SINGAPORE: Asia’s spot cash differential for 380-cst high sulphur fuel oil (HSFO) extended gains to a second straight session on Tuesday on stronger bidding.

PetroChina bid for 380-cst HSFO at a $2 premium to Singapore quotes for loading dates in the first half of February, while no offer emerged.

There were multiple spot offers for 0.5% very low sulphur fuel oil (VLSFO) amid muted buying interest.

The 380-cst HSFO cash differential climbed to $2.25 a tonne to Singapore quotes on Tuesday, while the 0.5% VLSFO cash differential rose for a sixth session to $13.19 a tonne amid stronger front-month backwardation in the market.

Oil prices were mixed on Tuesday after China posted its weakest annual economic growth in nearly half a century, with its late-2022 U-turn in COVID-19 policy underpinning hopes of a recovery in the country’s fuel demand this year.

China’s oil refinery throughput in 2022 fell 3.4% from a year earlier, its first annual decline since 2001, as China’s rigid COVID controls took a toll on the economy and fuel consumption.

Pakistan’s government does not plan to increase gas prices, junior oil and gas minister Musadik Malik told the Senate on Tuesday, a week after the oil and gas regulator approved price hikes by two companies, state broadcaster PTV News reported.