Martin Tallett, president, EnSys Energy, said: “Especially if allied to strict enforcement, this outlook leads to severe market strains affecting all products in all regions – not just marine fuels. The International Marine Organization's (IMO) sulphur cap mandate could lead to distillate prices of over $1,000 a metric tonne in 2020, according to a supplemental study by EnSys Energy and Navigistics Consulting. 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. Refiners are also concerned about the impact on their bottom lines.
The International Marine Organization's (IMO) sulphur cap mandate could lead to distillate prices of over $1,000 a metric tonne in 2020, according to a supplemental study by EnSys Energy and Navigistics Consulting. 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. Refiners are also concerned about the impact on their bottom lines.