Asia Fuel Oil-Market structure eases as timespreads sell off
Reuters2026/09/28 10:32SINGAPORE, Sept 28 (Reuters) - The market structure for fuel oil softened at the Asia close on Monday, as timespreads for both high-sulphur fuel oil (HSFO) and very low-sulphur fuel oil (VLSFO) sold off during the day.
Both markets remained in relatively strong backwardation into the end of the year, reflecting uncertainty over product outflows, with peace talks between the US and Iran deadlocked.
Fuel oil cracks largely held their strength from last week. The 380-cst HSFO/Brent crack FO380BRTCKMc1 was steady near a premium of $3.45 a barrel, while the VLSFO crack LFO05SGBRTCMc1 dipped slightly but held above a premium of $23 a barrel.
Cash differentials were pegged at slightly lower premiums than the previous trading day, reflecting weaker timespreads.
The prompt hi-five spread FO05-380SGMc1 slipped to about $125 a metric ton.
REFINERY UPDATES
- US oil refiners are expected to have about 542,000 barrels per day of capacity offline for the week ending October 2, increasing available refining capacity by 289,000 bpd, research company IIR Energy said on Monday.
OTHER NEWS
- Brent rebounded more than 2% on Monday after US President Donald Trump rejected an Iranian proposal to end the conflict and reopen the Strait of Hormuz. O/R
- Crude oil exports from key Middle East producers rebounded in September to 12.8 million barrels per day, the highest since the US-Israeli war with Iran started in February, data from Kpler showed on Monday, as Saudi Arabia and the United Arab Emirates boosted exports.
- Goldman Sachs said a US diesel export ban would initially put moderate downward pressure on diesel prices, and that export restrictions, including quotas, were a plausible outcome.
- TotalEnergies said on Monday it was raising fourth-quarter share buybacks to $2.5 billion from $1.5 billion in recent quarters, as high global energy prices boost returns for oil and gas majors.
WINDOW TRADES O/AS
- 180-cst HSFO: No trade.
- 380-cst HSFO: No trade.
- 0.5% VLSFO: No trade.
ASSESSMENTS
FUEL OIL |
|
|
|
|
CASH ($/T) |
ASIA CLOSE |
CHANGE |
PREV CLOSE |
RIC |
Cargo - 180cst |
705.60 |
-4.35 |
709.95 |
FO180-SIN |
Diff - 180cst |
50.02 |
-2.98 |
53.00 |
FO180-SIN-DIF |
Cargo - 380cst |
694.24 |
-0.79 |
695.02 |
FO380-SIN |
Diff - 380cst |
47.32 |
-0.55 |
47.88 |
FO380-SIN-DIF |
Cargo - 0.5% VLSFO |
803.13 |
-8.62 |
811.74 |
MFO05-SIN |
Diff - 0.5% VLSFO |
29.20 |
-4.75 |
33.95 |
MFO05-SIN-DIF |
For a list of derivatives prices, please refer to ENSWAP/INFO or the RICs below: |
|
180cst M1 |
FO180SGSWMc1 |
180cst M1/M2 |
FO180SGSDMc1 |
380cst M1 |
FO380SGSWMc1 |
380cst M1/M2 |
FO380SGSDMc1 |
0.5% VLSFO M1 |
LFO05FSGMc1 |
0.5% VLSFO M1/M2 |
LFO05FSGSMc1 |
Cracks 180cst-Brent M1 |
FO180BRTCKMc1 |
Cracks 180cst-Dubai M1 |
FO180SGCKMc1 |
Cracks 380cst-Brent M1 |
FO380BRTCKMc1 |
Cracks 380cst-Dubai M1 |
FO380DUBCKMc1 |
Cracks 0.5% VLSFO-Brent M1 |
LFO05SGBRTCMc1 |
Cracks 0.5% VLSFO-Dubai M1 |
LFO05SGDUBCMc1 |
Visco 180cst/380cst M1 |
FOVISSGDFMc1 |
Hi-5 0.5% VLSFO/380cst M1 |
FO05-380SGMc1 |
GoFo 10PPM/0.5% VLSFO M1 |
GO10FO05FSGMc1 |
East-West M1 |
FOSGEWMc1 |
Barges M1 |
HFOFARAAMc1 |
Barges M1/M2 |
HFOFARAASMc1 |
Crack Barges-Brent M1 |
HFOFARAACMc1 |
(Reporting by Jeslyn Lerh; Editing by Jonathan Mathew)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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