Upcoming changes in marine fuel sulfur limits will affect crude oil and petroleum product markets (1/16/2019)

In the January 2019 update of its Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) includes the effects that upcoming changes to marine fuel sulfur specifications will have on crude oil and petroleum product markets. Set to go into effect January 1, 2020, the new International Marine Organization (IMO) regulations limit the sulfur content in marine fuels used by ocean-going vessels to 0.5% by weight, a reduction from the previous limit of 3.5%. The change in fuel specification is expected to put upward pressure on diesel margins and modest upward pressure on crude oil prices in late 2019 and early 2020. ... More »