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NEW DELHI: Asia’s cash premiums for 380-cst high-sulphur fuel oil (HSFO) slipped for a second straight session on Thursday after inventories at the key trading hub of Singapore rose.

The cash differentials for 380-cst HSFO slipped to a premium of $21.14 per tonne to Singapore quotes, down from $$26.13 per tonne from the previous session.

“We continue to see fuel oil markets tightening significantly into third-quarter, even though our balances have weakened month-on-month on the back of increased Russian exports in April and weak Chinese demand expectations,” consultancy Energy Aspects said in a note.

The cash premiums for 180-cst HSFO were at a premium of $32.70 per tonne to Singapore quotes on Thursday.

Singapore onshore inventories of fuel oil climbed 1.385 million barrels to a two-week high of 20.529 million barrels in the week to May 4, data from Enterprise Singapore showed.

No 180-cst high-sulphur fuel oil (HSFO) deal, no 380-cst HSFO trades.

OPEC+ is likely stick to its plan for modest oil output increases on Thursday, arguing that the producer group cannot be blamed for global supply disruptions and saying China’s coronavirus lockdowns threaten the outlook for demand.

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