HSFO spot discounts steady but structure holds strength

January 20, 2026

Taking a fuel sample onboard ship and using the CMT fuel test kit can determine if VLSFO is fit for purpose credit:CMT

The spot market for Asia high sulphur fuel oil (HSFO) held little changed in discounts as of Friday, though market structure for February largely retained strength this week.

Singapore’s 380-cst HSFO intermonth spread between February and March closed at a backwardation above $6.50 a metric ton on Friday, based on data from trade sources. The spread was at $2.75 a ton towards the end of last week.

The wider backwardation indicates some perceived supply tightness in February for prompt loadings. For now, spot differentials remained in discounts.

Meanwhile, very low sulphur fuel oil (VLSFO) logged some recovery this week as spot demand improved, with cash differentials closing the week in premiums.

Cracks for both fuel oil grades rose on Friday. February 380-cst HSFO/Brent crack (FO380BRTCKMc1) inched closer to a discount of $6.75 a barrel, while VLSFO crack (LFO05SGBRTCMc1) firmed to a premium near $4.20 a barrel, based on LSEG data.

INVENTORY DATA

– ARA fuel oil inventories (STK-FO-ARA) fell 1.1% to 1.06 million tons in the week to January 14, based on data from Dutch consultancy Insights Global.

OTHER NEWS

– Oil prices rose slightly on Friday as market participants weighed concerns about supply risks, though the chances of a U.S. strike on Iran have receded.

– Japanese trading house Mitsubishi Corp said on Friday it would take over the U.S. shale production and infrastructure assets of Aethon Energy Management for $7.53 billion to strengthen its gas value chain.

– Several European partners of Venezuela’s state-run oil company PDVSA, including Spain’s Repsol and France’s Maurel & Prom have applied for U.S. licenses or authorizations to export oil from the OPEC country, five industry sources told Reuters.

– Oil companies aiming to participate in new exports of Venezuelan crude to the U.S. are in hasty discussions to find tankers and put together operations to transfer the crude safely from vessels and dilapidated Venezuelan ports, four sources familiar with the operations said.

WINDOW TRADES

– 180-cst HSFO: No trade

– 380-cst HSFO: No trade

– 0.5% VLSFO: One trade

ASSESSMENTS

FUEL OIL
CASH ($/T)	ASIA CLOSE	CHANGE	PREV CLOSE	RIC
Cargo – 0.5% VLSFO	429.37	0.35	429.02	(MFO05-SIN)
Diff – 0.5% VLSFO	2.50	1.00	1.50	(MFO05-SIN-DIF)
Cargo – 180cst	361.23	-0.09	361.32	(FO180-SIN)
Diff – 180cst	-2.75	0.60	-3.35	(FO180-SIN-DIF)
Cargo – 380cst	358.34	-0.54	358.88	(FO380-SIN)
Diff – 380cst	-1.65	-0.20	-1.45	(FO380-SIN-DIF)
Bunker (Ex-wharf) Premium – 380cst	0.50	-1.00	1.50
Bunker (Ex-wharf) Premium – 0.5% VLSFO	3.50	0.50	3.00

For a list of derivatives prices, please refer to ENSWAP/INFO or the RICs below:
180cst M1	(FO180SGSWMc1)
180cst M1/M2	(FO180SGSDMc1)
380cst M1	(FO380SGSWMc1)
380cst M1/M2	(FO380SGSDMc1)
0.5% VLSFO M1	(LFO05FSGMc1)
0.5% VLSFO M1/M2	(LFO05FSGSMc1)
Cracks 180cst-Brent M1	(FO180BRTCKMc1)
Cracks 180cst-Dubai M1	(FO180SGCKMc1)
Cracks 380cst-Brent M1	(FO380BRTCKMc1)
Cracks 380cst-Dubai M1	(FO380DUBCKMc1)
Cracks 0.5% VLSFO-Brent M1	(LFO05SGBRTCMc1)
Cracks 0.5% VLSFO-Dubai M1	(LFO05SGDUBCMc1)
Visco 180cst/380cst M1	(FOVISSGDFMc1)
Hi-5 0.5% VLSFO/380cst M1	(FO05-380SGMc1)
GoFo 10PPM/0.5% VLSFO M1	(GO10FO05FSGMc1)
East-West M1	(FOSGEWMc1)
Barges M1	(HFOFARAAMc1)
Barges M1/M2	(HFOFARAASMc1)
Crack Barges-Brent M1	(HFOFARAACMc1)