A rise in demand for distillates has been forecast as a result of new shipping fuel rules, but the increase is unlikely to last. The price of petrol fell by more than 4% on Monday after falling below $US1 per litre at one point last week. But the International Energy Agency (IEA) says demand will settle back to its current levels when shipping companies adopt recently developed alternative fuels. The change will cause problems for refiners of high-sulphur fuel oil who do not upgrade, but power plants in Brazil, Russia and the Middle East could absorb the excess.
A rise in demand for distillates has been forecast as a result of new shipping fuel rules, but the increase is unlikely to last. International Maritime Organization rules will cut the amount of sulphur ships can burn from 2020, with demand for alternative gasoil expected to rise dramatically. But the International Energy Agency (IEA) says demand will settle back to its current levels when shipping companies adopt recently developed alternative fuels. The change will cause problems for refiners of high-sulphur fuel oil who do not upgrade, but power plants in Brazil, Russia and the Middle East could absorb the excess.