Cash premiums for very low-sulphur fuel oil (VLSFO) declined on Thursday tracking broader weakness in Asian markets, analysts said.

Spot differentials for VLSFO fell by 49 cents to $4.08 a metric ton, while premiums for 180-cst high-sulphur fuel oil were down 70 cents at $3.37 a ton.

Singapore markets closed early ahead of a public holiday on Friday.

Market participants said the near-term outlook for HSFO is stable because utility-related demand will continue to support the fuel.

Meanwhile, Singapore fuel oil inventories rose by 172,000 barrels to 19.727 million barrels in the week to Aug. 7, data from Enterprise Singapore showed.

Oil prices fell in choppy trade on Thursday and looked set to snap a two-session streak in which they gained about 3% owing to supply risks heightened by simmering tensions in the Middle East.

India’s fuel consumption rose by more than 7% year on year to 19.653 million tons in July, oil ministry data showed on Thursday, driven by increased air travel and overall economic growth. Fuel oil demand increased by 6.4% year on year in July to 0.53 million tons.
Source: Reuters (Reporting by Mohi Narayan, Editing by David Goodman)