SINGAPORE: Asia’s spot premium for very low sulphur fuel oil (VLSFO) dipped for a third straight session on Monday amid selling interest, while the spot market for high sulphur fuel oil (HSFO) was little changed in thin trade.

Expectations of consistent low-sulphur supply arrivals in Asia have weighed on spot premiums and refining margins.

The 0.5% VLSFO cash premium fell to $6.97 a tonne to Singapore quotes on Monday, while the front-month refining crack eased to $8.50 a barrel at the Asia close (0830 GMT).

The HSFO market was also under pressure on steady Russian inflows. Reflecting near-term bearishness, front-month time spreads for both 180-cst and 380-cst HSFOs were in contango.

Oil prices climbed on Monday as the borders reopened in China, the world’s top crude importer, boosting the outlook for fuel demand growth and offsetting global recession concerns.

China issued a second batch of 2023 crude oil import quotas, according to two sources with knowledge of the matter and documents reviewed by Reuters on Monday, raising the total for this year by 20% compared to the same time last year.

Shipping traffic in the Suez Canal was proceeding normally on Monday after tugs towed a cargo vessel that broke down during its passage through the waterway, the Canal Authority said.

Costs for hiring ships to transport commodities from the Black Sea have risen by more than a fifth since the start of the year, reflecting higher war risk insurance rates, industry sources said.