Chemical Updates

Asia and Middle East Fuel Oil Daily Market Analysis / LSFO market structure firms, cash premium slips / Benchmark HSFO cash premium gains 5% week over week

Aug 18, 2026

The Asian low sulfur fuel oil market structure firmed Aug. 17 amid expectations of tight near- term supplies. Unviable arbitrage economics to move shipments from Europe to Singapore and fewer arrivals from the wider Western markets in the coming weeks are expected to keep availability of on-specification grade limited in the near term, according to market sources. The Singapore marine fuel 0.5% September- October swaps time spread was pegged at $40/metric ton in midmorning trading Aug. 17, compared with the assessment of the spread at $38.75/mt at the Asian close Aug. 14. The M1-M2 intermonth spread for FOB Singapore 0.5%S marine fuel swaps has averaged at a backwardation of $36.97/mt so far in August, compared with an average of $34.07/mt in July, the Singapore marine fuel 0.5%S cargo’s cash differential...

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