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Friday, 30 June 2017 10:00

Low reserves rate affecting residual oil in Asia

Low reserves rate affecting residual oil in Asia

The difference between high-sulfur residual fuel oil prices in Singapore and crude oil prices in Dubai/Oman has been narrowing since the spring. Low inventories of residual fuel oil in Singapore and lower residual fuel oil production from Russia are likely contributing to the narrowing price spread.For many Asian countries, petroleum product prices tend to follow Dubai/Oman crude oil, which is the benchmark Middle Eastern crude oil exported to Asia, Caspian Energy News ( reports with reference to IEA.

Relatively high demand and relatively low inventories are both contributing to the increase in the price of Singapore residual fuel oil relative to the price of Dubai/Oman crude oil. In Singapore, residual fuel oil inventories were 22.2 million barrels for the week ending June 28, slightly below the five-year average for this time of year but recovering from when they were more than 6 million barrels below the five-year average at the beginning of June. Residual fuel oil sales were up 4% year-to-date through May, according to the Maritime and Port Authority of Singapore.

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Person in charge of the newsline: Fidan Isayeva 

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