Posted 1/18/2024, 6:46:00 AM
Asian LSFO market faces challenges in 2024 due to potential oversupply and slower demand growth
- Asian LSFO market to remain lackluster in 2024 amid potential regional stock buildup and slower downstream bunker demand growth
- Al-Zour refinery exports to remain a swing factor, while new capacity like Nigeria's Dangote may lead to fuel oil oversupply
- HSFO demand growth from new scrubber-fitted ships to outpace LSFO, although LSFO volumes will still increase
- Improved HSFO economics bolstering scrubber investments, shortening payback period
- Softer Hi-5 spread in 2023 makes HSFO more competitive versus LSFO