European storage adjusts to IMO 2020
There are signs that European operators and refiners are getting comfortable with inventory levels ahead of the IMO 2020 switch
Europe's steady oil consumption has provided a firm underpinning to oil storage activity this year, as the market adjusted to expectations of a significant change in product consumption patterns with the implementation of the International Maritime Organisation's (IMO) 2020 reduction in marine fuel sulphur specifications, and the arrival of increased volumes of US crude. These two factors appeared to compensate for market backwardation—the spot price exceeding forward prices—which discourages speculative oil storage. Royal Vopak, the world's largest independent liquids storage company, reported in its analyst presentation for the first half of 2019 that in the second quarter occupancy at its
Also in this section
2 June 2025
It is time to acknowledge that the US-Saudi Arabia nexus is driving a fundamental shift in OPEC strategy
2 June 2025
More than anything else, weak Chinese gas demand is providing relief to EU consumers, but it is uncertain how long this relief will last
30 May 2025
Energy majors argue transition debate has started to factor in the complexities of demand shifts and the wider role for gas
29 May 2025
Sovereignty is the watchword for the new government, but there are still upstream opportunities for those willing to work closely with the state
