SINGAPORE: The spot 380-cst high sulphur fuel oil (HSFO) market flipped to a premium on Friday, after staying trapped in discounts for 20 consecutive sessions.

The strength came from stronger bidding interest in recent sessions, even as the market remains fundamentally supplied, trade sources said.

Expectations of an influx in Russian barrels to the East would likely cap further uptick in the HSFO market, they said.

The 380-cst HSFO cash differential was at a premium of $1.21 per tonne to Singapore quotes on Friday, flipping from a discount of 73 cents on Thursday.

The very low sulphur fuel oil (VLSFO) market also gained in recent trading sessions, supported by expectations of stronger demand from North Asia as winter approaches and power generation needs rise.

The 0.5% VLSFO cash differential rose 65 cents to a premium of $21.28 per tonne to Singapore quotes on Friday.

Fuel oil inventories in the ARA refining and storage hub climbed 8% to 1.13 million tonnes in the week ended Oct. 6, latest data from Dutch consultancy Insights Global showed.

Oil rose on Friday and was headed for a second consecutive weekly gain, supported by OPEC+’s decision to make its largest supply cut since 2020.

Saudi Aramco kept the November official selling price (OSP) for its Arab Light grade for Asian customers unchanged from October, against expectations of a small price hike.

Contracts to export Malaysian liquefied natural gas (LNG) that sources gas from the northern Borneo state of Sabah are under force majeure following a pipeline leak, trade sources said on Friday.

Commodities and shipping firms will commission more ships partly powered by liquefied natural gas (LNG) next year.