A new report has predicted a boom in distillates demand thanks to IMO's new sulphur rules.
Bank of America Merrill Lynch researchers said the spike will be felt immediately after 1 January, 2020, causing a long-term shift in refining and shipping dynamics.
The report predicts a rise of between 1.3m barrels per day (bpd) and 4m bpd for distillates.
“The momentous increase in diesel demand that is set to occur in 2020 could result in diesel cracks hitting $40/bbl during 2020 and we expect a strong physical demand for diesel to start in second-half 2019 as retail bunker providers and ships start to fill their tanks with low sulphur fuels,” the bank said.
