06AUG2019 - NEWS - Complex US refiners feel the pinch of narrower crude spreads ahead of IMO 2020 rules

Most US refiners are seeing weaker coking margins ahead of sulfur limits under IMO 2020 rules as the price difference between light, sweet crudes and heavy crudes narrow, but expect spreads to widen back out as the January 1, 2020, deadline for the bunker fuel change nears, an analysis by S&P Global Platts shows. The International Maritime Organization mandate for cleaner bunker fuel taking effect on January 1 requires sulfur content to drop to 0.50% from the current 3.5%.