Spot premiums for very low sulphur fuel oil (VLSFO) climbed to a three-week high on Tuesday as firmer bids emerged for July loading dates, though trade remained largely quiet.

The cash premium for the product was pegged at $3.25 a metric ton on Tuesday, after holding in a tight range of $1 to $2 a ton for more than two weeks.

Refining cracks for the low-sulphur grade also climbed day-on-day to premiums above $10 a barrel.

In contrast, benchmarks for the high-sulphur grade (HSFO) remained under pressure as supply tightness saw some relief.

The 380-cst HSFO cash premium dipped to $7.60 a ton as offers trended lower, while cracks slipped below discounts of $6 a barrel.

Total incoming supplies to Asia breached 5.5 million tons in June, higher from about 5.3 million tons in May, LSEG ship-tracking data showed as of Tuesday.

Meanwhile, about 2.5 million tons are slated to arrive in July, with more loadings to emerge in the coming weeks, the data showed.

OTHER NEWS

– Oil prices were steady on Tuesday as investors awaited U.S. inflation data later this week.

– The European Union will add 27 vessels, including oil and liquefied natural gas tankers, to its list of entities under sanctions as part of its latest measures against Russia, two sources familiar with the matter said.

– Mexican state energy company Pemex is unlikely to produce any commercially viable motor fuels at its new Olmeca refinery before the year ends, five sources said, despite pressure that it should be ready before the outgoing president’s term ends.

– Partial data on Brazil’s oil and natural gas production in May points to an increase in volumes compared to April, reverting a series of five consecutive monthly declines, oil and gas regulator ANP told Reuters.

WINDOW TRADES

– 180-cst HSFO: No trade

– 380-cst HSFO: No trade

– 0.5% VLSFO: No trade

Source: Reuters reported by Jeslyn Lerh and edited by Vijay Kishore