Kuwait has been exporting record amounts of fuel oil this year, cashing in on the price rally for high sulfur fuel oil (HSFO) and very low sulfur fuel oil (VLSFO). Kpler data shows fuel oil exports hitting a record three-month-average 202,000 b/d in April before falling back slightly this month.
Around two thirds of Kuwait’s fuel oil exports are VLSFO from the 615,000 b/d Al Zour refinery. Fuel oil prices have rallied this year, with HSFO pricing at a rare premium to crude oil. This unusual pricing incentivizes regional states which burn significant volumes of oil in power plants, such as Saudi Arabia and Kuwait, to switch out fuel oil for crude oil. (CONTINUED - 315 WORDS)
