IMO’s fuel oil switch may favor GC

The International Maritime Organization (IMO)'s mandated switch in January 2020 to the use of very low sulfur fuel oil (VLSFO) to power ships worldwide will launch a one- to five-year disruption in oil and refined products markets, according to a study released May 16 by Boston Consulting Group. The mandated switch will require fuels to have sulfur content below 0.5 percent, compared to the current 3.5 percent. It aims to improve human health by reducing air pollution from sea-going vessels. The change may increase profits for refiners, especially on the Gulf Coast (GC), where plants are designed to process high-sulfur crudes. It could also benefit producers of shale oil, which has lower sulfur content than other varieties, the study found. (Source: Marine Link 05/16/19)