Fuel Oil Prices: Supply Cuts vs Demand

Asia and Middle East Fuel Oil Daily Market Analysis / Disrupted flows from Middle East to tighten supplies in April / Weak downstream demand could cap rise in cash differentials / Total fuel oil cargo trades during Platts MOC in March fall 25% MOM

Jun 02, 2026

The Asian low sulfur fuel oil market structure was seen firmer April 1, while cash differentials weakened for a second consecutive session, as lackluster downstream demand weighed on premiums. The Singapore marine fuel 0.5% April-May swaps time spread was pegged at a backwardation of $75/mt in midmorning Asian trading on April 1, widening $11.25/ mt from the of the spread at the Asian close on March 31. the Singapore marine fuel 0.5%S cargo differential over the Mean of Singapore Marine Fuel 0.5%S assessment down 88 cents/mt day over day at $51.19/mt, at the March 31 Asian close. In the high sulfur fuel oil market, cash differentials were anticipated to remain at similar levels entering April. “Bunker demand should stay relatively weaker than pre-war, although supply should be tighter as well…...

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