Asia’s cash premiums for ultra-low sulfur fuel oil (VLSFO) at 0.5% rose on Tuesday, buoyed by steady freight demand, while the spread of the first month for marine fuel has widened its offset.

Cash premiums for the 0.5% Asian VLSFO hit $17.68 a tonne at Singapore quotes, from $16.97 a tonne a day earlier.

The VLSFO March/April time spread widened to $21.25 a tonne on Tuesday from $18.25 a tonne on Monday.

First-month VLSFO crack rose to $20.37 a barrel against Dubai crude during Asian trading hours from $18.92 a barrel in the previous session.

Meanwhile, 380 cst HSFO barge crack for January traded at a $12.78 a barrel discount to Brent on Tuesday, while cash premiums for high sulfur fuel oil ( HSFO) of 380 cst were $1.50 per tonne over Singapore quotes.

FUEL DEMAND IN INDIA
– India’s fuel demand is expected to rise by 5.5% in the next fiscal year starting April 1, according to the government’s first estimates, reflecting a recovery in industrial activity and mobility in the third most great Asian economy after months of stagnation. Read more

– India’s fuel consumption in 2022-23, an indicator of oil demand, could reach 214.5 million tonnes compared to revised estimates of 203.3 million tonnes for the current fiscal year ending in March 2022, according to government forecasts.

WINDOW TRADES
– 380 cst high sulfur fuel oil (HSFO) contract, 180 cst HSFO trade

– NO VLSFO transactions reported

OTHER NEWS
– Efforts by governments to spur an economic rebound are likely to add strain to tight oil supplies and could push prices to new highs unless international talks end sanctions on Tehran and lead to an increase in Iranian exports. Read more

– Oil prices jumped more than $2 on Tuesday due to supply disruptions as tensions between Russia and Ukraine escalated after Moscow ordered the dispatch of troops to two breakaway regions of eastern Ukraine.
Source: Reuters (Reporting by Koustav Samanta; Editing by Vinay Dwivedi)