Asia’s cash premium for very low sulphur fuel oil (VLSFO) rebounded for a second consecutive session on Tuesday, while spot bunker demand at Singapore posted a slight uptick recently, trade sources said.

The Singapore cash premium climbed to $3 a metric ton, while cracks, held rangebound between premiums of $10 to $11 a barrel.

Spot demand for bunker fuel at Singapore has improved in recent days, with barge schedules tightening compared to last week, some bunker traders said.

While ongoing Red Sea tensions and ship diversions are unlikely to have an impact on the cargo market, trade sources said that they expect bunker demand at key ports to increase in the coming weeks as ships top up more amid longer voyages.

Meanwhile, the high sulphur fuel oil (HSFO) market eased on Tuesday as wider supplies remained ample.

Cash premium for 380-cst HSFO eased to $3.25 a ton, though cracks, were stable at discounts of $11 to $12 a barrel.

OTHER NEWS

– Oil prices were mixed on Tuesday, after posting losses the previous session, as broad economic concerns outweighed continued tensions in the Middle East that led to more tanker diversions.

– Chinese refiners are actively booking crude oil cargoes for delivery in March and April to replenish stocks, locking-in relatively low prices and in anticipation of stronger demand in the second half of 2024, trade sources said.

– British energy major Shell has agreed to sell its Nigerian onshore oil and gas subsidiary in Nigeria to a consortium of five mostly local companies for up to $2.4 billion, after nearly a century of operations there.

– Four tankers used for shipments of Qatari liquefied natural gas have resumed course after pausing for several days amid maritime attacks by Yemen’s Iran-aligned Houthis in the Red Sea, LSEG shiptracking data showed on Tuesday.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: One trade
– 0.5% VLSFO: Three trades
Source: Reuters (Reporting by Jeslyn Lerh; Editing by Mrigank Dhaniwala)