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IEA: An acute shortage of global fuel oil supply will continue in next two years

The International Energy Agency (IEA) estimates that fuel oil supply is expected to face an acute shortage before 2020 when sulfur limit for marine fuel is set due to upgrade in refinery and a decline in medium and heavy crude oil production. According to the new regulations of the International Maritime Organization (IMO), by January 2020, the highest proportion of marine fuel sulfur will be reduced from the current 3.5% to 0.5%.

The IEA says, since November last year, due to the OPEC and non-OPEC (such as Russia) production reductions, the global production of medium and heavy crude oil has dropped by 1.4 million barrels per day, reducing the residual fuel oil market by 500,000 barrels per day. In the fourth quarter of last year, global demand for residual fuel oil was 6.74 million barrels per day, declining by 2.2% year-on-year.

The IEA states that the reduction in global crude oil supply is narrowing the profit margin of complex refineries comparing with simpler ones, which in turn leads to the disappearance of advantages of complex refineries. The increasing strengthening of fuel oil cracking in the past five months has made upgrades less feasible.

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KOSUN will participate in the 2019 NEFTEGAZ

KOSUN will participate in the NEFTEGAZ at the EXPOCENTER in Moscow, Russia on April 15-18, 2019. You are warmly invited to visit the D28-1 booth at Hall 21! We are waiting for you!

Exhibition: NEFTEGAZ

Date: April 15-18, 2019

Booth: 21D28-1

Venue: EXPOCENTER

The NEFTEGAZ is a professional petroleum exhibition in Eastern Europe, gathering 1,800 domestic and foreign exhibitors from 41 countries around the world. It serves as a stage for the global suppliers of the industry to showcase their new oil and gas industry technologies. The number of professional visitors to the exhibition reaches 38,600 from Russia, Germany, Britain, France, the United States, Italy, Australia, Kazakhstan, Kuwait, Ukraine, Saudi Arabia and other dozens of countries.

As a professional supplier of solid-liquid separation and sludge treatment equipment, KOSUN has attached importance to and participated in various domestic and international petroleum equipment exhibitions. In the 2019 NEFTEGAZ, KOSUN will focus on the solids control system and drilling waste treatment (mud zero discharge). At the exhibition, our technical engineers and sales managers will provide professional consulting services for you. Welcome you to our booth for exchange and cooperation!