Starting 2020, the new regulation of the International Maritime Organization of the United Nations (IMO) comes into force on sulfur content in marine fuel.
Report informs referring to the Kazakh media that demand for Kazakhstani oil may change due to new requirements for sulfur content in marine fuels, S&P Global Platts managing editor Paula Vanlaningham says. “A change in the regulation of IMO (International Maritime Organization of the United Nations) will have an indirect effect on oil sorting and refining around the world, including Kazakhstan. CPC Blend, the main grade of Kazakhstani oil transported by sea, contains more sulfur than other grades of light crude oil, but it is not considered as high-sulfur oil by the market, such as Iraqi Basrah or even Russian Urals. However, due to the higher sulfur content in comparison with competitors, it can be replaced in raw materials for processing in favor of less sulphurous light varieties or, conversely, may encounter a discount to cover the difference between it and other light varieties, ” she explained.
Although no one is yet sure how the new IMO regulation will affect global oil markets, including raw materials and petroleum products, the Platts pricing teams do not give any predictions about what will happen.