Jack Wittels, Bloomberg, suggests that optionality inherent in moving oil and products around the world will decline when new clean fuel rules start post 2020… Here are some takeaways:
“What might best be described as detour trades — ships switching destinations to profit from higher cargo prices — will become more challenging to execute in 15 months’ time because of changes to the kinds of fuel vessels must burn, according to several industry analysts and a former engineer for A.P. Moller-Maersk A/S.”
”The deviations — often delivering outsize profits to traders — will become tougher for two reasons. The first is that fuel for the shipments currently looks like it will cost a lot more than what owners pay today; the second is that fuels may be incompatible from one supplier to the next, making topping up a more complicated task. Some shipping groups have even said the lack of a uniform product could cause their carriers to break down.”
The link is here…
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