SINGAPORE: Asia’s spot fuel oil market was little changed on Friday as cash premiums steadied in thin trade, though high sulphur fuel oil (HSFO) margin closed the week at a one-year high.

The front-month margin for spot 380-cst HSFO rose to a discount of $6.86 a barrel at 0830 GMT, and was last higher in May 2022, Refinitiv data showed. Cracks have been largely buoyed by firm secondary feedstock demand for HSFO.

Meanwhile, the very low sulphur fuel oil (VLSFO) market inched softer on Friday amid expectations of more incoming cargoes.

Kuwait’s Al Zour refinery has issued a second tender offering fuel oil in the same week, trade sources said, after it recently resumed spot sales following a gap of nearly eight weeks.

The refinery has offered 120,000 to 150,000 tonnes of LSFO - with maximum sulphur content of 0.5% - for loading between June 3 and June 4, in a tender that closes on May 19.

Asia’s VLSFO cargo cash premium closed lower at $11.53 a tonne to Singapore quotes, while front-month margin fell to a premium of $10.70 a barrel at 0830 GMT. In other tenders, Philippines SL Harbour sought 180-cst HSFO for delivery between June 21 and 30, in a tender that closes on May 22.

Oil prices rebounded on Friday from losses of more than 1% the previous day as investors turned cautiously optimistic over the fading risk of a US debt default.

Britain announced a new wave of sanctions against Russia on Friday, targeting companies connected to the theft of Ukrainian grain and those involved in the shipment of Russian energy.

Japanese trading house Toyota Tsusho Corp said it is shutting its Singapore unit Toyota Tsusho Petroleum but plans to continue to offer bunker fuel and possibly biofuel and liquefied natural gas in the city-state through a new subsidiary.

India plans to import about 5.5 million barrels of crude oil after October to fill part of its Mangalore strategic petroleum reserve in southern Karnataka state and may change the crude grade at another facility, a source familiar with the plan said.