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The IMO will cut the maximum marine fuel sulphur content from 3.5% to 0.5% on 1 January 2020. The article explains that the earlier US ULSD mandate raised diesel prices by raising production costs and increasing demand for sweet crude.
It argues the new rule could repeat that effect.
Refiners' shift to low-sulphur production is expected to lift diesel relative to crude and gasoline, increasing fuel costs for feed logistics.
oilprice.comRobert RapierSep 2, 2018After 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.
After 442 past bullish policy events, Crude Oil (Brent) moved a median +1.4% over 5 sessions (60% higher; middle half -2.0% to +4.9%), and +2.1% 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.
