Due to the disruption of critical raw material trade flows caused by the Middle East conflict, the profit margins of Asian refining products surged today. The most significant change was seen in the naphtha market, as the Korean government banned naphtha exports to secure domestic industrial demand, leading to the product's spread over Brent crude oil rising by about $8 in a single day. Traders revealed that although no substantial transactions were completed in the current Singapore trading window, the sharp fluctuations in the paper market have already shown collective anxiety within the supply chain.
Fuel oil market rebound After several days of stagnation, both high-sulfur fuel oil (HSFO) and very-low-sulfur fuel oil (VLSFO) rebounded today. The premium of 380-cst high-sulfur fuel oil over Brent crude oil turned positive, quoted at $3.77 per barrel. Analysts pointed out that due to the limited export capacity of the Persian Gulf, Singapore's fuel oil inventory is being rapidly depleted, and the widening backwardation indicates that fuel costs will remain firm in the coming weeks.
