Fuel Oil
Market Overview
Sing 5GO which is the spread between 10 ppm and 0.5% has widened to 463$/t, driven by the strength in diesel.
However VLSFO bunkers demand remain well supported and is facing a likely reduction in supply as feedstock demand pulls LSSR away.
This means Sing 0.5% needs to increase relative to 10 ppm to bring some gasoil back into the blend pool.
Caveat would be that Sing 5GO hit 635$/t at the peak of the crisis, so the spreads could still climb a little bit more before mean-reverting.
