Refining margins for fuel oil in Asia experienced a weekly decline following the previous week's surge. The fall in very low sulphur fuel oil (VLSFO) crack, closing at a premium of $13.23 per barrel, was attributed to the market already factoring in a tighter supply outlook. The previous week's boost was triggered by operational issues at Kuwait’s Al Zour refinery. Spot prices in Asia exhibited signs of easing, with cash differentials and margins retreating. Onshore inventories increased in key trading hubs, impacting VLSFO cash premiums. Additionally, updates on OPEC+ negotiations and global shipping firms avoiding Russian oil due to U.S. sanctions added complexity to the market.

SOURCE:GOOGLE