24JUL2019 - NEWS - Heavy Oil Supply Crunch Cushions Canada From IMO 2020

An increasingly tighter supply of heavy crude will in all likelihood help Canada’s oil industry weather the unfavorable effects of the so-called IMO 2020 rules, which stipulate a much lower allowable level of sulfur in bunkering fuel. The new rules envisage a maximum of 0.5 percent sulfur content in the fuel used by maritime vessels versus 3.5 percent. The benchmark Western Canadian Select has an average sulfur content of more than 3.5 percent as opposed to the very light West Texas Intermediate, whose sulfur content is below 0.5 percent. However, it seems that demand for Canadian crude is not exactly restricted to just bunkering fuel.