR on class 8 builds set new records; a Goldman Sachs report tries to measure the number of scrubbers that will be used for meeting IMO2020 standards.
Maersk is taking notice of the coming regulation that will impact the quality of the fuel burned on ships, and has the potential to kick back into the diesel fuel market. Also: an underride decision, a revealing quote out of China.
