Asian fuel oil crack spreads remain divergent, while diesel spot premiums rebound
智通财经2026/08/19 13:56- The Asian ultra-low sulfur fuel oil market is weakening, with the September hi-5 spread narrowing to about $112 per ton, the lowest since mid-June. The spread between high and low sulfur fuel oil continues to shrink, reflecting relative pressure on low sulfur grades. The ultra-low sulfur fuel oil crack spread eased slightly to a premium of about $18 per barrel, while the 380 high sulfur fuel oil crack spread rose to a premium of about $0.40 per barrel, showing a clear divergence between high and low sulfur crack spreads.
- In the diesel market, the intermonth spread and spot premium are strengthening in tandem. The 10ppm diesel spot premium rebounded to nearly $5 per barrel, with the crack spread further recovering to about $75 per barrel. Despite a slowdown in trading windows, refineries still see sporadic sales. The East-West diesel discount narrowed slightly to about $105 per ton, squeezing regional arbitrage opportunities.
- The jet fuel market performed relatively mildly, with jet fuel’s discount to diesel narrowing to about $3.50 per barrel. Vietnam’s Petrolimex has launched a spot tender for September loading, with a volume of about 10 thousand to 12 thousand tons. Specific transaction details are yet to be confirmed.
- Near-term supply and demand for naphtha remains weak, but sentiment for forward months is somewhat optimistic, with the crack spread rising slightly to about $135 per ton. Gasoline trading was light for two consecutive sessions, with the crack spread edging down to about $23 per barrel and no deals concluded in the trading window. Continued attention will be paid to the impact of changes in Middle Eastern and Russian refined product exports on the Asian supply-demand balance.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Goldman Sachs and JPMorgan turn hawkish together! With persistent inflation and $100 oil prices looming, is a Federal Reserve rate hike in September already a foregone conclusion?
Due to higher-than-expected inflation and oil prices breaking $100, Goldman Sachs and JPMorgan have turned hawkish. They expect the Federal Reserve to raise interest rates by 25 basis points this week, with the market's probability of a rate hike surging to 87%.
Morgan Stanley maintains "Neutral" rating on Oracle (ORCL.US): OCI performance meets expectations, but structural pressure on gross margin remains a valuation constraint
Morgan Stanley analyst Sanjit Singh has maintained a "neutral" rating on Oracle and set a target price of $210 in his latest report.
Surging oil prices reinforce rate hike expectations, putting pressure on gold prices
The US Dollar Index (DXY) rises 0.3% to 99.453, reaching an 11-day high.
Crypto prices
More
