Thin demand weighs on fuel oil margins

摘要

Seasonal demand boosted middle distillate refining margins but higher supplies weighed on the light distillate and fuel oil markets. Fuel oil’s discount to Dubai crude fell to its widest in almost two months on sharply lower demand from Pakistan, a regular fuel oil importer (see graph). Fuel oil demand from Pakistan’s power plants fell after a severe smog in the past month sparked an abrupt switch to cleaner power generation fuels.