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At the SMC3 Jump Start 2019 event, policy expert Randal Mullett said IMO rules phasing out high-sulfur bunker fuel from January 1, 2020 could raise diesel prices 20% to 30% and ocean fuel prices by up to 25%. One shipping company estimated extra fuel costs of $100 million per month.
He also expects capacity constraints and infrastructure gridlock in Congress.
Higher bunker and diesel costs would raise ocean freight and trucking expenses for feed importers and exporters. The estimate is a forecast from one analyst, so the price path remains uncertain.
ttnews.comJim StinsonJan 30, 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.
Not enough comparable past events yet for a historical read.
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.
