EMEA News
Finnish Refiner Neste Sees Limited IMO 2020 Boost to Middle Distillates
Finnish refiner Neste has been disappointed with the effect IMO 2020 has had on middle distillate prices so far.
The trend in the company's refining margins "turned negative during the fourth quarter as expectations on marine gasoil demand increase due to the IMO 2020 regulation became weaker," the company said in an earnings statement released Tuesday.
The margin in the first quarter of 2020 is still "expected to be low due to the warm weather, coronavirus outbreak, and the IMO 2020 bunker fuel regulation not yet supporting the middle distillates margin," the company added.
In August Neste announced it would be producing a very low sulfur fuel oil (VLSFO) blend, despite its refineries being located firmly within the European emission control area where a stricter 0.1% sulfur limit applies.
The company sees "good potential" for its VLSFO product, it said Tuesday.
