SINGAPORE: Asia’s hi-5 fuel oil spread narrowed to nearly 11-month lows on Friday, as market trends continued to diverge for very low sulphur fuel oil (VLSFO) and high sulphur fuel oil (HSFO).

The front-month Hi-5, which is the price difference between 0.5% VLSFO and 380-cst HSFO, narrowed to $143.25 a tonne at the Asia close (0830 GMT), Refinitiv data showed.

The spot VLSFO market has softened steadily since early February, driven by higher incoming supplies and tepid downstream demand for bunkering.

The 0.5% VLSFO cash differential slumped for a 12th consecutive session, closing at parity to Singapore quotes on Friday. The differential has always held in premiums since end-May 2021, data showed.

Meanwhile, HSFO retained a rally amid strong bidding. The 180-cst HSFO cash differential climbed to $9 a tonne over Singapore quotes, while the 380-cst HSFO cash differential firmed to $8.84 a tonne.