SINGAPORE, July 8 (Reuters) - Asia fuel oil markets strengthened on Wednesday, lifted by a bullish turn in upstream crude markets as fears of disruptions to Middle East oil supplies emerged again.

U.S. President Donald Trump said on Wednesday that the memorandum of understanding signed with Iran to end the conflict was "over", after the two countries traded strikes.

Exports of fuel oil from Middle East exporters are likely to remain capped this month amid a volatile Hormuz situation.

Spot differentials for 380-cst high sulphur fuel oil (HSFO) edged higher on Wednesday, though remaining in discounts to cargo quotes. Premiums for very low sulphur fuel oil (VLSFO) also firmed amid stronger bids.

Cracks for fuel oil gained day-on-day. VLSFO's crack LFO05SGBRTCMc1 closed at a premium near $13.60 a barrel, LSEG data showed, while 380-cst HSFO's crack FO380BRTCKMc1 narrowed to a discount of $6.65 a barrel.

INVENTORY DATA

- Fujairah heavy fuel inventories FUJHD04 recovered to a four-month high, climbing 38.1% to 7.32 million barrels (1.15 million metric tons) in the week to July 6, FOIZ data published by S&P Global Commodity Insights showed.

OTHER NEWS

- Oil prices jumped more than 6% on Wednesday, hitting a two-week high after U.S. President Donald Trump said the memorandum of understanding to end the conflict with Iran was "over", renewing fears of disruptions to Middle East oil supplies. O/R

- At least four oil and gas tankers have turned back from attempting to transit the Strait of Hormuz, ship-tracking data showed, as renewed attacks on vessels in the critical waterway heightened safety and security concerns.

- A subsidiary of Chinese oil and gas major Sinopec has signed a contract to design Central Asia's first large-scale, fully integrated sustainable aviation fuel complex, the company said, marking a major step in the group's overseas low-carbon energy push.

- Geneva-headquartered trader Vitol is making early preparations to open an office in Venezuela, three sources with knowledge of the matter said, as global trading houses expand their role in the OPEC country's oil exports under a pact agreed between Caracas and Washington earlier this year.

WINDOW TRADES O/AS

- 180-cst HSFO: No trade.

- 380-cst HSFO: No trade.

- 0.5% VLSFO: No trade.

ASSESSMENTS

FUEL OIL
CASH ($/T)	ASIA CLOSE	CHANGE	PREV CLOSE	RIC
Cargo - 180cst	452.42	35.48	416.94	FO180-SIN
Diff - 180cst	-3.75	2.25	-6.00	FO180-SIN-DIF
Cargo - 380cst	445.84	35.61	410.23	FO380-SIN
Diff - 380cst	-2.85	0.15	-3.00	FO380-SIN-DIF
Cargo - 0.5% VLSFO	601.60	39.50	562.10	MFO05-SIN
Diff - 0.5% VLSFO	13.75	1.35	12.40	MFO05-SIN-DIF

For a list of derivatives prices, please refer to ENSWAP/INFO or the RICs below:
180cst M1	FO180SGSWMc1
180cst M1/M2	FO180SGSDMc1
380cst M1	FO380SGSWMc1
380cst M1/M2	FO380SGSDMc1
0.5% VLSFO M1	LFO05FSGMc1
0.5% VLSFO M1/M2	LFO05FSGSMc1
Cracks 180cst-Brent M1	FO180BRTCKMc1
Cracks 180cst-Dubai M1	FO180SGCKMc1
Cracks 380cst-Brent M1	FO380BRTCKMc1
Cracks 380cst-Dubai M1	FO380DUBCKMc1
Cracks 0.5% VLSFO-Brent M1	LFO05SGBRTCMc1
Cracks 0.5% VLSFO-Dubai M1	LFO05SGDUBCMc1
Visco 180cst/380cst M1	FOVISSGDFMc1
Hi-5 0.5% VLSFO/380cst M1	FO05-380SGMc1
GoFo 10PPM/0.5% VLSFO M1	GO10FO05FSGMc1
East-West M1	FOSGEWMc1
Barges M1	HFOFARAAMc1
Barges M1/M2	HFOFARAASMc1
Crack Barges-Brent M1	HFOFARAACMc1