Cash premiums for very low sulphur fuel oil (VLSFO) steadied in Asia on Monday, while premiums for high sulphur fuel oil (HSFO) continued to fall amid tepid demand for secondary feedstock in China, traders and analysts said.

Cash premiums for VLSFO cargoes were little changed at $4.47 per metric ton. HSFO cash premiums for 180-cst grade tumbled 76 cents to $3.24 per ton, while 380-cst grade slipped 27 cents to $4.18 a ton.

Meanwhile, Taiwan’s CPC offered 38,000 tons of fuel oil for loading during August in a tender that closes on Aug. 7, the company said in a document.

Energy consultancy FGE estimated, in the weeks ahead Singapore VLSFO cracks could stay elevated relative to July’s average of $4.5 per barrel in tandem with gasoline cracks.

“The current weaker flat price could also encourage opportunistic purchases by shipowners, but this will be offset by higher LSFO inflows to Singapore in second-half August and September, which could lead to inventory builds,” FGE said in a note late Friday.

– Oil tanker Destan, carrying about 740,000 barrels of Russian oil for refiner Indian Oil Corp IOC.NS, has been waiting for more than 10 days to berth at a port in western India because of a technical issue, five sources familiar with the matter said.

– Oil futures extended losses in a volatile session on Monday as fears of a recession in top oil consumer the United States offset supply worries stemming from mounting tensions in the Middle East, the world’s largest oil producing region.

WINDOW TRADES

– 180-cst HSFO: One trade

– 380-cst HSFO: No trade

– 0.5% VLSFO: No trade
Source: Reuters (Reporting by Mohi Narayan; Editing by Eileen Soreng)