Singapore MOC fuel oil swaps trades rise 66% MOM in Sep to four-year high

Singapore fuel oil derivative volumes traded during the Platts Market on Close assessment process in September rose 65.8% month over month to 27.12 million barrels, as high sulfur fuel oil deals almost doubled, according to Platts data.

The total volume of fuel oil swaps trades, which fell to a two-month low in August, rebounded to their highest monthly level since September 2022, when 34.19 million barrels of fuel oil swaps were traded, the data showed. Trades in September more than tripled year over year, with 7.37 million barrels traded in September 2025, according to the data.

Singapore HSFO swaps trades rose 98.7% month over month to 23.46 million barrels in September, marking the highest monthly level for the residual grade since September 2022, when 31.62 million barrels of HSFO were traded, the data showed.

Of the total HSFO swaps traded in September, 20.16 million barrels were benchmark 380 CST HSFO trades, up from 7.37 million barrels in August, according to the data. In contrast, the volume of 180 CST HSFO trades declined by about 29% month over month to 1.33 million barrels.

Traded volumes rose amid marginally weaker time spreads for Singapore HSFO swaps. The Mo1-Mo2 intermonth spread for the 380 CST HSFO grade averaged a backwardation of $31.27/metric ton in September, compared with $31.82/mt in the preceding month, Platts data showed.

The Asian HSFO market has been supported by tighter supply and concerns about disruptions from the conflict in the Middle East, according to trade sources. Coupled with relatively stable bunker demand, HSFO fundamentals may attract pockets of utility-sector demand amid worries about LNG availability, trade sources said.

Platts, part of S&P Global Energy, assessed the Singapore 380 CST HSFO cargo cash differential against the MOPS 380 CST HSFO assessment at a premium of $44.75/mt at the Asian close Oct. 1, up from $40.67/mt on Sept. 30, buoyed by firmer bids from Shell for second-half October-loading cargoes.

Meanwhile, Singapore marine fuel 0.5%S swaps trade volume fell about 20% month over month to 3.65 million barrels in September, Platts data showed.

The Mo1-Mo2 intermonth spread for FOB Singapore 0.5%S marine fuel swaps averaged a backwardation of $40.64/mt in September, compared with $36.45/mt in August, Platts data showed.

The Asian low sulfur fuel oil market could draw support from limited availability of on-specification material, according to market sources. At the same time, Singapore's low sulfur marine fuel inflows from Western markets could decrease in October, as elevated freight rates rendered arbitrage economics unviable earlier, market sources said.

Platts assessed the Singapore marine fuel 0.5%S cargo differential to the Mean of Platts Singapore marine fuel 0.5%S assessment at a premium of $31.75/mt at the Asian close Oct. 1, up from $30.08/mt on Sept. 30.

In the physical market, FOB Singapore fuel oil cargo volumes traded during the MOC in September rose 3.7% month over month to 1.28 million mt (about 270,298 b/d), according to Platts data.

Physical HSFO trades during the MOC in September more than tripled month over month to a total of 1.12 million mt, up from 331,000 mt in August, marking the highest monthly volume since 1.42 million mt in November 2025, Platts data showed.

Physical trades for FOB Singapore 0.5%S marine fuel fell to 160,000 mt in September from 900,000 mt in August, when volumes increased more than sixfold month over month to their highest monthly level for the IMO 2020-compliant grade in 2026, according to Platts data.

Singapore MOC traded swaps volume ('000 barrels):