Asia Fuel Oil-HSFO retains downside risk in ample supply

ReutersFeb 25, 2026 10:11 AM

SINGAPORE, Feb 25 (Reuters) - Asia's high sulphur fuel oil (HSFO) market steadied on Wednesday after a recent pare-back, though downside risk still lingered amid expectations of ample supply.

The prompt March-April timespread for 380-cst HSFO widened to more than $2.50 a metric ton at the Asia close, compared with $1.30 a ton in the previous session.

Despite slight recovery in the market structure, spot benchmarks for HSFO remained under pressure as broader supply is set to remain ample into March. The 380-cst HSFO cash differential clung near to a one-month low as of Wednesday.

Meanwhile, very low sulphur fuel oil (VLSFO) was rangebound from the previous session, with the cash differential holding in a small premium.

In regional supplies, India's MRPL offered a cargo of VLSFO for March loading, based on market sources. FUEL/TENDA

VLSFO crack was stable at a premium near $5.85 a barrel, while the 380-cst HSFO crack FO380BRTCKMc1 inched up day-on-day at a discount near $5.30 a barrel, data from LSEG showed.

FUJAIRAH DATA

- Fujairah heavy fuel inventories FUJHD04 rose 3.1% to 7.87 million barrels (1.24 million tons) in the week to February 23, FOIZ data published by S&P Global Commodity Insights showed.

OTHER NEWS

- Oil prices were hovering near seven-month highs on Wednesday as the threat of military conflict between the U.S. and Iran that could disrupt supply continued to worry investors, with talks between the parties set for Thursday. O/R

- Russia's oil pipeline monopoly Transneft has cut crude intake into its system by some 250,000 barrels per day after a Ukrainian drone attack on a key pumping station serving major oil hubs and ports on Monday, two sources familiar with the situation said on Tuesday.

- Iraq could nearly double its output from West Qurna 2 oilfield to 800,000 barrels per day as Chevron enters exclusive talks to take over operations from Russia's Lukoil, Iraq's oil minister said on Wednesday.

- Tank storage group Vopak said on Wednesday it would return 1.7 billion euros ($2.0 billion) to shareholders over the next five years, after its profit surged 61% last year on the back of strong cash flow.

WINDOW TRADES O/AS

- 180-cst HSFO: No trade

- 380-cst HSFO: No trade

- 0.5% VLSFO: No trade

ASSESSMENTS

FUEL OIL
CASH ($/T)	ASIA CLOSE	CHANGE	PREV CLOSE	RIC
Cargo - 0.5% VLSFO	488.44	-1.59	490.03	MFO05-SIN
Diff - 0.5% VLSFO	1.75	-0.30	2.05	MFO05-SIN-DIF
Cargo - 180cst	426.56	7.85	418.71	FO180-SIN
Diff - 180cst	4.80	-0.70	5.50	FO180-SIN-DIF
Cargo - 380cst	420.32	8.29	412.02	FO380-SIN
Diff - 380cst	4.60	-0.25	4.85	FO380-SIN-DIF
Bunker (Ex-wharf) Premium - 380cst	2.50	0.00	2.50
Bunker (Ex-wharf) Premium - 0.5% VLSFO	4.00	0.00	4.00

For a list of derivatives prices, please refer to ENSWAP/INFO or the RICs below:
180cst M1	FO180SGSWMc1
180cst M1/M2	FO180SGSDMc1
380cst M1	FO380SGSWMc1
380cst M1/M2	FO380SGSDMc1
0.5% VLSFO M1	LFO05FSGMc1
0.5% VLSFO M1/M2	LFO05FSGSMc1
Cracks 180cst-Brent M1	FO180BRTCKMc1
Cracks 180cst-Dubai M1	FO180SGCKMc1
Cracks 380cst-Brent M1	FO380BRTCKMc1
Cracks 380cst-Dubai M1	FO380DUBCKMc1
Cracks 0.5% VLSFO-Brent M1	LFO05SGBRTCMc1
Cracks 0.5% VLSFO-Dubai M1	LFO05SGDUBCMc1
Visco 180cst/380cst M1	FOVISSGDFMc1
Hi-5 0.5% VLSFO/380cst M1	FO05-380SGMc1
GoFo 10PPM/0.5% VLSFO M1	GO10FO05FSGMc1
East-West M1	FOSGEWMc1
Barges M1	HFOFARAAMc1
Barges M1/M2	HFOFARAASMc1
Crack Barges-Brent M1	HFOFARAACMc1

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