The Australian shipping industry surged to the top with its new Crude oil produce that falls in perfect line with the latest shipping rules, globally.
Shipping mandates the usage of fuels with low Sulphur content, as per the new directive by International Maritime Organization (IMO). This rule comes to the fore to check air pollution caused by the shipping industry. Sulphur content exceeding 0.5 will be banned, effective from 2020. The industry has to either collectively adhere to this new law or find apparatus to cleanse their crude oil of excessive Sulphur.
Australian heavy-sweet crude grades Pyrenees and Van Gogh, that are produced offshore western Australia have augmented the fortunes of its producers BHP Group, Santos Ltd and Inpex Corp with the soaring prices. Sold at premiums of more than $7 a barrel, up more than $1 from the previous month. On the other hand, the previously most expensive sweet grades, Malaysian giants in the business, Kimanis and Kikeh, are trading at premiums of about $5.50 a barrel.
Though ticking all the checks, their usual buyers, Chinese and Indian refineries has been silent due to the rising cost of the Australian heavy sweet- crude. The demand for this crude should be typically high, as this is most suitable for ships with its higher flash point. Crudes with a low flash point ignite easily and can cause engine issues. But its fate remains to be seen along with the incurred mandatory cost to the industry in the light of the IMO guidelines. Australia, however, will increase on its production.