At the 2020 ADI Forum, Horace Hobbs, Chief Economist, Phillips 66, provided insights on the industry’s adaptation to #IMO2020, highlighting shifting demand, changing #crude values, and a significant tax regulation affecting bunker fuel production. The bunker fuel market is undergoing a transition as refiners and traders adapt to new regulations and supply dynamics, with some refiners increasing production while fluctuating crude prices, particularly for high-sulfur grades, are altering refinery economics. A key development is China’s recent tax regulation change, enabling more domestic refiners to produce bunker fuel, which could substantially impact global supply chains. As the industry optimizes and finds a new equilibrium, the coming years will be critical in defining the future of bunker markets.
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