05JUL2019 - NEWS - New Shipping Fuel Rules Are to Starting to Rock the Oil Market

They may still be six months away, but new rules on marine fuels are already sending shock-waves through the little-known world of refinery feedstocks. The price of these low-sulfur, heavier oils — that refineries make and then reprocess into transport fuels like gasoline and diesel — has jumped in Europe in recent weeks because the shipping industry is starting to drive up demand for the products. The surge benefits some refineries while hurting others. The market is paying a higher premium for low-sulfur material than it did before because people are looking to stockpile low-sulfur bunker fuel.