# IMO2020 watch: looking to refineries and shipowners to respond to economic incentives - FreightWaves

> The IMO 2020 rule will cut the allowed sulfur content of marine fuel from 3.5% to 0.5% from January 2020. Bank of America Merrill Lynch says it is very bullish on the diesel crack because refining upgrading capacity is not keeping pace with middle distillate demand.

- Date: 2018-10-21 · published 2018-10-21T12:00:00.000Z
- Category: policy · region Global · magnitude medium
- Page: https://feedsoft.ai/events/62733-imo2020-watch-looking-to-refineries-and-shipowners-to-respond-to-economic
- Commodities: [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Ship fuel switching to low-sulfur diesel is expected to pull middle distillates away from road and farm use, which would lift diesel prices relative to crude.

## Read by commodity

- BRENT: neutral
- DIESEL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DIESEL | 2019-02-01 | [A trade gets done in Singapore and gives a hint what will happen to fuel prices under IMO2020 - FreightWaves](https://feedsoft.ai/events/60790-a-trade-gets-done-in-singapore-and-gives-a-hint-what-will-happen-to-fuel-prices.md) | +1.4% | +6.7% |
| DIESEL | 2021-03-05 | [OPEC stuns by opting not to raise output; was diesel a reason? - FreightWaves](https://feedsoft.ai/events/48282-opec-stuns-by-opting-not-to-raise-output-was-diesel-a-reason-freightwaves.md) | +3.2% | -3.7% |
| DIESEL | 2019-05-08 | [How trucking can mitigate risks of IMO 2020 marine fuel rule - FreightWaves](https://feedsoft.ai/events/59257-how-trucking-can-mitigate-risks-of-imo-2020-marine-fuel-rule-freightwaves.md) | +1.1% | -12.7% |
| DIESEL | 2019-09-27 | [Port Report: truckers beware – IMO 2020 will cause fuel prices to “go through the roof” - FreightWaves](https://feedsoft.ai/events/57266-port-report-truckers-beware-imo-2020-will-cause-fuel-prices-to-go-through-the.md) | -3.9% | +1.9% |
| DIESEL | 2019-10-06 | [FreightWaves oil report: physical diesel markets strengthen; IMO 2020 link eyed - FreightWaves](https://feedsoft.ai/events/56766-freightwaves-oil-report-physical-diesel-markets-strengthen-imo-2020-link-eyed.md) | +3.3% | +1.8% |
| BRENT | 2019-02-01 | [A trade gets done in Singapore and gives a hint what will happen to fuel prices under IMO2020 - FreightWaves](https://feedsoft.ai/events/60790-a-trade-gets-done-in-singapore-and-gives-a-hint-what-will-happen-to-fuel-prices.md) | -1.4% | +5.4% |
| BRENT | 2016-11-30 | [Tighter marine fuel sulfur limits will spark changes by both refiners and vessel operators -
		U.S. Energy Information Administration (EIA)](https://feedsoft.ai/events/74014-tighter-marine-fuel-sulfur-limits-will-spark-changes-by-both-refiners-and.md) | +16.7% | +22.1% |
| BRENT | 2019-12-01 | [Five things to watch at this week’s Opec meeting](https://feedsoft.ai/events/55741-five-things-to-watch-at-this-week-s-opec-meeting.md) | +3.1% | +7.7% |

## Sources

- freightwaves.com: https://www.freightwaves.com/news/maritime-imo2020-merrill-lynch-report-refineries

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