Renewed fighting between US and Iran has slowed shipping through the Gulf of Hormuz, disrupting supply routes. Benchmark crude prices have climbed sharply from pre-conflict levels, reflecting heightened geopolitical risk. The upward price pressure is likely to continue while tensions persist.
Intensified US-Iran military actions disrupt oil shipments through the Strait of Hormuz, causing a sharp spike in crude oil prices. The price jump leads to severe depreciation of the Indian rupee, raising import costs and inflationary concerns.
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Fuel Oil | USA | FOB | USD 783.00/MT | May 2026 |
| Fuel Oil | India | FOB | USD 776.23/MT | May 2026 |
| Fuel Oil | Netherlands | FOB | USD 699.50/MT | May 2026 |
| Fuel Oil | China | FOB | USD 841.00/MT | May 2026 |
| Fuel Oil | Canada | FOB | USD 809.00/MT | May 2026 |
| Fuel Oil | USA | FOB | USD 806.00/MT | April 2026 |
| Fuel Oil | India | FOB | USD 892.25/MT | April 2026 |
| Fuel Oil | Netherlands | FOB | USD 792.50/MT | April 2026 |
| Fuel Oil | China | FOB | USD 835.50/MT | April 2026 |
| Fuel Oil | Canada | FOB | USD 806.00/MT | April 2026 |
Stay updated with the latest Fuel Oil prices, historical data, and tailored regional analysis
Asia
In India, Fuel Oil prices were ~INR 84.68/kg in April and ~INR 73.74/kg in May, showing a ~12.9% decrease. The decline came after early-quarter supply tightness eased by mid-Q2. Middle East-origin barrels and blending components were disrupted at the start of the quarter, which tightened Low Sulfur Fuel Oil and High Sulfur Fuel Oil availability across Asian trading hubs. Singapore residual fuel inventories fell to 14.84 million barrels in June, showing tight regional stock cover. However, the market later softened as peace talks raised expectations of resumed Persian Gulf flows. China’s domestic ship fuel demand also stayed weak, with sluggish downstream buying and delayed replenishment by shipowners adding pressure. Firm bunker demand from scrubber-fitted vessels limited a deeper fall, but it was not enough to prevent price correction.
Europe
In the Netherlands, Fuel Oil prices were ~EUR 0.68/kg in April and ~EUR 0.60/kg in the subsequent month, showing a ~11.2% decrease. European fuel oil was initially supported by shortages of low-sulfur blending components and firm refinery appetite for lower-sulfur feedstocks. Very Low Sulfur Fuel Oil blending became difficult as some blendstocks moved into refinery feed use, keeping supply tight in May. However, prices eased as the immediate risk around Middle East supply flows reduced and buyers became more cautious. The market remained exposed to import-route changes, but there was no broad consumer-level physical shortage. Softer prompt buying and improving flow expectations outweighed blending tightness, pulling prices lower through May.
North America
In the United States, Fuel Oil prices were ~USD 806.00/MT in April and ~USD 783.00/MT in the following month, showing a ~2.9% decrease. The market softened mildly as residual fuel oil supply improved during parts of Q2. U.S. residual fuel oil stocks rose from 21.778 million barrels in late May to 22.766 million barrels in early June, easing supply concern. Demand stayed choppy across bunker, industrial, and utility-linked users, which limited price support. Exports increased later in the quarter, keeping the market tied to Atlantic Basin demand, but domestic stock recovery and uneven consumption kept U.S. prices under downward pressure.
Analyst Insight
According to Procurement Resource, fuel oil prices are expected to remain range-bound, with Asian supply tightness and low inventories providing support, while stable refinery output in North America caps sustained upside.
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Asia
In Asia, China’s domestic ship fuel market saw a sharp increase, with prices rising from about 0.76 RMB/kg (Spot) in January and around 0.89 RMB/kg in March. Early-year supply constraints, combined with rising international crude prices, drove market gains. Cold weather and increased coal transportation amplified demand for coastal shipping fuel. Singapore inventory data showed declining residual fuel oil stocks, reinforcing a tight supply environment. However, China’s domestic ship fuel market saw a sharp 15.1 % price increase from February to March. The rise was driven by geopolitical tensions in the Middle East, which disrupted crude flows and increased insurance and shipping costs. In India, marine fuel prices reflected rising crude import costs and seasonal shipping activity, with logistical constraints moderating extreme volatility.
Europe
In Europe, fuel oil prices strengthened as Brent crude rose due to geopolitical tensions and reduced OPEC+ output. Tight refinery margins and planned maintenance limited local supply, while increased imports from the Middle East partially offset shortages. Elevated crude feedstock costs, along with moderate demand from coastal shipping, supported steady upward pricing.
North America
In North America, US marine fuel prices tracked international crude trends, with WTI surging on Middle East risk premiums and disruptions from winter storms. East Coast ports increased fuel imports from Canada and the Caribbean to maintain inventory levels. Refinery utilization near capacity constrained local supply, amplifying sensitivity to international crude volatility. Downstream shipping demand remained stable but influenced by seasonal cargo shifts and inventory replenishment.
Fuel Oil is any liquid fuel, obtained from petroleum distillation, that is burned in a furnace or boiler for generating heat or for use in an engine for power generation. Fuel Oil is obtained from the burnable liquids derived from crude oil. It is used to heat up homes and fuel trucks, light up furnaces, produce steam for industrial uses and for generating electric energy. It is used to run home heating equipment including furnaces and boilers and can be used to power different types of engines, lamps, and stoves.
Electricity Generation, Machinery, Liquid Fuel
Heavy Oil, Marine Fuel, Furnace Oil
BP plc, Exxon Mobil Corporation, PetroChina Company Limited, SINOPEC Fuel Oil Sales Corporation Limited, Royal Dutch Shell Plc
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
In order to produce Fuel Oil, the process of petroleum distillation is utilised. In this process, a fraction is obtained either in a form of a distillate or as a residue, which is further used to produce Fuel Oil.
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