Fuel Oil
Market Overview
HSFO and VLSFO cracks remain stubbornly positive as bunker fuel availability becomes an issue into April.
Cash diffs and spreads have generally eased as initial panic buying and massive backwardation have pulled available molecules to market quickly.
Paper is underestimating the sustained impact 3 months down the curve — lower crude runs mean structurally lower fuel oil supply across Asia.
The market is not fully pricing the medium-term tightness from reduced refinery throughput, arbs alone will not solve the shortfall.
