IMO 2020 transition – smooth sailing so far

Originally, when the IMO sulphur specification change was announced, the refining market was concerned there would be significant surpluses of high sulphur fuel oil. To date, this IMO transition has been relatively smooth. The switch to widespread adoption of VLSFO has impacted the availability of vacuum residue as a feedstock for upgrading units. In this insight we analyse vacuum residue surplus considering how capacity growth, crude slate, and changing demand contribute to this and the economic outlook on residue destruction units. This insight summarises our latest view on the impact of the specification change, including: • How scrubber installations are progressing • How crude and oil product markets have responded to the specification change • Outlook in vacuum residue surplus and coking utilisations • Economic outlook on residue destruction units Download the associated slide pack to find out more.