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SINGAPORE: Asia’s cash premium for 380-cst high sulphur fuel oil (HSFO) fell for a third consecutive session on Monday, cooling off after a short-lived rally to three-month highs last week.

The HSFO market had trended higher between early July and mid-August amid steady buying interest. Aramco has been an active buyer this month, purchasing 11 HSFO cargoes in August so far. However, the market has shown signs of easing recently, as seasonal power generation demand from the Middle East could retreat from September onwards.

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