Spot premium for 0.5% low sulphur fuel oil (VLSFO) continued to trek higher on Tuesday amid firmer-priced bids, though gains were capped by a recovery in broader supplies this month.

Singapore VLSFO cash premium was pegged at $8.05 a metric ton, with bids inching upwards for loading dates in November, while backwardation between November and December also widened.

Meanwhile, cash premium for 380-cst high sulphur fuel oil (HSFO) was stable at $7.25 a metric ton on the back of rangebound bids and offers.

The uptick in cargo arrivals and blendstocks for October is expected to keep the broader supply pool ample into next month, based on ship-tracking data and industry sources.

Total supply of fuel oil landing in Asia is expected to breach 7 million tons this month for the first time since April, calculations based on LSEG ship-tracking data showed.

REFINERY UPDATES REF/OUT

OTHER NEWS

– Brent prices steadied near $74 a barrel on Tuesday as the top U.S. diplomat renewed efforts to push for a ceasefire in the Middle East and as slowing demand growth in China, the world’s top oil importer, continued to weigh.

– China has set crude oil import quota for non-state-owned firms at 257 million metric tons (5.14 million barrels per day) for 2025, the commerce ministry said on Tuesday.

– Nigeria has blocked Shell’s sale of its entire onshore and shallow-water oil operations, but approved a similar deal by Exxon Mobil, the country’s upstream oil regulator said.

– The next wave of liquefied natural gas supply will come online from 2027, later than the earlier forecast of 2025, due to project delays, TotalEnergies’ Senior Vice President for LNG Gregory Joffroy said on Tuesday.

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 Shreya Biswas