Author Topic: Oil Industry Starts Eradicating Bunker Fuel Supply Before 2020 Sulphur Cap  (Read 1222 times)

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Offline thackney

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Oil Industry Starts Eradicating Bunker Fuel Supply Before 2020 Sulphur Cap
http://gcaptain.com/oil-industry-starts-eradicating-bunker-fuel-supply-before-2020-sulphur-cap/
August 2, 2018

hippers beware: oil refineries are starting to eradicate stockpiles of sulfur-rich fuel that powers the merchant fleet in anticipation of a demand collapse in fewer than 18 months.

Stockpiles have slumped in the U.S. and Singapore this year and traders directly involved in buying and selling the fuel say some refineries already started to trim output in anticipation of rules that will severely restrict consumption from Jan. 1, 2020.

The draw-down underscores a tricky balancing act for an oil market facing a once-in-a-generation shift in the kind of fuel it must supply. Refineries need to cut back on output before demand collapses at the start of 2020, but if they do so faster than consumption slides, then fuel-price volatility could increase. The market is currently trading in what’s known as backwardation, where immediate prices are higher than later ones — a structure that can punish traders who store....
Life is fragile, handle with prayer

Offline endicom

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Oil Industry Starts Eradicating Bunker Fuel Supply Before 2020 Sulphur Cap
http://gcaptain.com/oil-industry-starts-eradicating-bunker-fuel-supply-before-2020-sulphur-cap/
August 2, 2018

hippers beware: oil refineries are starting to eradicate stockpiles of sulfur-rich fuel that powers the merchant fleet in anticipation of a demand collapse in fewer than 18 months.

Stockpiles have slumped in the U.S. and Singapore this year and traders directly involved in buying and selling the fuel say some refineries already started to trim output in anticipation of rules that will severely restrict consumption from Jan. 1, 2020.

The draw-down underscores a tricky balancing act for an oil market facing a once-in-a-generation shift in the kind of fuel it must supply. Refineries need to cut back on output before demand collapses at the start of 2020, but if they do so faster than consumption slides, then fuel-price volatility could increase. The market is currently trading in what’s known as backwardation, where immediate prices are higher than later ones — a structure that can punish traders who store....


I've seen assertions of rising fuel prices due to the clean fuel mandate for the sea vessels.


Offline IsailedawayfromFR

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Ok, we have a globalist organization called the International Maritime Organization whose stated express purpose on its own website is Maritime Safety, yet it now rules on environmental issues?

Reading on, they trumpet the UN as their savior in preserving Maritime safety.  Fat chance for that.

This is nothing but an end=around for promoting enviro-wacko policies and globalism.

Rum the other way, Trump.


IMO's mission statement, :
 
"The mission of the International Maritime Organization (IMO) as a United Nations specialized agency is to promote safe, secure, environmentally sound, efficient and sustainable shipping through cooperation. This will be accomplished by adopting the highest practicable standards of maritime safety and security, efficiency of navigation and prevention and control of pollution from ships, as well as through consideration of the related legal matters and effective implementation of IMO’s instruments with a view to their universal and uniform application."


Finally, look at it sGreenhouse strategy.

https://www.theicct.org/publications/IMO-initial-GHG-strategy
« Last Edit: August 03, 2018, 01:56:13 am by IsailedawayfromFR »
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Offline WarmPotato

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Can someone simplify the situation for me?
Check out my youtube Channel!

https://youtu.be/b6E3JS3Dmaw

Offline endicom

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Rum the other way, Trump.


He doesn't drink. And it doesn't look like he runs, either.


Offline thackney

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Can someone simplify the situation for me?

The International Maritime Organization’s (IMO) decision to slash sulfur emission limits for bunker fuel from 3.5% to 0.5%, effective at the beginning of 2020...

... It is true that refiners and shippers have been slow to make adjustments to comply with the new low-sulfur regulations and, despite industry pressure, the IMO has stubbornly refused to ease the environmental regulation or extend its implementation date.

Fundamentally, the rule threatens to leave refiners with roughly 2 million barrels a day of unmarketable fuel oil, while shippers would be short the same amount of compliant low-sulfur fuel. The worldwide marine fuel market of over 4 million barrels a day accounts for more than 4% of overall global oil demand – 75% of which is now comprised of high-sulfur fuel oil – the 3.5% sulfur fuel the IMO is seeking to address. The rest is marine gasoil and low-sulfur fuel diesel, both of which comply with the new IMO regulations....


https://www.forbes.com/sites/daneberhart/2018/08/02/pending-marine-fuel-regulations-roiling-oil-markets/#2c895c951fd8
« Last Edit: August 03, 2018, 12:55:36 pm by thackney »
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