Strength in Asia’s high sulphur fuel oil (HSFO) market pared slightly on Tuesday, with timespreads easing after firming the previous day, though the market still held near a floor.

Singapore’s 380-cst HSFO February/March timespread dipped slightly below $8 a metric ton, narrowing from $8.05 a metric ton last week, data from market sources showed.

However, cash differentials for 380-cst HSFO were pegged at narrower discounts of 80 cents per metric ton, with some bids firming into February.

Bunker differentials for HSFO as well as very low sulphur fuel oil (VLSFO) also improved in recent sessions on a seasonal uptick in marine fuel demand, trade sources said.

Cracks for fuel oil retreated on Tuesday. The February 380-cst HSFO/Brent crack (FO380BRTCKMc1) closed at a discount of $6.65 a barrel, while the VLSFO crack (LFO05SGBRTCMc1) fell to a premium near $4 a barrel, LSEG data showed.

CHINA DATA

– China’s total fuel oil imports fell in 2025 after hitting a record high in 2024, as lower import tax rebates weighed on demand from independent refineries, customs data showed. Meanwhile, low-sulphur bunker exports rose.

OTHER NEWS

– Oil prices were steady on Tuesday as investors monitored U.S. President Donald Trump’s threats of higher tariffs on European states over his drive to acquire Greenland, while firmer global economic growth expectations and better-than-expected economic data from China gave a floor to prices.

– Iraq will export a total of 223,000 barrels per day in February, up by 21% on the month, loading programmes seen by Reuters show.

– Serbia’s majority Russian-owned oil company NIS said it had secured enough crude to keep its refinery operating through February after resuming imports under a new U.S. sanctions waiver.

– Norway’s combined oil and gas production exceeded an official forecast by 1.85% in December, the Norwegian Offshore Directorate said on Tuesday.

WINDOW TRADES

– 180-cst HSFO: No trade

– 380-cst HSFO: No trade

– 0.5% VLSFO: No trade

ASSESSMENTS