FIS: Fuel Oil Daily Morning Report

Rotterdam’s VLSFO crack has yet to trade in the morning as demand in the region remains low. We peg its rough value at around -$2.25/bbl for the Feb23 contract.

Demand is also low for Europe in the HSFO market, with very thin arbitrage opportunities available due to the continued high freight rates. This, in turn, keeps supply higher in the region as its unable to shift East. Singapore, too, is bogged down with high supplies of HSFO coming in from Russia.