SINGAPORE: Asia’s cash premiums for 380-cst high-sulphur fuel oil (HSFO) dropped for a fifth straight session on Tuesday, sliding to their lowest level in nearly seven weeks, hurt by muted trading in the physical market.

Any further major downside, however, would likely be capped by seasonal demand from south Asian utilities, trade sources said.

The cash differentials for 380-cst HSFO fell to a premium of $9.21 per tonne to Singapore quotes, a level not seen since March 23. They were at $14.49 per tonne a day earlier. The cash premiums for 180-cst HSFO were at a premium of $21.37 per tonne to Singapore quotes on Tuesday, compared with $25.45 per tonne on Monday.

The front-month barge crack for 380-cst HSFO traded at a discount of $13.54 a barrel to Brent on Tuesday, as against minus $14 a barrel in the previous session. Cash premiums for Asia’s 0.5% VLSFO were at $19.58 a tonne to Singapore quotes on Tuesday, up 8 cents from a day earlier.