Asian fuel oil benchmark prices fell sharply this week as traders priced in higher Middle Eastern crude and fuel supplies and a possible de-escalation of the US-Israeli war with Iran, Reuters reported. This is a Reuters-sourced brief: the wire is the single source for the figures below.

Refiners' margins for 380-cst high-sulphur fuel oil (HSFO) slumped on Thursday, with the Dubai-basis crack closing at a discount of $2.29 a barrel, against a premium of $5.34 a barrel at the start of the week, based on LSEG data. The crack was at its lowest since mid-September, extending declines after flipping into discounts in the previous session. Cracks for 0.5 per cent very low-sulphur fuel oil (VLSFO) also softened this week.

More supply reaching Asia

Regional supply has improved as higher exports from the UAE's Fujairah cap prices, said Emril Jamil, a senior oil research manager at shipping analytics firm Kpler. UAE fuel oil exports bound for Singapore and Malaysia totalled about 729,000 metric tons in October, an eight-month high. Total fuel oil arrivals in Asia reached a seven-month high in October, breaching 6 million tons, according to ship-tracking data from Kpler and LSEG, although traders expect November arrivals to taper off.

Softer residual fuel prices would ease refuelling costs for shippers and lower feedstock costs for refineries. Dirty tanker freight rates from Rotterdam to Singapore hit a record high of about $168 a ton in mid-October before easing to about $95 a ton this week. Brent crude settled at its lowest level in more than two months on Wednesday, after the Democrats' capture of the US Congress eased concerns about further escalation.

Sources: Reuters, Asia fuel oil benchmarks slump as market prices in potential Iran war de-escalation, 5 November 2026.