NEW DELHI: Asia’s cash premium for very low sulphur fuel oil (VLSFO) inched higher on Tuesday but the upside remained limited in the absence of buying interest in the markets.

The cash differential rose 56 cents to a premium of $18.98 to Singapore quotes.

Trade was muted for 0.5% VLSFO for a second straight day, keeping the market in tight range, with multiple offers seen while bids were absent, market sources said.

Meanwhile, the HSFO market clawed back some losses but margins and cash differentials continued to trade in negative territory amid ample supplies.

Oil prices edged lower on Tuesday on fears of an economic slowdown and lower fuel demand from China as it persists with its stringent zero-COVID policy.

China is likely this month to export the highest volume of diesel, aviation fuel and gasoline since June 2021 at more than 4 million tonnes, after Beijing’s surprise release of a big batch of quotas, analysts and trading sources said.

The United Arab Emirates believes OPEC+ made the correct technical choice when it agreed to cut production and the unanimous decision had nothing to do with politics, energy minister Suhail al-Mazrouei said on Tuesday.