Low sulphur, high price
European refiners anticipate increased margins and improved utilisation due to the IMO 2020 cap
The International Maritime Organisation's (IMO) 0.5pc sulphur cap on bunker fuels, imposed from 2020 globally, will require a step change for European refineries. Utilisation and margins are expected to receive a boost from increased demand for marine gasoil and diesel, accelerating the trend away from conventional fuel oil. The cap "is going to represent a significant change for refiners in Europe, because the switch for fuel oil from 3.5pc to 0.5pc is not straightforward," says Damien Valdenaire, science executive, refining operations, Concawe, the environment research arm refining industry association FuelsEurope. "Refineries in Europe don't have the ability to remove the sulphur… we'll h
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