Europe bunker fuel compliance to rise on lower oil price: JBC Energy
Time：2015-01-20
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Pogl gave two scenarios, one with an oil price of $80/b and a second showing an oil price of $50/b corresponding to the current price level.
March ICE Brent futures were trading below $50/b Monday, near their lowest level in five years, due to growing supplies globally.
The differential between marine gasoil and high sulfur fuel oil has gone down in recent weeks. Marine gasoil is generally the more expensive product, but a lower oil price has reduced its premium to fuel oil.
Pogl said the lower relative price of marine gasoil made it more likely that European shipowners would switch to using it and therefore comply with Sulfur Emission Control Areas (SECAs), rather than a few months ago when the outright oil price was much higher.
Under the latest International Maritime Organization regulations, since January 1 ships sailing in designated SECA zones, which includes Northwest European waters and coastal US waters, can only burn fuel with a 0.1% maximum sulfur limit, down from the previous 1% sulfur cap.
Industry analysts have said in the past fines for non compliance were inadequate in Europe to persuade all shipowners to abide by the new rules.
The SECAs cover several European countries, further complicating the work of authorities in conducting spot checks on vessels.