Fuel Oil Price Trend and Forecast

Fuel Oil Regional Price Overview

Get the latest insights on price movement and trend analysis of Fuel Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Fuel Oil Price Trend for the Second Half of 2024

Asia

Fuel oil prices in Asia showed significant volatility throughout the second half of 2024. The market initially experienced downward pressure due to China's weakening demand and increased regional refining capacity. The sluggish economic recovery in major Asian economies further dampened consumption.
 

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However, prices saw temporary spikes during periods of heightened Middle East tensions, particularly affecting bunker fuel markets in Singapore and South Korea. The shifting trade routes to avoid conflict zones led to longer shipping distances, which temporarily boosted marine fuel oil demand.

Europe

The European fuel oil market faced a complex landscape during H2'24. Prices remained relatively stable in the early months but gradually declined as industrial demand weakened amid economic uncertainties. The region's push toward cleaner energy alternatives and stricter environmental regulations continued to impact traditional fuel oil consumption. However, the high-sulfur fuel oil segment showed resilience due to sustained demand from vessels equipped with scrubbers. The market also experienced brief periods of tightness due to reduced Russian imports and shifting trade flows.

North America

North American fuel oil markets demonstrated relative stability compared to other regions. Prices maintained a steady trajectory despite global volatility, supported by consistent domestic industrial demand and steady bunker fuel requirements at major ports. The US Gulf Coast market benefited from increased regional refining activity and stable export opportunities to Latin America. However, the market faced some pressure from growing renewable fuel adoption and seasonal demand fluctuations.

Analyst Insight

According to Procurement Resource, the Fuel Oil market is expected to face continued pressure from environmental regulations and energy transition efforts, though demand from the shipping sector will likely provide some support. Geopolitical tensions and global economic conditions will remain key price drivers, with potential for increased volatility in early 2025.
 

Fuel Oil Price Trend for the First Half of 2024

Asia

Fuel oil prices in Asia during the first half of 2024 closely followed the trajectory of crude oil, influenced by the significant supply disruptions and geopolitical tensions. The Israeli war and Houthi pirate attacks in the Red Sea led to a constrained supply of crude oil, which in turn impacted fuel oil availability in the region.

With rising crude oil prices and steady demand from industries, particularly in India and China, fuel oil prices escalated throughout the first quarter. However, as the situation stabilized in the second quarter and tensions between Iran and Israel did not escalate as anticipated, fuel oil prices began to stabilize. The increased import of crude oil into India, particularly from Russia, helped reduce the cost pressure, leading to a more balanced fuel oil market during the second quarter.

Europe

Fuel oil prices in Europe also experienced upward pressure in the first quarter of 2024, largely driven by the ongoing conflict between Russia and Ukraine. Drone attacks on Russian oil refineries caused disruptions in production, leading to reduced supply and elevated fuel oil prices.

European markets, reliant on both imported crude and refined fuel oil, were significantly impacted by these supply chain challenges. As the second quarter progressed, however, the influx of cheaper Russian oil, which found key buyers in India and China, helped stabilize fuel oil prices in Europe. Despite the geopolitical instability, the crude oil production cuts announced by OPEC and the availability of discounted Russian crude played a crucial role in preventing further price spikes.

North America

In North America, fuel oil prices showed a sharp rise during the first quarter of 2024, mirroring the upward trend in crude oil prices. Supply issues, including scheduled production cuts by OPEC+ and rising inflationary pressures, contributed to the increase in fuel oil prices. However, in the second quarter, fuel oil prices began to stabilize as US gasoline and distillate stockpiles unexpectedly increased, reflecting lower-than-expected demand from downstream sectors. Additionally, anticipation of delayed interest rate cuts by the US Federal Reserve, which strengthened the US dollar, further moderated fuel oil prices. As a result, the North American fuel oil market exhibited a sluggish performance towards the end of the second quarter, with supply and demand gradually balancing.

Analyst Insight

According to Procurement Resource, the price trend of Fuel Oil is expected to exhibit strong performance in adjacent months as the market participants estimate that given the current dynamics of supply chains, the demand might exceed the total availability of the commodity.
 

Fuel Oil Price Trend for the Second Half of 2023

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Fuel Oil prices were observed to vary throughout the said period of the second half of 2023. After OPEC+ decided to stabilize the falling costs by holding the stocks, the fuel oil prices started inching up in the third quarter, particularly in the import-dependent markets of Asia and Europe. The discounted Russian oil was also not as cheap anymore. Thus, the fuel oil prices wavered high and continued to incline in the Chinese market in the fourth quarter as well.

In the Chinese fuel oil market, the prices went from about 684 USD/MT in July '23 to about 750 USD/MT in December '23. However, the European fuel oil market declined in the last quarter after inclining in the third quarter of 2023. The last quarter's decline in the European market was primarily attributed to the increased inventory stocks and trade disturbances owing to geopolitical conflicts.

Analyst Insight

According to Procurement Resource, the Fuel Oil price trends are likely to grow further going forward; since the fuel oil market is directly dependent on the crude oil market, the prices will grow along with the crude oil prices.
 

Fuel Oil Price Trend for the First Half of 2023

Fuel Oil is a petroleum distillation product used for energy production in various applications. Since it is derived from crude petroleum oil, it closely follows the crude oil market behavior. During the first half of the year 2023, the Fuel Oil market exhibited mixed price trend. In the Asian market, where cheap Russian oil was continuously supplied even during the peak Covid times, the high levels of inventories kept the Fuel Oil prices down, mainly in India and China.

On the other hand, the European Fuel Oil market had also started stabilizing after the economic turmoil inflicted by the Russian war. Further, the steady normalization in supply chains and other trade situations aided the price trend for Fuel Oil. Overall, mixed market sentiments were observed.

Analyst Insight

According to Procurement Resource, the Fuel Oil market is likely to continue fluctuating as per the uncertain demands from the consumer sectors.

Procurement Resource provides latest prices of Fuel Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.