SINGAPORE: Asia’s cash premiums for 180-cst high-sulphur fuel oil (HSFO) rose further on Tuesday, hitting their highest in nearly three years, supported by firmer feedstock and utility demand amid scarce supplies.

The cash differentials for 180-cst HSFO surged to a premium of $35.67 per tonne to Singapore quotes, a level not seen since early October 2019. They were at a premium of $33.07 per tonne a day earlier.

Meanwhile, the cash differentials for 380-cst HSFO rose to a premium of $23.50 per tonne to Singapore quotes on Tuesday, up from $22.69 per tonne a day earlier.

The front-month barge crack for 380-cst HSFO traded at a discount of $12.41 a barrel to Brent on Tuesday, compared with minus $12.20 a barrel in the previous session.

Cash premiums for Asia’s 0.5% VLSFO climbed to $23.79 a tonne to Singapore quotes on Tuesday, up from $21.81 per tonne on Monday.

India’s fuel demand rose to a three-year high in March, with petrol sales hitting an all-time peak, as the market accumulated supplies foreseeing price spikes while easing COVID-related curbs boosted demand.

Sales of fuel oil in March stood at 580,000 tonnes, 11.5% higher from February, and about 14% higher from a year earlier. One 180-cst high-sulphur fuel oil (HSFO) deal, no 380-cst HSFO trades.

No VLSFO trades were reported.

OPEC told the European Union on Monday that current and future sanctions on Russia could create one of the worst ever oil supply shocks and it would be impossible to replace those volumes, and signalled it would not pump more.

Oil prices climbed on Tuesday as Shanghai’s relaxation of some COVID-19 restrictions eased concerns about Chinese demand and as OPEC warned it would be impossible to replace potential supply losses from Russia.