The current US administration’s occasional distaste for the United Nations looks particularly unfair given that the US was set to be the big gainer from new marine fuel rules from the International Maritime Organization, a specialized agency of the UN.
Trading house Gunvor Group Chief Executive Torbjorn Tornqvist said at the Oil & Money conference in London that the switch would generate uncertainty at first as storage and logistics would have to deal with a “cocktail of fuel blends”. He then said that the US would be the major overall winner.
“Crude differentials will reflect the strong differentials between distillates (diesel) and fuel oil we will see the price of heavy crude fall and light sweet rise,” Tornqvist said. “The big winner in the IMO is actually the United States. They have the most advanced refining system in the world and will take advantage of importing more heavy crude oil and they will export light crude oil that will get a bigger premium”.