HSFO
In HSFO over the past fortnight, we saw price action appear fairly unsettled alongside enduring relative Asian strength.
The 380 E/W rallied twice and fell once from 12-26 July, twice hitting $22.75/mt in the Aug contract but dipping to $18.50/mt on 22 July, whilst Sep displayed very similar trends, albeit by lower magnitudes.
On 25 July, Aug VISCO prices spiked from $6.50/mt to $8/mt after a stable period, with Sep and Q4 prices showing moderate fluctuations, while muted counterparty flows reflected the overall flat market, including notable trade house buying. However, this was unwound from 222kb to 95kb and minimal activity in other tenors.
VLSFO
The VLSFO complex saw an incredibly stable beginning to the fortnight, although it finally broke out of its ranges this past week.
In the fortnight ending 25 July, Aug’24, VLSFO barge crack prices fluctuated narrowly between $3.85/mt and $4.20/mt after an initial drop, with trade house buying of 338kb supporting the market while muted selling flows included 100kb from majors/NOCs and 32kb from other players.
Sing 0.5% East/West saw a fortnight of two halves, first dropping below $40/mt as physical players moved product East of Suez, subsequently climbing back to $42/mt as Sing 0.5 structure firmed. The Sing 0.5 crack broke out of the previous tight range as cracks strengthened on weaker Brent.
