Crude weekly insights – Fuel oil markets movements – Furnace oil and LDO prices down in India

Brent prompt month flat prices dived on Friday to close at $108.17/bbl, logged in weekly gains. Flat prices spiraled higher on the expiry day of June contract. July contract replaced June as the front month in this week. Oil price trend marked higher this week due to prolonged closure of SoH. by jove, Time spreads moved flat in a strongly backwarded market that signals futures prices tend to rise to new war time highs before expiry of current month contract. Inventory reports sent mixed signals this week apart from dominance of massive draws from U.S stocks that spurred momentum in the market. Refined product markets continued to dominate and profit making to refineries. gasoline prices increased and diesel markets managed higher margins. Speculators remain modest buyers of crude F&O through the week ending 28th April, 26. Net length increased with longs and shorts lifting positions as a share of open interest to the SoH crisis. Consenses is on reaccumulaiton of currently depressed short interest. UAE exit from supplier’s panel, Iran new proposals and Trump warnings are the other headlines. OPEC group decided to open spigots further in June amid longer closure of SoH.

FUEL OIL MARKETS

Fuel oil markes demonstrated upside momentum this week in Asia market at Singapore trading hub. Both HSFO and VLSFO prices climbed steadily to reach high before consolidation. Trend is firm to bullish. The HSFO – VLSFO spread remain elevated through the week, HSFO gaining relative strength. SG inventories are moderately balanced but not excessive. Tightness in low-sulfur blending components is supporting VLSFO premiums. HSFO stocks are adequate but artbitrage inflow remain controlled, preventing oversupply. Bunker demand steady to firm. Strong container and trading activity in Asia and seasonal trade flows are key factors in Bunker markets. Furnace oil and LDO prices revised down for the first half of May, 26.