Shipping’s Big Bang Sends Two Global Industries Spinning

The video discusses market distortions due to rising costs of IEMO compliant marine fuel, particularly in Singapore, and the underperformance of oil. It explores the impact of IMO 2020 on refining and diesel inventories, highlighting the challenges faced by refiners. The demand for high sulfur fuel oil is low, but alternatives are available. The market outlook suggests that the current supply of refined products is sufficient to meet demand, with China and the US playing significant roles. The economic impact of scrubbers is also examined, noting their cost and the potential for increased earnings.

What has been the impact of the IEMO compliant marine fuel cost increase in Singapore?

• It has led to a decrease in marine fuel demand.

• It has improved the performance of refiners.

• It has caused distortions in the market.

• It has resulted in a surplus of high sulfur fuel oil.

Why is there a low demand for high sulfur fuel oil currently?

• Because it is more expensive than other fuels.

• Because scrubbers are not yet widely installed on ships.

• Because it is environmentally friendly.

• Because it is in high supply.

What has China done that affects the refined product market?

• Reduced its refining capacity.

• Increased import tariffs on marine fuel.

• Issued new export quotas.

• Banned the use of scrubbers.

What is the financial benefit of using scrubbers on ships?

• They are cheaper to install than expected.

• They increase daily earnings by about $20,000.

• They reduce the cost of marine fuel.

• They eliminate the need for low sulfur fuel.

What factor has contributed to the current diesel supply situation?

• A decrease in crude oil production.

• Trade disputes affecting demand.

• A shortage of refining capacity.

• A significant increase in global demand.