SINGAPORE: Singapore’s 380-cst high sulphur fuel oil (HSFO) market softened on Wednesday as selling interest emerged, while landed stocks at Fujairah extended declines as supplies continued to flow out of the Middle East to Asia.

The cash differential for 380-cst HSFO inched lower to a premium of $4.75 a tonne to Singapore quotes as some competitive spot offers emerged for January loading dates. Meanwhile, the cash differential for 0.5% very low sulphur fuel oil fell to a premium of $14.09 a tonne.

Heavy supply arrivals have largely capped Asia’s fuel oil market recovery, keeping premiums in a tight range this month.

Residual fuel oil stocks at Fujairah dipped by 3% to 10.11 million barrels (1.59 million tonnes) in the week ended Dec. 26, holding at six-month lows, showed data from the Fujairah Oil Industry Zone published by industry information service S&P Global Commodity Insights.

Oil prices fell on Wednesday amid concerns that rising COVID-19 cases in China will disrupt its economic recovery and fuel demand growth, as it unwinds its pandemic restrictions.

President Vladimir Putin delivered Russia’s long-awaited response to a Western price cap, signing a decree that bans the supply of crude oil and oil products from Feb. 1 for five months to nations that abide by the cap.