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Fuel Oil Report – No Party at the VISCO-theque

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HSFO

The HSFO complex has had a very mixed week, with weakness seen in VISCO but pronounced support seen in Asia.

The Aug 3.5% barge crack has had a fairly rangebound fortnight, trading between -$8.70/bbl and -$7.60/bbl, with the brief rally seen on 18 June being quickly quashed.

The soon-to-be prompt 380 E/W was the strongest part of the HSFO complex this week, owing primarily to strength in Sing 380, which rallied aggressively from 18-20 June from $470.90/mt to $496.45/mt, outpacing its European counterpart.

By far, the weakest element of HSFO this week was the VISCO, with the Aug contract seemingly lacking any support as it fell from $10/mt on 14 June to $6.75/mt by 28 June amidst 190kb of trade house selling and poor physical demand.

VLSFO

VLSFO has had a strong fortnight, with both European and Asian benchmarks seeing significant rallies, which strengthened their respective cracks.

The Aug 0.5% barge crack’s price rose from $2.70/bbl on 14 June to $3.50/bbl by the end of the fortnight on 28 June

The Aug Sing 0.5 crack rose even more, from $9.05/bbl to $10.30/bbl by 26 June, catalysed by 68kb of trade house buying and 55kb of end-user buying.

The soon-to-be-prompt VLSFO E/W also rallied from $40.40/mt to over $43/mt by 26 June, indicating the pronounced strength of Asian fuel.

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    Our team of skilled analysts, by utilising the depth and breadth of Onyx's proprietary data, position ourselves at the cutting edge of market analysis. This unique vantage point grants us an unparalleled perspective in the market, enabling us to identify emerging trends and lucrative opportunities.