Fuel Oil
Market Overview
Sing VLSFO blender margins are positive for June, July and August.
However arbs from the West are entirely shut.
Low sulphur blending components availability may be more of an issue, thus more supportive Sing 0.5% timespreads.
A Suezmax of Dangote LSSR is heading to Fujairah for mid June arrival, pulling away barrels from the Singapore market.
Tank bottoms in Fujairah is pushing 0.5 ex-wharf diff to MOPS+130$/t.
With summer burn starting in a very hot year so far and with some Al Zour units still offline, most of Kuwait LSFO production should be directed to domestic power gen.
This means very little left for exports, except what was already loaded and waiting to exit the SoH.
