SINGAPORE (Reuters) – The front-month Singapore 180-centistoke (cst) high-sulphur fuel oil refining margin climbed to a record high for a second time this month on Tuesday, boosted by tightening global supply and falling crude oil market prices.
Refinery upgrades and disruptions, as well as U.S. sanctions on Iranian oil exports, have constricted global fuel oil supplies and boosted bullish market sentiment.
The front-month Singapore 180-cst fuel oil swap was at a record premium of $4.16 a barrel above Middle East benchmark Dubai crude oil on Tuesday, while the 180-cst margin to global benchmark Brent crude reached a record premium of $2.59 a barrel, Refinitiv Eikon data showed.
Fuel oil is the residue oil left after initial crude processing at a refinery and its margin is typically at a discount to crude.
Reporting by Roslan Khasawneh; Editing by Christian Schmollinger