Diesel and Jet Prices Poised to Spike on Shipping Fuel Switch

摘要

The world’s market for middle distillates is set to tighten dramatically from 2020 when a new global 0.5% sulfur limit on marine bunker fuel will come into force. At least 2 million barrels per day of bunker demand is expected to switch overnight from high-sulfur fuel oil to diesel to meet the new limit, eliminating what has been a mounting global surplus of diesel and jet fuel, and almost certainly leading to higher prices (JFI Oct.31’16).