SINGAPORE: Asia’s cash premiums for 180-cst high-sulphur fuel oil (HSFO) surged to a more than six-month high on Wednesday, buoyed by firmer feedstock demand from regional refiners and a gradual pickup in seasonal demand from South Asian utilities.

Cash differentials for 180-cst HSFO were at a premium of $14.81 per tonne to Singapore quotes, a level last seen in late-September last year. They were at a premium of $12.16 per tonne a day earlier.

The cash differentials for 380-cst HSFO rose to $14.41 per tonne to Singapore quotes, compared with $9.48 per tonne a day earlier.

Meanwhile, cash premiums for Asia’s 0.5% VLSFO slipped to $23.46 a tonne to Singapore quotes on Wednesday, down from $23.79 per barrel on Tuesday.

The front-month VLSFO crack slipped to $23.86 per barrel against Dubai crude during Asian trading hours, compared with $24.98 a barrel on Tuesday.

Fujairah Oil Industry Zone (FOIZ) inventories for heavy distillates and residues rose 0.6%, or by 61,000 barrels, from the previous week to 10.2 million barrels (1.5 million tonnes) in the week ended March 28, data via S&P Global Platts showed. Compared with year-ago levels, the weekly fuel oil inventories at FOIZ were about 24% higher.

The weekly fuel oil stocks at FOIZ have averaged 10.1 million barrels so far this year, compared with a weekly average of 10.3 million barrels in 2021, Reuters calculations showed.

One 180-cst high-sulphur fuel oil (HSFO) deal, one 380-cst HSFO trade. No VLSFO trades were reported. Kazakhstan is set to lose at least a fifth of its oil production for a month after storm damage to export facilities, the energy ministry said on Tuesday, adding to concerns about global oil supplies and boosting crude prices.