Volatility expected for Asia Fuel Oil prices amid collapsed peace talks and US naval blockade
‘- Cash differentials for Asia 380cst HSFO averaged above $20/mt over Apr. 13–15, down from an average of around $26.50/mt week-on-week. Asia 180cst HSFO cash differentials averaged around $23.80/mt over the same period, down from $29.20/mt week-on-week.
– Asia 380cst HSFO outright prices averaged around $648.75/mt over Apr. 13–15, while Asia 180cst HSFO outright prices averaged around $658.60/mt over the same period, down from weekly averages of $690.70/mt and $701.20/mt respectively.
– Cash differentials for Asia LSFO averaged around $23.25/mt over Apr. 13–15, slipping below the $23/mt mark on Apr. 15 for the first time since Mar. 5. Outright prices eased to an average of around $705.70/mt, down approximately $91.60/mt week-on-week.
– The initial ceasefire agreement between the US/Israel and Iran remained in place, but subsequent peace talks collapsed. The US has since imposed a naval blockade restricting vessels from loading cargoes at Iranian ports, with limited traffic moving through, keeping supply concerns elevated.
– With another round of peace negotiations planned, market participants have largely adopted a wait-and-see approach.
– Bunker demand remained firm, though concerns persist over supply security should cargo flow through the Strait of Hormuz remain limited. The 380cst and 180cst ex-wharf prices eased to $637/mt and $634/mt respectively on Apr. 15, a 3-session low.
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