SINGAPORE: Asia’s fuel oil market was relatively stable on Wednesday amid thin trade, while weekly inventories also held steady at key trading hub Fujairah.

The spot cash premium for 0.5% very low sulphur fuel oil (VLSFO) was at $18 a tonne to Singapore quotes on Wednesday, extending a slight gain from the previous day.

The spot 380-cst high sulphur fuel oil (HSFO) cash differential inched slightly higher to $10.50 a tonne.

The extent of the rebound in cash premiums could remain capped on consistent supply arrivals to Asia. November fuel oil arrivals were pegged at 5.06 million tonnes, 18.6% up from the previous month, latest assessments by Refinitiv Oil Research showed.

Meanwhile, fuel oil inventories at key trading hub Fujairah were stable at 14.42 million barrels (2.27 million tonnes) for the week ended Nov. 21, Fujairah Oil Industry Zone data showed on Wednesday. The inventory levels remain high due to steady inflows from Russia.

Oil prices fell by more than $1 a barrel on Wednesday as the Group of Seven (G7) nations looked at a price cap on Russian oil above where the crude grade is currently trading.

The Group of Seven nations (G7) is looking at a price cap on Russian sea-borne oil in the range of $65-70 per barrel, a European Union diplomat said on Wednesday.

The imminent price cap on Russian oil by G7 countries is likely to divert trade to smaller companies, Russell Hardy, chief executive of global energy and commodity trader Vitol, said on Wednesday.

BP said the planned restart of its large refinery in Rotterdam was on hold after unions said they would not help with the return to service due to a dispute over pay.