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2025-08-01 18:37:18
[Oversupply alarms sound, why does the Asian fuel oil market continue to weaken?] ⑴ The Asian Very Low Sulfur Fuel Oil (VLSFO) market continued to weaken, with the high-sulfur to low-sulfur price gap narrowing. ⑵ The Singapore VLSFO spot premium fell to $1 per ton for mid-August shipment, and spot quotes for late August also generally weakened. ⑶ The main reason for the market weakness is supply pressure. ⑷ Asia is expected to receive a large number of arbitrage cargoes in August, resulting in an ample market supply. ⑸ In addition, the weakness in the low-sulfur fuel oil market also affected the high-sulfur to low-sulfur price gap. ⑹ LSEG data shows that the gap closed at $82 per ton on Friday, narrowing from the previous week. ⑺ Despite a decline in fuel oil inventories, with data from a Dutch consultancy showing that fuel oil inventories in the ARA region fell 1.7% week-on-week to 980,000 tons, the outlook for ample supply continued to dominate market sentiment. ⑻ Uncertainty caused by Trump's tariff rhetoric and market concerns about a slowdown in the global economy and oil demand also put pressure on oil prices.
