HSFO
The HSFO complex has softened across the past fortnight, with weakness seemingly more concentrated in the East.
3.5% barge cracks saw prices tire over the past two weeks, although the direction was inconsistent as greater sell-side interest was seen in cracks and spread length took profit. Across the fortnight, March barge crack prices fell from -$10.50/bbl handles to -$11/bbl, demonstrating choppy price action.
The 380 E/W has seen continued weakness in structure over the past fortnight, particularly evident in the prompt month. Price action for the Mar tenor fell from -$9.25/mt on Feb 09 to lows of -$22.75/mt come Feb 23 on the back of funds stopping out of 380 spread length, despite an intraday rally of $5/mt on Feb 20
VLSFO
The VLSFO complex saw relatively rangebound price action over the last two weeks, as price movements offered little conviction in regards to direction.
Euro VLSFO witnessed a fairly rangebound past fortnight, in line with dropping volatility in the structure. The Mar crack softened to $5.30/bbl on Feb 19 before recovering to $5.85/bbl come Feb 23.
The Sing 0.5% E/W saw oscillatory price movements over the fortnight with prices first softening but then strengthening amid a weaker 0.5% barges complex. The E/W was eventually offered across the curve with a 7-day long:short split of 30:70 in Mar.
In a very similar vein to its European counterpart, Sing 0.5% saw a fortnight of little direction in the crack. Price action for the prompt crack fell to below $13.30/bbl on Feb 20, before finding some support. However, this was short-lived and sold into, allowing Mar to trade around $13.40/bbl on Feb 23.
