Asia fuel oil-HSFO eases; US sanctions waiver on Russia still unclear
USO•Asia’s high-sulphur fuel oil market showed signs of easing on Monday as the status and impact of a possible US sanctions waiver on Russia remained unclear. The 380-cst HSFO crack closed at about $13 a barrel, the VLSFO crack fell to about $25, and the November hi-five spread narrowed to about $77 a metric ton.
1. Fuel oil market eases
Asia’s high-sulphur fuel oil market showed some signs of easing on Monday, while industry sources watched for a potential US move to waive sanctions on Russia. President Donald Trump had signed an executive order to waive sanctions and tariffs, but the US secretary of state said Trump would take up to 60 days to consider the move; details and the actual impact remained unclear.
2. Cracks and spreads fall
The 380-cst HSFO crack closed at about $13 a barrel, while the very low sulphur fuel oil crack fell to about $25 a barrel. The November hi-five spread narrowed further to about $77 a metric ton. Downstream HSFO bunkers remained tight in the near term, with spot premiums seen supported at Singapore port.
3. Other oil market updates
Australia’s Ampol cut its fourth-quarter output forecast for higher-value products at its Lytton refinery after bringing forward maintenance work. ExxonMobil warned in a regulatory filing that changes in oil prices would lower its third-quarter upstream earnings by $1.3 billion.
