Asian HSFO cargo prices fall to lowest since Q1 2021

Quantum Commodity Intelligence - The price of Asian high sulfur fuel oil cargoes fell further on Monday, slipping to their lowest level since early 2021 as supply remains plentiful in the East of Suez market.

Falling crude oil and HSFO swaps weighed on Quantum's cash assessment at the start of the week, with spot 380 CST cargoes in Singapore assessed down $14.53/mt from Friday at $344.08/mt FOB Singapore.

That is the lowest since Quantum started to publish data in March 2021, sneaking below the $345.75/mt set in May 2021.

According to broker data and Quantum data, the assessment was the lowest since January 2021, when much of the planet was still subject to Covid-19 lockdowns.

The drop off in Asian HSFO prices comes as supply in Asia remains high, with prices under downwards pressure since the summer as discounted Russian supply has sought new homes outside of Europe and the US.

The slide in HSFO prices stands in contrast to marine fuel 0.5% sulfur, which has been far more buoyant as elevated distillate prices feed into tight LSFO supply due to demand for cutter stocks from the diesel market.

The Hi5 spread in Asia – a measure of the difference between cargoes of 0.5%S and 380 CST HSFO – hit a three-month high of $337.71/mt last week.

For bunker prices, the 380 CST market in Singapore was assessed down another $15/mt on Monday at $361/mt.

This was the lowest since May 2021, although bunker prices in Singapore have held up slightly better than cargoes, with a big draw seen in local stocks last week.