Fuel oil ended the week steady as traders considered a potential supply crunch in the fourth-quarter which could firm prices.

Even as demand starts to recover in China, buying remains cautious because of the inexorable rise of the flat price.

Traders are already starting to seek alternatives to Venezuelan supplies, on the anticipation that state-owned PDVSA will not be back at full capacity soon.

The 645,000 barrels per day (bpd) refinery, largest in the country, is currently processing 330,000 bpd.

"Right now we're going to start looking at other possible options, maybe the straight-run from the Far East of Russia, although their pricing could be a problem for us," a trader said.

Premiums for high yielding distillate eastern grade straight-run fuel oil originating from Russuan ports are around $60-$70 a tonne on a cost and freight basis.

Fuel oil coming from Venezuela was quoted to Chinese buyers at a premium of around $10 a tonne.

"The alternative is definitely going to be a more painful burden for the buyer, but better for the seller of the m100," a trader said.

The fuel oil timespread for October/November, which turns prompt next week,inched up 13 cents to a backwardation of $4.25 a tonne, according to a Reuters assessment.

The viscosity spread, price difference between the 180-centistoke (cst) and 380-cst grades, rose to $16.38 a tonne, highest in nine months.