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.
