NEW DELHI: Asia’s very low sulphur fuel oil (VLSFO) markets extended gains for a seventh consecutive session on Monday after crude oil prices plunged to their lowest level in 2022.

The spot cash premium for 0.5% VLSFO was at $20.26 a tonne to Singapore quotes, compared with $18.76 a tonne on Friday.

However, gains are likely to be capped due to rising supplies to the region consistently.

“Increasing supplies east of Suez will cap upside to Singapore cracks despite low floating storage levels in November and indications of Northeast Asian power demand picking up,” consultancy Energy Aspects said in a note.

The spot 380-cst high sulphur fuel oil (HSFO) cash differential traded at $8.83 a tonne, compared with $9.91 a tonne in the previous session.

Abu Dhabi National Oil Company (ADNOC) will cut 5% of the December crude oil supply to some term-lifters in Asia but will provide full contractual volumes in January, five sources with knowledge of the matter said.

Oil prices fell to near their lowest levels this year on Monday as street protests against strict Covid-19 curbs in China, the world’s biggest crude importer, stoked concern about the outlook for fuel demand.