Petroleum products

Fuel Oil Trading

Fuel oil is the heavy residual fraction used for marine propulsion and industrial heat and power. 3FB Energy & Trade trades 380 CST, VLSFO and HSFO grades on FOB and CIF terms, coordinating inspection, shipping and documentation.

What is fuel oil and what are 380 CST, VLSFO and HSFO?

Fuel oil is the heavy residual fraction left after lighter products are distilled from crude oil, used in marine engines and industrial plant. 380 CST refers to a residual grade with a viscosity of up to 380 centistokes at 50 °C. VLSFO is very-low-sulphur fuel oil at a maximum 0.50% sulphur, and HSFO is high-sulphur fuel oil, typically up to 3.5% sulphur, for use with exhaust scrubbers. Marine grades are defined by ISO 8217.

Product overview

Residual fuel oil is produced from the bottom of the refining process and is characterised chiefly by viscosity, density and sulphur content. Viscosity grades such as 380 CST and 180 CST describe how the oil flows at 50 °C and therefore how it must be heated and handled.

Since the global marine sulphur limit took effect, the market has centred on VLSFO at a maximum 0.50% sulphur for vessels without scrubbers, alongside HSFO for vessels fitted with exhaust gas cleaning systems. Marine residual fuels are specified under ISO 8217.

Typical specifications

Reference standardISO 8217 (marine residual fuels)
Kinematic viscosity at 50 °C380 cSt max (RMG 380 grade)
Density at 15 °C991.0 kg/m³ max
Sulphur — VLSFO0.50% by mass max
Sulphur — HSFOup to 3.5% by mass
Flash point60 °C min
Pour pointgrade and season dependent
Water content0.5% by volume max

Indicative typical values shown for orientation only. Exact quality is cargo-dependent and the final contractual specification, as confirmed in the sales agreement and verified by independent inspection, prevails.

Commercial relevance and typical uses

The largest outlet for residual fuel oil is marine bunkering, where it powers large two-stroke and four-stroke engines. It is also burned in power generation, industrial boilers and process heating, and feeds some refinery and upgrading units.

Grade choice follows the vessel or plant: VLSFO where emissions must meet the 0.50% limit without abatement, and HSFO where a scrubber is installed. Viscosity determines the heating and pumping arrangements required at the receiving facility.

Quality and independent inspection

Fuel oil is sampled and tested by an independent inspector against the agreed viscosity, density, sulphur and stability limits, with a certificate of quality issued at load. Compatibility and stability matter because residual fuels from different sources can interact, so representative sampling is important. 3FB coordinates inspection; SGS and Intertek are cited only as examples of firms active in the sector, not as partners.

Sealed retention samples are usually kept for later reference. See how independent inspection works and inspection.

Shipping and logistics

Fuel oil moves in dirty petroleum product and residual tankers with heating coils, and is delivered to shore tanks or, for bunkers, by barge. 3FB trades on FOB terms, where the buyer lifts at the load port, and on CIF terms, where 3FB arranges freight and insurance to discharge, as described in FOB versus CIF.

Delivery is scheduled against an agreed laycan, and heating during carriage is planned to keep the cargo pumpable. See shipping and logistics.

Trade documentation

A fuel oil cargo carries the bill of lading, certificate of origin, certificate of quality and certificate of quantity from the inspector, and the commercial invoice, with payment commonly under a documentary letter of credit against documents.

See the bill of lading and letter of credit explainers.

Buyer inquiry process

To request an indication, specify the grade (for example 380 CST, VLSFO or HSFO), the maximum sulphur, the volume, the delivery terms (FOB or CIF with the port), the laycan and the payment instrument. The desk assesses feasibility and responds with an indicative offer, subject to confirmation.

KYC and compliance review precede any definitive agreement. Begin at the trading desk.

Frequently asked questions

What does 380 CST mean?
It is a viscosity grade: a residual fuel with a kinematic viscosity of up to 380 centistokes measured at 50 °C. It indicates how the oil flows and how much heating it needs.
What is the difference between VLSFO and HSFO?
VLSFO is very-low-sulphur fuel oil at a maximum 0.50% sulphur for vessels without scrubbers. HSFO is high-sulphur fuel oil, typically up to 3.5% sulphur, for vessels fitted with exhaust gas cleaning systems.
Which standard applies to marine fuel oil?
Marine residual fuels are specified under ISO 8217, which sets limits for viscosity, density, sulphur, flash point and other parameters.
On what terms does 3FB trade fuel oil?
On FOB and CIF terms. See FOB versus CIF for how each allocates freight and insurance.
Why does stability matter for fuel oil?
Residual fuels from different sources can be incompatible and may precipitate sediment if blended. Representative sampling and testing by an independent inspector help confirm the delivered quality.
How is payment usually structured?
Commonly through a documentary letter of credit payable against shipping and quality documents. See trade finance.

Request fuel oil availability

Specify the grade, sulphur limit, volume, delivery terms, laycan and payment instrument. The desk will respond with an indication.

Request fuel oil availability