Asia’s high sulphur fuel oil (HSFO) market recovered slightly on Tuesday amid stronger bids, though competitive prompt offers limited gains.

Singapore 380-cst HSFO was bid at narrower discounts for dates into late December and early January, even as some persistent selling interest weighed on the prompt market.

Meanwhile, very low sulphur fuel oil (VLSFO) was little changed in thin trade, with downstream bunker differentials stagnating in premiums below $10 a metric ton.

Cracks softened day-on-day, with VLSFO (LFO05SGBRTCMc1) dipping below a premium of $3.50 a barrel, while 380-cst HSFO’s crack (FO380BRTCKMc1) slipped to a discount of $8.25 a barrel, data compiled by LSEG showed.

REFINERY UPDATES

– Singapore’s Aster Chemicals and Energy said on Tuesday it is investing $155 million to upgrade refining facilities at its Bukom refinery, which will increase its crude processing to 300,000 barrels per day.

OTHER NEWS

– Oil prices edged down on Tuesday, with markets keeping a close eye on peace talks to end Russia’s war in Ukraine, concerns about ample supply and a looming decision on U.S. interest rates.
– State energy major Saudi Aramco plans to start exporting the first condensate produced from the Jafurah gas plant in February, sources with knowledge of the matter said on Tuesday.
– Iraq restored production at Lukoil’s West Qurna 2 oilfield, one of the world’s largest, after a leak on an export pipeline slashed its output, two Iraqi energy officials told Reuters.
– Russian President Vladimir Putin issued a decree on Monday clearing potential deals with Rosneft and Shell’s joint-venture stake in the Caspian Pipeline Consortium, which exports oil mainly from Kazakhstan.

WINDOW TRADES

– 180-cst HSFO: No trade
– 380-cst HSFO: No trade
– 0.5% VLSFO: No trade
Source: Reuters