FIS: Fuel Oil Daily Morning Report

Rotterdam’s front-month HSFO barge crack traded last in the market at -$24.70/bbl, up $0.50/bbl from yesterday’s settlement.

Singapore’s VLSFO crack is also up on the day, so far by $0.30/bbl to $4.20/bbl, despite a higher Brent crude price. This could show a return of demand to Singapore’s VLSFO market in the new year.

Markets are looking ahead to the 5 February implementation of sanctions on Russian refined oil products. Some market players expect a smaller impact on HSFO as previous sanctions have already phased in some shifts in global HSFO product flows.