Asian HSFO Cash Premiums Fall Sharply

Asia and Middle East Fuel Oil Daily Market Analysis / LSFO swaps spread, crack spread narrows further / HSFO cash premiums drop on competitive offers

Jun 02, 2026

The Asian low sulfur fuel oil market structure and refining margins weakened further March 25 amid tepid downstream bunker fuel demand and the cash premium for the IMO 2020-compliant marine fuel grade dropped for the fourth consecutive session to its lowest level in more than two weeks. The Singapore 0.5%S marine fuel balance March-April swaps time spread was pegged at $56/metric ton in midafternoon Asia trading March 25, compared with assessment of the spread at $60/mt at the Asia close March 24. The M1-M2 intermonth spread for FOB Singapore 0.5%S marine fuel swaps has averaged at a backwardation of $69.75/mt so far this week, down from an average of $85.80/mt in the week ended March 20, data showed. “Most people are holding back supplies, but some are also delaying purchases...

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