Asia’s cash premium for very-low sulphur fuel oil (VLSFO) declined to three-month lows on Monday, underpinned by steady incoming supplies and tepid bunkering demand.

Reflecting lower offers and traded value, the 0.5% VLSFO cash premium MFO05-SIN-DIF slipped further to $3.22 a ton, while front-month crack LFO05SGDUBCMc1 fell to a premium of $7.68 a barrel by 0830 GMT.

In contrast, high sulphur fuel oil (HSFO) continued to rally higher, with market backwardation strengthening at the prompt months.

The cash premium for 380-cst HSFO FO380-SIN-DIF climbed to $12.02 a metric ton, extending a steady uptrend since the start of the month, while front-month crack spread for the product FO380DUBCKMc1 rose to a discount of $6.89 a barrel.

In tenders, Kuwait’s KPC bought 60,000 tons of HSFO for delivery between July 19 and 20.

OTHER NEWS

– Oil prices were little changed on Tuesday as traders weighed supply cuts by the world’s biggest oil exporters and hopes for higher demand in the developing world in the second half of 2023 against a sluggish global economic outlook.

– Singapore’s Maritime and Port Authority (MPA) has issued an expression of interest (EOI) calling for proposals to design and promote the use of fully electric harbour craft in Singapore, it said in a statement on Tuesday.

– Indonesia’s coast guard said on Tuesday it seized an Iranian-flagged supertanker suspected of involvement in the illegal transshipment of crude oil, and vowed to toughen maritime patrols.

– Italy has collected around 2.8 billion euros ($3.07 billion) from this year’s windfall tax on energy companies, people familiar with the matter told Reuters on Monday.

WINDOW TRADES O/AS

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