European storage adjusts to IMO 2020
There are signs that European operators and refiners are getting comfortable with inventory levels ahead of the IMO 2020 switch
Europe's steady oil consumption has provided a firm underpinning to oil storage activity this year, as the market adjusted to expectations of a significant change in product consumption patterns with the implementation of the International Maritime Organisation's (IMO) 2020 reduction in marine fuel sulphur specifications, and the arrival of increased volumes of US crude. These two factors appeared to compensate for market backwardation—the spot price exceeding forward prices—which discourages speculative oil storage. Royal Vopak, the world's largest independent liquids storage company, reported in its analyst presentation for the first half of 2019 that in the second quarter occupancy at its
Also in this section
10 January 2025
New Petroleum Economist OPEC+ oil survey sees group improve compliance to ensure oil market stability going into 2025
10 January 2025
The region accounts for the biggest share in terms of capital investment in the $2t market
10 January 2025
The importance of the oil and gas sector to the UK and the value of its assets mean 2025 could offer new opportunities and a recovery in activity
9 January 2025
The disconnect between export terminals coming online and vessels being available to transport cargoes means shipping rates are not looking so good, at least in the short term
