SINGAPORE: Asia’s front-month crack for 0.5% very low-sulphur fuel oil (VLSFO) slipped on Tuesday as feedstock crude prices edged higher, but traders expect the market to remain tight in the near term due to steady demand.

The front-month VLSFO crack dipped to $13.27 per barrel against Dubai crude during Asian trading hours, the lowest since Dec. 8. The crack was at $13.47 a barrel on Monday, after averaging $12.83 per barrel in 2021, Refinitiv data showed.

Cash premiums for Asia’s 0.5% VLSFO fell to $10.43 a tonne to Singapore quotes on Tuesday from $13.84 per tonne on Monday.