The Regulation That Could Push Oil To $200

[Turbineguy]

Last edited Fri Jul 27, 2018, 10:10 AM - Edit history (1)

A research paper from economist and oil market watcher Philip K. Verleger predicts there could be a shortage of low-sulfur diesel fuel in 2020 as a result of regulations from the International Maritime Organization (IMO) aimed at cutting sulfur emissions. The regulations, due to take effect at the start of 2020, lowers the allowed concentration of sulfur in maritime fuels from 3.5 percent to just 0.5 percent.

https://oilprice.com/Energy/Oil-Prices/The-Regulation-That-Could-Push-Oil-To-200.html

The marine industry accounts for 5% of oil consumption*.

http://energypolicy.columbia.edu/sites/default/files/SlowSteamingto2020InnovationandInertiainMarineTransportandFuels817.pdf

* (shameless self promotion) less if you've taken my Fuel Oil Management seminar