Benchmark prices for very low sulphur fuel oil (VLSFO) and high sulphur fuel oil (HSFO) in Asia experienced a slight increase on Tuesday, driven by support in the derivatives market. The cash premium for 0.5% VLSFO rose to $7.84 per metric ton, and margins for 0.5% VLSFO closed higher at premiums of $13.62 per barrel. Meanwhile, the cash premium for 380-cst HSFO was higher at $4.25 per metric ton, and refining cracks for HSFO climbed to discounts of $9.80 per barrel. However, the uptick was limited by ample supplies, with total fuel oil arrivals in Asia expected to exceed 6 million tons in December, a 20% increase from November. The surge in supplies is primarily driven by a rise in western arbitrage arrivals, according to ship-tracking data.

SOURCE:GOOGLE