SINGAPORE: Asia’s spot fuel oil cash premiums were little changed on Tuesday amid thin year-end trading, while persistent supply arrivals capped market recovery.

The cash differential for 380-cst high sulphur fuel oil held relatively flat at a premium of $5.17 to Singapore quotes, while the cash differential for 0.5% very low sulphur fuel oil was at a premium of $14.66 on Tuesday.

December fuel oil supplies to Asia totalled nearly 6.0 million tonnes, Refinitiv ship-tracking data showed on Tuesday, with more than 2.0 million tonnes already slated to load for January arrival in Asia.

The monthly December volume was at a year-to-date high, the data showed, led by a sharp jump in arrivals from the West.

Total fuel oil arrivals, including supplies from the West, the Middle East, and regional supplies from Asia, averaged at 4.5 million tonnes to 4.7 million tonnes per month this year.

Oil hit a three-week high on Tuesday as China’s latest easing of COVID-19 restrictions spurred hopes of a fuel demand recovery, with further support coming from cuts to US energy production caused by winter storms.

Japan’s trading houses Mitsui & Co, Itochu Corp and Japan’s biggest power generator JERA are expected to sign new long-term contracts to buy liquefied natural gas from Oman, NHK said on Tuesday.

India is planning a $2 billion incentive programme for the green hydrogen industry, three sources told Reuters, in a bid to cut emissions and become a major export player in the field.

Sberbank accused Glencore of choosing not to foot a bill for oil supplied via the Russian lender, saying the global commodities trader could have found a way to pay up without violating Western sanctions.