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Supplies, Utility Demand to Weigh on Asian HSFO in 2024

OIL PRODUCTS

Ample supplies and declining utility demand are expected to weigh on the Asian high sulfur fuel oil market this year, offsetting higher consumption from scrubber-installed ships according to S&P Commodity Insights, citing traders.

  • Asia's supply of 180 CST HSFO is set to rise in 2024, as South Asia aims to use cleaner fuels for power generation, while Middle Eastern and Russian barrels are headed towards Asia.
  • "HSFO as a market is supposed to grow in terms of bunkers because more and more new ships are having scrubbers ... In the meantime, utility demand [for HSFO] is coming off. I think bunker incremental quantity is less than power generation losses on the HSFO front," a Singapore-based trader said.

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