Products - IMO Rules to Boost Europe's Reliance on Russian Diesel

摘要

New International Maritime Organization (IMO) limits on sulfur in bunker fuel coming into effect on Jan. 1 pose a serious threat to Europe's lifeblood diesel imports and could boost the region's reliance on short- haul flows from Russia. Traders fear that large amounts of diesel-type gasoil will be dragged into the bunker pool once initial stockpiles of 0.5% very low-sulfur fuel oil have been exhausted. They also worry that higher bunker prices will lead to higher freight costs and make long-haul diesel arbitrages much more difficult to work.