Concern is in the air over IMO 2020's impact on the oil markets. File Image / Pixabay / Ship & Bunker
A global 0.50% sulfur cap on marine fuel will precipitate the biggest change in the history of the oil market, according to Amrita Sen, chief oil analyst at Energy Aspects.
Her assessment is the latest in what is becoming an increasingly worried commentary from energy and oil analysts over the impact of the IMO 2020 rule.
"You can feel the panic starting to set in," 20|20 Marine Energy's Adrian Tolson told Ship & Bunker.
Morgan Stanley last week said the new rules would push oil prices to $90/bbl in 2020, but how this will translate into bunker prices is unclear as the supply & demand picture for HSFO and gassoil will be radically different.
What is clear, however, is that in 2020 there will be significantly lower demand for high sulfur products.
"That is very important because Middle Eastern producers lose out heavily from that because their crude tends to be very high sulfur," Sen said.