Bullish sentiment fuelled by expectations of tight near-term supplies and rising seasonal demand helped boost the prompt-month 380-cst time spread and fuel oil crack on Wednesday, trade sources said.
This came amid ongoing refinery maintenance in Russia as well as upcoming refinery maintenance in Iran which limit fuel oil output as well as fewer exports to Asia from the Middle East to Asia amid rising seasonal demand for power generation, sources said.
“Iran … is gearing up for 0.15 million barrels per day of refinery turnarounds in May, the heaviest since November 2017,” said Energy Aspects in a note published on Friday. “With wider regional demand picking up and supplies from key producers falling, Middle Eastern resupplies to Singapore, which at times hit lofty levels of close to 2 million tonnes a month in Q4 17 and early 2018, are set to fall this summer,” said the research consultancy. Read More