Platts Daily Market Analysis: Fuel Oil Trends in Asia and the Middle East

• The 0.5% sulfur marine fuel cash premium increased to a two-week high.
• Benchmark high-sulfur fuel oil (HSFO) cash discounts widened due to competitive offers.
• Fuel oil inventories in Singapore rose, driven by a surge in imports.

The Asian low-sulfur fuel oil (LSFO) market experienced a slight decline on July 25, despite cash differentials for marine fuel reaching a two-week high. Expectations of sufficient regional supply are likely to cap further upward movement. The Singapore marine fuel 0.5% August-September swaps time spread narrowed to approximately $1.55 per metric ton, down from $1.70 per metric ton the previous day. Platts assessed the LSFO cash premium at $5.22 per metric ton, the highest level since July 9, supported by firm buying interest.

In contrast, the Singapore high-sulfur fuel oil (HSFO) cargo differential was assessed at a discount of $6.35 per metric ton, widening from $5.43 per metric ton, amid competitive offers. The HSFO August-September swaps time spread stood at minus $2.75 per metric ton. Although downstream HSFO premiums have shown some improvement, abundant stock levels may weigh on future market fundamentals.

Singapore’s heavy distillate inventories rose by 1.3% on the week to 23.7 million barrels as of July 23, driven by a 31.6% increase in fuel oil imports to 1.09 million metric tons. The increase was largely attributed to higher inflows from the Middle East, particularly from Iraq.

Source: Platts, S&P Global Commodity Insights – July 25, 2025