Asia Fuel Oil-Fuel oil crack firms on rising demand, tighter supply

SINGAPORE: The front-month fuel oil crack to Brent crude firmed on Wednesday amid expectations of rising seasonal summer demand and narrowing supplies, industry sources said.

The May barges 380-cst fuel oil crack to Brent crude narrowed its discount to $12.25 a barrel on Wednesday from about $12.45 a barrel in the previous session, a Singapore-based fuel oil broker said.

This came despite Brent crude oil prices holding near its highest in nearly three years on Wednesday, supported by political tension in the Middle East, although evidence of rising US crude supply acted as a counterbalance.