New fuel options for ships

The International Maritime Organisation's (IMO) has ruled to reduce the sulphur cap for bunker fuel from 3.5% to 0.5% by 2020. The world merchant fleet will have to adapt and it will impact the oil industry.

"High sulphur fuel oil (HSFO) was used for approximately 70% of the world's bunker fuel in 2016; volumes that will not be compliant post-2020. The impact of the IMO ruling could result in a demand drop of as much as 2.1 million barrels per day in HSFO accounting for nearly 30% of global residual fuel oil demand. No entity along the value chain – from refineries, trading, logistics, ports to shipowners – in the Middle East and beyond will be untouched."

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