Asia’s fuel oil cargo premiums held relatively stable in thin trade on Thursday, while residual fuel oil stocks at Singapore climbed to 20-week highs.

The uptick in inventories came after weekly net imports extended gains for a second straight week, while downstream bunkering demand softened this month, said trade sources.

Weighed by heavy supplies, spot cargo premiums and margins for low-sulphur fuel oil have come under pressure in recent sessions.

The cash differential for 0.5% VLSFO (MFO05-SIN-DIF) eased further to $6.02 a tonne on Thursday, reflecting a weaker market structure.

Refining margins (LFO05SGDUBCMc1) also softened and were at $8.20 a barrel at the Asia close (0830 GMT).

SINGAPORE INVENTORIES

Onshore fuel oil stocks rose 9% to 22.64 million barrels (3.57 million tonnes) in the week ended Feb. 22, Enterprise Singapore data showed. The uptick came after weekly net imports rose by 25% to 804,000 tonnes in the same week.

OTHER NEWS

– Oil prices edged up on Thursday after Brent crude posted its biggest single-day loss in seven weeks the day before, as market players reassessed prospects for supply and demand.

– Russia plans to cut oil exports from its western ports by up to 25% in March versus February, exceeding its announced production cuts in a bid to lift prices for its oil, three sources in the Russian oil market said.

– India’s fuel demand is likely to grow 4.7% in the next fiscal year beginning on April 1, initial government estimates showed.

– Refiners sold most fuels aggressively in the major U.S. spot trading hubs on Wednesday, traders said, pushing prices lower as crude oil, gasoline and diesel futures also slumped on growing worries about global demand.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters