Fuel oil crack spread in Singapore has widened in the past two weeks, as market fundamental kept softening, C1 found.
The crack spread of current-month fuel oil swaps to Dubai crude settled at minus US$12.26/bbl on Apr 25, widening by US$0.83/bbl from Apr 11, C1's data show. This was the widest crack spread in about two months.
Singapore fuel oil market fundamental weakened since bunker sales were slack in the past week and inventories mounted up, after large volumes of cutter stock and low-sulfur and low-density cargoes that arrived in late March were absorbed by spot buyers. Furthermore, two VLCC cargoes reached Singapore around Apr 20, which also kept bearish sentiment linger.
The market fundamental was firm around the middle of April, and the crack spread narrowed to minus US$9.02/mt on Apr 13, the narrowest in April. This was because support from Japan shifted to blendstock and bunker markets and Singapore's bunker sales volume set a new high in March, C1 learned.
