A new emission regulation on ocean vessels is in place, impacting fuel oil. “We’re starting to see in the U.S. a stark difference between the super low sulfur marine oil that must meet the IMO 2020 deadline in effect,” said Global Commodity Analytics and Consulting President Mike Zuzolo. “Those requirements versus fuel oil where they put scrubbers on or outside of the engines to scrub the sulfur down after the engines have used the fuel oil.” Zuzolo expects the additional demand on low sulfur fuel to eventually impact shipping costs. “Especially if airplane fuel starts going up, that could put more pressure to the upside on specialty fuels.”
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