SINGAPORE: Asia's 0.5% very low-sulphur fuel oil (VLSFO) crack extended gains on Thursday, recovering from a more than four-month low earlier in the week, as benchmark crude oil prices plummeted. The front-month VLSFO crack climbed to a near two-week high of $11.92 a barrel above Dubai crude, up from a more than four month low of $10.56 on Tuesday, Refinitiv Eikon data showed.
Oil prices fell sharply on Thursday, extending losses from the previous session, as the United States said it was considering selling oil from its strategic reserves and as Russia said it was ready to stabilise the natural gas market.
While the HSFO market has retreated from its recent peaks in September as demand from utilities in Asia and the Middle East cooled, soaring gas and coal prices may see demand jump again, particularly in colder than usual winter conditions, trade sources said.
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