The International Maritime Organization’s new rules on fuel emissions that will come into effect in 2020 will help to lift diesel demand, according to industry insiders attending an S&P Global Platts event in Brussels this week.

The new emission rules stipulate that only vessels using fuels with a sulfur content of 0.5 percent or less will be allowed to roam the oceans, as per the IMO’s strategy aimed at cutting total carbon emissions from maritime transport in half by 2050. Those that use fuel with a higher sulfur content—the current limit is 3.5 percent—will only be allowed to remain in operation if they are equipped with emission-clearing equipment, which comes at no small cost.

As a result, expectations are, naturally, that high-sulfur fuels demand will take a hit while low-sulfur fuels enjoy higher demand…. CLICK for complete article