Americas News
IMO2020 to Restore Premium on Quality Refined Products, says US Refiner
Oil market conditions that has seen US refiners opt for lighter over heavier crudes should ease as IMO2020 restores demand for quality refined products, a US refiner has said.
Par Petroleum chief executive Joseph Israel speaking at an Argus Petroleum event in Miami said that fall in demand for high sulfur fuel oil after January 2020 and increase in demand for low sulfur product should restore the quality premiums seen in the refining industry before 2011.
Isreal added that although demand for high sulfur product would come back after 2021 as shipping companies adjusted to the changed bunker fuel market, future requirements on fuel carbon content in the maritime space would keep the focus at higher end of refined oil products.
Israel's comments match other observations suggesting that the US refining sector will benefit from the low sulfur cap on bunker fuel in place in just over a year's time. Refineries geared to producing high quality refined oil products are expected to gain over the plants that can't.
