FIS: Fuel Oil Daily Morning Report

There has been little movement in the cracks so far this morning as liquidity in European markets is running as thin as the festive season and as extremely cold weather creeps in.

Singapore’s VLSFO crack is trading down $0.30/bbl to $4.20/bbl. There is bearish pressure on the Asian HSFO market as Russian cargoes are still coming in, but power demand in the region is slow. Limited arbitrage opportunities from Europe to the East also means there is no outlet for surplus supply in Europe.