World News
US Energy Coalition Calls for Timely Enforcement of IMO2020 Rule
In an open letter to the Whitehouse today, the recently formed Coalition for American Energy Security (CAES) has called on US authorities for a "timely implementation" of the upcoming IMO2020 rule.
"Imposing the standards in a timely manner will serve as a tremendous boost to the United States economy while simultaneously benefiting the environment and human health," said CAES.
"The United States already produces significant volumes of low-sulfur fuels domestically. Meanwhile, refiners in foreign countries such as Russia, Venezuela and Iran are far less prepared to comply with IMO 2020 standards."
The group also built on its message delivered last month that the US could be a world leader in provision of compliant fuel.
But as Ship & Bunker highlighted last month, how the new global sulfur cap on marine fuel will be enforced remains one of the big unknowns. There has also been speculation that some authorities could be deliberately lax on enforcement so as to not drive up land-based fuel prices.
"We've seen some hyperbolic, and flawed, analyses by market analysts concerning the consumer price impacts of IMO 2020," CAES wrote, noting that the latest outlook from EIA is initially only a slight increase in diesel retail prices. Any price changes following IMO 2020 will quickly diminish over time.
"The U.S. is ready, so let's move ahead without delay or modification."
The IMO 2020 global sulfur cap on marine fuel lowers to 0.50% from January 1, 2020.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.00 | 0.00 | 770.00 | 5.00 |
| Rotterdam | 602.50 | 1.00 | 762.00 | 2.50 |
| Houston | 630.50 | 4.00 | 796.50 | 2.50 |
| Fujairah | 648.50 | 0.50 | 900.00 | 4.50 |
| Global 20 Ports Average | 666.00 | 2.00 | 856.00 | 1.00 |
| Global 4 Ports Average | 632.50 | 0.50 | 807.00 | 1.00 |
| Global Average Bunker Price | 715.50 | 1.00 | 893.00 | 8.00 |
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