Global demand for marine fuel will fall by 17%

Global demand for marine fuel is expected to decline by as much as 17% due to the impact of the new coronavirus pandemic on Global trade, an industry executive said at a meeting on Wednesday, providing conditions for further integration among marine fuel suppliers.

Uni einemo, head of the International Fuel Industry Association (ibia), said companies were faced with low demand, low profit margins, oversupply, increased counterparty risk and limited financing channels.

“As a result, we may look forward to further integration through mergers and acquisitions or closure,” einemo said at the meeting He added that some companies may be forced out of the market.

“While global fuel demand remains good (April and may), global fuel demand is expected to decline significantly in 2020,” einemo said

Ibia members expect global demand for marine fuel to decline by 7% to 17% in 2020, she said.

It is estimated that the global demand for marine shipping fuel is about 300 million tons per year, or about 5.2 million barrels per day.

“By 2020, fuel oil demand, including marine fuel oil, power generation and industrial uses, is expected to decline by only 400000 barrels per day, or 6.3 percent,” the International Energy Agency said in its latest report released on Tuesday

In contrast, the International Energy Agency predicts that by 2020, the demand for high-quality transport fuels, including aviation fuel, diesel and gasoline, will decrease by about 7.4 million barrels / day, or about 11.6%.