- Distillate demand from shipping has prompted Chinese refiners to use light-cycle oil w to increase volumes of IMO2020 compliant fuel.
- Blending light cycle oil is cheaper than extracting distillates from crude oil.
- An increase in blended fuel oil in the bunker market has been marked as an aftermath of the global 0.5% sulfur cap on bunker fuel.
Distillate demand from shipping has prompted Chinese refiners to use light-cycle oil which can be blended with diesel fuel to increase volumes of IMO2020 compliant fuel, reports an article published in Ship and Bunker.
Light cycle oil is less expensive
Blending light cycle oil is cheaper than extracting distillates from crude oil and imports of the products into China rose in April and May.
Inevitable effect of global sulfur cap
Energy Aspects analyst Michal Meidan said that suggest-able evidence shows that diesel demand is supported from agriculture and unreported bunkering use in China.
An increase in blended fuel oil in the bunker market has been marked as an aftermath of the global 0.5% sulfur cap on bunker fuel, according to the market observers.
The observers added that the spate of new fuels could cause problems for some ships.
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Source: Ship&Bunker
