Against all odds: WCS thrives despite IMO 2020 mandate

摘要

Early predictions about WCS losing popularity may be up for reevaluation,at least for now.Analysts were largely in agreement that the IMO's 0.5%-sulfur(S)cap due to take effect in Jan.would result in sharp demand declines for heavy sour crudes like those produced in Canada.These predictions,however,did not take into account the possibility that Alberta's provincial government would impose production caps,or that Venezuelan and Iranian exports would plunge as far as they have,or that Saudi Arabia would voluntarily reduce output as severely as it has,or that US output of light crudes would flood the market,forcing refiners to search for medium and heavy grades to blend down the API of available feedstocks.All of these factors have made medium and heavy crudes much more appealing than they had traditionally been.