Fuel oil markets
The marine bunker market consumes more than half of the total worldwide production of residual fuel oil, with this share projected to rise further. Thus any major changes in the pattern of demand from the bunker market could have a knock-on effect on inland fuel oil markets. However, there are uncertainties in the extent to which the global economic situation, high fuel prices, and environmental legislation will affect bunker demand. The full impact of future regulations on bunker fuel sulfur content in particular is as yet unclear, and will depend strongly on how quickly the shipping industry adopts abatement technologies such as exhaust gas scrubbing, or alternative fuels such as Liquified Natural Gas (LNG), rather than using low-sulfur conventional fuels to meet future emission limits.
An understanding of such factors is important for anyone undertaking medium and long-term planning studies involving considerations of future fuel availability, supply/demand balances, quality, and economics. Liddy Associates can work with you to develop a picture of how the changing dynamics of fuel oil markets might impact on your business.