The Asian fuel oil market strengthens across the board as geopolitical premiums and supply disruptions drive up crack spreads.

智通财经2026/07/22 14:21

Show original

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!

A welcome pack worth 6200 USDT for new users! Sign up now!

The Asian fuel oil market continued its strong trend this week, with very low sulfur fuel oil spot premiums climbing to a six-week high. This was driven by bullish sentiment in the upstream market and firmer bids from buyers. VLSFO spot premiums over Singapore quotations rose by more than $10 in a single day, exceeding $38 per ton.
High sulfur fuel oil also strengthened simultaneously, with 380-cst HSFO spot premiums rising to $12 per ton. The crack spread widened compared to the previous day, with VLSFO's crack spread climbing to a premium of about $23.25 per barrel. The 380-cst HSFO crack spread narrowed to a discount of about $0.35 per barrel. The near-month Hi-5 contract, which measures the spread between the two, expanded to about $150 per ton. Reports indicate three HSFO trades were completed during the Singapore trading window.
Naphtha crack spreads surged to the highest level since late April, as escalating conflicts in the Gulf region threatened September supply. The naphtha-Brent crude crack spread widened sharply to approximately $303.58 per ton compared to the previous day. The backwardation between the first half of August and the first half of October also widened significantly to about $55.25 per ton. Supported by strong demand from Indonesia, the gasoline market remained robust, with crack spreads reported at about $25 per barrel.
The diesel market remained strong, with ongoing shipping challenges in the Middle East continuing to support fundamentals. The paper swap time spread between August and September approached a three-month high, while the crack spread reached nearly $71 per barrel, continuing to hover just above the three-month high. Spot premiums maintained their upward momentum, rising above $5 per barrel. In jet fuel, Egyptian refineries have begun offering August cargoes, but negotiations in other Asian regions remain muted. The discount of jet fuel to diesel has narrowed to less than $0.50 per barrel.

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.

Understand the market, then trade.

Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.

Trade now！

The Asian fuel oil market strengthens across the board as geopolitical premiums and supply disruptions drive up crack spreads.

You may also like

Crypto prices