Market Eye: Asian Fuel Oil Strengthens, But Low-Sulfur Market Sags

摘要

The Asia-Pacific high-sulfur fuel oil markets are strengthening, boosted by tight supply and firm bunker fuel demand. But for low-sulfur fuel oil, feeble demand from key buyer Japan has left the market weak and oversupplied. For high-sulfur fuel oil, the spot price differential for more viscose 380-centistoke (cst) fuel oil rose to a premium of $2.75 per barrel to Singapore quotes on Jul. 30, hitting its highest level in almost two months. The spot price differential for less viscose 180-cst fuel oil also appears to be rebounding, reaching a discount of $1.13/bbl to Singapore quotes on Jul. 30, an increase of $3.03/bbl from the low of a discount of $4.16/bbl on Jul. 22.