NEW YORK, October 16. /TASS/. Accelerating crude supplies through the Strait of Hormuz aren’t translating into higher production of shipping fuel, Vitol’s Asia head Kieran Gallagher said.
"Many are looking to increased crude flows through the Strait of Hormuz as a silver bullet, but more crude does not necessarily mean more high-sulfur fuel oil," Gallagher was quoted as saying by Bloomberg.
"Refining margins are exceptionally strong and refiners have been maximizing throughput to capture those returns," he added, referring to refiners prioritizing other products such as diesel.
The supply squeeze has driven prices of ship fuel in Singapore, its biggest supplier globally, to the highest level since April, according to data provider ClearLynx.