Asian fuel oil crack spreads remain divergent, while diesel spot premiums rebound

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智通财经2026/08/19 13:56

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The Asian ultra-low sulfur fuel oil market is weakening, with the September hi-5 spread narrowing to about $112 per ton, the lowest since mid-June. The spread between high and low sulfur fuel oil continues to shrink, reflecting relative pressure on low sulfur grades. The ultra-low sulfur fuel oil crack spread eased slightly to a premium of about $18 per barrel, while the 380 high sulfur fuel oil crack spread rose to a premium of about $0.40 per barrel, showing a clear divergence between high and low sulfur crack spreads.
In the diesel market, the intermonth spread and spot premium are strengthening in tandem. The 10ppm diesel spot premium rebounded to nearly $5 per barrel, with the crack spread further recovering to about $75 per barrel. Despite a slowdown in trading windows, refineries still see sporadic sales. The East-West diesel discount narrowed slightly to about $105 per ton, squeezing regional arbitrage opportunities.
The jet fuel market performed relatively mildly, with jet fuel’s discount to diesel narrowing to about $3.50 per barrel. Vietnam’s Petrolimex has launched a spot tender for September loading, with a volume of about 10 thousand to 12 thousand tons. Specific transaction details are yet to be confirmed.
Near-term supply and demand for naphtha remains weak, but sentiment for forward months is somewhat optimistic, with the crack spread rising slightly to about $135 per ton. Gasoline trading was light for two consecutive sessions, with the crack spread edging down to about $23 per barrel and no deals concluded in the trading window. Continued attention will be paid to the impact of changes in Middle Eastern and Russian refined product exports on the Asian supply-demand balance.

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Asian fuel oil crack spreads remain divergent, while diesel spot premiums rebound

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