Asia's fuel oil market is expected to soften in 2024 due to increased Kuwaiti and Russian fuel exports, potentially leading to declining VLSFO margins and potential sanctions on Russian oil shipments. China and India are the top destinations for Russian fuel oil in 2023, but 2024 volumes are unlikely to exceed those of 2023. Start-ups at new refineries in Nigeria and Mexico could lead to more exports of residue fuel, depressing VLSFO margins, while delays in start-ups at new coker units at Pemex's Tula and Salina Cruz refineries could result in more exports of high-sulfur fuel.

Asia's Fuel Oil Market Softens in 2024