Bunker busters

摘要

Fuel oil margins are firming after speedy crude price falls, but the market is undergoing a structural change that is likely to depress margins later this year. Products price declines are lagging crude price falls in the US, Asia-Pacific and Europe this month, boosting refining margins. Low-sulphur fuel oil (LSFO) margins have firmed by $3-7/bl in the major refining centres in the past two months, after steep drops in sweet crude prices, despite expectations that a major realignment in shipping fuel use would depress demand (see graph, upper left).