Singapore fuel oil stocks edge higher as net imports hit 6-week high

SINGAPORE: Singapore's residual fuel oil inventories edged up to a two-week high in the week ended June 3, as net import volumes jumped to a six-week peak, official data showed on Thursday.

Onshore fuel oil stocks rose 88,000 barrels, about 14,000 tonnes, on-week to 25.685 million barrels, or 4.045 million tonnes, data from Enterprise Singapore showed.

Residual fuel stocks came in 16pc higher from a year-ago period, and were near a more than one-year high of 26.172 million barrels, or 4.122 million tonnes, in the week to May 20.

Net import volumes soared 851pc from a two-year low in the previous week to 951,000 tonnes and were above the 2020 weekly average of 691,000 tonnes. Weekly figures, however, were volatile.

The elevated inventories came amid ample residual fuel output, shrinking exports to China and persistently sluggish spot bunker fuel demand in the Singapore hub in recent weeks, trade sources said.

For the week, most of Singapore's net fuel oil exports sailed to Hong Kong at 138,000 tonnes, followed by 128,000 tonnes to China and 41,000 tonnes to New Caledonia.

The largest net imports into Singapore were Malaysia's 682,000 tonnes, followed by Brazil with 192,000 tonnes, the United Arab Emirates with 102,000 tonnes and Iraq with 85,000 tonnes.

Singapore fuel oil imports from Malaysia were at their highest since at least December 2015, or as far as available records show, while imports from Brazil were at a near six-month high.