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2025-07-29 17:53:02
Heavy Sulfur Fuel Oil Falls to a Six-Month Low! What's the Solution to the Asian Market's "Oversupply Dilemma?" ⑴ On the afternoon of July 29th, Beijing time, Asian high sulfur fuel oil (HSFO) margins weakened further, with the spot 380-cst HSFO-Dubai crack spread falling to a more than six-month low. ⑵ LSEG data showed that the August 380-cst HSFO crack spread closed at a discount of approximately $6 per barrel, while the September crack spread was at a discount of $4.50 per barrel. ⑶ Trade sources noted that large amounts of high sulfur fuel oil have been pouring into East Asia this year, continuing to put pressure on the market. ⑷ Despite a slight increase in the outlook for summer power demand in the Middle East and feedstock demand from Chinese refineries, this has failed to boost market prices. ⑸ Spot high sulfur fuel oil prices remained in a discount range on Tuesday, while the premium for very low sulfur fuel oil (VLSFO) has narrowed in recent trading sessions. ⑹ Market bidding activities were generally quiet, although Vietnam's Nghi Son offered 5,000 tons of fuel oil, scheduled for loading from August 5 to 7. ⑺ In addition, Nayara Energy, an Indian refiner backed by Russia, reduced refinery operations by 400,000 barrels per day due to EU sanctions, and Guyana's average daily crude oil production in June also fell from 667,000 barrels to 664,000 barrels. These changes on the supply side are also worth paying attention to.
