Fuel oil benchmarks climbed in Asia on Thursday, with spot cargo bids trending higher for November and backwardation firming despite inventory builds at key trading hub Singapore.

The cash premium for 380-cst high sulphur fuel oil (HSFO) traded up at $11 a metric ton, while 0.5% low sulphur fuel oil was pegged higher at $9.90 a metric ton.

However, the recovery in supplies and inventories is expected to cap price gains. Onshore stockpiles in Singapore rose for a fourth consecutive week, hitting the highest in 18 weeks, official data showed.

Fuel oil cracks also held onto their recent strength on Thursday despite higher crude prices, based on LSEG data.

Singapore 380-cst HSFO cracks closed at discounts of $2.85 a barrel on Thursday, while VLSFO cracks closed at premiums of $16.73 a barrel.

Margins for high sulphur fuel oil (HSFO) rallied at Asia oil hub Singapore to more than two-year highs this week, led by a strong European market, trade sources said.

Meanwhile, Russia’s Surgutneftegaz awarded its annual tender for diesel and fuel oil exports in 2025 at higher prices than a year ago, three sources familiar with the tender said.

FUJAIRAH DATA

Singapore onshore fuel oil stockpiles edged 12.3% higher to 20.15 million barrels (about 3.17 million metric tons) in the week to Oct. 23, Enterprise Singapore data shows.

OTHER NEWS

Oil prices climbed on Thursday, reversing some of the previous session’s losses, as Middle East tensions kept the market on edge ahead of the U.S. presidential election amid expectations of strong distillates demand in fourth quarter.

Exports of the four key Nigerian crude oil grades – Qua Iboe, Forcados, Bonny Light and Bonga – are set to reach a combined 770,000 barrels per day in December, preliminary loading schedules seen by Reuters showed.

Russia exported rare naphtha and fuel oil cargoes to Indonesia in September as it expands the pool of buyers for its oil products, LSEG data showed.

Neste has withdrawn from an investment into renewable hydrogen production at its plant in Porvoo, Finland, the oil refiner and biofuel maker said after its third-quarter core earnings missed expectations on Thursday.

WINDOW TRADES

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