Fuel Oil
Market Overview
Heavy sweet crudes weakness has spilled over into VLSFO blending in Singapore, enabling blend margins to remain strong in this blend hub.
Arbs from Rotterdam into Singapore are completely shut by some of the most negative margins ever seen due to higher Suezmax freight.
With AG crude now back in the crude processing slate for Asian refineries for the next two months, there will be more HSFO available.
This has resulted in a weakening 180 cst and 380 cst crack vs Dubai and likely to remain pressured for the near term given no shortage of AG crude to run.
Mexico HSFO looks more workable into Singapore vs ARA.
