Shipping containers sit at the ports of Los Angeles and Long Beach, California in this aerial photo taken February 6, 2015. REUTERS/Bob Riha, Jr./File Photo/File Photo
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As recently as a year ago, the oil market was in a panic about changes to the kind of fuel that ships must burn.The end result, analysts at Wood Mackenzie Ltd., Facts Global Energy, Energy Aspects Ltd. and JBC Energy GmbH say, has been curbed supplies of the heavier, sulfurous ship fuel that owners will be mostly barred from buying next year.Remember, too, that these are often bigger ships with disproportionately large fuel consumption.An additional 400,000 barrels a day of so-called coking capacity is scheduled to be added this year, and a further 180,000 barrels a day in 2020, according to IEA data compiled by BloombergNEF.BloombergNEF forecasts a surplus of up to 1.52 million barrels a day next year.Sawyer estimates demand will be around 1 million barrels a day for the residue-based version of the new grade next year, while JBC sees supply for the same material at more than double that.
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