Asia high-sulfur fuel oil margin turns to $2.29 discount

Asia's high-sulfur fuel oil (HSFO) refining margin flipped to a discount of $2.29 per barrel against Dubai crude on the 5th, down from a $5.34 premium earlier in the week, marking the lowest level since mid-September, according to Reuters citing LSEG data. The swing reflects expectations of higher supply from the Middle East, while elevated shipping freight rates are limiting inflows of European cargoes into Asia. The margin measures the spread between crude and refined product prices and does not mean the outright HSFO spot price fell by $2.29 per barrel. The move matters for refiners and shipping companies whose fuel procurement costs track this benchmark. Watch next for Middle East export volumes and freight rates to see whether the discount deepens or reverses.