SINGAPORE: Asia's 0.5% very low-sulphur fuel oil (VLSFO) crack fell to a more than four-month low on Tuesday as benchmark crude oil prices climbed to three-year highs. The front-month VLSFO crack fell to $10.56 a barrel above Dubai crude, down nearly $1 from the previous session and lowest since May 31, Refinitiv Eikon data showed.

Brent crude oil futures rose to fresh three-year highs, with US benchmark crude close to 2014 peaks, after the OPEC+ supplier group decided to stick to a gradual output increase plan rather than fully opening the taps.

Ample prompt supplies and sluggish bunkering demand at the Singapore hub also dragged the prompt-month VLSFO time spread and cash premium to over two-month lows. Trafigura sold a 20,000 tonne 380-cst high-sulphur fuel oil (HSFO) cargo to Vitol in the Singapore trading window. No VLSFO cargo trades were reported. Taiwan's Formosa sold a pyrolysis fuel oil (PFO) cargo while a South Korea's GS Caltex sold a 380-cst HSFO cargo.