SINGAPORE: Asia’s fuel oil margins posted weekly gains following a steady drawdown of inventory levels in recent weeks, but stayed well below record highs seen in the previous quarter.

The 180-cst high sulphur fuel oil (HSFO) crack climbed more than 15% from the previous week, while the 0.5% very low sulphur fuel oil (VLSFO) crack recovered more than 40% over the same period, Refinitiv data showed. Singapore fuel oil inventories hovered at multi-year lows as of this week’s data, reflecting steady downstream demand. However, trade sources said that supply arrivals remain ample and could cap further gains in prices for the month.