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Markets & Forecasts

Fuel oil strength could support LNG demand

The unexpected strength in fuel oil prices could prompt generators in Northeast Asia to buy more gas over the winter The unexpected strength in fuel oil prices could prompt generators in Northeast Asia to buy more gas over the winter.
By Peter Stewart 12 December 2018 Asia Pacific / LNG 0 33647
Saudi energy minister Khalid al-Falih (left) and his UAE counterpart Suhail Mohamed al-Mazrouei (PA)

The price of heavy fuel oil, which is still used in parts of Asia for peak-load power generation, has been boosted by the decision of OPEC and a group of non-cartel producers to implement a crude output cut of 1.2 million barrels per day (MMb/d). 

The 14 OPEC members and 10 non-OPEC nations agreed the cuts on 7 December after nearly a week of hard negotiations. Qatar is not part of the agreement, having announced before the Vienna meeting that it will be leaving OPEC.

OPEC decided...