EnSys Energy and Navigistics Consulting (IMO) sulphur cap mandate could lead to distillate prices of between US$500 billion and US$2 trillion a metric tonne in 2020 , according to a supplemental study by The International Marine Organization's . Navigistics Consulting’s analysis shows that nearly four million barrels a day of high-sulphur residual fuel will need to be ‘switched’ to 0.5% sulphur marine fuel by 1 January 2020 to achieve full compliance. It predicts that low-sulphur fuel demand will be higher than anticipated due to limited availability and a low uptake of scrubbers, leading to a "scramble period" in which less complex refineries bid up the cost of light sweet crude. At issue is that only three million bpd of high sulphur fuel will need to be converted, but capacity to produce four million will exist in H1 of 2020 .
EnSys Energy and Navigistics Consulting (IMO) sulphur cap mandate could lead to distillate prices of between US$500 billion and US$2 trillion a metric tonne in 2020 , according to a supplemental study by The International Marine Organization's . It predicts that low-sulphur fuel demand will be higher than anticipated due to limited availability and a low uptake of scrubbers, leading to a "scramble period" in which less complex refineries bid up the cost of light sweet crude. At issue is that only three million bpd of high sulphur fuel will need to be converted, but capacity to produce four million will exist in H1 of 2020 .