• Spot Discounts: Asia’s spot market for HSFO remains at steep discounts.
  • 180-cst HSFO: Discounts widened as spot offers fell.
  • 380-cst HSFO: Discounts remained rangebound.
• Iraq SOMO Supply:
  • Offered over 6 million metric tons of HSFO for Jan–Jun 2026 through three tenders.
  • Expected to increase global supply and keep Asian price differentials capped.
• Vietnam Nghi Son: Offered more fuel oil for spot loading in November.

Residual Fuel Inventories

• Singapore: Onshore residual fuel inventories were above average, though slightly fell by 1.0% to 24.48 million barrels (~3.86 million metric tons).

Very Low Sulphur Fuel Oil (VLSFO)

• Discounts: Widened day-on-day, maintaining discounted spot offers.
• Cracks:
  • VLSFO for December closed above $7/bbl premium.
  • 380-cst HSFO crack closed near $5/bbl discount.

Oil Price & Market Drivers

• Global Oil Prices: Rebounded slightly, supported by easing oversupply concerns.
• Saudi Arabia: Sharply reduced crude prices for Asian buyers in December due to well-supplied market.
• India Reliance: Attempting to resell Middle Eastern crude acquired to replace sanctioned Russian oil.
• Russia: Oil & gas revenue dropped 27% YoY in October to 888.6 billion roubles (~$10.93B) amid weak oil prices and a stronger rouble.