NewsSignals AI analysis·Reuters·Nov 4, 2026

HSFO cracks weaken into discounted territory

Grade Bbearish AI signal$BRENT

Asian high-sulphur fuel oil cracks weakened sharply, with the December 380-cst HSFO-Brent crack falling from premiums to parity and moving into discounted territory after the Asia close. The 380-cst HSFO-Dubai crack settled at a $1.33-per-barrel discount, while Fujairah heavy fuel inventories surged 23.4% to 5.82 million barrels, their highest level in 15 weeks. Rising regional fuel inventories and additional supply tenders could intensify downward pressure on HSFO refining margins, although Middle East shipping disruptions remain a source of supply uncertainty.

Bullish strength: 25/100

Potential disruption to Gulf oil exports and Strait of Hormuz shipping could constrain regional fuel supply.
The 380-cst HSFO-Brent crack reached parity, indicating the possibility of stabilization after weakening.

Bearish strength: 75/100

The December 380-cst HSFO-Brent crack moved from premiums into discounted territory.
The 380-cst HSFO-Dubai crack fell to a $1.33-per-barrel discount.
Fujairah heavy fuel inventories increased 23.4% to 5.82 million barrels, a 15-week high.
MRPL and Pertamina offered additional marine fuel and residue cargoes.

This is automated NewsSignals analysis of third-party reporting, not independent original reporting or investment advice. AI scores are not price predictions.

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