SINGAPORE: The spot cash premium for 0.5% very low sulphur fuel oil (VLSFO) rose for a fifth consecutive day on Monday, due to steady bunkering demand, though the market’s refining margin edged lower as consistent supply arrivals capped recovery.

The spot 0.5% VLSFO differential rose to $12.51 a tonne to Singapore quotes on Monday, though the front-month refining margin fell to $11.32 a barrel at the Asia close (0830 GMT).

The front-month Hi-5 spread — the price difference between 0.5% VLSFO and 380-cst HSFO — rose to a six-week high, hitting $217 a tonne, Refinitiv data showed.

Meanwhile, the 380-cst high sulphur fuel oil (HSFO) titled back into a slight premium after dipping into discounted territory last week.

Amid a firmer trade, the 380-cst HSFO cash differential climbed to a premium of $1 a tonne over Singapore quotes.

Oil prices eased on Monday, though held near 2023 highs, as rising numbers of COVID-19 cases in China clouded prospects for higher demand in at the world’s top crude importer as it reopens after ending strict anti-virus curbs.

Iranian oil exports hit new highs in the last two months of 2022 and are making a strong start to 2023 despite US sanctions, according to companies that track the flows, on higher shipments to China and Venezuela.

Equatorial Marine Fuel Management Services Pte Ltd rose one spot to become the top marine fuel supplier in Singapore, the world’s largest bunkering hub, in 2022, official data showed on Monday.

At least four Chinese-owned supertankers are shipping Russian Urals crude to China, according to trading sources and tracking data, as Moscow seeks vessels for exports after a G7 oil price cap restricted the use of Western cargo services and insurance.