FIS: Fuel Oil Daily Evening Report

Singapore’s front-month VLSFO crack endured some extreme volatility today. At the UK market open it traded just under $18/mt, before crashing to $12.50/mt at 08.35 BST (07.35 GMT).

The crack settled at $15.50/mt by the end of the trading day. It recorded a high of $18.50/mt during the day, leaving a $5.70/mt high/low spread – almost unheard of.

Liquidity has been weak in the European VLSFO market. Supply is still tight in Singapore’s VLSFO market, even with spot cargoes having recently been offered by regional refiners.