Ahead of IMO’s implementation of a tougher sulphur cap on bunker fuel from 2020, the oil trader ‘Trafigura’ has merged its fuel oil and gas oil trading desks.
Combined services
The head position has been awarded to Mr.Joshua Grizzle to lead the new combined team, while Ms.Seetal Patel has taken a new senior role within the oil and oil products trading division. Both of the services are based in Geneva and this combined move is expected to better their services.
IMO’s 2020 sulphur cap
The International Maritime Organization’s global bunker sulfur cap is due to fall to 0.5% from 3.5% at the start of 2020, forcing most ship operators to switch to cleaner alternatives.
A trader commented, “High sulfur fuel oil demand with maximum 3.5% sulfur is expected to plunge as a result, as ships will no longer be able to use it except ships with scrubbers. Demand for low sulfur fuel oil in Singapore is expected to grow, but there will not be enough supply available to cover all the additional demand. As a result, ships are likely to turn to gasoil, which typically contains less sulfur than fuel oil, in the range of 10-500 ppm”.
Did you subscribe for our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Platts
