Asia’s cash premium for very low sulphur fuel oil (VLSFO) narrowed on Monday as the market continued to eye ample supplies into April.

The Singapore VLSFO cash differential fell below a premium of $1 a metric ton, while front-month May cracks were at premiums of about $12 a barrel, based on the latest pricing data.

Supply and demand are likely to be relatively balanced this month, trade sources said, though some cargo arrivals are expected to spill over for discharge from March, which means inventories will still be ample, they added.

The high sulphur fuel oil (HSFO) market held steadily in discounts, with 380-cst cash differentials hovering below discounts of $2 a metric ton, while cracks were at discounts of about $11 a barrel.

OTHER NEWS

– Oil prices added to recent gains on Monday amid expectations of tighter supply from OPEC+ cuts and attacks on Russian refineries while upbeat Chinese manufacturing data supported the outlook for improving demand.

– Exports of Upper Zakum crude from the United Arab Emirates fell sharply in March after ADNOC diverted more supply to its own refinery and boosted shipments of its lighter Murban oil, according to traders, analysts and shipping data.

– Russian oil product exports from the Black Sea port of Tuapse are set to rise by 39% month-on-month in April to 727,000 metric tons from 540,000 tons scheduled for March, two traders said on Monday.

– Cuban state-run media said at the weekend that 90,000 metric tons of Russian oil had arrived in the fuel-short country to help alleviate power outages and gasoline shortages.

Source: Reuters reported by Jeslyn Lerh and edited by Eileen Soreng