Asia’s spot premiums for fuel oil rose on Tuesday as buying interest persisted from several market participants, with bids trending higher from the previous day for key grades.

The premium for very low sulphur fuel oil (VLSFO) was pegged above $21 per metric ton, with the product trading firmer for prompt loading dates.

Meanwhile, premium for 380-cst high sulphur fuel oil (HSFO) climbed above $16 as bids trended up.

Backwardation for HSFO remained stronger day-on-day, though VLSFO structure showed signs of narrowing in recent sessions.

OTHER NEWS

– Oil fell on Tuesday as weak Chinese demand offset U.S. supply disruptions from Tropical Storm Francine and as global oil oversupply risks continued to weigh on the market.

– China’s oil products demand, long the driver of global crude consumption, peaked in 2023 and is forecast to decrease by 1.1% annually between 2023 and 2025, with the drop accelerating in subsequent years, a China oil researcher said on Tuesday.

– India’s ONGC Videsh is focused on acquiring stakes in overseas oil and gas producing assets as energy transition is expected to dent demand for conventional fuels in the future, its head of finance said on Tuesday.

– Bahrain’s state-owned Bapco Energies plans to import heavier crude after the expansion of its 267,000 barrel-per-day refinery to 380,000 bpd, said its senior vice-president for business development and international and government relations.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: One trade
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Shailesh Kuber)