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2025-09-16 18:45:33
Asian marine fuel oil market sees mixed performance, with high-sulfur fuel oil under pressure and low-sulfur fuel oil rebounding strongly. (1) The Asian marine fuel oil market is experiencing divergent trends. The "hi-5" spread, a key indicator of the premium of very low-sulfur fuel oil (VLSFO) over high-sulfur fuel oil (HSFO), widened for the second consecutive trading day, signaling a recovery in the VLSFO market. The latest data shows this spread has closed at $77.50 per ton. (2) VLSFO spot market prices have recently shown strength, with cash spreads recovering and active spot trading. In contrast, HSFO spot spreads remain at a discount, lacking clear bullish drivers. (3) Regarding crack spreads, VLSFO crack spreads have strengthened, while HSFO crack spreads have stabilized. The Singapore October VLSFO crack spread closed at a premium of nearly $7 per barrel, while the 380-cst crack spread hovered around a discount of $5 per barrel. ⑷ Notably, marine fuel sales at the UAE's Fujairah Bunkering Hub increased for the second consecutive month in August, reaching a four-month high of approximately 644,000 metric tons. While high-sulfur fuel oil sales declined, low-sulfur fuel oil sales climbed significantly, coinciding with the widening of the "Hi-5" price differential. ⑸ In the international crude oil market, oil prices rose slightly on Tuesday, extending their previous upward trend. Market sentiment was influenced by geopolitical factors, including concerns about potential supply disruptions caused by the Russia-Ukraine conflict and expectations for the US Federal Reserve's interest rate decision. ⑹ In addition, there were reports that a sanctioned tanker unloaded Russian crude oil at an Indian port, despite the port's access ban on blacklisted vessels. Separate news reports indicate that Kuwait National Petroleum Corporation is seeking to revive a project related to crude oil pipeline leasing, while a major Italian oil refining company is considering acquisition by Azerbaijan's National Oil Company.
