Shipping’s Big Bang Sends Two Global Industries Spinning

The video discusses the distortions in the fuel market, particularly the impact of IMO 2020 regulations on marine fuel costs and refining. It highlights the challenges faced by refiners due to inventory builds and the demand for Ultra Low Sulphur diesel. The discussion also covers the demand for high sulfur fuel oil and the use of scrubbers as an alternative. The market outlook suggests a short-term oversupply due to increased refining capacity in China and stagnant demand in the US. The economic implications of scrubbers and the current diesel supply are also examined.

What has been a significant challenge for refiners in the US according to the video?

• High demand for high sulfur fuel oil

• Lack of refining capacity

• Skyrocketing costs of IEMO compliant marine fuel

• Large inventory builds of refined products

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

• It is too expensive to produce

• It is not suitable for modern engines

• There are not enough scrubbers on ships

• It is not compliant with IEMO regulations

What is one reason the market distortions are not expected to last long?

• China's new export quotas

• Rising global crude prices

• Increased production of high sulfur fuel oil

• High demand for marine fuel

How much more are ships with scrubbers earning compared to those without?

• $20,000 more a day

• $25,000 more a day

• $15,000 more a day

• $10,000 more a day

What has been a surprising factor in the global diesel supply?

• Rising diesel prices

• Increased production in the US

• The crude slate has gone very light

• High demand from trade disputes