Asia’s very low sulphur fuel oil (VLSFO) cash premiums firmed on Monday, boosted by stronger bids for January-loading cargoes, while high sulphur fuel oil (HSFO) weakened slightly.

The Singapore 0.5% VLSFO cash premium rose to $6.41 a metric ton, while margin closed higher at premiums of $12.21 a barrel.

Meanwhile, cash premium for 380-cst eased to $3.86 a metric ton, while refining crack slipped to discounts of $10.35 a barrel.

Spot bids and offers remained active as some market participants prepared for January trading, though trade was overall quieter.

In tenders, Indonesia’s Pertamina offered more V-1250 fuel product for loading in January from the Balikpapan port. The latest sales close on Monday.

BUNKER UPDATES

Fujairah bunker sales slipped to five-month lows of about 605,000 metric tons in November, data showed.

Meanwhile, attacks by the Houthis on ships in the Red Sea are expected to keep shipping sentiment cautious in the Middle East into December.

OTHER NEWS

– Oil prices rose on Monday, supported by lower exports from Russia and as attacks by the Houthis on ships in the Red Sea raised concerns of supply disruption.

– Two major freight firms including MSC, the world’s biggest container shipping line, on Saturday said they would avoid the Suez Canal as Houthi militants in Yemen stepped up their assaults on commercial vessels.

– Egypt’s Suez canal authority said on Sunday it was closely monitoring the impact of tensions in the Red Sea after recent attacks by Yemen’s Houthis on vessels in the southern part of the basin.

– Russia said on Sunday it would deepen oil export cuts in December by potentially 50,000 barrels per day or more, earlier than promised, as the world’s biggest exporters try to support the global oil price.

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 Varun H K)