FIS: Fuel Oil Daily Evening Report

HSFO forward spreads rallied dramatically today. Rotterdam’s August-September spread strengthened by $2.75/mt, and Singapore’s by $2.00/mt.

The movements in the forward spreads have meant that the East-West HSFO spread has continued to fly around, trading a range of $4.00/mt today. But approaching the UK market close it traded just $0.50/mt weaker on the day.

Rotterdam HSFO barges crack has come up by $1.00/bbl on the day, trading at an extremely strong- $5.65/bbl on the front month. Healthy high sulphur demand in both Rotterdam and Singapore, as well as less supply in circulation are the reasons for the prevailing crack.