SINGAPORE: Asia’s spot cash premium for 0.5% very low sulphur fuel oil (VLSFO) rose for a third straight session on Tuesday as stronger bids continued to emerge day-on-day.

The premium was at $16.38 per tonne to Singapore quotes, extending its climb to a four-week high on firm buying interest.

Refining margins for 0.5% VLSFO also edged higher in recent days, though recovery remains capped on ample supplies.

The front-month crack averaged at about $13.50 per barrel to Dubai quotes in the month so far, still lower compared with an average of $14.50 per barrel last month.Meanwhile, high sulphur fuel oil (HSFO) margins remain steeply discounted, though rebounding to about three-month highs as of Tuesday.

The rebound comes amid less high-sulphur exports from the Middle East to Asia in recent weeks, Refinitiv ship-tracking data showed.

Oil rose on Tuesday after top exporter Saudi Arabia said OPEC+ was sticking with output cuts and could take further steps to balance the market, outweighing global recession worries and concern about China’s rising Covid-19 cases.

Analysts are cutting forecasts for China’s year-end oil demand after Covid-19 cases surged to near record levels, forcing authorities to reinstate mobility curbs and delaying recovery at the world’s top crude importer.

LUKOIL Neftochim Burgas, Bulgaria’s only oil refinery, may have to shut down if the government does not follow through on plans to allow the Russian-owned business to continue exporting, Chief Executive Ilshat Sharafutdinov said on Monday.

Brazil’s National Energy Policy Council (CNPE) decided the mandatory blend of biodiesel in diesel will be kept at 10% until Mar. 31, 2023, the Mines and Energy Ministry said. From April on, the mix requirement will be increased to 15%.