Asia/Pacific News
Higher Bunker Demand Predicted for Asia
Demand for bunker fuel in Asia is expected to grow about 2 percent in 2014 as the global economy picks up, Reuters reports.
"We are seeing a steady growth in bunker fuel demand in line with Asia's increasing trade with other regions," said Suresh Sivanandam of consultancy Wood Mackenzie.
Output of fuel oil from Asia-Pacific refineries has fallen as the facilities add secondary units to break the product down in to higher-value products like gasoline, diesel, and jet fuel.
Production of fuel oil in the region is projected to drop 4.25 percent from last year to about 2.03 million barrels per day in 2014-2015.
The region's output meets about two-thirds of its own fuel oil demand, but supplies from Europe and the Middle East are expected to easily make up the difference.
As more vessels switch to lighter fuel grades to comply with emissions rules, some Asian refineries are preparing to supply more ultra-low sulfur diesel (ULSD) or marine gas oil (MGO).
