SINGAPORE: Asia’s spot premium for 0.5% very low sulphur fuel oil (VLSFO) hit a five-month high on Friday on firmer bidding and trading.

The spot premium was at $24.23 a tonne to Singapore quotes, up for a ninth consecutive session.

Downstream VLSFO bunker fuel premiums have also edged higher this week, though the uptick still lagged behind the sudden surge in cargo premiums, traders said.

Meanwhile, the 380-cst high sulphur fuel oil (HSFO) market also extended gains on Friday, with the spot premium climbing to $5.05 a tonne to Singapore quotes.

China’s exports of low-sulphur marine fuels in 2022 fell 6.2% to 18.05 million tonnes year-on-year, in line with lower ship refuelling demand across main global bunkering ports. December VLSFO exports were at 1.1 million tonnes, down 12.9% from a year-ago period.

Meanwhile, total fuel oil imports in December surged to 1.8 million tonnes. The increase was led by imports into bonded storage, which includes both high-sulphur and low-sulphur materials, at 1.4 million tonnes.