SINGAPORE: Lifted by a jump in demand for spot cargoes on Friday, the cash premium for Asia's 0.5% very low-sulphur fuel oil (VLSFO) extended gains for a fifth straight session to climb to a near two-year high. The VLSFO cash premium rose to $8 a tonne to Singapore quotes on Friday, its highest since February 2020 when new global rules capped the sulphur content in marine fuels at 0.5%.

Bullish sentiment in the VLSFO market has in recent weeks been fuelled by firm demand, reduced refinery output and tightening supplies of blendstock materials as refiners maximise output of gasoline and gasoil. The global diesel market is tight, and it could get even tighter, data firm Vortexa said in a note on Friday.