Lukoil to produce IMO 2020-compliant LSFO
Russia’s decision to produce IMO-compliant fuel comes as differentials for its Urals crude have fallen to the widest discounts in a year against dated Brent crude. Russia’s high sulphur content crude could fall out of favour with European refiners as refining margins are eroded by reduced demand and weaker prices
As shipping companies are forced to use more environmentally friendly fuel and reduce emissions, Russian refiners that produce excess heavy fuel oil could find their margins significantly squeezed