World News
Industry Players Still Scratching Their Head over IMO 2020 Rule
There is still plenty of uncertainty over the impact of the upcoming IMO 2020 rule that will see the global sulfur cap on marine fuel fall to 0.50% from January 1, 2020.
"I think it's been a very curious process," Euronav CEO Paddy Rodgers said during the firm's latest earnings call as transcribed by SeekingAlpha.
"Everybody has been left a little bit scratching their heads and wondering how this is going to work out. We are 18 months away from implementation. We have a described specification for compliant fuel. We don't have an ISO standard for it yet, and I think a lot of refiners are wondering about how they might make it or what impact it's going to have."
Rodgers also echoed comments from last month by Alan Gelder, vice president for refining, chemicals and oil markets at Wood Mackenzie, who said IMO 2020 would be troublesome for owners of less complex refineries, and a boon for those with more complex technology.
"We can see that already happening, and that will be disruptive for trade groups," Rodgers said.
"So yes, it's going to be disruptive, yes, there are going to be good opportunities as well as some threats."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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