Fuel Oil Prices Surge Over 2% on Friday as Hormuz Strait Tensions Ease Temporarily

According to Guangdai Futures, on Friday (June 20), energy products including fuel oil, LPG, and asphalt rebounded after recent declines, with fuel oil prices rising over 2% and low-sulfur fuel oil climbing over 3%. The recovery was driven by easing tensions in the Middle East; a vessel was struck by unidentified projectiles off the Oman coast on Thursday, prompting the UK Maritime Trade Operations (UKMTO) to advise "cautious transit" through the region. Although the Hormuz Strait continues progressing toward full reopening, near-term volatility remains a concern.

As of June 24, Singapore on-land fuel oil inventories reached 20.3 million barrels, up 5.31 million barrels (35.4%) week-on-week, while Fujairah fuel oil stocks stood at 4.024 million barrels, up 1.605 million barrels (66.4%) from the previous week. Low-sulfur fuel oil supply remains tight due to limited blending components, supporting elevated prices.