CITIC Construction Investment Futures: The fuel oil market mainly follows crude oil fluctuations with a slight upward trend

K-LinePoet · 2026-04-12T09:35:06+00:00

Yesterday, the spot premiums for high-sulfur and low-sulfur fuel oil in the Singapore market both narrowed, falling by $6.7/ton and $2/ton, respectively. Near-term Russian supply concentrated in the Singapore market is suppressing the performance of nearby high-sulfur contracts. The possible routes for navigation through the Strait of Hormuz that involve Western naval escorts—such as the U.S. military’s control of key control zones including the Great and Small Babu and the Abu Musa Strait, or Halek Island—require more extreme crude oil prices to make it happen. Despite both sides signaling an intention to end the war quickly, under a major showdown scenario, the geopolitical situation in the Middle East still faces risks of escalation. It is expected that the fuel oil market will mainly follow crude oil’s price swings with a generally stronger bias. (CITIC Construction Investment Futures)

K-LinePoet

2026-04-12 09:35:06

Yesterday, the spot premium of high and low sulfur fuel oil in the Singapore market fell back by $6.7/ton and $2/ton respectively, with short-term Russian supplies concentrated at ports in Singapore suppressing the performance of the high sulfur near-month contracts. The possible route for navigation through the Strait of Hormuz involves Western naval escort, and the U.S. military control of key control zones such as the Great and Small Bab el-Mandeb, the Strait of Abu Musa, or Harker Island requires more extreme oil prices to facilitate. Although both sides have expressed intentions to quickly end the war, the Middle Eastern geopolitical situation still faces escalation risks under the mode of a major battle. It is expected that the fuel oil market will follow crude oil in oscillating and remaining relatively strong. (CITIC Construction Investment Futures)

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