Asia Fuel Oil-HiLo hovers near three-month lows after VLSFO price collapse

SINGAPORE, Aug 8 (Reuters) - Asia's high-low (HiLo) fuel oil spread, which is the price difference between 0.5% very low sulphur fuel oil (VLSFO) and 380-cst high-sulphur fuel oil (HSFO) swaps, has been hovering near three-month lows after the VLSFO market collapsed. The balance-month HiLo spread was at $217 per tonne at the Asia close on Monday, Refinitiv data showed. The spread has narrowed more than 50% after striking a record high of $465 per tonne on July 5. Prices of 0.5% VLSFO have tumbled sharply since mid-July amid expectations of higher supply for August. Regional exporters across Asia have offered more VLSFO product and blendstocks in tender sales after gasoline margins took a dive. The cash differential for 0.5% VLSFO dipped 50 cents to a premium of $15.63 per tonne over Singapore quotes on Monday. Meanwhile, the 380-cst HSFO market held steady to slightly firmer in recent trading sessions, as delays in Fujairah loadings to Singapore limited price declines. Port operations at Fujairah are still recovering following weather disruptions in recent weeks. The 380-cst HSFO differential rose 50 cents to a premium of $6.66 per tonne over Singapore quotes on Monday. OTHER NEWS - Oil prices edged up from multi-month lows on Monday as investors' appetite improved following data on U.S. jobs and Chinese exports that eased recession concerns. - China's crude oil imports in July fell 9.5% from a year earlier, with daily volumes at the second lowest in four years, as refiners drew down inventories and domestic fuel demand recovered more slowly than expected. - Japan intends to keep a stake in the Sakhalin-1 oil and gas project in Russia, industry minister Koichi Hagiuda said on Monday, after Russia temporarily banned Western investors from selling shares in key energy projects. - U.S. fuel retailers are fighting the inclusion of a tax credit for sustainable aviation fuel (SAF) in Democrats' $430 billion spending bill, arguing SAF is more carbon intense and less efficient than renewable diesel. WINDOW TRADES - HSFO: No trade - VLSFO: No trade ASSESSMENTS FUEL OIL CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC Cargo - 0.5% VLSFO 680.82 6.97 673.85 Diff - 0.5% VLSFO 15.63 -0.50 16.13 Cargo - 180cst 485.34 3.06 482.28 Diff - 180cst 1.09 0.64 0.45 Cargo - 380cst 461.24 3.97 457.27 Diff - 380cst 6.66 0.50 6.16 Bunker (Ex-wharf) Premium - 380cst 9.76 0.68 9.08 Bunker (Ex-wharf) Premium - 0.5% VLSFO 45.00 -1.00 46.00 For a list of derivatives prices, including margins, please double click the RICs below. Brent M1 180cst M1 180cst M1/M2 180cst M2 Visco M1 Visco M2 380cst M1 380cst M1/M2 380cst M2 Cracks 180-Dubai M1 Cracks 180-Dubai M2 East-West M1 East-West M2 Barges M1 Barges M1/M2 Barges M2 Crack Barges-Brent M1 Crack Barges-Brent M2 (Reporting by Jeslyn Lerh; Editing by Shailesh Kuber)