THE International Energy Agency (IEA) has forecast said that the ratio of standard bunker to low-sulphur fuel will go from today's European ratio of 80:20 to 70:30 from January 1 when stricter emissions controls apply in the English Channel North and Baltic seas.
In its latest oil market monthly report, the IEA also spoke of problems compliance with the UN International Maritime Organisation's with 50 per cent more costly low sulphur fuel, reports London's Tanker Operator.
"European bunker fuel demand, at an estimated 790,000 barrels per day in 2014, comprised 80 per cent heavier sulphur fuel oil and 20 per cent marine gasoil. The relative ratio changes to 70:30 in 2015, as tightening sulphur regulations take effect," the IEA said reported Platts.
For the OECD Americas, the relative market share will switch from 50:50 in 2014 to 65:35 in 2015, with low-sulphur dominant.
There is some confusion over how the new 0.1 per cent sulphur limit will be enforced for ships entering certain shipping zones.
"Potential compliance issues could, of course, slow the potential adjustment with European waters a particular concern as seas south of the Baltic are exempt and without sufficient enforcement reduced compliance could ensue," the IEA said.
The IEA also said that OECD fuel oil demand is forecast to contract by 165,000 barrels per day, December to January, whereas the previous seven-year average for this period is an increase of 85,000 barrels per day.
OECD gasoil deliveries, meanwhile, are projected to fall by 195,000 barrels per day month on month in January 2015, a significantly less contraction than the seasonal norm of minus 420,000 barrels per day for 2008-14.
WORLD SHIPPING
24 November 2014 - 22:39
International Energy Agency sees big shift in low-sulphur vs bunker ratios
THE International Energy Agency (IEA) has forecast said that the ratio of standard bunker to low-sulphur fuel will go from today's European ratio of 80:20 to 70:30 from January 1 when stricter emissions controls apply in the English Channel North and Baltic seas.
WORLD SHIPPING
24 November 2014 - 22:39
International Energy Agency sees big shift in low-sulphur vs bunker ratios
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