Asia’s cash differential for very-low sulphur fuel oil (VLSFO) extended gains on Thursday after flipping into premiums a day earlier, even as inventories at Singapore’s onshore commercial hub increased.

The premium of VLSFO over HSFO, also known as Hi-5 fuel oil spread, widened to $99 a metric ton at Asia close on Wednesday (0830 GMT).

The cash differential for 0.5% VLSFO rose by 8 cents to premium of $1.20 a metric ton, and the front-month crack spread also closed higher at a premium of $8.72 a barrel by 0830 GMT.

Meanwhile, 380-cst HSFO cash differential rose by 17 cents to a premium of $11.33 a ton.

INVENTORIES

Residual fuel oil stocks at key trading hub Singapore climbed this week after two weeks of declines amid an increase in net imports, official data showed on Thursday.

Onshore fuel oil stocks rose about 17.5% to 20.92 million barrels (3.29 million metric tons) in the week to July 26, data from Enterprise Singapore showed.

Weekly net imports, calculated by subtracting total exports from total imports, rose about 53% week-on-week to 864,000 metric tons.

OTHER NEWS

G20 powers must send stronger signals of their will to transform world energy systems and should lead the way on plans for mitigating global warming at the COP28 summit, the event’s incoming president and the U.N. climate chief said on Thursday.

Oil climbed almost 1% on Thursday, recouping losses from the previous session, supported by supply tightness owing to OPEC+ production cuts and renewed optimism on the outlook for Chinese demand and global growth.
Source: Reuters (Reporting by Mohi Narayan; Editing by Shailesh Kuber)