SINGAPORE: Asia’s refining cracks for very low sulphur fuel oil (VLSFO) posted weekly losses as crude prices headed for weekly gains, while ample fuel oil supplies to Asia also weighed on the market. Front-month January cracks for VLSFO fell more than 16% from the previous week, standing at a premium of $9.09 a barrel to Dubai quotes at Friday’s Asia close (0830 GMT).

High sulphur fuel oil (HSFO) cracks also came under pressure. The front-month 180-cst HSFO crack posted a weekly drop of more than 40%, down to a discount of $18.55 a barrel on Friday. Spot cash premiums were relatively unchanged on Friday amid an absence of trade. The 180-cst HSFO market remained in discounts to Singapore quotes, the 380-cst HSFO market held in a small premium, while the VLSFO cash differential was also stable from the previous day.

Fuel oil inventories in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell by 2% week-on-week to 1.06 million tonnes in the week ended Dec. 15, latest data from Dutch consultancy Insights Global showed.

Oil fell on Friday as the market assessed the aftermath of interest rates hikes at central banks, but was poised for the biggest weekly gains in 10 weeks amid supply disruption concerns and hopes for a recovery of demand in China. AP Moller-Maersk has signed a strategic green methanol partnership with SunGas Renewables to secure supplies for its fleet.

Taiwan’s Formosa Petrochemical Corp plans to shut one of its three crude distillation units (CDU), one residue desulphurisation (RDS) unit and one residue catalytic cracker (RCC) at its Mailiao refinery from March for planned maintenance.

Indonesia is set to raise mandatory biodiesel blending to 35% starting January 1, 2023, to reduce fuel imports amid high global energy prices and to shift to cleaner energy, the energy ministry said on Friday.