Spot premium for very low sulphur fuel oil (VLSFO) dipped on Thursday, while onshore stockpiles at Singapore rose for a second consecutive week.

The Singapore cash premium for VLSFO was pegged at $8.25 a metric ton, reflecting competitive offers and a weaker backwardation at the prompt months.

Meanwhile, refining cracks LFO05SGDUBCMc1 dipped below premiums of $13 a barrel at the Asia close, based on LSEG data.

Onshore inventories rebounded for a second consecutive week following a sharp plunge in end-October, data showed on Thursday.

Incoming fuel oil supplies to Asia have recovered in recent weeks, led by strong arbitrage inflows, according to market sources.

SINGAPORE BUNKER SALES

Sales of marine fuel at Singapore rose to a nine-month high in October, led by an increase in container throughput and vessel calls for bunkering, data from Maritime and Port Authority of Singapore showed on Thursday.

Bunker sales totalled 4.88 million metric tons in October, up 11% both month-on-month and year-on-year, the data showed. Biofuel sales maintained the strong momentum seen last month, extending to a record high and breaching 139,000 tons in October.

INVENTORY DATA

– Singapore onshore fuel oil stockpiles STKRS-SIN rose 1.8% to 18.35 million barrels (about 2.89 million metric tons) in the week to Nov. 13, based on Enterprise Singapore.

OTHER NEWS

– Oil prices were largely steady on Thursday, with traders holding fire after declines earlier this week on a stronger U.S. dollar and worries about rising supply amid slow demand growth.

– Global oil supply will exceed demand in 2025 even if OPEC+ cuts remain in place, the International Energy Agency said on Thursday, as rising production from the United States and other outside producers outpaces sluggish demand.

– Iran is willing to end an impasse over a range of issues with the U.N. nuclear agency on its atomic programme but it will not succumb to pressure, its foreign minister said after meeting the watchdog’s chief in Tehran on Thursday.

– Net income at Japanese oil refiners fell in the first half of their fiscal year, but they maintained profitability and outperformed their South Korean rivals as strong domestic margins shielded them from a weak overseas market.

WINDOW TRADES

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