FIS: Fuel Oil Daily Evening Report

Rotterdam’s December VLSFO crack limboed in a $0.50/bbl range above and below 0 in today’s session, and strengthened on the day. As we approached UK close, it printed just below flat, at -$0.05/bbl.

After a turbulent few weeks of multiple dollar crashes for Rotterdam's HSFO barge crack, it seems to have somewhat found its balance over the last few days, strengthening by $0.25/bbl to trade last at -$32.00/bbl.

European refineries are currently maximising middle distillate production amid attractive margins, which yields more residual fuel oil as a by-product. This can partly explain the recently very low Rotterdam cracks.