SINGAPORE: Asia's cash premiums for 0.5% very low-sulphur fuel oil (VLSFO) jumped to their highest in more than two months on Tuesday, while refining margins for the marine fuel grade hit their strongest level since February.

Cash premiums for Asia's 0.5% VLSFO climbed to $4.44 per tonne to Singapore quotes, their highest since Aug. 24. They were at a premium of $2.95 per tonne a day earlier.

The front-month VLSFO crack jumped to $14.90 per barrel against Dubai crude during Asian trading hours on Tuesday, a level not seen since Feb. 26. The crack was at $14.47 a barrel on Monday, Refinitiv Eikon data showed.

The 380-cst HSFO barge crack for December dipped to a discount of $14.55 a barrel to Brent, compared with minus $14.21 per barrel in the previous session, Refinitiv Eikon data showed.

Asia's cash premiums for 380-cst high sulphur fuel oil (HSFO) rose to 23 cents per tonne to Singapore quotes on Tuesday, up from 13 cents per barrel on Monday. Malaysia's state energy firm, Petroliam Nasional Berhad (Petronas), said on Tuesday it has partnered with a Malaysian unit of Exxon Mobil Corp to jointly explore opportunities in carbon capture and storage (CCS) technologies in a bid to decarbonise the country's upstream industry.

Exxon Mobil said last month it wants to build CCS hubs in Southeast Asia and has begun talks with countries with potential storage options for carbon dioxide. No VLSFO or HSFO trades were reported in the Singapore trading window on Tuesday.

Poor nations are pressuring their wealthy counterparts at the UN climate summit to pay up for the mounting damage being caused by global warming, pointing to increasing powerful storms, cyclones, droughts and floods afflicting their people.

Oil rose towards $84 a barrel on Tuesday, gaining for a third session, as the US lifting of travel restrictions and more signs of a global post-pandemic recovery lifted the demand outlook, while supply remained tight.