Gasoil refining margins could spike to $40 a barrel in 2020 as more shippers shift to middle distillate fuels when new rules limiting sulfur emissions take effect, Bank of America Merrill Lynch said on Tuesday. From 2020, the U.N. International Maritime Organisation will ban ships using fuels with sulfur content above 0.5 percent, compared with 3.5 percent now, to curb pollution. Shipowners could install a kit called a “scrubber” that strips out sulfur emissions, allowing them to use the dirtier fuel oil. They could also switch to using costlier, low-sulfur fuels such as marine gasoil, very-low-sulfur fuel oil, or shift to liquefied natural gas. With a majority of shippers eyeing a shift to marine gasoil or very-low-sulfur fuel oil, diesel cracks could rally as marine gasoil supply tightens into […]