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 is the expected duration of the current distortions and margin pressures in the fuel market?

How do scrubbers impact the earnings of ships running certain products?