The fuel oil and bunker markets continue to be a major focus of discussion, uncertainty and opportunity. The IMO Marpol regulation still have vast uncertainties on how this will affect the residual bunker market and 202 is quickly approaching. What will compliance look like? How will regulations be enforced? What will the penalties be?
Even aside from the new sulfur standards, what is the anticipated outlook for the VGO and heavy feedstocks markets? What equipment will refiners need to invest in how large will the expected financial commitment be? What is the outlook for utilities around the globe to use oil as a generation fuel? With all these looming uncertainties, how do cash-strapped shipping industry deal with the tough investment decisions it faces?