SINGAPORE: Fuel oil cracks against Dubai crude rose to their highest in more than 2-1/2 years on Tuesday, as sellers held firm to prices and resisted tracking the flat price drop in crude oil prices on Tuesday.
The loss, stemming from refining crude to produce fuel oil, narrowed to $3.41 a tonne as at 0945 GMT, the most since July 5, 2012.
"Brent fell more than $2 a barrel, while fuel oil is only down by $8 a tonne. I think people are just not keen to sell at this level," said a Singapore-based fuel oil trader.
A $1 fall in crude on a per barrel basis is reflective of a drop of about $6 on a per tonne basis in fuel oil. However, it is rare for crude and product markets to move in the same direction to the full extent.
Brent and US WTI crude oil prices fell to their lowest levels in almost six years on Tuesday as a big OPEC producer stood by the group's decision not to cut output to tackle a glut in the market.
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