In its recently published Five-Year Global Fuels Outlook, ESAI Energy examines the effect of the International Marine Organization’s (IMO) 0.5 percent sulfur content cap on bunker fuels on transport fuel markets through 2023.
Progress on Russia’s oil tax reform hints at its likely impact on the future of refining. Most but not all refineries will be subsidized. Distillation capacity will level off after a prolonged period of expansion. Lastly, the new system will eliminate the incentive for investment in fuel oil destruction. However, the consequences for investment will be offset by market incentives stemming from new IMO regulations.