# IMO 2020: Oil market could see a diesel fuel resurgence, analysts say

> CNBC reports that analysts expect the IMO's January 1, 2020 cap on marine fuel sulfur at 0.5%, down from 3.5%, to create an oversupply of high-sulfur fuel oil and boost demand for compliant low-sulfur products. Analysts expect this to spark a resurgence in diesel demand over coming months. UBS estimates the green shipping market could be worth at least $250 billion over five years.

- Date: 2018-08-22 · published 2018-08-22T12:00:00.000Z
- Category: policy · region Global · magnitude medium
- Page: https://feedsoft.ai/events/63725-imo-2020-oil-market-could-see-a-diesel-fuel-resurgence-analysts-say
- Commodities: [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Stronger diesel demand from the shipping rule would raise fuel costs for freight and logistics used in feed supply chains.

## Read by commodity

- BRENT: neutral
- DIESEL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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% |
| DIESEL | 2016-11-03 | [Market Eye: Diesel Markets Set to Tighten Before 2020 \| Energy Intelligence](https://feedsoft.ai/events/74013-market-eye-diesel-markets-set-to-tighten-before-2020-energy-intelligence.md) | -2.1% | +11.8% |
| DIESEL | 2018-03-13 | [Enjoy stable diesel market while you can, analyst says - Grainews](https://feedsoft.ai/events/66211-enjoy-stable-diesel-market-while-you-can-analyst-says-grainews.md) | +2.6% | +11.1% |
| DIESEL | 2018-11-21 | [Commentary: Oil market readies for new IMO regulations](https://feedsoft.ai/events/9534-commentary-oil-market-readies-for-new-imo-regulations.md) | -7.6% | -9.3% |
| DIESEL | 2019-04-03 | [Diesel Prices May Increase as Cargo Industry Makes 2020 Fuel Switch, Experts Say - TT](https://feedsoft.ai/events/59767-diesel-prices-may-increase-as-cargo-industry-makes-2020-fuel-switch-experts-say.md) | +1.8% | +4.1% |
| BRENT | 2020-09-16 | [Opec+ set to review compliance amid heightened oil market fragility \| The National](https://feedsoft.ai/events/51059-opec-set-to-review-compliance-amid-heightened-oil-market-fragility-the-national.md) | +3.1% | +4.6% |
| BRENT | 2018-08-21 | [Analysis: OPEC weighs next move with oil market fundamentals hazy](https://feedsoft.ai/events/63438-analysis-opec-weighs-next-move-with-oil-market-fundamentals-hazy.md) | +5.1% | +9.0% |
| BRENT | 2024-03-25 | [Indonesia targets 50pc biodiesel blend in 2026 \| Latest Market News](https://feedsoft.ai/events/15658-indonesia-targets-50pc-biodiesel-blend-in-2026-latest-market-news.md) | +1.9% | +2.3% |

## Sources

- cnbc.com: https://www.cnbc.com/2018/08/22/imo-2020-oil-market-could-see-a-diesel-fuel-resurgence-analysts-say.html

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