Asia’s Fuel Oil Market Signals Hopes of U.S.-Iran De-Escalation

S. midterms boosted hopes that there could be de-escalation in the Middle East allowing more oil products to move out of the Strait of Hormuz. The fuel oil market has also softened in recent weeks as more oil is exiting the Gulf and going to Asia’s demand centers. 34 a barrel on Monday, Reuters reports, citing LSEG data.

Supply of fuel oil from the Middle East to Asia has improved, also weighing on benchmarks and margins. With exports from Fujairah in the United Arab Emirates UAE outside the Perisan Gulf rising, the fuel oil prices are weakening. Fuel exports from the UAE en route to Singapore and Malaysia surged to an eighth-month high in October, at about 729,000 metric tons, according to Kpler data cited by Reuters.