In High Sulfur Fuel Oil (HSFO), it was a bearish beginning to the month for Sing 380 cst cracks, with the Apr’25 crack declining from an intraday high of -$2/bbl on 27 Feb to -$5/bbl on 4 Mar. Price action recovered from this low, and is now sideways between -$3/bbl and -$1.75/bbl, currently sitting at -$2.60/bbl. The Apr’25 380 E/W (Sing 380 cst vs 3.5% Rotterdam barges) initially rallied to $14.50/mt on 10 Mar but fell from this level and now stands at $8.65/mt. Trade houses have been substantial sellers of the Asian HSFO crack and the E/W, notably selling around 2mb of the Apr’25 E/W from Onyx this fortnight. Most of this selling was around the week ending 7 Mar, following which traders were more risk-off. While the Sing 380 cst complex may continue to see weaker sentiment, some support may come from the 545kb buying we have seen in the Apr/May’25 380 cst spread from trade houses. The spread weakened from $7.50/mt on 28 Feb to an intraday low of $4.65/mt on 5 Mar, subsequently rallied to $8.25/mt on 10 Mar but finally ticked down to $6.35/mt at the time of writing.
