Asia’s cash premium for 380-cst high sulphur fuel oil (HSFO) extended gains to 11-month high on Monday, as bids continued to firm from last week.

The product’s premium rose to $11.23 a metric ton, driven by stronger bids and tightness for prompt loading dates, trade sources said.

Refining margins also remained firm, with front-month crack spread for 380-cst HSFO eased at a discount of $7.43 on Monday’s Asia close (0830 GMT).

Meanwhile, the spot market for very-low sulphur fuel oil (VLSFO) continued to be at risk of further downside.

The cash premium for 0.5% VLSFO closed at $6 a ton, while front-month crack dipped to a premium of $8.24 a barrel by 0830 GMT.

The premium of VLSFO over HSFO continued to decline, with front-month Hi-5 spread closing at $99.50 a ton on Monday, trapped at 21-month lows.

In tenders, Taiwan’s CPC offered 21,000 tons of catalyst fractionator bottom for loading between July and August.

OTHER NEWS

– Oil dipped on Monday as investors tread cautiously ahead of fresh economic data from top consumers, the United States and China, this week though expected crude supply cuts from Saudi Arabia and Russia limited losses.

– Russia’s offline primary oil refining capacity has been revised up by 38% for July from the previous plan to 2.326 million tonnes, according to data from industry sources and Reuters calculations.

– Iraq and French oil major TotalEnergies on Monday signed a long-delayed $27 billion agreement to build four oil, gas and renewables projects.

– The Bahamas-flagged Richmond Voyager was not involved in any collision in the Gulf, its manager, U.S. oil major Chevron, told Reuters on Friday, after Iran said it had a court order to seize the vessel.

WINDOW TRADES

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