Low-Sulfur Fuel Oil Premium to Gain in Europe: Energy Markets
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Tougher environmental standards starting in Europe next month are boosting premiums for low- sulfur fuel oil and may increase demand for less-polluting grades of crude.
The International Maritime Organization will require shippers to use fuel containing no more than 1 percent of sulfur in parts of northern Europe from July 1. Refiners in the region will need to process more so-called light crudes, according to Colin Birch, vice-president at energy consultants Purvin & Gertz Inc. in London.