Asia high sulphur fuel oil (HSFO) cracks traded higher on Thursday, rebounding back into premiums over both Brent and Dubai quotes respectively after closing near parity in the previous day. HSFO cracks have been volatile in recent sessions, though they have cooled off from record highs reached last month. Front-month cracks closed near a premium of $1 a barrel to Dubai quotes on Thursday, according to LSEG data. The high margins have spurred more output and exports from Middle Eastern suppliers, including from Iraq to Asia, with heavy supplies contributing to high inventories in Singapore. Onshore stocks at Singapore climbed for a third consecutive week, supported by higher imports from various origins, latest data showed. However, Middle Eastern exports are expected to ease amid domestic summer demand. As such, some market strength is reflected in wide HSFO backwardation spreads for the balance-month/July and July/August contracts, industry sources said. Meanwhile, Singapore cash differential for 380-cst HSFO extended gains, with trading activity remaining active. INVENTORY DATA – Singapore residual fuel inventories were at 22.58 million barrels (about 3.56 million metric tons) in the week to June 4, up 1.1% week-on-week, Enterprise Singapore data showed. Source: Reuters