Meanwhile, cash premiums of 180-cst fuel oil slipped to a near two-week low amid weaker deal values and more aggressive supplier offers on Tuesday, while discounts of 380-cst fuel oil held steady near Monday's two-month low.

REFINING MARGINS

- While Russian fuel oil production fell by almost 100,000 barrels per day (bpd) since the start of the year, shrinking domestic demand helped exports increase by 90,000 bpd, said JBC.

- In June however, the research consultancy expects supply-side pressures to ease as crude runs in Russia increase following the end of peak refinery maintenance.

- In the United States, EIA data showed fuel oil production over the last four weeks declined by 55,000 bpd despite a 1 million bpd increase in crude runs there. JBC, however, attributed a change in refiners' crude slate to lighter shale oil, which yields lower quantities of fuel oil, as a result of increased US shale oil production.

- The June 380-cst refining margin on FOB Rotterdam barge fuel oil to Brent crude on the Intercontinental Exchange (ICE) was largely unchanged from the previous session, trading at about minus $7.40 a barrel by 5 pm Singapore time (0900 GMT) on Tuesday, trade sources said.

- By comparison, the ICE June refining margin was trading at about minus $7.50 a barrel during the same time in the previous week.

- Fuel oil refining margins have mostly traded well above the above five-year average since the start of 2017 when OPEC first began implementing its production cut agreement, which limited supplies of heavy crudes that tend to yield larger quantities of fuel oil when compared to light crudes.

WINDOW TRADES

- Three cargo trades were reported in the Platts window totalling 80,000 tonnes of fuel oil.

- Mercuria and Gunvor each bought 20,000 tonnes of 180-cst fuel from Lukoil and Trafigura, respectively. Mercuria sold one 40,000 tonne cargo of 380-cst fuel oil to BP.

- A total of 1.94 million tonnes of fuel oil have traded in the window since the start of May, against 3.821 million tonnes in April.

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TENDERS

- Bahrain's Bapco sold up to 60,000 tonnes of 380-cst fuel oil with a maximum 4 percent sulphur content to Aramco Trading Company for delivery on June 27-30 from Sitra at a $1.50 premium to MOPAG quotes, FOB basis.

- Sri Lanka's Ceypetco bought 35,000 tonnes of 180-cst fuel oil with a maximum 1.8 sulphur content from Mercuria for June 7-8 delivery at a premium of $42 a tonne, DES basis.

- India's IOC is offering up to 32,000 tonnes of vacuum gasoil (VGO) and up to 2,000 tonnes of 180-cst high-sulphur fuel oil from Haldia. Buyers have the option of lifting 16,000 tonnes of VGO with 1,000 tonnes of 180-cst fuel oil on June 26-28, along with a second set of similar cargoes over July 4-6.