Asia Fuel Oil-VLSFO premium slides further to eleven-week low

SINGAPORE, Aug 2 (Reuters) - The cash premium for very low sulphur fuel oil (VLSFO) fell further on Tuesday, sliding to an eleven-week low, as prospects of easing supply tightness continued to cool the market. The 0.5% VLSFO cash differential fell $6.74 to a premium of $40.09 per tonne over Singapore quotes on Tuesday. The premium has eased off sharply compared to its record high of $86.23 in mid-July. Regional refiners in Asia have raised VLSFO exports in end-July and August, which is likely to help ease a supply tightness that has persisted for two months. Meanwhile, cash differentials for high sulphur fuel oil (HSFO) were little changed on Tuesday. The 180-cst HSFO cash differential <180-SIN-DIF> rose 92 cents to $3.78 per tonne over Singapore quotes on Tuesday, while the 380-cst HSFO cash differential <380-SIN-DIF> dipped 41 cents to a premium of $5.75 per tonne. TENDER UPDATES India's Nayara Energy sold a 40,000-tonne LSFO cargo to Vitol for loading between August 11-15, and another 40,000-tonne LSFO cargo to Shell for loading between August 20-24. The tenders were concluded at premiums of $50-60 per tonne to the average of Singapore spot 0.5% VLSFO assessments, market sources said. Meanwhile, South Korea's S-Oil sold a 300,000-barrel light cycle oil (LCO) cargo to Shell for loading between August 24-28, at an unknown price. S-Oil also sold a 24,000-tonne slurry cargo for loading between August 16-20, but further details were not immediately available. OTHER NEWS - Oil slipped on Tuesday as investors absorbed a bleak outlook for fuel demand with data pointing to a global manufacturing downturn just as OPEC+ producers meet this week to decide whether to increase supply. - The United States on Monday imposed sanctions on Chinese and other firms it said helped to sell tens of millions of dollars in Iranian oil and petrochemical products to East Asia as it seeks to raise pressure on Tehran to curb its nuclear programme. WINDOW TRADES - HSFO: Two 380cst trades - VLSFO: No trade ASSESSMENTS FUEL OIL CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC Cargo - 0.5% VLSFO 748.61 -45.32 793.93 Diff - 0.5% VLSFO 40.09 -6.74 46.83 Cargo - 180cst 509.90 -9.14 519.04 Diff - 180cst 3.78 0.92 2.86 Cargo - 380cst 475.59 -8.75 484.34 Diff - 380cst 5.75 -0.41 6.16 Bunker (Ex-wharf) Premium - 380cst 7.91 1.65 6.26 Bunker (Ex-wharf) Premium - 0.5% VLSFO 65.00 -2.00 67.00 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)