SINGAPORE: Asia’s cash premiums for 380-cst high-sulphur fuel oil (HSFO) rose for a fourth consecutive session on Wednesday to hit a fresh high since late 2019 riding on firmer demand, while supplies remain tight due to lower flows into the region this month. The cash differentials for 380-cst HSFO rose to a premium of $24.12 per tonne to Singapore quotes, up from $23.50 per tonne a day earlier.

“The decline is mainly led by lower Middle Eastern inflows to East Asia, with more volumes channelled to the US to make up for the shortfall in Russian supplies to the West,” Refinitiv Oil Research analysts said in a note. “We expect competition for high-sulphur fuel oil barrels to persist between the US and Asia in the coming months.” Cash premiums for 180-cst HSFO surged to $39.41 per tonne to Singapore quotes on Wednesday, compared with $35.67 a tonne on Tuesday.

Meanwhile, the cash premiums for Asia’s 0.5% VLSFO were at $21.97 a tonne to Singapore quotes on Wednesday, compared with $23.79 per tonne a day earlier.