Asia’s cash premium for 0.5% very low sulphur fuel oil (VLSFO) slipped to a two-month low on Wednesday, while high sulphur fuel oil (HSFO) extended a rebound with discounts narrowing.

Singapore’s VLSFO cash premium fell for a seventh consecutive session to $12.23 a metric ton, while cracks dipped to a premium of $10.46 a barrel.

In contrast, the HSFO market edged higher on prospects of higher uptake by China. The cash discount FO380-SIN-DIF for 380cst-HSFO narrowed to 25 cents a ton, while cracks climbed to discounts of $10.41 a barrel.

The market also kept any eye on an upcoming meeting by OPEC+ which could affect sentiment and supplies of heavy crude.

“On the HSFO side, the big factor this week will be the outcome of the OPEC+ meeting in terms of availability of residue-rich crude,” consultancy FGE wrote in a note this week.

FUJAIRAH INVENTORIES

Fuel oil inventories at Fujairah fell 15.2% to 9.51 million barrels (1.50 million tons) in the week to Nov. 27, showed Fujairah Oil Industry Zone data published by S&P Global Commodity Insights.

OTHER NEWS

– Oil edged higher on Wednesday as investors turned cautious ahead of a crucial OPEC+ meeting to decide output policy, while a supply disruption caused by a storm in the Black Sea provided a lift for prices. O/R

– Saudi Arabia, Russia and other members of OPEC are scheduled to meet online on Thursday and could make further changes to an agreement that already limits supply into 2024, according to analysts and OPEC+ sources, to support the market.

– A severe storm in the Black Sea region has disrupted up to 2 million barrels per day (bpd) of oil exports from Kazakhtsan and Russia, according to state’s officials and port agent data.

– Renewable developer Solarig will invest 250 million euros ($274.65 million) to build and operate 10 biomethane plants in Spain, it said on Wednesday.

Source: Reuters (Reporting by Jeslyn Lerh; Editing by Krishna Chandra Eluri)