SINGAPORE: Asia’s spot cash premium for very low sulphur fuel oil (VLSFO) rose on Tuesday, extending gains from the previous session, while the market closely watched the results of Kuwait’s April-loading Al Zour tenders.

The refiner had offered two 120,000-tonne cargoes for loading between April 3-4 and April 7-8 respectively, a sign of steady export supplies as it continues to ramp up operations.

Despite this, Singapore’s cash premium for 0.5% VLSFO jumped to $10.48 a tonne, after staying trapped in single-digit premiums for nearly a month. A spot trade had emerged at $11 a tonne to Singapore quotes for April 15-19 loading.

Meanwhile, cash premiums for high sulphur fuel oil are expected to trend steady to lower in the near term, as Middle Eastern supplies and Russian supplies to Asia remained strong.

Oil rose on Tuesday, extending a recovery from a 15-month low hit the previous day, as the rescue of Credit Suisse eased worries about global banking sector risks that could hit economic growth and fuel demand.