FIS: Fuel Oil Daily Evening Report

With crude being less volatile today, fuel oil products saw less price fluctuations in comparison to previous weeks of trading.

Singapore’s price spreads for high and low sulphur fuel oil have slipped today. Its front- to second-month VLSFO and HSFO contracts both printed $0.75/mt below yesterday’s settlement.

Singapore’s HSFO barge crack was pegged at -$26.65/bbl, up $0.30/bbl from its previous settlement.

Global demand for fuel oil is set to increase as gas-to-oil switching might jump by 80% over the next six months as soaring gas prices are forcing power producers and industrial users to switch to liquid fuels.