Asia’s high sulphur fuel oil (HSFO) premiums firmed on Tuesday amid the emergence of more spot trades.

Both 180-cst and 380-cst HSFO traded up to premiums of $8 per metric ton over Singapore quotes, while market backwardation also widened at the prompt months. HSFO margins FO380DUBCKMc1 also firmed, nearing discounts of $5 per barrel.

The HSFO market has largely retained support since the second quarter as firm demand in the Middle East for summer power generation capped exports to Asia.

Fuel oil inflows from the Middle East totalled about 1.7 million tons this month, sliding about 7.5% from last month, calculations based on LSEG ship-tracking data showed.

As for the low-sulphur (VLSFO) market, cash premiums eased towards $6.50 per ton, though cracks LFO05SGDUBCMc1 climbed above premiums of $11.60 per barrel on Tuesday.

REFINERY UPDATES

– Russia’s 240,000 barrels-per-day Tuapse oil refinery, its biggest on the Black Sea, was damaged in a major Ukrainian drone attack overnight which sparked a fire, Russian officials said, though the extent of the damage was not immediately clear.

– TotalEnergies’ 238,000 barrels-per-day Port Arthur, Texas refinery returned to normal operation over the weekend, people familiar with plant operations said.

OTHER NEWS

– Oil prices steadied on Tuesday after falling for the past two sessions, as investors remained cautious amid expectations of plentiful supplies and weak demand, while brushing off the U.S. presidential campaign upheaval. O/R

– Indonesian state-controlled refiner Pertamina has added Russian oil grades to its tender lists to buy September crude, traders said.

– Hungary and Slovakia have asked the European Commission to mediate a consultation procedure with Ukraine, Hungary’s foreign minister said, after Kyiv placed Russian group Lukoil on a sanctions list, stopping its supplies to the two countries.

– Italy’s Eni is in exclusive talks, it said on Tuesday, with investment company KKR over the sale of a minority stake in Enilive, a deal that could value the biofuel unit at 11.5-12.5 billion euros ($12.5-$13.6 billion) including debt.

WINDOW TRADES O/AS

– 180-cst HSFO: One trade

– 380-cst HSFO: Two trades

– 0.5% VLSFO: No trade

ASSESSMENTS

Source: Reuters reporting by Jeslyn Lerh and edited by Shounak Dasgupta