SINGAPORE: Asia’s front-month crack for 0.5% very low-sulphur fuel oil (VLSFO) eased on Friday after five straight sessions of gains, but steady regional demand and tight supplies kept it within striking distance of its strongest level since February 2020.

The front-month VLSFO crack was at $17.05 per barrel against Dubai crude during Asian trade, down from a multi-month high of $17.84 a barrel hit in the previous session. The crack, however, has gained about 54% this year.

The VLSFO crack has averaged $12.83 per barrel this year, 21% higher from an average of $10.59 in 2020, Refinitiv data showed.

Cash differentials for Asia’s 0.5% VLSFO, which have surged during the fourth quarter of 2021, were at a premium of $15.75 a tonne to Singapore quotes on Friday, compared with $16.66 per tonne on Thursday.

Meanwhile, Asia’s cash differentials for 380-cst high sulphur fuel oil (HSFO) flipped to a discount of 17 cents per tonne to Singapore quotes on Friday, compared with a premium of 16 cents a tonne in the previous session.

The front-month 380-cst HSFO barge crack dropped on Friday to trade at a discount of $11.87 a barrel to Brent, Refinitiv data showed.