Huatai Futures: Raw material shortages at refineries in the Asia-Pacific region lead to decreased production, and the price elasticity of low-sulfur fuel oil may be greater.

2026-03-30 11:20:11

Although the share of direct exports from the Middle East is not high, refineries in the Asia-Pacific region have been forced to cut operating rates due to insufficient feedstock, leading to a passive decline in output. In addition, rising overseas diesel premiums will divert more to blending components. Furthermore, geopolitical conflicts in the Middle East have also indirectly boosted demand for ship fuel bunkering in the Asia-Pacific region, and the market structure has strengthened markedly. From a valuation perspective, compared with high-sulfur fuel oil (the crack spread has just recently hit a new historical high), low-sulfur fuel oil still has some room relative to the 2022 historical high. Under the catalyst of contradictions in the diesel market, the potential price elasticity could be even greater. (Haitai Futures)

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.