The impact of IMO 2020 on oil markets is going to be less than projected, at least according to a newly published forecast by OPEC. The cartel, in its voluminous World Oil Outlook report, said it has seen several shifts in oil markets that have led it to believe the transition to lower-sulfur marine fuels from higher-sulfur marine fuels will not be calamitous. Although the report still labels IMO 2020 “disruptive,” it also says that “changing market conditions and projections in terms of oil demand, supply and refining, as well as developments within the shipping industry, have led to some adjustments of previous IMO-related conclusions.” Among the reasons cited by OPEC are a series of changes in the world oil market, none of them so large as to be the overwhelming cause of why OPEC views the transition to be smoother than it had previously. And it hasn’t completely given up on the idea that there may be some bumpy roads ahead for markets. After summarizing the market uncertainties that OPEC says would have led some companies to delay installation of capacity to deal with the requirements of IMO 2020. “This is another argument in favor of the view […]
