Commodity Brokerage / Energy & Petroleum Products / Fuel Oil

Energy & Petroleum Products

Fuel Oil

Fuel oil includes high-sulphur and low-sulphur residual products used in marine bunkering, power generation and industrial applications.

MARKET REFERENCES

How the market commonly references price

There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.

  • Mean of Platts Singapore (MOPS) HSFO / fuel-oil references
  • Singapore 180cst / 380cst assessments
  • 0.5% sulphur marine fuel references

TYPICAL COMMERCIAL STRUCTURE

How physical pricing is often built

Typical Asia formula: relevant Singapore fuel-oil benchmark ± negotiated premium/discount. Delivered prices are commonly derived from the FOB value plus freight, insurance and destination costs.

PRICE DRIVERS

What moves the physical differential?

  • Sulphur and viscosity
  • Density and compatibility
  • Bunker / utility demand
  • Refinery residue supply
  • Freight and storage economics

PHYSICAL TRADE

Commercial considerations

Cargoes may be priced FOB Singapore or other regional hubs, or CFR/CIF destination. Bunker transactions may use delivered-on-board pricing.

The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.

Market methodology reference: view source / methodology

PHYSICAL COMMODITY BROKERAGE

Discuss a Fuel Oil requirement.

Share the specification, quantity, origin or destination, delivery basis and timing.

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