SINGAPORE: Asia’s cash differential for 0.5% very low sulphur fuel oil (VLSFO) rebounded on Monday as more spot trade emerged for January-loading cargoes, while backwardation widened slightly.

Reflecting three trades of firmer value, the cash differential firmed by over $4 from the previous session to a premium of $13.59 a tonne to Singapore quotes.

Meanwhile, cash differentials for high sulphur fuel oil (HSFO) also gained on Monday as the market structure also strengthened slightly compared to last week.

The 180-cst HSFO cash differential flipped into a premium of 1 cent to Singapore quotes, compared with a discount of 25 cents on Friday.

The 380-cst HSFO cash differential edged higher by $1.33 to a premium of $1.72 a tonne on Monday, as firmer bids emerged.

Marine fuel sales at the United Arab Emirates’ Fujairah, the world’s third-largest bunkering hub, fell for a third straight month in November to nine-month lows.

Total volumes, excluding lubricants, were at about 610,000 tonnes in November, according to latest data from the Fujairah Oil Industry Zone published by industry information service S&P Global Commodity Insights. November sales fell by 3% month-on-month and 13% year-on-year.

Oil rose in Asian trade on Monday as the prospect of demand recovery, led by China’s loosening of Covid-19 curbs and the United States’ decision to buy back oil for its state reserves, gained the upper hand over global recession fears.

State energy firms Saudi Aramco and Sinopec plans to build a new refinery-petrochemical complex in southeast China which will commence operations by the end of 2025.

South Korea said it will extend by up to six months tax breaks on some oil products, fuel used for electricity generation and passenger car purchases beyond the end-2022 expiry to help ease the burden of higher living costs.

The CEO of Uniper has asked shareholders to approve a planned bailout by Berlin that will cost more than 50 billion euros ($52.91 billion), warning that the stricken German gas trader will otherwise have to consider filing for insolvency.