Before 3Q,it had been widely projected that demand for middle distillate would soar ahead of the IMO's 0.5%-sulfur cap that will take effect on Jan.1,2020,and refiners around the world responded by tweaking their operations to maximize output oftheproducts.In addition to some vessel operators choosing to fuel their ships with marine gasoil(MGO)or marine diesel oil(MDO),forecasters also expected a fair volume of lower-sulfur middle distillates to be blended into heavier bunker fuels in order to meet the 0.5%-sulfur spec.Both of these demand factors were seen as supportive of refining margins.As the 2020 deadline approaches,however,Asian margins have been falling rather than rising.
展开▼
