FOB Singapore MOC Jan fuel oil trades hit lowest monthly volume since Feb 2025

The total volume of FOB Singapore fuel oil cargoes traded during the Platts Market on Close assessment process in January decreased 20.7% month over month to 260,000 metric tons (about 53,258 b/d), led by a drop in low sulfur fuel oil deals, S&P Global Energy data showed.

The total fuel oil trades, which have now shrunk for a second straight month, are currently at the lowest since February 2025, when 200,000 mt of fuel oil were traded during the MOC, Platts data showed. The overall trade volume in January was 48% lower than the corresponding month in 2025, Platts data showed.

The physical trades for FOB Singapore 0.5%S marine fuel dropped 57.4% month over month to 80,000 mt in January, recording the lowest monthly volume for the IMO 2020-compliant grade since October 2025, when no marine fuel cargo was traded, Platts data showed. The January trade volume was 73.3% lower than in January 2025, Platts data showed.

Gunvor emerged as the sole buyer of all the low sulfur fuel oil in the MOC in January, while Trafigura and Shell were the sellers.

The Asian LSFO market will likely remain under pressure in the near term, due to ample arbitrage volumes flowing into the region in February, offsetting the seasonal uptick in downstream bunkering demand ahead of the Lunar New Year.

Platts assessed the Singapore marine fuel 0.5%S cargo's differential to the Mean of Platts Singapore marine fuel 0.5%S assessment at a premium of $1.25/mt at the Asian close Jan. 30, down from $2/mt in the preceding session, and its lowest since 50 cents/mt on Jan. 12, Platts data showed.

In the high sulfur fuel oil market, a total of 180,000 mt were traded during the MOC in January, of which 140,000 mt were that of the mainstream 380 CST HSFO grade, Platts data showed. This overall HSFO traded volume in January compares with 140,000 mt 380 CST HSFO traded in December, and 200,000 mt traded in January 2025, the data showed.

Chimbusco, PetroChina, and Maersk were among buyers of the 380 CST HSFO cargoes traded during the MOC in January, while Trafigura and Marubeni were the main sellers.

January also witnessed 40,000 mt of 180 CST HSFO traded during the MOC, against none in the preceding month or in January 2025, Platts data showed.

Asia's HSFO market remains supported by stable bunkering activity and fewer incoming shipments from the Middle East, while the cash differential for the benchmark 380 CST HSFO grade rose to its highest premium in more than seven months, Platts data showed.

Platts assessed the Singapore 380 CST HSFO cargo's cash differential to the MOPS 380 CST HSFO assessment at a premium of $7.67/mt at the Asian close Jan. 30, up from $7.33/mt in the preceding session. The cash premium, which posted a weekly gain of nearly 211% in the week ended Jan. 30, is currently at its highest since June 17, 2025, when it was assessed at $9.21/mt, Platts data showed.