Trade sources and shipping data from Kpler and LSEG show Middle East fuel oil
exports are expected to rebound in June to about 2.4 mln tons (508k bpd), up
more than 20% from May and the highest in four months. The rise follows Iraq and
Saudi Arabia diverting crude to other ports and expectations of resumed cargoes
through the Strait of Hormuz; the extra supply could drive high-sulfur fuel oil
prices sharply lower in Singapore and other hubs. Volumes remain well below
pre-war monthly averages of roughly 5.5–6.0 mln tons. FGE NexantECA Middle
East oil adviser Palash Jain said flows through the Strait of Hormuz are likely
to increase over the next 60 days, but a material recovery is unlikely.
