Residual Fuel Oil
Resid - HSFO
Strength that started in the East has transposed into ARA, bringing spreads up into backwardation and HSFO blend margins into positive territory.
Positive blend margins should now signal a ceiling to prompt spreads, especially as increasing volumes of high sulphur resid make their way into the market.
Resid - 0.5
Blend margins have been coming off recently as the cost of components ticked gradually higher.
The Dangote RFCC restart should take a decent chunk of LSSR out of the market.
The strength of HSFO is pulling mid-sulphur barrels out of the VLSFO pool, offering fundamental support.
