Asia Fuel Oil-Spot premiums gain; Singapore inventories steady

SINGAPORE, Oct 22 (Reuters) - Spot fuel oil premiums edged higher on Thursday, while latest data showed that Singapore's onshore residual fuel inventories steadied after declining in recent weeks.

The inventories rebounded for the first time after sliding for six consecutive weeks, Enterprise Singapore data showed, though current levels hovered below last month's average.

Trade sources said the market is amply supplied this month, though November-December timespreads for high sulphur fuel oil (HSFO) and very low sulphur fuel oil (VLSFO) traded into a steeper backwardation, lifting cash differentials day on day.

Cracks also rebounded after the previous day's sell-offs, with 380-cst HSFO crack closing at above $8.50 a barrel on Thursday, while VLSFO crack rose to above $25 a barrel, LSEG data showed.

Meanwhile, the November hi-five spread narrowed day on day to about $105 a metric ton.

INVENTORY DATA

- Singapore residual fuel stockpiles rose 4.5% to 18.86 million barrels (2.97 million tons) in the week to October 21, Enterprise Singapore data showed.

OTHER NEWS

- Oil prices rallied over $2 a barrel on Thursday after more Houthi attacks in Saudi Arabia stoked concerns over a broader escalation of conflict and further disruptions to crude supplies from the world's key exporting region. O/R

- Russia and the United States are discussing the future of the international assets of sanctioned Russian oil producer Lukoil, Kremlin aide Yuri Ushakov said, according to state television.

- India's imports of Middle Eastern crude oil surged in September, returning to pre-war levels, while its refiners cut back purchases of Russian oil amid stiff competition with China, ship tracking data showed.

- Chevron is exploring the sale of some of its older oil and gas assets in the US Gulf, the company confirmed to Reuters, part of an effort to focus on high-growth developments in the region.

WINDOW TRADES O/AS

- 180-cst HSFO: No trade

- 380-cst HSFO: No trade

- 0.5% VLSFO: No trade

ASSESSMENTS