Diesel prices will spike due to IMO 2020
“In anticipating the price impact on diesel prices from the launch of IMO 2020 on January 1 – with any impacts expected to start before that – most forecasters have been fairly moderate in their outlook, with some exceptions.
But Fitch Solutions, a unit of Fitch Group, recently came out with its forecast. Prominent in the title is the ‘S’ word – spike.
“Diesel: Tighter Shipping Rules to Lead Large Price Spike in 2020” is the title of the report.
The report as a whole sees the oil market in the next few years as having adequate diesel capacity in general. But it’s the short-term that is of concern to the trucking and transport sector and Fitch’s outlook is stark.
“Fuel switching due to IMO 2020 will drive a large and sudden shift in demand for diesel in shipping, and a significant mismatch between supply and demand, and in turn price volatility appears inevitable during its early stages,” the report said.” – According to the article in the freightwaves.com and its author John Kingston
Read the full story HERE
Source and credits: freightwaves.com /John Kingston and Mario Pawlowski / iTrucker