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Starting in 2020, international maritime diesel standards will require about 85% less sulfur, pushing ships toward lower-sulfur fuel. Analysts expect the change to reshape the global diesel market and could add 5 to 10 cents per gallon to diesel prices as early as Q4 2019.
It may also shift some China-origin cargoes from East Coast to West Coast ports.
Tighter marine fuel rules tighten the global supply of low-sulfur distillate and can lift diesel prices, which feed into freight and feed transport costs. Port rerouting could also change inland freight patterns.
ccjdigital.comCCJ Staff (CCJAug 9, 2019After 90 past bullish policy events, ULSD / Diesel moved a median +1.4% over 5 sessions (66% higher; middle half -1.9% to +4.1%), and +0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
