Analyst: US to Make up Significant LSFO Supply

Thursday October 4, 2018

Significant low sulfur bunker fuel supply is likely to come from the United States post 2020, an analyst has said.

Vienna-based consultancy JBC Energy views the United States as an important supplier once the more stringent sulfur cap on bunker fuel comes into force in just over a year's time.

"The (United States) is likely to emerge as a strong supplier of compliant fuels in the coming quarters in the context of the IMO sulphur spec switch," the consultancy was quoted as saying this week by regional maritime news provider the Meditelegraph.

Fuel oil with a less than 1% sulphur content has averaged well over 32% of total US fuel oil supply in the last three months of data compared to just some 26% last year, JBC said citing Energy Information Administration data.

In addition, demand for the lighter US shale oil should pick up as refiners take the lighter crude oil grades to produce cleaner, low-sulphur fuels, according to the report.