Fuel Oil
Market Overview
Sing FOGO (380 cst – 10 ppm) has weakened to historical lows. With bunker demand healthy, we anticipate a reversion to mean needs to happen after the diesel shock is overcome.
On 0.5%, marginal production of VLSFO comes from the Residue Desulphurization (RDS) unit which competes with feedstock requirements.
Since the refineries are anticipated to have more crude to produce more than enough LR, there will be spillover of HSFO into VLSFO production via the RDS.
