More supply and less demand dampen fuel oil markets in the months ahead. Bunker sales is robust in the key bunkering hub of Singapore but the prospect of higher arbitrage shipments will escalate the cost.
“The market will hinge on developments on the supply front in Russia and, potentially, Venezuela,” the analyst commented.
Russian refiners face mounting losses on fuel oil exports. Political developments in Venezuela could disrupt the oil industry.
Despite the steady drop in Russian fuel oil yields this year, the market continues to be with flooded with oversupply.
Source: Reuters
