• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 2 hours EU has already lost the Trump vs. EU Trade War
  • 11 hours Impeachment S**te
  • 48 mins Article: Did Exxon only make $39 Million onshore U.S. last quarter ?
  • 4 hours More dumbed down? re Hong Kong Act of Congress
  • 18 hours 55.00 WTI
  • 3 days Science: Only correct if it fits the popular narrative
  • 2 hours Visualizing Pennsylvania Oil & Gas Production (Through September 2019)
  • 2 days IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
  • 4 hours U.S. Shale To Break Records Despite Bearish Rhetoric
  • 1 day Everything You Need To Know About Trump
  • 3 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 20 hours Water, Trump, and Israel’s National Security
  • 2 days Crazy Stories From Round The World
  • 2 days ‘If it saves a life’: Power cut to 1.5 million Californians
  • 1 day Last I Checked
Forget OPEC: China Now Moves The Oil Markets

Forget OPEC: China Now Moves The Oil Markets

The time that OPEC rhetoric…

Worrying Data For OPEC

Worrying Data For OPEC

OPEC’s latest edition of its…

Exxon Expects Demand For High-Sulfur Fuel Oil To Drop 25%   

refinery

Global demand for high-sulfur fuel oil is expected to drop by 25 percent through 2025 because of the stricter emissions regulations for ship fuel beginning in 2020, Reuters quoted Bryan Milton, President of ExxonMobil Fuels and Lubricants, as saying at the Scotia Howard Weil 47th Annual Energy Conference in New Orleans on Monday.

The new sulfur content regulations by the International Maritime Organization (IMO) as of January 1, 2020, limit the sulfur content in fuels for ships to 0.5 percent, slashed from the current 3.5-percent limit.

The downstream sector globally is on the cusp of “one of the biggest shakeups ever,” the IEA said in its Oil 2019 annual report earlier this month, referring to the IMO rules as of next year.

The IEA estimates in the annual report that demand for high sulfur fuel oil (HSFO), the main vessel fuel since the 1960s, will plunge to 1.4 million bpd from 3.5 million bpd in just one year, and that there will be 4,000 scrubbers installed on large vessels by the end of 2020, consuming 700,000 bpd of fuel oil.

At the same time, many shipping companies will prefer to use marine gasoil (MGO) instead of a new very low sulfur fuel oil (VLSFO), despite its higher price, the IEA notes, estimating that demand for MGO will jump from 890,000 bpd in 2019 to 1.98 million bpd in 2020.

The drop in fuel oil demand and the rise of petrochemicals over the next few years will benefit the U.S. oil producers whose typical crude products are lighter, the IEA said.

Meanwhile, oil refiners around the world from Europe to the United States to Asia are preparing to capture high refinery margins for distillates like diesel and marine gasoil—as high as they can get.

To this end, some refiners have changed their maintenance schedules for 2019, with planned refinery stoppages heavily geared toward the spring in the first half of the year, leaving more operating refining capacity for the fall of 2019, when the 2020 ship fuel change will be imminent.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play