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2026-04-08 21:55:25
[Asian Oil Market Weak Across the Board: Fuel Oil Spreads Halved, Naphtha Plunges $170, Diesel Premiums Hit Three-Week Low] ⑴ Following the two-week ceasefire agreement between the US and Iran, the Asian fuel oil market softened on Wednesday. Both high-sulfur and ultra-low-sulfur fuel oil spot premiums fell, and near-month contract spreads narrowed significantly. The spread between April and May for 380-cst heavy fuel oil narrowed from over $43 to approximately $30, while the spread for ultra-low-sulfur fuel oil fell from over $60 to less than $40. ⑵ Asian naphtha prices fell sharply, following the decline in crude oil prices. Naphtha prices for delivery in the second half of May plummeted by approximately $170 to $1,100 per ton. Although the May-June cargo spread retreated from record highs, it remained at a high of $129 per ton. The naphtha-Brent crude oil crack spread was around $385 per ton, still at a multi-year high. (3) The Asian diesel market structure loosened for the third consecutive trading day, with both spot premiums and crack spreads hitting three-week lows. The 10ppm diesel crack spread fell to $54.7 per barrel, and the spot spread fell to $34.9 per barrel. Traders remained concerned about whether spot cargoes could pass smoothly through the Strait of Hormuz, limiting the overall price decline. (4) Shipping industry sources said that more shipowners may resume voyages through the Strait of Hormuz during the ceasefire, but most are still seeking further clarification of logistical arrangements, and the market will continue to face constraints from navigation uncertainty in the short term.
