SINGAPORE, June 12 (Reuters) - Asia fuel oil markets traded lower on Friday, largely mirroring the sentiment in upstream crude futures that declined after U.S. President Trump called off planned strikes on Iran and said a peace deal could be signed as soon as this weekend.

Timespreads for high-sulphur fuel oil (HSFO) traded lower in Asia hours, with July-August 380-cst HSFO spreads weakening into single-digit premiums, while very low-sulphur fuel oil (VLSFO) also softened.

An ongoing stalemate in fuel oil shipments out of the Strait of Hormuz has largely provided a floor to the markets since the start of the war.

Spot 380-cst HSFO cash premiums held above $27 a metric ton, while VLSFO premiums eased day-on-day to about $31 a ton.

Cracks were steady to softer. Singapore's 380-cst HSFO crack FO380BRTCKMc1 closed at a discount near $3.65 a barrel, while VLSFO crack LFO05SGBRTCMc1 dipped below a premium of $14 a barrel, LSEG data showed.

INVENTORY DATA

- Fuel oil inventories in the ARA hub STK-FO-ARA dipped 0.3% to 573,000 tons in the week to June 11, according to Dutch consultancy Insights Global.

OTHER NEWS

- Oil prices fell to their lowest in nearly two months on Friday after U.S. President Donald Trump cancelled new strikes on Iran, reducing fears of an escalation of hostilities following tit-for-tat attacks earlier in the week. O/R

- Fuel stations on the Russian-held Crimean peninsula were out of petrol on Thursday, Reuters witnesses said, as a Ukrainian campaign against supply lines to the peninsula escalates.

- India has barred commercial consumers from buying gasoline and diesel from retail fuel stations and imposed limits on daily diesel purchases to prevent local shortages, amid disruptions to global supply chains due to the war in the Middle East.

- Shippers including Maersk and Vale are turning to ethanol as a marine fuel to cut emissions as abundant supply and lower cost make it more attractive than other low-carbon fuels, with further commercial usage expected as early as next year.

WINDOW TRADES O/AS

- 180-cst HSFO: No trade.

- 380-cst HSFO: Four trades.

- 0.5% VLSFO: No trade.

ASSESSMENTS

FUEL OIL
CASH ($/T)	ASIA CLOSE	CHANGE	PREV CLOSE	RIC
Cargo - 180cst	553.50	-40.16	593.66	FO180-SIN
Diff - 180cst	23.85	-1.05	24.90	FO180-SIN-DIF
Cargo - 380cst	551.17	-41.69	592.86	FO380-SIN
Diff - 380cst	27.30	-1.85	29.15	FO380-SIN-DIF
Cargo - 0.5% VLSFO	666.90	-45.13	712.03	MFO05-SIN
Diff - 0.5% VLSFO	31.05	-0.80	31.85	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