The disturbance in the Strait of Hormuz continues, and the premium for high-sulfur fuel oil is expected to remain strong.

智通财经2026/10/21 11:38

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The head of Vitol Asia stated at the Singapore International Bunker Conference that conflicts in the Strait of Hormuz have supported the premium on high-sulfur fuel oil. The contraction of exports from the Middle East and Russia, combined with strong marine fuel demand, has resulted in a tight supply structure.
Data shows that monthly high-sulfur fuel oil flows through the Strait have dropped by at least 760,000 tons compared to February levels. In addition, Russian refinery attacks have led to an extra monthly supply loss of nearly 950,000 tons. The current spot premium for 380cst high-sulfur fuel oil is close to $48/ton, much higher than the late February low.
Northeast Asian refineries are adjusting their processing structure, with plans to purchase more than 960,000 tons of high-sulfur fuel oil as a crude oil substitute in November. The supply of low-sulfur fuel oil is relatively abundant, supplemented by exports from China and Nigeria's Dangote refinery.
Vitol has established bunkering operations at Gwadar Port in Pakistan as an alternative hub to Fujairah. The company will also launch LNG bunkering supply in Singapore, receiving its first bunkering vessel in November, with two more vessels to follow.
In the first nine months of 2026, Singapore LNG bunkering sales have increased by more than 20% year-on-year. Vitol has not provided an estimate for when Strait fuel oil flows will return to normal.

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The disturbance in the Strait of Hormuz continues, and the premium for high-sulfur fuel oil is expected to remain strong.

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