Asia's high sulphur fuel oil (HSFO) market showed strength as spot discounts for 380-cst HSFO narrowed and margins edged higher on Tuesday. Market optimism is fueled by expectations of increased Chinese purchases following the issuance of fresh import quotas. China had scaled back HSFO imports in the third quarter due to quota constraints. The recent quota allocations are anticipated to boost buying activity. In contrast, the very low sulphur fuel oil (VLSFO) market continued its downtrend, with Singapore's 0.5% VLSFO cash premium tumbling. Meanwhile, refining crack for VLSFO remained relatively stable. In other developments, India's HPCL tendered fuel oil for loading in December and early January. The oil prices rose on Tuesday, supported by expectations of extended OPEC+ output cuts amid concerns over global demand. Additionally, Russia increased crude oil processing, and Petrobras terminated the sale contract for its LUBNOR refinery in Brazil, leading to potential legal action from the buyer, Grepar. Shipments of liquefied natural gas from Australia Pacific LNG were halted due to a loaded tanker losing power at the site.

SOURCE: GOOGLE