What it is
The heavy, thick part of the barrel left when a refinery has taken off the lighter products. Its main use is as bunker fuel for ships; some is burned in power stations.
How it is usually quoted
US dollars per tonne.
This is the customary unit of the reference market. Other markets for the same commodity may use another unit or currency, and an exchange can change a contract’s terms: its own rulebook is the authority.
Where the reference contract trades
Priced from assessments at hubs such as Singapore and Rotterdam; futures and swaps are listed on ICE, CME and the Shanghai Futures Exchange.
Named for orientation only. Naming an exchange or a market here does not mean that GIO4X gives access to it.
What commonly moves it
- The price of crude oil
- The volume of world shipping
- Rules on the sulphur content of ships’ fuel
- Refinery upgrades, which turn more of the heavy residue into lighter products
These are the things people who follow this market usually watch. They explain how the market works; they do not say what the price will do next.
Where it comes from
Made at refineries everywhere. Singapore, Rotterdam and Fujairah are the main places where it is blended, stored and sold to ships.
The order of producers changes from year to year, so no quantities or shares are given here.
At GIO4X
Fuel oil is not offered as a GIO4X instrument. This page is general education about a market that exists elsewhere, and nothing on it means that GIO4X quotes, trades or gives access to it.
The commodities GIO4X does list are Brent crude, gold, natural gas, palladium, platinum, silver and WTI crude.
Words worth knowing
A reference page. Educational information, not investment advice or a recommendation to trade. It gives no price and no forecast.