Asian shipping fuel prices surge past crude oil amid supply disruptions

Rising costs for high-sulphur fuel oil in Singapore are adding fresh expense to Asian trade, Oilprice reported. Disrupted energy supplies from Russia and the Middle East, high freight rates and resilient demand for shipping fuel pushed the product above the price of the crude oil used to refine it. [1]

The price spread for Singapore high-sulphur fuel oil, known as the crack, rose above $10 per barrel in October. Oilprice reported that this represents a sharp increase from a $5 per barrel discount recorded in February. [1]

The price spikes occur alongside wider global energy market pressures. Tekedia reported that Brent crude rose above $115 per barrel following reported Houthi attacks on oil facilities in Saudi Arabia. [2]

The broader regional market faces supply issues linked to the 2026 fuel crisis caused by war between Iran and a U.S.-Israel coalition. Attacks on Persian Gulf energy infrastructure and the closure of the Strait of Hormuz, which handles over 20 percent of global oil trade, have disrupted international supplies and driven up energy costs. [4]

Market pressures may soften towards the end of the year. According to Oilprice, seasonal relief from Middle Eastern Gulf suppliers and extra export quotas from China could ease the market squeeze, particularly for very-low-sulphur fuel oil. [1]