# Why the feared IMO 2020 spillover effect on diesel markets didn’t happen - FreightWaves

> Diesel markets did not experience the feared spillover from the IMO 2020 marine fuel rule that took effect January 1. Ample distillate supply and the pandemic-driven demand drop kept diesel prices from being pushed up by VLSFO production.

- Date: 2020-12-28 · published 2020-12-28T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/49838-why-the-feared-imo-2020-spillover-effect-on-diesel-markets-didn-t-happen
- Commodities: [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

The absence of a diesel squeeze from IMO 2020 means the fuel cost outlook for feed freight was not raised by that rule. Diesel prices stayed driven by the broader demand and inventory picture.

## Read by commodity

- DIESEL: neutral

## Sources

- freightwaves.com: https://www.freightwaves.com/news/why-the-feared-imo-2020-spillover-effect-on-diesel-markets-didnt-happen

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.