High-sulfur fuel oil markets are getting a boost as Chinese private refiners hunt for more straight-run fuel oil to use as a feedstock, and a sweltering summer in the Middle East raises demand from power generation. Beijing’s scrutiny of crude purchases by independent refiners, known as teapots, has them looking for alternatives such as SRFO, which can be processed into a range of oil products. Saudi Arabia, the United Arab Emirates and Kuwait — where fuel oil is sometimes used to generate electricity — are all experiencing hotter-than-normal weather that’s boosting power demand. Singapore 380cst HSFO, used mainly as a shipping fuel, was at a $6.29 a barrel discount to Dubai crude at 3:03 p.m. local time, narrowing from almost $9 in mid-May. The so-called crack, a proxy for the region, could go to as low as a $5 a barrel discount by August, according to industry consultant FGE. […]